The UK Financial Conduct Authority (FCA) has published the findings from its multi-firm review of principal trading firms' compliance with the detailed organisational requirements for algorithmic trading set out under the UK Markets in Financial Instruments Directive, specifically those outlined in the associated regulatory technical standards known as RTS 6. The review reveals progress in governance, notably in the quality of self-assessments and validation processes, but also exposes weaknesses such as outdated or incomplete policies, poor documentation, and inconsistent compliance oversight. While many firms demonstrated strong practices in maintaining algorithm inventories, such as detailed records outlining each algorithm's objective, ownership, market usage, and associated risk parameters, in some cases, the algorithmic inventory did not specify the individuals who were approved to operate the algorithm. Deployment protocols were generally formalised, with clear accountability and multi-layered approval processes, especially for new market entries or material changes. However, some firms had outdated policies or lacked clarity on what constituted a material change.

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The Bank of England (BoE) has published its 2024/25 annual report for the Real-Time Gross Settlement (RTGS) system and CHAPS, marking the successful completion of the RTGS Renewal Programme with the launch of RT2 in April. RT2 introduces a new core ledger and settlement engine, enhancing resilience, security, and functionality, including ISO 20022 messaging and extended automation. Looking ahead, the BoE is shifting towards an "ongoing programme of change" focused on continuous improvement to further strategic deliverables. This includes the following as set out below.

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On 20 August, Commission Delegated Regulation (EU) 2025/885 supplementing the Markets in Crypto-assets Regulation with regard to regulatory technical standards specifying the arrangements, systems, and procedures for persons to prevent, detect, and report market abuse, the templates to be used for reporting suspected market abuse, and the coordination procedures between competent authorities for the detection and sanctioning of market abuse in cross-border market abuse situations, has been published in the Official Journal of the European Union (OJ). The Delegated Regulation enters into force on the twentieth day following its publication in the OJ, being 9 September.

The European Securities and Markets Authority (ESMA) and the European Environment Agency (EEA) have announced the signing of a Memorandum of Understanding (MoU) to enhance cooperation in the area of sustainable finance. The MoU seeks to reinforce the integration of environmental considerations into the EU's sustainable finance framework, including its supervisory practices. It outlines how ESMA and the EEA will exchange expertise, data and information to promote collaboration between national securities regulators and environmental authorities. This partnership is expected to create synergies, reduce duplication of efforts, and support the EU's broader goals in addressing biodiversity loss, climate change, and pollution.

The UK Financial Conduct Authority (FCA) has released the second report on generating and using synthetic data in financial services, offering comprehensive insights into the governance, ethical, and regulatory considerations surrounding its use in the sector. The report builds on the first 2024 report and responds to industry feedback to the FCA's 2022 Call for Input, which focused on key governance considerations for organisations and professionals planning to use synthetic data. Drawing on insights from members of its Synthetic Data Expert Group (SDEG) (a specialised sub-group of the FCA's Innovation Advisory Group, launched in March 2023 and concluding with this second and final publication), the report offers practical guidance on identifying challenges in synthetic data projects, suggests possible mitigation strategies, and outlines ways to build strong governance practices. It outlines nine key principles for responsible synthetic data adoption which firms may wish to consider when developing their own approaches. These principles, which include accountability, transparency, fairness, and continuous monitoring, among others, provide a foundation for building trustworthy and effective synthetic data practices. The report does not constitute regulatory guidance but serves as a foundational resource highlighting insights and best practices identified from SDEG members, reinforcing the FCA's commitment to fostering safe experimentation and digital transformation within the UK financial sector.

