What happened?
In an article for IT Supply Chain, Joe Norburn outlines five predictions for how regulatory compliance will evolve in 2026. He argues that while political discussions may focus on reducing regulatory burdens, firms should expect greater scrutiny from regulators, more targeted information requests and increased demands for evidence that good customer outcomes are being delivered in practice. The article highlights growing expectations around audit trails, outcome testing, vulnerable customer support, evidence quality and the role of predictive AI in compliance monitoring.
Why does it matter?
The FCA’s supervisory approach is becoming increasingly data-led and outcome-focused, placing greater emphasis on what firms can prove rather than what they intend to achieve. Firms that rely on limited sampling, incomplete records or manual compliance processes may find it harder to demonstrate compliance when challenged. As evidential standards continue to rise, the ability to quickly produce reliable evidence of customer understanding, fair treatment and good outcomes is likely to become a key differentiator between firms that can respond confidently to regulatory scrutiny and those that cannot.
Supporting sources
Frequently asked questions
What does "evidence readiness" mean for financial services firms?
Evidence readiness means being able to quickly demonstrate, through reliable data, audit trails and customer interaction records, how good customer outcomes are being delivered. Rather than treating compliance as a periodic reporting exercise, firms need to maintain ongoing evidence that can withstand regulatory scrutiny.
Why are firms likely to face greater scrutiny in 2026?
What role will AI play in compliance and outcome monitoring?
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Reviewed by Joe Norburn