FCA's Walls Talks UK Deregulation, 'Golden Age' For The City

Summary

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Bloomberg Talks: FCA's Walls Talks UK Deregulation, 'Golden Age' For The City

Date: January 19, 2026
Host: Bloomberg
Guest: Simon Walls, Executive Director for Markets at the Financial Conduct Authority (FCA)

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Episode Overview

This episode centers on sweeping regulatory changes announced for the UK’s capital markets, with a focus on deregulation designed to spark a "new golden age" for London’s financial sector. Simon Walls from the FCA joins Bloomberg in-studio to provide insights into these reforms, their motivations, expected impacts—including on retail participation and risk—and the FCA’s future ambitions for the City.

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Key Discussion Points & Insights

1. Major Reforms: Cutting Red Tape and Enabling Capital Raising

[00:14]–[01:47]

• Simon Walls highlights two headline changes:
  • Prospectus Reform: The threshold for needing a new prospectus for issuing further capital on the stock exchange is raised from 25–20% to 75%.
    • “We've raised that all the way to 75%, making it cheaper, easier and quicker to raise new capital.” — Simon Walls [00:53]
  • Debt Market Reform: Restrictions requiring extra paperwork for issuing bonds in denominations below £100,000 have been scrapped.
    • “We've stripped it away, we've made it just the same, over 100,000 to below. We’re actually really enthusiastic that people retail in the UK may start investing in bonds from as little as a pound.” — Simon Walls [01:16]
• The reforms aim to “energize” the City and increase retail participation—making the bond market more accessible.

2. Scope and Future of Deregulation

[01:51]–[02:26]

• The reforms are part of a broader, ongoing overhaul with the goal:
  • To replace “preemptive checks (many inherited from the EU)” with disclosure-based regimes whenever possible.
  • To shift to a more “challenger mindset” where regulation supports, and does not hinder, market competitiveness.
    • “Replacing them with disclosures… our preference is to remove a gate, whether it be a check from the regulator… and replace it with disclosures and a bit of faith in the price formation process.” — Simon Walls [02:15]

3. Measuring Success and The FCA’s North Star

[02:32]–[03:23]

• The FCA uses broad metrics beyond just IPO counts:
  • UK financial sector export volumes
  • Contribution to UK GDP
  • Speed and ease for companies to raise money
    • “Our North Star metrics… are big things. We've got UK exports, we've got the contribution that financial services makes to the overall GDP… [and for] these reforms… we'll look at the speed with which companies can raise money.” — Simon Walls [02:54]
• The overall goal is “regulation as an asset,” reducing friction without sacrificing oversight.

4. Skepticism and The Real State of the City

[03:25]–[04:26]

• The host injects skepticism regarding the government's lofty language (“new golden age”, “Big Bang 2.0”).
• Walls counters that real market energy is strong—but warns the City must keep a competitive, challenger mentality.
  • “I'd say the energy in the City is good at the moment. We are the second largest market in the world, unambiguously…” — Simon Walls [03:58]
  • “…loads of strength. But it's a competitive world out there… So we need to keep this challenger mindset.” — Simon Walls [04:09]
• He emphasizes that skepticism is valid—reform is a long-term journey.

5. Dialing up Risk and Societal Appetite

[04:26]–[05:51]

• The FCA acknowledges reforms mean a higher tolerance for risk; the challenge is aligning societal expectations.
  • “Everybody in the city and wider into politicians are talking about a move away from risk aversion, this sense that we need to optimize risk rather than just reduce it. But the proof of the pudding’s in the eating.” — Simon Walls [04:45]
• Expanding retail participation (“bridging the gap between full-fat financial advice and DIY investing”) will come with setbacks—losses are inevitable in the pursuit of medium/long-term gains.
  • “The more retail invest in capital markets, we have to accept that sometimes you lose money. This is about the medium term, the long term rather than the short term.” — Simon Walls [05:15]
  • Society may not yet have the appetite for such risks—it will take “three, four or five years” to know if this path is right.

6. Private Markets, Retail Access, and Responsible Innovation

[05:52]–[07:48]

• Private markets are booming, with Wall Street “excited” to offer these to retail investors. But Walls urges caution:
  • New initiatives to allow private firms to raise >£5m from the public with more due diligence—aiming to balance openness with protection.
    • “Here's a structure and actually that structure seeks to address the point you're raising which is putting a little bit more due diligence in to protect retail…” — Simon Walls [06:40]
  • FCA is piloting “Pisces,” a trading venue bridging public and private markets.
  • On "democratization of private assets": liquidity and frequent pricing are barriers—responsible access is key.
    • “I'm skeptical about people use the term democratization. It does raise my eyebrows sometimes because private markets need to retain the features of private market.” — Simon Walls [07:39]
    • Private markets can fit in portfolios “in safe ways,” but must be handled carefully.

