Therese Chambers, FCA joint executive director of enforcement and market oversight – has delivered a speech on the FCA’s agenda for combatting market abuse, at the City and Financial Global Market Abuse and...
Category - Supervision
Laura WilesFCA updates skilled persons stats
The FCA has published details of the number of skilled persons reports commissioned in the quarter to end March 2025.� Of the 7 commissioned, 6 related to consumer investments. In terms of topic, there was a spread between conduct of business, controls and risk management frameworks, governance and financial resources.
Emma RadmoreNew FCA Board members
HM Treasury and the FCA have confirmed that Julia Black, Anita Kimber, John Ball and Stephane Malrait have joined the FCA Board as NEDs, and that Richard Lloyd will serve an additional 1 year term.
FCA asks for views on live AI testing plans
The FCA is asking for views on AI Live Testing which it plans to launch as part of its AI Lab, to support firms’ safe and responsible deployment of AI. Its Engagement Paper asks particularly for views on: the...
FCA updates complaints stats
The FCA has updated its complaints data for H2 2024. Based on aggregate data; there was a slight decrease in complaints from H1; overall, complaints numbers have been relatively steady for the past 4 years; all products...
Treasury outlines new customer protections against debanking
HM Treasury has outlined new rules which will require banks and other payment service providers (PSPs) to give customers 90 days’ notice before closing an account or terminating a payment service. Relevant firms...
FCA speaks on digital asset regulation
Jessica Rusu – FCA Chief Data, Information and Intelligence Officer – has delivered a speech on global responses to digital asset regulation at TheCityUK International Conference 2025. Rusu highlighted the...
BoE sets out key elements of its 2025 CCP stress test
The BoE has set out key elements of its 2025 stress test of UK central counterparties (CCPs), and published a spreadsheet containing risk factor shocks for each market stress scenario. This year’s test will focus...
FCA to replace portfolio letters with market reports
The FCA has confirmed that from 30 April 2025, it will no longer issue and publish portfolio letters to firms. Instead, it will publish a small number of market reports that include communications relevant to different...
High Court finds EMI was “on enquiry” of potential fraud and breached Quincecare duty
The High Court has supported victims of an APP scam who brought a “derivative” action for reimbursement against a PSP in place of the PSP’s customer company, which the victims had been duped into...
Committee inquiry to hear evidence from FCA on finfluencers
The Treasury Committee will hear evidence from the FCA as part of an inquiry on finfluencers at a meeting on 30 April 2025. Evidence will be heard from Steve Smart, Joint Executive Director for Enforcement and Market...
FCA publishes AI sprint summary
The FCA has published a summary of the AI sprint it held in January, which had 115 participants. 4 common themes came out of the event: that firms need clarity from the FCA on how regulatory frameworks apply to AI; the...
PRA consults on MiFID Org Reg restatement
The PRA is consulting on how it will subsume the requirements of the MiFID Org Reg assimilated law into its Rulebook before the law itself is repealed. It is not planning to impose any new requirements on firms as a...
PRA sets out final rules on step-in risk assessments
The PRA has published a policy statement setting out its updated requirements on the identification and management of step-in risk The new rules – based on Basel Committee on Banking Supervision guidelines –...
PSR explores changes in the payments landscape
The PSR has considered changes in the payments landscape from consumer, merchant and industry perspectives. For consumers, the PSR notes growth in digital payments and digital wallets technology. Cards remain the most...
PSR publishes summary of scheme and processing fees roundtables
The PSR has published a summary of discussion points at the stakeholder roundtables it conducted in July 2024 on scheme and processing fees. The discussion on remedies was split into four sections, each focusing on a...
UK Finance feeds back on use of AI
UK Finance has responded to the Treasury Committee call for evidence on use of AI in financial services. The response highlights: that adoption of AI varies significantly across financial services, but most...
FCA speaks on delivering enforcement priorities in collaboration with the US
Therese Chambers – FCA joint executive director of enforcement and market oversight – has delivered a speech on delivering enforcement priorities at the Spring Conference of NYU’s Program on Corporate...
FCA identifies first set of unnecessary data reporting
The FCA is consulting on removing 3 streams of data that it currently collects from firms by way of regulatory returns. As promised, it says this will reduce the reporting burden for 16,000 firms. It proposes to remove:...
FCA establishes US and APAC presence
For the first time, the FCA has established a presence in the US and Asia-Pacific. In the US, Tash Miah has joined the British Embassy in Washington DC. Miah will work closely with the Department for Business and Trade...
