What happened?
In an article for IT Reseller Magazine, Joe Norburn, CEO of TCC Group, shared five predictions for how compliance and regulatory oversight will evolve during 2026. The article argues that regulatory expectations are shifting from assessing firms’ intentions to examining the evidence behind their decisions, with greater scrutiny of audit trails, customer outcomes, vulnerability assessments and compliance monitoring. It also highlights the growing role of predictive AI in helping firms evidence compliance at scale.
Why does it matter?
The FCA’s supervisory approach is becoming increasingly data-led and outcome-focused, meaning firms must be able to demonstrate how they monitor, measure and deliver good customer outcomes. Regulators are expected to place greater emphasis on evidence readiness, auditability and proof of customer understanding, not simply the existence of policies or governance frameworks. Firms that rely on manual compliance processes or limited sampling approaches may find it increasingly difficult to meet rising evidential demands, while those investing in stronger data, monitoring and testing capabilities will be better positioned to respond to regulatory scrutiny.
Supporting sources
Frequently asked questions
What is meant by "evidence readiness"?
Evidence readiness is the ability to quickly demonstrate, through clear and retrievable records, how a firm has delivered good customer outcomes, managed risks and complied with regulatory requirements. In 2026, firms are expected to treat this as an ongoing operational capability rather than a periodic exercise.
Why are audit trails becoming more important?
The FCA is expected to focus increasingly on whether firms can provide reliable evidence of decisions, actions and customer interactions. Even when good outcomes have been delivered, weak or incomplete audit trails can create regulatory risk.
How could AI support compliance teams in 2026?
The article predicts that predictive AI will become a core compliance capability by helping firms identify risk patterns, analyse larger populations of interactions and create more robust evidence frameworks. This can enable compliance teams to focus their expertise on higher-risk areas while improving oversight and efficiency.
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- BankingTCC helps retail banks, challenger banks, building societies and specialist banking providers strengthen governance, manage financial crime risk and demonstrate good customer outcomes. Our specialists support Consumer Duty, remediation, regulatory transformation, FCA intervention and compliance assurance programmes through advisory, managed services, specialist resourcing and technology-enabled compliance. With more than 25 years of experience supporting FCA-regulated firms, we help banks respond confidently to regulatory scrutiny while strengthening operational resilience and customer trust.
- General Insurance & ProtectionTCC helps insurers, brokers, MGAs and protection providers evidence fair value, strengthen customer outcomes and identify emerging customer harm. We assess product governance, claims performance, distribution oversight and vulnerability risks, helping firms create regulator-ready evidence, improve operational performance and demonstrate that products and services deliver value throughout the customer lifecycle.
- Lending & Consumer CreditTCC helps consumer credit firms evidence good outcomes, strengthen affordability and vulnerability frameworks, and manage complaints, remediation and regulatory risk. We support lenders with practical, regulator-ready compliance programmes that improve governance, customer treatment and operational resilience.
- Motor FinanceTCC helps motor finance lenders, brokers and providers assess redress exposure, prepare for large-scale customer reviews and strengthen complaints, affordability and Consumer Duty frameworks. We combine regulatory advisory, managed operations, specialist resource and technology-enabled assurance to deliver consistent customer outcomes, robust governance and regulator-ready evidence under heightened FCA scrutiny.
Reviewed by TCC Group Editorial Team