The Regulatory Landscape Is Shifting — Fast

If you're a financial firm operating in the UK, there's a wave of regulatory change you can't afford to ignore. The Financial Conduct Authority (FCA) is intensifying its focus on operational resilience — and cybersecurity is dead centre in their crosshairs. With updated guidance under the SYSC framework and the Operational Resilience rules now fully in effect, the FCA expects financial firms to be able to prevent, respond to, and recover from cyber threats without disrupting critical services.

But here’s the uncomfortable truth: most small to mid-sized firms still aren't prepared.

What the FCA Now Expects:

• A well-documented, board-approved cybersecurity strategy.

• Evidence of regular penetration testing and vulnerability scanning.

• Proof that your incident response plan works — not just that it exists.

• End-to-end supply chain risk management (including third-party cloud tools).

• Demonstrated ability to continue delivering key business services under cyber duress.

So What Happens If You’re Not Compliant? The FCA isn’t playing. If you can’t show due diligence in your cyber resilience efforts, you could face:

• Hefty fines

• Public enforcement notices

• Restrictions on business activities

• Increased scrutiny in future audits

What You Can Do Today: Start with a vulnerability scan and get Cyber Essentials certified — it’s a fast, measurable way to show you're taking security seriously. From there, build out your policies, train your team, and pressure test your response plan. Remember: inaction is a choice — and it’s the riskiest one you can make.