FCA publishes update on PISCES and pre-application support
On 10 April 2025, the FCA released a statement following its December 2024 consultation on the regulatory framework for the Private Intermittent Securities and Capital Exchange System (PISCES) (CP 24/29). The FCA...
Ella MarshTheCityUK publishes response to call for evidence on AI
TheCityUK has published a response to HM Treasury’s call for evidence on AI in financial services. The industry-led body supports the aim of the inquiry and the Treasury Committee’s work on ensuring the UK...
FCA updates Regulatory Initiatives Grid
The updated Regulatory Initiatives Grid highlights many initiatives for various regulators relevant to the financial markets, including: during 2025: further action plan on FCA requirements in light of Consumer Duty...
Companies House changes – get ready for identity verification
We’ve written this article on the identity verification reforms being introduced under the Economic Crime and Corporate Transparency Act 2023.
FCA reviews bereavement and PoA registration practices
The FCA has published a multi-firm review of how retail banks and building societies treat customers in financial difficulties, building on its previous review of life insurers’ bereavement claim processes. It...
LSB to publish Ethnic Minority-led Business Code
The LSB has developed a Code aimed at improving access to financial services for ethnic minority-led businesses following research that shows a disproportionate amount of these businesses face difficulties getting...
Treasury and FCA hold perimeter meeting
HM Treasury and the FCA have held their fourth annual meeting on issues relating to the regulatory perimeter. The meeting noted the government’s strong commitment to the FCA’s secondary competitiveness and...
FCA publishes multi-firm review of trading apps
The FCA has published a multi-firm review assessing the business models, products and services of trading app firms. The review aims to support new firms and traditional investment brokers seeking to offer such...
BoE publishes digital pound report and design note
The BoE has published an experiment report on whether it is feasible to implement an offline payment functionality for a digital pound. The report concluded that while it might be technically possible to introduce such...
FCA finishes consumer investment policy sprint
The FCA has concluded a 6-week policy sprint on new ways to assist consumers in making important investment decisions. The initiative is part of the FCA’s work on targeted support and bridging the gap between...
PRA publishes Fees and Levies rates proposals for 2025/26
The PRA today published its CP 8/25, setting out its proposals for fees and levies for the current year.
The Annual Funding Requirement, to cover the PRA’s ongoing regulatory activities, is �328.7m, down �2.6m from last year; similarly, the Total Funding Requirement, which comprises the AFR and other levies, is down by �10.5m from last year, to �342.5m.
Points of interest from the consultation include an outline of how the PRA will be funding work on Future Banking Data, which will build on the Banking Data Review and the ongoing collaboration with the FCA around Transforming Data Collection.
Deletion of underused or duplicative templates will be consulted on, and a firm-facing portal will be developed, facilitating interaction with the PRA, presumably along the same lines as the recently-launched MyFCA.
Stephen WilsonFCA updates Lords Committee on work plan
The FCA has written to the House of Lords Financial Services Regulation Committee describing the 2025/6 work programme.� It highlights:
the new dedicated authorisation officers for sandbox firms;
streamlining data collection – including FCA’s decision already to stop 3 regular returns, which will benefit 16,000 firms;
ensuring cost-effective access to help, guidance and advice for consumers; and
increasing identification of financial crime by using a new data-led detection capability
FCA reappoints Nikhil Rathi as Chief Executive
The Government has confirmed the reappointment of Nikhil Rathi as Chief Executive of the FCA. His second five-year term will last until September 2030. The FCA highlighted a series of recent policy changes introduced...
PRA publishes Business Plan
The PRA’s 2025/6 Business Plan focuses on: significant work already completed on competitiveness and growth – such as the capital requirements to support SME and infrastructure lending, making the Solvency...
BoE publishes results of H1 2025 Systemic Risk Survey
The BoE has published the results of its H1 2025 Systemic Risk Survey. The survey aims to quantify and track market participants’ views of risks to – and their confidence in – the stability of the UK...
PSR appoints interim Head of Policy
The PSR has appointed Claire Simpson as interim Head of Policy. Ms Simpson previously led the PSR’s work on APP scams. Her appointment is effectively immediately, and she replaces Kate Fitzgerald, who leaves the...
Commons publishes access to cash findings
The House of Commons library has published a report that gives an overview of the policy relating to closure of bank and building society branches and initiatives to protect access to cash. The report includes: how...
FPC looks at role and risks of AI
As part of its “Financial Stability in Focus” work, the FPC has published a paper looking at how the rapid pace of development in firms’ use of AI can cause uncertainties and how these may translate...
