Bite-size: FCA call for input on SME access to finance – why compliance teams should take note
FCA asks for views on how regulation can help SMEs access finance
The FCA has launched a call for input on how its regulatory framework can help SMEs access finance. The exercise spans debt, equity, hybrid and alternative finance, and seeks views from SMEs, providers and distributors on barriers to finance, opportunities for future regulatory support, sector-specific issues and future trends such as open finance. Responses are requested by 17 April 2026, with further engagement planned through spring 2026 and a summary of insights later in the year. (FCA)
This is important work from the regulator. The FCA notes that SMEs accounted for 60% of private sector employment and 50% of turnover at the start of 2025, while evidence suggests UK SME demand for finance is low compared with international counterparts. Against that backdrop, the fact the FCA is asking how its own regulation affects access to finance is a significant signal for firms operating in, or supporting, SME finance markets. (FCA)
This is not a rule change, and the paper does not yet contain firm proposals. However, the FCA says the exercise will help shape its regulatory approach and future priorities, with potential outcomes including a review of rules or clarification of specific requirements. It also sits alongside wider work by HM Treasury with the Bank of England on access to finance for high-potential growth firms, and by DBT on demand- and supply-side barriers to SME finance. (FCA)
From a compliance perspective, this should be read as more than a high-level listening exercise. The FCA is explicitly interested in barriers that directly affect the cost and perceived risk of providing SME finance, opportunities for regulation to better support provision, sector-specific issues in high-growth sectors, and future trends including open finance. That means the discussion is likely to touch not only on policy design, but also on how regulation is interpreted and operationalised in practice across products, distribution and customer journeys. (FCA)
One of the most interesting outputs will be what the FCA ultimately concludes are the real barriers to SMEs using finance. The regulator has commissioned international research and is seeking evidence both from SMEs and from finance providers and distributors. Our initial view is that the eventual findings will be worth watching closely for where the FCA lands on regulatory cost, perceived risk, market structure, sector-specific frictions, innovation and demand-side behaviour as the main drivers of low take-up or constrained access. (FCA)
The sector focus is also notable. The FCA specifically references Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. Firms with activity in these sectors, or with broader SME finance propositions, should consider whether they have evidence or practical examples worth feeding into the exercise before the 17 April 2026 deadline. (FCA)
Our view is that firms should review this paper now through a compliance, legal and commercial lens. It is a useful opportunity to identify where regulatory requirements, interpretations or control frameworks may be creating friction for SME finance, and to engage with the FCA before it decides whether rule changes or clarifications are needed. (FCA)
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