The European Central Bank (ECB) has published its opinion adopted on 14 August in response to a request from Lithuania's Minister of Finance. The opinion concerns proposed amendments to the Law on Lietuvos bankas (the draft law) aimed at transposing Directive (EU) 2024/1619, commonly referred to as the Capital Requirements Directive (CRD VI), into national legislation. CRD VI introduces enhanced requirements for the supervisory independence of competent authorities and the prevention of conflicts of interest among their officials and employees. Lithuania's draft law seeks to reinforce the independence of Lietuvos bankas by introducing measures such as public disclosure of dismissal grounds for board members, structured cooling-off periods for former staff and board members, and broader post-employment restrictions. The ECB confirms that Lithuania's provisions on appointment and dismissal are consistent with CRD VI and the Statute of the European System of Central Banks. However, it stresses that national rules must remain compatible with the ECB's ethics framework, including the Single Code of Conduct and Guideline (EU) 2021/2256. It notes that the proposed 12-month cooling-off period for certain officials is less stringent than the ECB's own framework, which allows for up to two years. It also highlights that Lithuania's definitions of restricted entities post-employment are narrower than those in the Single Code. The ECB emphasises that the draft law must be interpreted without prejudice to the Single Code, as it may be amended from time to time.

The European Securities and Markets Authority (ESMA) has published an updated registration guide (dated 14 August), outlining the procedures and expectations for entities seeking registration, authorisation, recognition, or endorsement to operate within EU financial markets. The guide applies to a broad range of entities including credit rating agencies, benchmark administrators, trade and securitisation repositories, and data reporting services providers. It also anticipates the forthcoming mandates such as ESG rating providers and external reviewers under the EU Green Bond Regulation. Applicants are expected to submit complete and accurate documentation aligned with relevant regulatory and implementing technical standards (RTS/ITS). ESMA places particular emphasis on governance, internal controls, ICT resilience, outsourcing risks, and methodological robustness as key criteria in its assessment process. From January 2026, new mandates under the Benchmarks Regulation review and the Environmental, Social, Governance Regulation will expand ESMA's supervisory scope. While not legally binding, the guide serves as a practical tool to promote transparency and consistency across ESMA's supervisory functions and should be read alongside the specific information available on ESMA's website and the relevant RTS/ITS. The Annex to the guide provides a consolidated overview of the applicable legal frameworks for each type of supervised entity, providing a practical reference point for applicants navigating the registration and compliance process.

The Transition Finance Council, co-launched by the City of London Corporation and HM Government, has issued a consultation on draft entity-level Transition Finance Guidelines. The aim of the Guidelines is to establish a consistent framework for assessing the credibility of transition finance at entity-level across asset classes and jurisdictions, particularly for high-emitting sectors, to shift toward lower-carbon, more sustainable models and transition to net zero in line with the Paris Agreement. Designed to complement existing disclosure frameworks such as those from the Transition Plan Taskforce and the International Sustainability Standards Board, the Guidelines introduce four core principles, each addressing a dimension of credibility. This includes credible ambition, action into progress, transparent accountability, and addressing dependencies. The principles are supported by: (i) universal factors, which serve as minimum criteria applicable in all cases to assess whether the principles are met; and (ii) contextual factors, which apply depending on the materiality of the issue to the entity or the policy environment in which it operates. The consultation specifically seeks feedback on the structure, content, and usability of the Guidelines. The deadline for responses is 19 September, with a second consultation planned for later this year and final publication expected in 2026.

The European Commission (EC) has published two draft regulations which aim to modernise and reinforce the transparency and integrity of the EU's wholesale energy markets under Regulation (EU) No 1227/2011 on Wholesale Energy Market Integrity and Transparency (REMIT). The proposals follow the recent revision of REMIT by Regulation (EU) 2024/1106, which entered into force in May 2024, to address growing volatility in energy markets, geopolitical disruptions, and the emergence of new trading technologies. REMIT IR (Implementing Regulation (EU) No 1348/2014) sets out the principles and technical details for reporting transactional and fundamental data to the European Union Agency for the Cooperation of Energy Regulators (ACER). To align with the revised REMIT, its revision is now required.

