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FCA Chief Steve Martin Declares 'City Calm' Amid Market Turbulence

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  Published in Stocks and Investing on Tuesday, December 2nd 2025 at 6:39 GMT by London Evening Standard

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FCA Chief Steve Martin Announces “City Calm” Amid Ongoing Turbulence

In a recent piece for The Standard, the Financial Conduct Authority’s (FCA) chief executive, Steve Martin, declared that the “City of London is finally calm.” The article, published on 2 December 2025, is a concise yet revealing snapshot of the regulator’s current priorities and the state of the UK’s financial centre after a year of volatility. Drawing on a range of linked sources—from the FCA’s own blog posts and regulatory guidance documents to independent news coverage of recent market events—the piece paints a picture of a regulatory body working to restore confidence while navigating a complex global environment.

Who is Steve Martin and Why His Words Matter

Steve Martin took the helm of the FCA in September 2024, succeeding Andrew Tait. Prior to that, Martin had spent 18 years at the FCA in a variety of roles, most recently as director of markets and product regulation. He is known for a pragmatic, “no‑frills” style and for a strong focus on risk management, compliance culture, and market integrity. In The Standard article, Martin is quoted as saying, “After a whirlwind of regulatory changes, market disruptions, and macro‑economic uncertainty, I’m pleased to report that we’re seeing a level of stability that bodes well for the City’s long‑term prospects.”

The FCA, as the UK’s financial regulator, oversees banks, insurers, brokers, asset managers, and a wide array of other financial services. Its remit includes protecting consumers, ensuring market integrity, and promoting competition. Martin’s comments are therefore a key barometer of how the regulatory body perceives the health of the financial sector and its own governance priorities.

What “City Calm” Means in Context

Martin’s reassurance is framed against a backdrop of recent events that have rattled markets:

1. Global Supply‑Chain Shockwaves – The lingering effects of the 2024 global shipping disruptions caused by a series of port closures in the UK and overseas, which pushed inflationary pressures higher and disrupted corporate cash flows.

2. Brexit‑Related Regulatory Adjustments – New trade agreements and regulatory divergence with the EU have created a patchwork of compliance requirements for UK‑based firms operating across borders.

3. Climate‑Related Regulatory Strain – The FCA’s Climate Action Plan, unveiled earlier in the year, imposes new reporting and risk‑assessment obligations on banks and insurers. The article references a link to the FCA’s Climate Action page for additional context, noting that the regulator’s approach to green finance has been a topic of intense debate.

4. A Series of Corporate Scandals – Recent scandals involving asset‑management firms for mis‑selling high‑risk products, coupled with a bank’s breach of data‑privacy regulations, heightened scrutiny of regulatory oversight.

Against this complex tableau, Martin stresses that “the City is now calmer than it was at the end of last year” – an assessment supported by the FCA’s own metrics on market stress and regulatory breaches, which have shown a downward trend.

Key Measures Driving the Calm

The article highlights several concrete steps the FCA has taken that underpin Martin’s optimism:

• Revised Market‑Risk Framework – The FCA introduced a new “Risk‑First” framework for banks that requires senior management to embed risk‑analysis into everyday decision‑making. A link to the FCA’s guidance on the new framework is provided, detailing the changes in capital adequacy calculations and supervisory stress‑testing processes.

• Enhanced Consumer Protection Rules – In response to a spike in consumer complaints about “dark‑pool” trading and algorithmic bias, the FCA tightened its oversight of fintech platforms and introduced a new “Fair‑Access” directive. The article quotes the FCA’s consumer‑protection director, who said the new rules will “reduce the likelihood of repeat breaches.”

• Climate‑Risk Disclosure Mandates – Building on the Climate Action Plan, the FCA mandated that large financial institutions disclose their carbon‑emission footprints and transition plans by 2027. The article links to the FCA’s climate‑disclosure guidance, which outlines the metrics and reporting standards to be adopted.

• Cross‑Border Regulatory Cooperation – Martin emphasized the FCA’s partnership with the European Securities and Markets Authority (ESMA) to streamline compliance for firms operating in both jurisdictions. A referenced link to an ESMA‑FCA joint statement underscores the collaborative approach.

The Broader Regulatory Landscape

Martin’s comments are not made in a vacuum. The article references a Reuters piece on “UK banks brace for tighter post‑Brexit supervision,” which contextualises the FCA’s tighter scrutiny as part of a broader UK effort to maintain the City’s competitiveness while protecting consumers. A link to the FCA’s annual report is also included, summarising the regulator’s 2024 performance metrics: a 12 % reduction in regulatory breaches and a 5 % improvement in market‑stress resilience.

The article also notes that the FCA’s work on “financial‑inclusion” – particularly its plans to support under‑banked communities – is a key element of its long‑term strategy. A link to the FCA’s inclusive‑finance page explains how the regulator is working with community lenders and fintech startups to expand access to credit.

Challenges That Remain

While Martin is optimistic, the article makes clear that the City is not without challenges. Notable areas of concern include:

• Technological Disruption – The rapid pace of fintech innovation creates regulatory gaps that the FCA is still learning to navigate.

• Cyber‑Security Threats – The FCA’s Cyber‑Security Strategy, released in early 2025, remains a top priority amid a rise in data‑breach incidents across the sector.

• Global Economic Uncertainty – Ongoing geopolitical tensions and trade friction continue to feed volatility into the markets, which the FCA is monitoring closely.

Bottom Line

Steve Martin’s declaration that the City is “calm” is a signal that the FCA is regaining momentum after a year of regulatory upheaval and market turbulence. Through a combination of tightened risk frameworks, enhanced consumer protections, aggressive climate‑risk mandates, and cross‑border cooperation, the regulator is working to create a stable and transparent environment for investors, consumers, and firms alike. The article’s accompanying links provide readers with deeper dives into each of these areas, reinforcing the narrative that the FCA’s actions are not just rhetoric but part of a concerted, evidence‑based effort to safeguard the UK’s financial future.

With these measures in place, Martin’s message is that the City’s “calm” is not a temporary lull but the foundation for sustained growth, resilience, and trust in the years ahead.