FPC publishes April update
The FPC met on 4 and 8 April to consider the uncertainties caused by deterioration in the global risk environment. Its headline conclusions are that: severe shocks are more likely and the growth outlook has weakened;...
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...
Michael LewisFCA publishes work programme 2025-6
The FCA has published its work programme for 2025-26, which builds on the 4 priority areas in its 5 year plan. Specific initiatives additional to those set out in the 5 year plan (which we summarised in this article)...
CMA publishes guidance on unfair commercial practices
The CMA has published guidance on provisions in the Digital Markets, Competition and Consumers Act 2024 (DMCC) designed to protect consumers from unfair trading. The provisions replace and update the existing Consumer...
CMA writes to Lloyds on breach of Retail Banking Order
The CMA has written a letter to Lloyds Banking Group in relation to the bank’s breaches of the Retail Banking Market Investigation Order 2017. Part 5 (Payment Transactions Histories) of the Retail Banking Market...
PRA consults on accelerating investment by insurance firms
The PRA has launched a consultation on reforming the Matching Adjustment application process, by introducing a Matching Adjustment Investment Accelerator (MAIA) permission to reduce barriers to investment by insurers...
FCA publishes its proposal for annual fees and levies rates for 2025/2026
Today the FCA published consultation paper CP 25/7, setting out its proposals for the fees and levies to be imposed on the financial services industry to fund the FCA and FOS for the coming financial year.
Key points of interest are:
This year’s Annual Funding Requirement is �783.5m, an increase 2.5% from last year – this is to cover ongoing regulatory activities and exceptional projects;
The FOS budget for this year is �285.1m, up from �264.9m last year;
The FCA will start to recover costs for two exceptional projects, namely the ESG ratings providers work, and the motor finance complaints pieces;
The FEES manual is being amended to bring it in line with the MLRs and to allow FCA to recover costs arising from the appointment of skilled persons to firms supervised under the MLRs.
FSB nominates Andrew Bailey as chair
The Financial Stability Board (FSB) has nominated Andrew Bailey – BoE Governor – to serve as its next chair, replacing Klaas Knot – President of De Nederlandsche Bank. His term will last for three...
PRA sets out approach to credit union service organisations
Laura Wallis – PRA Director of UK Deposit Takers – has written a letter setting out the PRA’s approach to Credit Union Service Organisations (CUSOs). The PRA has observed increased interest from credit...
Employment cases update – March 2025
Higgs v Farmor’s School [2025] EWCA Civ 109 A school dismissed a Christian employee for posts she had made on her personal Facebook page that criticised the nature of sex education in schools and the teaching of...
Karen Plumbley-JonesTreasury assesses Women in Finance Charter progress
HM Treasury has published its annual report assessing how the Women in Finance Charter has progressed. It says that in 2024 80% of the 205 signatories met or were on track to meet their targets for female representation...
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...
FCA pleased with sustainability feedback
The FCA has published a summary of the feedback it received to its 2023 Discussion Paper on “finance for positive sustainable change“. Key themes from responses included: agreeing that it is important that...
John ConnorFCA updates cash-based money laundering webpage
The FCA has updated its webpage on cash-based money laundering, which sets out the regulator’s recent work on reducing money laundering through cash deposits via the Post Office, and its expectations of...
CMA consults on SME banking undertakings
The Competition & Markets Authority (CMA) has launched a review of the SME Banking (Behavioural) Undertakings given in 2002 by nine clearing banks following a market investigation by the then Competition Commission...
PRA publishes regulatory digest
The PRA has published its regulatory digest, summarising important developments delivered in March 2025. Key publications included: Confirmation of the FSCS management expenses levy limit for 2025/26; Proposals to...
FOS fees for CMCs come into force
From 1 April 2025, professional representatives will be charged �250 to refer a case to the FOS.
Professional representatives will be able to refer ten cases to the FOS for free, but every subsequent case will be chargeable. They will receive �175 back in credit if the case outcome is in favour of the consumer.
The new rules also mean that if a complaint referred by a professional representative is not upheld or withdrawn, the financial business against whom the complaint was made will pay a reduced fee of �475, rather than �650.
The FOS remains free to those bringing cases directly, as well as to families, friends, charities and voluntary organisations who may be assisting them.
PRA proposes increasing FSCS deposit protection limit
The PRA has set out proposals to raise the deposit protection limit of the FSCS from £85,000 to £110,000. The proposed increase takes into account inflation that has occurred since the current limit was introduced in...
FCA launches new reporting portal
The FCA has launched its new portal – My FCA – as a single point of sign in for reporting tasks like submitting regulatory data and paying fees. Previously, firms needed to sign in to 3 different systems...