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Notable Quotes

• “We’ve raised [prospectus thresholds] all the way to 75%, making it cheaper, easier and quicker to raise new capital.” — Simon Walls [00:53]
• “We’re actually really enthusiastic that people retail in the UK may start investing in bonds from as little as a pound.” — Simon Walls [01:16]
• “Our preference is to remove a gate… and replace it with disclosures and a bit of faith in the price formation process.” — Simon Walls [02:15]
• “I'd say the energy in the City is good at the moment. We are the second largest market in the world, unambiguously…” — Simon Walls [03:58]
• “Everybody… is talking about a move away from risk aversion, this sense that we need to optimize risk rather than just reduce it. But the proof of the pudding’s in the eating.” — Simon Walls [04:45]
• “The more retail invest in capital markets, we have to accept that sometimes you lose money.” — Simon Walls [05:15]
• “I'm skeptical about people use the term democratization. It does raise my eyebrows sometimes because private markets need to retain the features of private market.” — Simon Walls [07:39]

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Key Timestamps

• 00:47: Simon Walls explains the new deregulation reforms
• 01:51: Future ambitions and further areas of reform
• 02:32: How success will be measured—beyond IPO counts
• 03:25: Addressing skepticism about political promises and market reality
• 04:26: On risk, societal appetite, and retail participation
• 05:52: The expansion of private markets and responsible retail access
• 07:48: Episode closes

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Episode Takeaway

Walls offers a nuanced, optimistic, yet candid look at the next chapter for London’s financial markets. The FCA’s deregulation efforts aim to make the City faster, more open, and more competitive, but they also accept that success will require society’s willingness to embrace greater risk and patience for structural change. The reforms are balanced by a commitment to measured retail access and a sober recognition that only time—and real world outcomes—will prove their ultimate worth.

Transcript

[A]

At CES. Michael McDermott, EVP of Samsung, spoke with Bloomberg Media Studios about what the company calls its next AI chapter, your companion to AI Living.

[B]

It's a shift from AI as a feature to AI as a trusted partner in everyday life.

[A]

We're going to turn back to the UK now. The Chancellor, Rachel Reeves has cancelled a planned speech to the London Stock Exchange this morning. She was due to attend an address from Downing street from the Prime Minister instead. But she was due to mark the introduction of new rules for raising capital on London's markets aimed at making them more competitive. It's been dubbed jobs a new golden age for the city. Joining us now to discuss Simon Walls, who's the Executive Director for Markets at the Financial Conduct Authority. Simon, good morning. Good to see you in studio today. Talk us through then, the changes coming into force from today. This is about cutting red tape.

[B]

Yeah, that's right. I've just hot footed it over from the, from the Stock Exchange this morning where they had that big launch. These reforms are called poetry, which is not the snappiest, but there's real substance behind it. There's, there's two things I'd highlight. One, changes to prospectuses. So when companies who are already listed raise new capital on the Stock exchange, they used to have to issue a new prospectus at 25%. 20%, we've raised that all the way to 75%, making it cheaper, easier and quicker to raise new capital. And then the event this morning was all about the debt side. We used to have a restriction where if a company issued debt in denominations of below 100,000, there was additional red tape. There are additional forms to fill in. We looked to that. The people who were supposed to read it weren't and it was really restricting participation for retail. So we've stripped it away, we've made it just the same, over 100,000 to below. We're actually really enthusiastic that people retail in the UK may start investing in bonds from as little as a pound. So there was real energy in the room today. Notwithstanding that the Chancellor couldn't make it. Really good speeches and the whole of London's fixed income market out to support the new, the new rules.

[C]

So, yeah, so changes on perspectives, changes on the debt side, as you just mentioned as well. What other areas are you looking? Is there still, still more to come and more that you can do?

[B]

Yes, certainly. I'd say we're, we're halfway through a program, really ambitious reform to UK capital markets. I'd say that each part is different, but the Real hallmark is looking at those areas where we have preemptive checks often but not only inherited from the EU and replacing them with disclosures. That's always when it's right and when there's enough information out there for the market, our preference is to remove a gate, whether it be a check from the regulator, in some cases for shareholders, and replace it with disclosures. And bit of faith in the price formation process.

