Britain unveils fast-track licensing to boost fintech growth

UK will launch a fast-track licensing regime for financial services startups allowing them to get up and running while they seek full authorisation, the finance ministry said on Thursday, part of a wider drive to cut red tape and boost economic growth.

Under the new system, firms meeting “robust” entry criteria will be able to operate provisionally and carry out some regulated activities for up to 18 months, subject to safeguards, as they complete the full licensing process.

“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.”

UK’s Financial Conduct Authority has faced criticism from fintechs that its approval process is too lengthy and costly, choking investment and slowing expansion.

The UK government has also asked the FCA to ease the regulatory burden.

Sheree Howard, executive director at the FCA, said the proposed regime would help remove barriers to entry for startups.

“We will work closely with industry, consumer groups and government to ensure the regime reduces barriers for relevant firms, while maintaining the UK’s high regulatory standards,” Howard added.

The finance ministry said the FCA would set out more detailed eligibility criteria.

UK to lift pause on motor finance complaint handling in May 2026

The United Kingdom (UK)  financial regulator will lift the pause on handling motor finance complaints on May 31, 2026, two months earlier than initially proposed, as it finalises a compensation scheme for those hit by the mis-selling scandal.

The Financial Conduct Authority had paused processing complaints in January 2024 while it assessed whether motor finance lenders and brokers had adequately disclosed commissions.

The scandal, which dates back to 2007, involves lenders such as Lloyds, Close Brothers , and Barclays , that are accused of using excessively high interest rates in car-finance arrangements and including extra bonus payments.