UK fintechs and other tech firms are to be supported in navigating the complex regulatory landscape through a new ‘one-stop shop’ that will help them access all the guidance they need in one place.

Under new UK Government plans announced by the technology secretary, the recently formed Regulatory Innovation Office will work with the Digital Regulation Cooperation Forum to cut red tape and support fintech innovation, with the aim of making it easier for fintech firms to bring new products to market.

According to the government, the partnership will support the development of new, smarter regulatory tools, making compliance processes faster, clearer and more accessible. 

This will include a unified digital library providing a ‘one-stop’ access to digital policy and regulations for innovators, which the government said will give businesses more time to focus on growth and create products to tackle big challenges, like fighting financial fraud and improving access to banking for the most vulnerable.

“This new user-friendly tool will help businesses and investors to find and understand digital regulation more easily and quickly,” said Kate Jones, CEO of the Digital Regulation Cooperation Forum.

“Our member regulators – Ofcom, the Competition and Markets Authority, the Information Commissioner’s Office, and the Financial Conduct Authority – are working together in support of their common vision: that regulation should enable responsible innovation.”

The government said that the current web of fragmented rules and regulatory complexity has slowed down innovation, delayed safer financial products reaching the public, and deterred investment, despite figures showing the UK fintech sector attracted $3.6 billion (£2.6bn) of investment in the last year.

Looking for a further boost, the new plans will specifically support smaller companies, who often don’t have teams of compliance experts, with the government hoping that simplifying red tape will allow them to scale faster.

Giving fintech SMEs a leg up could prove critical for the government’s economic plans. The UK has gained a reputation as a fintech hub, especially in London, where fintech SMEs make up more than 17% of all tech companies and have raised hundreds of millions in investment.

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As emerging technologies become more ingrained, the government wants to foster even more growth for the sector by reducing compliance burdens, as shown with the Financial Conduct Authority’s AI Sprint earlier this year, which looked at how new tech could overhaul the delivery of financial advice, compliance for firms, and customer service.

The financial regulator is taking its new role as engine for innovation seriously, having also recently announced a new partnership with tech firm NVIDIA to experiment with AI under its ‘Supercharged Sandbox’ programme, which will provide even more support to ease the process of new technologies to market.

“The UK is a genuine world leader in both financial services and technology, and in the intersection between the two – fintech – but for far too many companies, the complex regulatory environment can be challenging to navigate,” said Peter Kyle, technology secretary.

“Our Regulatory Innovation Office will work to remove those hurdles, to help innovators unlock new products that could drive economic growth – delivering on our Plan for Change.”