FCA speaks on investment culture and pensions savings
Nikhil Rathi has spoken on how to build a healthier investment culture in a world where consumers need more from their pensions but significant immediate investment is not possible. He focussed on the need for...
Regulators publish FSCS management expenses levy limit 2025/26
The PRA has published a policy statement setting out the Management Expenses Levy Limit (MELL) for the FSCS in 2025/26. The MELL for 2025/26 will be taken forward as proposed, namely £108.6m to include: the FSCS...
PRA and FCA consult on margin requirements
The PRA and FCA are consulting on a proposal that would indefinitely extend the current temporary exemption for single-stock equity options and index options from the UK bilateral margining requirements. The current...
ASA confirms scope of advertising restriction on unregulated investments
Following consultation, the ASA has confirmed that the BCAP restriction on advertising “unregulated investments” applies only to financial products that a layperson would generally consider to be...
UK and Switzerland continue negotiations on enhanced trade agreement
An enhanced Free Trade Agreement between the UK and Switzerland has been through a sixth round of negotiations between 3 and 10 March 2025. The Government considers that free trade agreements have an important role to...
FCA launches ESG ratings provider survey
The FCA is asking ESG ratings providers to complete a voluntary survey which will help to shape future regulation of ESG ratings and sustainability disclosures more generally. It wants to understand: the business models...
FOS limit increasing from 1 April
The FCA has confirmed that, in line with the policy that the FOS limit automatically adjusts to keep pace with inflation, the limits from 1 April 2025 will be £445,000 for complaints referred on or after that date about...
FCA to launch new portal
The FCA is launching its “My FCA” portal for authorised and registered firms, from 31 March. Using the portal, firms will be able to see all their reporting and attestation tasks and see useful information...
FCA gives more detail on rule streamlining
Alongside its action plan, the FCA has published details of its “Consumer Duty rule review“. It has released a feedback statement following its call for input last year when it asked firms to tell it how...
FCA publishes 5 year strategy
The FCA has launched its much-trailed 5 year strategy. It will focus on 4 priorities: being a smarter regulator; supporting sustained economic growth; helping consumers to navigate their financial lives; and fighting...
BoE launches 2025 Bank Capital Stress Test
The BoE has launched its 2025 Bank Capital Stress Test, aimed at the seven largest and most systemic UK banks and building societies. The test replaces the Annual Cyclical Scenario, and involves a hypothetical stress...
EU think tank proposes SME sustainable finance framework to encourage lending
EU advisory body the Platform on Sustainable Finance has proposed a streamlined, voluntary framework for financial institutions to classify loans or other types of financing provided to SMEs as sustainable finance. It...
FCA calls for evidence on MCOB interest rate stress test rule
The FCA has published an online call for evidence on the impact of the MCOB rule on the mortgage interest stress test. The call for evidence looks particularly at MCOB 11.6.18R and is part of the FCA’s review of...
FCA refuses crypto-application on harm basis
The FCA has published its decision notice explaining why it has refused the application of Zeux Limited for registration as a crypto firm under the MLRs. The firm submitted its application in 2022. The FCA decided that...
FCA decides to fine and ban Crispin Odey
The FCA has published a decision notice of a fine of £1.8m and ban on Crispin Odey for his actions in, in its view, deliberately acting to frustrate Odey Asset Management’s disciplinary process into his conduct...
Chancellor unveils more red tape cutting
The Chancellor has unveiled more detail of the plans to cut the administrative cost of regulation on business, at a meeting attended by, among others, the PRA, FCA and ICO. The plans are wide ranging across all areas of...
LSB finds ethnic minority-led businesses less likely to have full loan applications approved
The Lending Standards Board has published new research which found that UK ethnic minority-led businesses (EMBs) are three times less likely (19%) than White British-led businesses (58%) to have their lending product...
Treasury launches call for evidence on small business access to finance
HM Treasury has launched an open call for evidence on small businesses’ access to debt finance in the UK. The call for evidence covers all aspects of the lending market, demand for finance, the application and...
FCA updates guidance and case studies on individual approvals
The FCA has updated its website on applying for SMFs and for approved person status within AR firms and has also shared some new case studies on what it looks for when assessing a senior manager application. It looks at...
FCA drops enforcement transparency and DEI proposals
The FCA has confirmed it will not be taking forward its controversial proposals to publicise investigations into regulated firms on a “public interest” basis. Nikhil Rathi confirmed that because of a lack of...
