What happened?
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.
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Reviewed by TCC Group Editorial Team