HM Treasury has updated on the progress of the Digital Gilt Instrument (DIGIT) pilot issuance, following the Chancellor’s announcement that it will be issued by Q1 2027. The issuance will take place on...
Author - Michael Lewis
Michael Lewis
Treasury consults on ring-fencing reform
Separate to the PRA’s consultation, HM Treasury is consulting on proposed changes to the ring-fencing regime. The changes it proposes concern: a New Growth Allowance, which will be 10% of the Pillar 1 RWA of a...
FCA launches bond consolidated tape
The FCA has launched its new bond consolidated tape whereby investors and market participants can access a single, real-time source of prices and trading activity in the UK market. The tape will be operated by ETS...
FCA updates on MMF reform
The FCA says responses to consultation on money market fund reforms generally supported the proposed changes but several respondents were concerned about the proposed increase in MMF liquidity levels. As a result, the...
PRA makes rules on Pillar 2A review – Phase 1
The PRA has published its policy statement and final rules following its consultation on updating the Pillar 2A methodologies and guidance ahead of a fuller modernisation of its approach to Pillar 2A capital. Following...
PRA confirms CRR definitions within Rulebook
The PRA has published a policy statement confirming how it is restating within its Rulebook those CRR definitions that are necessary for effective operation of regulation. These definitions, as amended, contain few...
FCA consults on fund asset registration
The FCA is consulting on making sure authorised investment funds can invest in private markets such as real estate, infrastructure, private credit and private equity, while ensuring investor protection. It is proposing:...
Update on plans for ring-fencing reform
HM Treasury has published a policy paper with the formalised plans for the reform of the ring-fencing regime, which was heralded in the Mansion House speech in 2025. The changes will not revoke the regime in its...
Regulators seek views on tokenisation in wholesale markets
The BoE and FCA have set out their vision for how firms can adopt tokenisation and DLT, which they say has the potential to streamline wholesale markets. The regulators have listened to firms’ requests for more...
BoE consults on settlement hours extension
The BoE is consulting on how it will move RTGS and CHAPS toward near 24×7 operation. CHAPS will be opening at 01:30 from September 2027 and the next stage could involve: an additional settlement day at the weekend...
Government to reform MMF regulations
The Government and the FCA are to reform the UK Money Market Fund regulations. They say recent market stresses have shown that these funds need to be more resilient, so the Government will now legislate as soon as...
FCA publishes new rules on fund tokenisation
The FCA has published new rules aimed at supporting asset managers innovate with fund tokenisation. The new policy sets out how AFMs can use distributed ledger technology (DLT) to issue, transfer and maintain records of...
PRA consults on funded reinsurance
The PRA is consulting on changing regulatory treatment of funded reinsurance to treat it more like other investments. Life insurers pay large up-front premiums to reinsurers in return for future payments, which...
Government confirms risk transformation changes for insurance markets
The Government has published its feedback on its consultation on changes to the Risk Transformation Regulations and its next steps. It plans to: introduce more flexible funding requirements and authorisation processes...
FCA looks at impact of market soundings on quality
The FCA has looked at how market soundings in UK equity capital market transactions in UK listed shares impact on market quality. It worked with 5 banks, and looked at 63 transactions, 90% of which were market sounded...
BoE feeds back on gilt repo market
The BoE has published feedback following its 2025 discussion paper on improving the resilience of the gilt repo market. Generally, respondents agreed that things could be done to improve resilience and as a result the...
BoE blogs on cross-border failures
A BoE blog has considered the practicalities of cross-border resolutions, taking the Credit Suisse and Silicon Valley examples. It notes that with the improved co-operation these issues were dealt with in an orderly...
FCA publishes Wholesale “priorities” reports
The FCA has published its Regulatory Priorities reports for the wholesale buy side and wholesale markets sectors. On the buy side, it wants to prioritise: evolving regulation to foster growth and innovation and service...
