The FCA says it will make it easier for firms to test innovative products by providing them with an authorisation case officer from the start of the process.

It will also go ahead with an innovative new market for private companies to raise money, to be known as PISCES.

The changes, which will be introduced as part of the FCA’s work programme for 2025-2026, will support new firms applying for regulatory approval, the regulator said.

It said every firm that uses its regulatory sandbox to safely test innovative products will be provided with an authorisation case officer from the start. It said the change will help the right firms get authorised and bring innovative products and services to market faster.

The FCA said that since its regulatory sandbox was launched in 2016, 195 firms serving UK consumers have been accepted.

The regulator’s pre-application support service, which provides extra support for firms seeking regulatory approval, is also being extended to all wholesale, payments and cryptoasset firms.

The move will encourage firms in these sectors to set up in the UK to fuel growth, exports and job creation, while maintaining standards, the regulator said.

In the last year, the FCA has supported 80 wholesale firms via pre-application meetings, it said.

Nikhil Rathi, chief executive of the FCA, said: “We’re committed to being a smarter regulator - one that supports growth, helps consumers and fights crime. Our annual work programme details what we will deliver to achieve these goals.

“Today, we’re setting out how we’ll go further to help firms that want to join our markets with greater support for the application process and to test innovative products.”

To spearhead growth, the FCA said it will allow a new innovative market for private companies to improve their ability to grow and scale up. The Private Intermittent Securities and Capital Exchange System, also known as PISCES, will offer investors greater access to investment opportunities in private companies.

To encourage innovation, the FCA’s AI Lab will work with firms to deepen understanding and support the use of AI solutions to drive growth and competitiveness in financial markets.

The regulator will also let more firms know it is “minded to approve” applications for authorisation when it thinks they can meet required standards. It will allow firms to seek investment with confidence that they can secure regulated status, the FCA said.