On 8 October 2026, the Financial Conduct Authority (FCA) published a blog on how strong compliance functions can support trusted corporate finance markets, this follows on from a survey the FCA had conducted, which it considers found encouraging practice across corporate finance firms but also opportunities for more compliance involvement and independent challenge.
Summary
The FCA sets out that, overall, its survey found that there is no single model for effective compliance, but strong compliance must be embedded in a firm’s culture rather than treated as a box-ticking exercise, and that it also found that while compliance arrangements should be proportionate to a firm’s size and complexity, they must still be capable of delivering high standards of conduct and managing conflicts effectively.
The FCA highlighted that many of the firms surveyed were small, with 64% employing fewer than 10 people. As a result, it noted that around 63% reported that compliance staff also performed other business functions, creating potential conflicts of interest, particularly where they contribute to revenue generation. The FCA emphasises that compliance functions must have sufficient authority, visibility and access to provide meaningful challenge, especially in smaller firms or those performing important public markets roles.
The FCA also made clear that the survey showed widespread reliance on external compliance support, used by 90% of firms. The FCA stated that it recognises the value of external expertise but also stressed that responsibility for regulatory compliance remains with senior management, who must actively oversee any third-party providers.
Finally, the FCA emphasised that although most firms reported carrying out core compliance activities, weaknesses were identified in areas that support a strong compliance culture, such as whistleblowing arrangements, breach registers, management reporting, compliance involvement in management meetings, complaint monitoring and incorporating compliance into staff performance assessments.
Next steps
The FCA intends to engage further with selected firms and encourages all firms to review and strengthen their compliance arrangements to support market integrity, better decision-making and sustainable growth.
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