PRA consults on liquidity reform
The PRA is consulting on changing its liquidity requirements so that banks will be able to monetise liquid assets quickly if needed in response to a fast-paced stress event. It uses as an example the Silicon Valley Bank...
FCA speaks on wholesale finance markets
Nikhil Rathi spoke on what the FCA is doing to boost the UK’s wholesale finance markets. He spoke of changes already made, such as the revised framework for commodities markets and position limits, changes to...
PRA consults on UK Solvency II own funds
The PRA is consulting on removing the requirement for insurers to need permission to classify equity accounted subordinated instruments into tiers of own funds. This was a requirement carried over from Solvency II. At...
Regulators consult on securitisation reform
The PRA and FCA are consulting on reforms to securitisation requirements. The PRA’s consultation relates mainly to the securitisation general requirements, although some parts relate to specific capital...
BoE speaks on risks and benefits of Principal Trading
Rebecca Jackson of the PRA has spoken on the growing importance of Principal Trading Firms, and the opportunities they create for banks. She said banks have reported prime brokerage balances to be at new peak levels...
PRA publishes final Basel 3.1 policy documents
The PRA has published its final instruments, supervisory statements, statements of policy, and templates to reflect Basel 3.1. The measures reflect the revised UK implementation date for the Basel 3.1 requirements of 1...
BoE publishes guidance on CET1 notifications
The BoE has published a webpage on notifications required of firms if they intend to include interim or year-end profits in Common Equity Tier 1. A notification is only required if the profits are being included in CET1...
FCA publishes explanatory note on derivatives trading obligation
The FCA has published an explanatory statement relating to its Direction on the derivatives trading obligation. It issued the new direction at the end of 2024 to modify the UK DTO under UK MiFIR. The direction allows...
FCA seeks views on market risk capital requirements
The FCA is asking for views on whether it would remove unnecessary barriers and free up capital if it creates tailored market risk rules for non-bank trading firms. The current rules we designed to ensure banks were...
BoE consults on exempting post-trade risk reduction services from clearing obligation
The BoE is consulting on exempting post-trade risk reduction (PTRR) transactions from the clearing obligation. PTRR providers offer services to counterparties to derivatives transactions, to reduce counterparty...
FCA close to awarding bond consolidated tape contract
The FCA is waiting for the High Court to lift the freeze on its awarding a contract to its chosen bond consolidated tape provider. The FCA had run a tender process and made its choice of provider in the summer, but then...
FCA finalises SI regime for bonds and derivatives
The FCA has published its policy statement and final rules on the Systematic Internaliser regime for bonds and derivatives, effective from 1 December. The regime for bonds and derivatives, structured finance products...
FCA and PRA publish margin requirement changes
The PRA and FCA have finalised the changes to their Binding Technical Standards on margin requirements for non-centrally cleared derivatives, applicable to dual authorised credit institutions and investment firms. The...
FCA pleased with investment firm data quality
The FCA has published the results of its review of data quality in prudential regulatory reporting by MiFIDPRU investment firms. Generally, it is pleased. It says most firms understand their reporting requirements and...
New law gives FCA powers on “ancillary activities” scope
Changes to the RAO give the FCA a rule making power to set the criteria for determining whether commodity and emissions dealers need authorisation as investment firms. The conditions for the “ancillary activities...
FCA consults on consolidated tape
The FCA is consulting on introducing a UK equity consolidated tape, that will bring data from across UK markets together. The FCA wants the tape to include post-trade data and the attributed best bid and offer prices...
FCA updates on T+1 settlement
The FCA has updated its information pages on the move to T+1 settlement, which will happen on 11 October 2027. It has written to Chief Compliance Officers of asset management and alternative firms, as it became aware...
PRA confirms changes to retail deposits threshold
The PRA has confirmed changes to the retail deposits threshold for application of the leverage ratio requirement. The threshold increases from £50bn to £75bn on 1 January 2026 and there will also be a three-year...
