Europe’s fintech scaleups have long struggled to keep compliance efforts up to pace as they grow rapidly. The FCA’s dedicated Scaleup Unit aims to change that dynamic by engaging early with high-growth firms. "Don’t be frightened of the regulator," the unit tells founders, encouraging proactive dialogue instead of reactive fixes.

The unit offers a "regulatory sandbox" approach, letting companies test products under supervision. Since launch, it has supported dozens of firms managing €2.0bn in assets, reducing authorization timelines by 68%. Average compliance costs dropped from £923k to £688k annually.

Industry leaders say the initiative shifts the relationship from adversarial to collaborative. "We’re not here to block innovation," an FCA spokesperson noted. "We want to understand your model so we can regulate it effectively." The program now serves as a template for other European regulators.