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The European Banking Authority (EBA) has published its final draft regulatory technical standards (RTS) concerning the allocation of off-balance sheet items and the specification of factors that may constrain institutions' ability to cancel unconditionally cancellable commitments. Under the standardised approach to credit risk, the exposure values of off-balance sheet items depend on the application of specific percentages, which are determined by a bucket classification. Developed under Article 111(8) of the Capital Requirements Regulation (CRR), the RTS introduces assignment criteria for items not currently mapped to the five factor buckets in Annex I of the CRR, thereby supporting consistent classification. These criteria aim to reflect varying levels of conversion probability, considering the existence of financial covenants, non-credit related conditions, and obligor optionality.

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The BIS Innovation Hub has announced the launch of Project Noor, a collaborative initiative with the Hong Kong Monetary Authority and the UK Financial Conduct Authority aimed at enhancing the transparency and accountability of AI models used by banks and other financial institutions. AI is increasingly shaping decisions in digital finance, from mortgage approvals to fraud detection. Yet as these models grow more complex, the press release states that regulators and consumers alike face challenges in interpreting how decisions are made. Project Noor seeks to address this by prototyping explainable AI (XAI) tools that translate complex model logic into human-readable explanations and intuitive visuals. The initiative intends to support compliance with emerging regulations requiring high-risk financial AI systems to be auditable and explainable, without prescribing fixed standards. It empowers supervisors to assess fairness, robustness, and consistency in AI-driven decisions, while preserving privacy and promoting responsible innovation. Importantly, Project Noor does not seek to override existing practices or impose mandatory frameworks. Rather, its purpose is to support supervisors by offering tools and reference points to help them develop their own well-informed judgments. Financial institutions will remain responsible for model explainability.

HM Treasury (HMT) has published five new webpages, each with a collection of joint statements from key international financial partnerships reflecting their shared commitments and the outcomes they are seeking to achieve. These include:

• UK-U.S. Financial Regulatory Working Group – joint statements from the biannual UK-U.S. Financial Regulatory Working Group held between HMT, U.S. Treasury and representatives from their respective supervisory authorities.
• UK-U.S. Financial Innovation Partnership (FIP) – joint statements from the annual FIP held between HMT and the U.S. Treasury on emerging trends in financial services innovation.

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The President of the European Central Bank (ECB), Christine Lagarde, has issued a letter responding to Members of the European Parliament regarding the Eurosystem's evolving approach to climate-related financial risks. Firstly, the letter confirms the ECB's plan to introduce a "climate factor" in the second half of 2026, which will adjust the collateral value of marketable assets from non-financial corporations based on climate risk data. This replaces previously proposed collateral pool concentration limits, which were not implemented due to insufficient data granularity. The climate factor is part of the ECB's broader Climate and Nature Plan, aimed at strengthening climate risk management across the Eurosystem's balance sheet and collateral framework. Secondly, the letter emphasises the importance of high-quality climate data and raises concerns about the Omnibus I sustainability package, which proposes amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive that would reduce reporting obligations. As highlighted in the ECB opinion dated 8 May on the Omnibus proposal, it is their view that the proposed changes risk reducing firm-level sustainability reporting, weakening the Eurosystem's ability to assess climate-related financial risks, and causing delays in the transposition of the CSRD into the national laws of euro area member states. The letter therefore concludes by stressing the need to "strike the right balance" between preserving the benefits of sustainability reporting and ensuring proportionality in the requirements.

The UK Financial Conduct Authority (FCA) has published a summary of discussions held throughout 2024 with industry members of the FCA's Cyber Coordination Group programme. The publication is not intended to introduce any additional regulatory expectations. The FCA states that it is making the insights widely available so that firms can consider them, within the context of the FCA's existing expectations, to learn from other firms and to help strengthen their cyber resilience capabilities. They included insights from both members' positive and more challenging experiences of the issues, and focus on three key topics: i) the reconnection framework and third-party management; ii) threat and vulnerability management and threat-led penetration testing; and iii) AI and other emerging technologies, including quantum computing.