TheCityUK releases UK asset management report
TheCityUK has published research on the UK’s role in the global asset management landscape. the UK remains Europe’s largest fund management centre with a 10% year on year rise in AUM in 2024; institutional...
PRA updates on captives plan
Shoib Khan of the PRA spoke on the PRA’s actions to support innovation in insurance markets, through its various accelerator and other initiatives. He also updated on the proposals for a UK captive regime, saying...
Regulators to streamline UK EMIR Intragroup regime
The FCA is consulting on making the UK EMIR Intragroup Regime clearer for counterparties wanting exemptions from clearing and margin requirements. The current temporary regime expires at the end of 2026 and industry has...
PRA publishes near final CRR restatement
The PRA has released its near-final policy statement on the restatement of the remainder of the assimilated CRR into its Rulebook. The feedback covers elements not finalised previously, specifically securitisation...
FCA consults on short selling changes
As part of the programme to repeal and replace assimilated law, the FCA is consulting on reforming the short selling regime, as part of its drive to remove unnecessary barriers that might restrict short-selling while...
FCA issues guidance for firms on retail access to crypto ETNs
The FCA has given guidance to firms wanting to offer crypto ETNs to consumers, following the lifting of the ban on retail access earlier this month. Consumers can now access the products so long as they are UK listed...
Regulators publish guidance on cyber response and recovery
The BoE, PRA and FCA have published guidance to firms and FMIs setting out some good practices they have seen on cyber response and recovery capabilities. It hopes boards can use the findings to support discussions...
Regulators agree remuneration reforms
The PRA and FCA have finalised rule changes following their consultations on changes to the remuneration rules for banks, building societies and designated investment firms. The aim of the changes, which met with...
FCA streamlines capital rules for investment firms
The FCA has made its new capital rules for investment firms, reducing the wordcount of relevant rules by 70% in the process. The rules apples to all entities that are subject to MIFIDPRU. There are no changes to the...
FCA consults on fund tokenisation
The FCA is consulting on how it can support the development of fund tokenisation. As part of its wider roadmap for digital assets, the plans include: guidance on how to operate tokenised fund registers under FCA rules;...
FCA publishes pension transfer process review
The FCA has published the results from its multi-firm review of life insurers’ pension transfer process. The review followed concerns that consumers were complaining of slow transfer times. The FCA surveyed 18...
Regulators make changes to EMIR trade repository reporting
The Bank of England has finalised changes to the UK EMIR Trade Repository reporting requirements, which take effect from 26 January 2026. Meanwhile the FCA is consulting on new Q&As relating to counterparty...
PRA finalises Rulebook restatement of CRR and Solvency II requirements
The PRA has published its policy statement on the changes to take effect on 1 January 2026 that will continue and in some cases finish the restatement of assimilated law into its Rulebook. The changes mainly affect:...
PRA updates on large exposures changes
The PRA has published its policy statement on some changes to its Large Exposures Part of the Rulebook. The changes relate to: exposures arising from mortgage lending; exempting exposures to the UK deposit guarantee...
PRA publishes measures to help mid-size credit institutions
ThePRA is planning some adjustments to its Basel 3.1 implementation to better help mid-size banks and building societies while maintaining market stability. The changes affect the Fundamental Review of the Trading Book...
Government publishes plans to apply FSMA style regulation to the CRR
HM Treasury is progressing its work to apply the FSMA model to the assimilated laws for banks, building societies and investment firms. It has published a policy paper confirming its approach to implementing Basel 3.1...
FCA consults on SI regime for bonds and derivatives
The FCA is consulting on the future of the SI regime for bonds and derivatives in light to the removal of pre-trade transparency from their obligations. It wants to put new rules in place at the end of the year so it...
