John ConnorThe FCA is calling for views on how regulation can help SMEs access finance across debt, equity, hybrid and alternative finance markets.
The regulator notes that at the start of 2025, SMEs accounted for around 60% of private sector employment and 50% of its turnover. However, evidence from the Department for Business and Trade suggests that the UK SMEs’ demand for finance is low compared to international counterparts.
The FCA will mainly focus on financial products and services that it regulates, but will also consider the impact of its regulation on FCA-regulated firms that offer products and services to SMEs outside of the regulatory perimeter.
Areas of interest include:
- Barriers to SME finance – including regulation that directly affects the cost and/or perceived risk of providing SME finance;
- Opportunities for future regulation – such as industry collaboration and adopting innovation and new technology;
- Sector-specific issues in financing – particularly for high-growth sectors such as advanced manufacturing, clean energy, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services; and
- Future trends – including the role of open finance.
The FCA is seeking input from SMEs as well as providers and distributors of SME finance. The call for input closes on 17 April 2026.
The FCA will engage with SME representatives and trade associations in March, hold a roundtable with key stakeholders in May, and expects to summarise its conclusions and next steps later in 2026.