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)

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.

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.

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]

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

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.