FCA and Treasury consult on ancillary activities exemption
HM Treasury is consulting on changes to the current UK secondary legislation setting the tests that firms must meet to use the “ancillary activities” exemption when they trade in commodity derivatives and emissions allowances.� As part of the Wholesale Markets Review, it said it would replace the current test with a new, simpler, version. It is now legislating to give the FCA powers to put in place a replacement test. The Order would amend the RAO and other statutory instruments in respect of the definition of “investment firm” and will provide that firms can use the exemption where the relevant business is ancillary to its main business, or is below an annual threshold that the FCA will set.
The FCA is in turn consulting on its proposals to set out, simply, how firms can work out whether they can benefit from the exemption. It proposes 3 separate and independent tests, and a firm will be able to use the exemption if it meets any one of them. It hopes the proposals will have the advantage of simplicity while having minimal impact on costs for firms, given the methods they already use to calculate the application of the exemption under the current regime.
Comments on both the draft legislation and the FCA consultation are due by 28 August. The changes will take effect from 1 January 2027.
Practitioner Panel expresses concerns over CCI proposals
The FCA Practitioner Panel has expressed concerns around the FCA’s proposals on Consumer Composite Investments, following the regulator’s consultation covering changes to cost information and rules for the...
PRA updates on SME and infrastructure lending adjustments
The PRA has updated its previous policy statement on SME and infrastructure lending adjustments, to align with its proposed updates to Pillar 2A methodologies and guidance as part of its overall review.
PRA consults on Pillar 2A review
The PRA is consulting on Phase 1 of its Pillar 2A capital review. The paper focuses on how the PRA will address the consequential impacts of the near-final PRA rules implementing Basel 3.1, and also includes proposals to improve information, guidance and transparency for firms. Other proposed changes look to� improve the proportionality of regulation.
The changes address:
credit risk
operational risk
pension obligation risk and
market and counterparty credit risk.
Consultation closes on 5 September.
FCA speaks on UK-China partnership
Ashley Alder has spoken of his optimism that financial cooperation between the UK and China is on the rise following the success of January’s UK-China Economic and Financial Dialogue. He highlighted the UK’s...
PRA consults on removal of SS20/15 for building societies
The PRA is consulting on removing SS20/15, which sets out its supervisory expectations in relation to the treasury and lending activities of building societies, following a review that has led it to conclude that: the...
FCA pleased with small asset management firm compliance
The FCA has published the results of its review into smaller asset management and alternatives businesses, as part of its drive to establish which business models pose the most risks of harm to consumers. It has found...
FCA publishes latest Handbook Notice
The FCA has published its latest Handbook Notice, which confirms updates relating to its new rules on the derivatives trading obligation (DTO) and post-trade risk reduction services. The FCA has made updates to the...
FMSB publishes good practice statement for sustainability-linked products
The FMSB has released a Statement of Good Practice for the governance of sustainability-linked products: that is, product whose characteristics very depending on whether the user achieves set sustainability or ESG...
FCA consults on investment firm capital simplification
The FCA is consulting on plans to simplify its rules on the amount of capital investment firms need. It is not planning to change the fundamental requirement, but things it can reduce the volume of legal text that sets...
FCA consults on CCI and simplification of investor disclosures
The FCA is consulting on ways to simplify investor disclosures relating to Consumer Composite Investments. It says nearly a quarter of UK adults hold a product which comes within the UK’s new concept of a CCI...
PRA writes to CFOs on significant risk transfer financing
The PRA has written to CFOs of banks highlighting some concerns over whether firms are applying the right regulatory capital approach to the substance of financing transactions. It has become particularly concerned...
FCA and Treasury consult on AIFM regulation reform
HM Treasury is consulting on proposed changes to the laws affecting AIFMs and the FCA has published a call for input seeking views on its own proposals. The Treasury consultation focuses on the areas of the UK...
FCA publishes final rules on derivatives trading obligation
The FCA has published a policy statement on the derivates trading obligation (DTO) and post-trade risk reduction services. The policy statement includes the FCA’s final rules on the classes of secured overnight...