[A]

What is the metric that you're judging the success of these changes? Is it the number of IPOs in London?

[B]

There's a lot of things when I should, I should stress that we're doing this across all of the UK different asset classes. So it's not only focused on equities. Obviously, today's reform prospectus is a major element in equities. We've set our North Star metrics as the FCA alongside our strategy. Those are big things. We've got UK exports, we've got the contribution that financial services makes to the overall GDP of the country. But obviously there's a lot of other factors that go into that for these particular reforms. Yeah, we'll look at the speed with which companies can raise money. We will look at in time IPOs. Well, this makes it even more attractive to list and raise capital in the uk. The early signs are good, but of course, as implied in your question, there are loads of other factors that go into that. We just want to make sure the regulation is an asset to the UK rather than an attraction.

[C]

Yeah, I mean, I guess to inject a note of skepticism here, I mean, you know, all very well talking about UK markets hitting, hitting record highs, as, you know, I think the Chancellor probably would have, would have done and you know, talking about a new golden age former Chancellor talking about Big Bang 2.0. But can you understand why there, you know, why there can be a degree of skepticism for people in the City who hear politicians talking big, but maybe don't necessarily feel that they've delivered all that much.

[B]

I mean, you've quoted things there from the Chancellor's speech. It's not my, not my place to comment on. All I would say is that the program of reform, taken together, each individual thing contributes to both, whatever it does, but also the spirit in the City. I would say the energy in the City is good at the moment. We are the second largest market in the world, unambiguously with the world leader in derivative markets, commodity markets affects. So there's loads of strength. But it's a competitive world out there. We're competing with all Sorts of established and competitive markets. So we need to keep this challenger mindset. But I'd say the mood is good. But you're right to have some, some caution. There's a lot of things we need to be on this road for a long time.

[A]

The FCA has talked about the dialing up risk, meaning that more things will go wrong. What kind of things are you preparing for and when does the risk cross a red line for you when you're thinking about changes to regulation?

[B]

Yeah, it's a good question. Difficult in the abstract. I mean the first thing I would say is everybody in the city and wider into politicians are talking about a move away from risk aversion, this sense that we need to optimize risk rather than just reduce it. But the proof of the puddings in the eating. It's much. Gets much harder when you talk about specific risks and making sure that the societal appetite is there. One of the things that we're really keen to support is more retail participation in capital markets. Broadly defined. Lots of initiatives, the ones I mentioned today, but also targeted, support a way of bridging the gap between full fat financial advice and what people use at the moment. But the more retail invest in capital markets, we have to accept that sometimes you lose money. This is about the medium term, the long term rather than the short term. And I'm not sure that the societal appetite is yet established. I think we've made great strides, but we need to be on this path for three, four or five years for people to say, okay, the UK has really got it. And I'd apply that across a whole range of the reforms we're doing. Each of them have downsides. These aren't always low hanging fruit but we try and get that out clear and try and get it into society so that when the downsides happen, we can hold on to and keep going forward.

[C]

Yeah, I mean maybe one specific risk we could talk about then given that, that greater appetite for risk. And also as you said, the desire to see more retail participation, obviously huge theme in, in markets and in finance at the moment is the, the explosion in private markets that we're seeing. Wall street, you know, hugely excited about the selling some of these alternatives to the wealthy and also to retail investors. Does that kind of full fat approach to risk and retail participation, does that fully apply when it comes to private markets and grannies investing in PE and all sorts?

[B]

So you give me an opportunity. There are actually three things we announced today. I didn't think I'd get the third one across but this is a public offer platform where we're saying if you're a private company, you want to raise more than £5 million as a one off. Here's a structure and actually that structure seeks to address the point you're raising which is putting a little bit more due diligence in to protect retail in those investments. We have Pisces coming down the track, a new type of trading venue again for private companies, a sort of bridge between the private markets and the public markets. Your broader question, there are no easy answers on these things. So I think private markets as a asset class, so it's been booming and many good returns available, but the absolute heart of it is a is reduced liquidity. That's almost the thing about private markets is they're not public and they and the valuations are less frequent and in many ways harder. So I'm not averse in any means by measures to get that into retail portfolios. But there is no, you can't pretend that it's liquid. So I'm skeptical about people use the term democratization. It does raise my eyebrows sometimes because private markets need to retain the features of private market. So I think yes, in safe ways, including the long term asset funds, perfectly reasonable part of people's portfolios. But we just need to make sure that it's done in a responsible way.

[A]

Okay, Simon, great to have you with us. Thanks very much for joining us on the program this morning.