The UK government announced that Britain unveils fast-track licensing for financial services startups, allowing them to operate provisionally while completing full authorisation. The finance ministry said the move is part of efforts to cut red tape and boost economic growth.
Under the new system, startups meeting “robust” entry criteria can carry out some regulated activities for up to 18 months. Safeguards will be in place during this provisional period, while firms work toward full licensing.
“Too many promising firms have told us their growth is being hampered by the time it takes to secure full authorisation,” UK Financial Services Minister Lucy Rigby said. “This new regime will help high-potential start-ups and scale-ups trade and grow sooner.”
The UK’s Financial Conduct Authority (FCA) has faced criticism from fintech companies for a lengthy and costly approval process. Many argued that delays were choking investment and slowing business expansion. To address this, the government has asked the FCA to ease regulatory burdens.
Sheree Howard, FCA Executive Director, said the fast-track system would remove barriers to entry while maintaining high regulatory standards. “We will work closely with industry, consumer groups, and government to ensure the regime reduces barriers for relevant firms,” she added.
The finance ministry noted that the FCA will provide detailed eligibility criteria soon. Startups that qualify will benefit from faster market access and reduced compliance delays.
In related news, the UK regulator will also lift the pause on handling motor finance complaints by May 31, 2026. This is two months earlier than initially planned. The move is part of a compensation scheme for customers affected by the mis-selling scandal involving lenders such as Lloyds, Barclays, and Close Brothers.
With Britain unveils fast-track licensing, fintech startups in the UK can now expect faster growth opportunities, improved access to capital, and a smoother path to full regulatory approval. The initiative is being hailed as a major step to strengthen the country’s fintech ecosystem.
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