Government abolishes PSR
The Government has announced its intention to abolish the Payment Systems Regulator as part of its drive towards efficiency. It plans mainly to consolidate the PSR’s operations within the FCA. Rachel Reeves said...
FCA displeased at funeral provider Complaints Commissioner criticism
The FCA does not agree with the findings of the Complaints Commissioner that it did not identify significant risks in relation to Safe Hands funeral plan provider. The FCA did not acquire legislative powers to regulate...
FCA updates on motor finance review next steps
The FCA has said that it no longer plans its proposed announcement during May on its planned next steps in its motor finance commission review. Instead, it will confirm within 6 weeks of the decision of the Supreme...
Supreme Court permission to appeal application lodged in Markou case
A permission to appeal application has been lodged at the Supreme Court in the Markou case. The application follows the Court of Appeal granting the FCA’s appeal in December 2024 against an Upper Tribunal decision which...
FCA sets out findings from IFPR liquidity risk management review
The FCA has set out findings from its multi-firm review of liquidity risk management at wholesale trading (sell-side) firms, particularly brokers, in scope of the Investment Firms Prudential Regime (IFPR). The review...
FCA publishes review of firms’ treatment of vulnerable customers
The FCA has published findings from its review of how firms are responding to the needs of customers in vulnerable circumstances. The FCA also sought to assess whether its existing vulnerability guidance remained...
FCA sets out good practice for the consumer support outcome
The FCA has published findings from its review of firms’ approaches to the consumer support outcome of the Consumer Duty. In May 2024, the FCA conducted a qualitative survey of 407 firms across the retail...
FCA publishes quarterly consultation
The FCA has published its regular quarterly consultation on miscellaneous amendments to its Handbook. The proposed amendments include: Re-alignment of the disclosure requirements in BCOBS 4.3.4R(2) for non-ring-fenced...
PSR critiques card scheme and processing services market
The PSR has published the final report in its market review into card scheme and processing fees, concluding that the current market is not working well for card scheme and processing services. Key takeaways from the...
Bank IT outages of over 800 hours in 2 years
The responses from the 9 banks that were the subject of a Treasury Committee request for information on IT outages over the past 2 years show that, between January 2023 and February 2025 (not including the Barclays...
PRA consults on raising leverage ratio threshold for retail deposits
The PRA is consulting on increasing the retail deposits leverage ratio threshold to £70bn. Firms with over £50bn in retail deposits or £10bn of non-UK assets are currently required to meet a minimum leverage ratio...
FCA reports on private market valuation processes
The FCA has published the results of its review of private market valuation processes. It is imperative that firms in these markets have robust processes given that the regular price discovery present in more liquid...
FOS reports huge rise in cases
The FOS’ complaints data for Q4 2024 shows a rise of 40% in complaints over the same period last year. It received more than 68,000 complaints – which was in fact slightly less than the number it received...
FCA speaks on challenges of growth
Nikhil Rathi spoke to the ABI on how the FCA is looking to support growth while keeping strong consumer protection. He highlighted: the far reaching reforms to listing and prospectus rules the removal of the expectation...
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...
Commercial Agents Regulations here to stay
In May 2024, the government launched a consultation about the Commercial Agents (Council Directive) Regulations 1993 (CARs), which is assimilated EU law. The then Conservative government was considering bringing forward...
Victoria FergusonCMA reaches settlement with banks over gilt information
The CMA has reached settlement with 5 banks in relation to exchanges of information by traders on buying and selling gilts on specific dates. Individual traders shared competitively sensitive information in one-to-one...
FATF plenary outcomes
At the February FATF plenary meeting, it: updated the list of high risk jurisdictions, to add Lao People’s Democratic Republic and Nepal, and remove the Philippines from increased monitoring; agreed changes to its...
FCA pleased with firm conduct on ongoing advice
The FCA has published the results of a survey of 22 firms, in which it checked whether firms that are charging their clients for ongoing advice and relating services are meeting their regulatory obligations and had been...
FCA researches explanations to consumers on AI outputs
As part of its AI research series, the FCA has published a research note exploring the effectiveness of different methods for explaining AI outputs to consumers in the context of determining consumer creditworthiness...
FCA publishes skilled persons data for Q2 / Q3 2024
In the quarter ending September 2024, the FCA commissioned 14 skilled persons reports: 6 reports related to consumer investments, 2 to insurance, 2 to wholesale markets (buy-side) and 4 to wholesale markets (sell-side);...
FCA announces winners of competition on economic growth research
The FCA has announced the winners of its research competition on economic growth. The competition was launched in November 2024, and attracted 43 entries from 41 organisations. Each successful project will be awarded up...