The Financial Conduct Authority is examining how its regulation could better support SME access to finance as demand for specialist and alternative lending continues to rise across the UK market.
The regulator says the review forms part of its wider growth agenda and will explore whether existing rules are creating barriers to funding for smaller businesses.
The move comes at a time when many SMEs are increasingly turning away from traditional high street lending in favour of specialist finance providers, challenger banks and alternative funding solutions.
The regulator says it wants to understand how its rules affect access to debt, equity, hybrid and alternative finance, including the impact on firms operating both inside and outside the FCA’s formal regulatory perimeter.
LENDING RISK
Areas under review include barriers affecting the cost and perceived risk of SME lending, opportunities for innovation and open finance, and sector-specific funding challenges across industries including clean energy, technology, manufacturing and financial services.
The FCA also confirmed it is examining international approaches to SME finance to understand how market structures and policy interventions compare with the UK.
While the formal call for input closed earlier this year, the regulator says it has already gathered feedback from SMEs, lenders and distributors of finance on both regulatory blockers and opportunities for reform.
The review is likely to be closely watched across the bridging and specialist finance sectors, where lenders have increasingly filled funding gaps left by mainstream banks amid tighter underwriting, affordability pressures and prolonged transaction timelines.
STAKEHOLDER ROUND-TABLE
The FCA says it will hold a stakeholder round-table in London in June 2026 bringing together firms, SME representatives and government organisations to discuss the future of SME finance, including regulatory barriers and market trends.
Potential outcomes from the work could include reviews of existing rules or clarification of regulatory requirements, although the FCA stresses that any formal proposals would be subject to consultation.
*Places at the roundtable are necessarily limited to ensure a balanced and effective discussion. If you’ve not received an invite and would like to register your interest in attending, contact SMEfinance@fca.org.uk by Friday 22 May 2026.