AFME updates MiFIR and MiFID implementation guide
The Association for Financial Markets in Europe (AFME) has updated its implementation guide for firms operating in secondary capital markets to take account of MiFIR and MiFID II reforms in the UK and EU. The guide...
The IA says CCIs must learn the lessons from PRIIPs
The IA’s response to the FCA’s consultation on the new product information framework for Consumer Composite Investments says it is crucial that the new framework genuinely results in a better information set...
FCA invites applications for bond consolidated tape provider
The FCA is inviting applicants for a bond consolidated tape provider. The UK bond consolidated tape will collate data such as price and volume of transactions, combining information on trades executed on trading venues...
FCA discusses approach to non-bank leverage and importance of data
Sarah Pritchard of the FCA has spoken to the Investment Association Roundtable event. She looked at the FCA’s approach to non-bank leverage. She focussed on how targeted improvements to public and private...
FCA sets out asset management and alternatives supervisory priorities
The FCA has published its portfolio supervision letter sent to the asset management and alternatives sector. It notes five priority areas: supporting confident investing in private markets: the FCA sees increasing...
FCA fines for MiFIR transaction reporting failures
The FCA has imposed its first fine for failing to report transactions as required by MiFIR. Infinox Capital Limited failed to submit transaction reports for single stock CFD trades executed through one of its corporate...
PRA speaks on prime brokerage developments
Rebecca Jackson of the PRA spoke to UK Finance about recent dynamics in the prime brokerage sector, and the results of a recent PRA thematic review. Key points included: that the core of prime brokerage is financing...
UK Finance calls for urgent review of BoE MREL proposals
UK Finance has responded to the BoE consultation on its approach to setting a minimum requirement for own funds and eligible liabilities (MREL). It says the Bank must radically change its approach to both the assets and...
AIC writes to FCA about Saba investment trust action
The Association of Investment Companies has written to the FCA to express concerns about US activist investor Saba Capital Management’s requisition of general meetings at 7 investment trusts. The AIC is concerned...
FCA looks to appoint bond consolidated tape provider
The FCA is starting a tender process to appoint a bond consolidated tape provider. It will publish all tender documents by the end of January, and invite bidders to ask questions before it issues the final tender...
Treasury makes Singapore equivalence decision
The Markets in Financial Instruments (Equivalence) (Singapore) Regulations 2024 take effect on 31 December 2024 and designates a list of 18 Singaporean trading venues as equivalent to the UK in terms of regulatory...
FCA updates derivatives trading obligation
The FCA has updated its direction relating to the Derivatives Trading Obligation (DTO) with effect from the end of 2024. The DTO came from MiFID, and the FCA is now modifying the UK’s DTO from the transitional...
Government makes Consumer Composite Investment Regulations
The Regulations to create the Consumer Composite Investments regime, and set the designated activities relating to them have been made effective from 22 November 2024 for the purposes of setting out the regime and...
Treasury and FCA set out next steps for MiFID
HM Treasury has set out its plans for changes to the assimilated MiFID regime, to make changes to the wholesale markets framework. Its immediate plans are: to ensure the FCA has the necessary tools to oversee off...
FRC consults on Stewardship Code updates
The FRC is consulting on significant updates to the Stewardship Code, with a view to streamlining reporting requirements while ensuring a clearer focus on the purpose of Stewardship and delivering increased transparency...
Government acts on “smarter” ring fencing regime
Following the 2023 consultation by the previous government on implementing the recommendations of the Panel led by Sir Keith Skeoch to review the workings of the ring-fencing regime for large banks that took effect in...
Market Watch looks at MiFID transaction reporting
The latest edition of Market Watch focuses on FCA’s supervision of the UK MiFID transaction reporting requirements, including the findings from skilled persons reviews commissions to look into compliance. On the...
FCA makes market rules to support growth
A new set of transparency rules for bond and derivatives trades will take effect on 1 December 2025. The FCA says the rules will both provide more information to investors and also reduce costs for firms, and will also...