Unicorn Council for UK FinTech - Innovate Finance

The Unicorn Council for UK FinTech is a coalition of UK-based FinTech unicorn founders aiming to accelerate growth in the UK FinTech sector. Co-chaired by Janine Hirt (CEO of Innovate Finance), Philip Belamant (CEO of Zilch), Francesca Carlesi (UK CEO of Revolut), and Charles McManus (CEO of Clearbank), the Council works closely with government to maintain the UK’s leading global position in FinTech. The Council identifies key issues for start-ups and scale-ups and interacts directly with senior government to provide actionable policy recommendations. Our mission is to enhance the UK’s international competitiveness and accelerate growth and productivity.

How the Unicorn Council is driving innovation and growth

Unicorn Council’s recommendations

1. Rethink the Regulatory Framework

Simplify overlapping regulations to foster innovation and reduce operational risks. Increase FCA resources for quicker regulatory decisions.

2. Attract more entrepreneurs to the UK using Business Asset Disposal Relief

Increase the cap to £20m to attract first-time entrepreneurs and encourage reinvestment into new UK ventures with stepped-down limits for subsequent businesses.

3. Super-charge the Capital Markets

Remove the 0.5% Stamp Duty on UK share trading and accelerate the creation of a Research platform to support institutional investor education and early IPOs. Deliver the Mansion House compact.

4. Encourage more innovation in the UK

Expand the scope of R&D tax relief to include FinTechs and introduce an advance clearance mechanism to reduce investment uncertainties.

5. Update investment and staff incentive schemes for today’s needs

Remove exclusions on banking, lending, and insurance from EIS and SEIS. Increase individual EMI limits to attract top talent and adjust company caps to support growing FinTechs.

6. Put FinTech start-ups on a level playing field with other sectors

Provide VAT rebates for start-ups and partial exemptions for scale-ups to level the playing field against non-financial services start-ups.

The Unicorn Council for UK FinTech
Policy scorecard February 2025

Ask	Progress
1. Regulation
Consolidate economic crime reporting	The remit letters to regulators from the CX to David Geale and Nikhil Rathi call for greater coordination on tackling fraud and the FCA has been tasked to lead on payments fraud, recognising its role across economic crime.
Coordinated support for Challenger banks	Regulation on Challenger Banks is still fragmented. In January, we took a small group of challenger banks with us to the Bank of England to discuss the UK’s prudential regulation regime with Sir Dave Ramsden CBE, Deputy Governor for Markets, Banking, Payments and Resolution, and the Bank’s prudential, resolution and deposit takers supervision teams.
Additional resourcing at FCA for Authorisations	Improvements to the SM&CR to speed up authorisations. FCA’s response to the letter from the Prime Minister “We already intended to do more to digitise our authorisations process to reduce timescales and cost and we will go further and: Provide a dedicated case officer to every firm in our regulatory sandbox. Support more early and high growth firms, with 50% more dedicated supervisors. Extend pre-application support to all wholesale, payments and crypto firms. Indicate more frequently that we are ‘minded to approve’ promising start-ups to help them secure funding.
Additional: Payments	Maximum reimbursement for payments fraud reduced from £415,000 to £85,000 - proportionate and clear for consumers Government plan for open banking National Payments Vision unveiled, to focus on choice and innovation. Updated fraud strategy promised in 2025
Additional: streamline regulation	FCA Review to streamline consumer rule book launched Reform of the Financial Ombudsman Service’s framework. Proposals for proportionate BNPL regulation , based on Innovate Finance blueprint Further work on the advice/guidance boundary to unlock widespread provision of AI enabled financial advice. Smart Data Bill introduced
Additional: government recognises FinTech as a key sector	FinTech confirmed as a priority sub-sector for the government's FS strategy and de facto its industrial strategy. FinTech and smart data referenced in Industrial Strategy in addition to FinTech being a key growth area highlighted in HMT’s growth strategy Updated remit letters to ensure regulators have a renewed focus on growth and competitiveness as well as greater coordination between regulators
2. BADR
Increase lifetime limits to £20m/ incentivise reinvestment/ overseas entrepreneurs	No actions on any of these
Tacit: Don’t raise CGT rates	CGT rates increasing from 10% to 14% (2025) to 18% (2026) IHT scope widening to include worldwide assets
3. Capital markets
Abolish stamp duty	Nothing yet/ under discussion?
Stimulate investment research	Research will improve if other changes are successful?
Listing rules reform	Largely completed
Deliver Mansion House compact	Pensions Review and Bill to support pension investment in UK growth firms Expanded remit for British Business Bank, to reinvest returns and create investment vehicle for pension funds
New: change ISA rules	Under discussion?
New: AIM investment by BBB	Under discussion?
4. Tax R&D credits
Ensure FinTechs qualify for credits, and introduce advance assurance	No action on this
5. EMI & EIS
Increase EMI limits to help larger FinTech hire senior talent	No action on this
Allow EIS/EMI for lending/banking/insurance businesses	No action on this
6. VAT
Many regulated FinTech start-ups have a 20% cost disadvantage versus other sectors due to VAT exempt status	No action on this Possible tightening of VAT by HMRC

FinTech In The First 15 Years

75,000

Jobs created

Over £50bn

Value created

International position of UK for investment

List of Unicorn Council Members

Co-chairs:

Philip Belamant, CEO of Zilch

Francesca Carlesi, CEO of Revolut UK

Janine Hirt, CEO of Innovate Finance

Charles McManus, CEO of Clearbank

Steering Group:

Mike Carter, Innovate Finance

Ryan Mendy, Zilch

Adnan Chowdhury, Wise

Elizabeth Dorudi, Clearbank

Adam Gagen, Revolut

Members

TS Anil, CEO of Monzo

Justin Basini, CEO of ClearScore

Raman Bhatia, CEO of Starling Bank

Shachar Bialick, CEO of Curve

Richard Davies, CEO of Allica Bank

Iana Dimitrova, CEO of Openpayd

Hany Fam, CEO of Markaaz

Alasdair Haynes, CEO of Aquis Exchange

Louise Hill, CEO of GoHenry

Jaidev Janardana, CEO of Zopa

Rishi Khosla OBE, CEO of OakNorth Bank

Édouard Mandon, CEO of Numeral

Vishal Marria, CEO of Quantexa

Ylva Oertengren, COO, of Simply

Nilan Peiris, CPO of Wise

Anand Sambasivan, CEO of Primary Bid

Moneyhub

Mikkel Sølvsten Velin, Co-CEO of YouLend

Francesco Simoneschi, CEO of TrueLayer

Myles Stephenson, CEO of Modulr

Rob Straathof, CEO of Liberis

Paul Taylor, CEO of Thought Machine

Stefano Vaccino, CEO of Yapily

Mikkel Velin, CEO of YouLend

Portman Wills, CEO of Wagestream