The UK Financial Conduct Authority (FCA) has published a letter to heads of sustainable finance on the sustainability-linked loan (SLL) market and by way of update since the FCA's previous letter on this topic in 2023. The FCA report improvements in the market for SLLs, with better practice and more robust product structures, but continue to observe barriers to scaling the SLL market and some concerns around incentives. The FCA will continue to monitor the SLL market and will work closely with the Transition Finance Council (TFC) to promote the competitive position of the UK as a transition finance hub. Firms are encouraged to engage collaboratively with the TFC's work and the Loan Markets Association, to build alignment in approaches to transition finance.

The UK Payment Systems Regulator (PSR) has published its decisions to revoke:

• From 27 August, Specific Direction 2, which requires all central infrastructure for Bacs to be competitively procured (and Specific Direction 2a which varied the requirement). This decision stems from work to deliver the National Payments Vision (NPV) and aims to provide the necessary space and certainty for work to deliver the NPV.
• From 25 August, Specific Direction 4, which requires the operator of the LINK payment system to procure any future contracts for central infrastructure services in a competitive manner (and Specific Direction 4a which varied the requirement). This decision aims to ensure that LINK and its members have the regulatory clarity they need to focus on their longer-term sustainability and the delivery of an efficient network, given that due to changes in market conditions, a competitive tender obligation may no longer be an effective way to address the competition issues.

Decision 2025/1734 of the European Central Bank (ECB) of 31 July on safeguards in relation to access by central counterparties (CCPs) to Eurosystem overnight credit in TARGET, has been published in the Official Journal. Under Guideline 2022/912, national central banks of Member States whose currency is the euro may provide overnight credit through a dedicated crisis facility to CCPs established in the euro area and which meet certain requirements. This Decision specifies i) the requirements that CCPs must meet in relation to financial soundness and liquidity risk management; ii) the assessments of compliance which the Eurosystem central banks are to carry out; iii) the Governing Council's powers to decide on discretionary measures in cases where an eligible CCP does not comply with the requirements relating to the safeguards on financial soundness and sound liquidity risk management; and iv) the penalties applicable for cases where a CCP's access to the CCP credit facility has been limited and the CCP exceeds the restricted level of access, or resorts to the CCP credit facility in breach of relevant requirements relating to liquidity risk controls. The Decision enters into force on 2 September and applies from 6 October, aligned with the date of application of the amendments to Guideline 2022/912 relating to the CCP credit facility.

The Bank of England (BoE) has published a new webpage on the national payments vision and the vision engagement group (VEG) of sector representatives supporting delivery of the vision. The webpage on the national payments vision contains an update on the delivery of the next generation UK retail payments infrastructure to date and next steps in 2025, focusing on key deliverables in H2.

• In September: i) The BoE will communicate further on the establishment of the Retail Payments Infrastructure Board (RPIB), and the application process for membership of RPIB; ii) The Bank, HM Treasury, FCA and PSR will engage with VEG members to discuss the Payments Vision Delivery Committee's strategy, which is due to be published later in the autumn.
• In October and November: i) The BoE will appoint members to the RPIB with a view to holding the first meeting of the RPIB in late October; ii) The BoE will also set out an approach to wider stakeholder engagement across the ecosystem for the RPIB beyond 2025, and the processes to deliver an early 2026 RPIB consultation paper; iii) The Payments Vision Delivery Committee plans to publish its strategy for retail payments infrastructure. This will inform the early 2026 RPIB consultation paper.
• In December: The Payments Vision Delivery Committee will publish the Payments Forward Plan by the end of the year.

The UK Financial Ombudsman Service (FOS) has published a consultation on further changes to its case fee structure. In April, the FOS implemented changes to its charging structure, which included charges for professional representatives bringing cases. The proposed additional changes in this consultation are stated to respond to regular feedback from stakeholders that further differentiation is required to support the 'polluter pays' model and to better reflect the work the FOS carries out on individual cases.

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The UK Competition and Markets Authority (CMA) has published its provisional decision that the remaining provisions of the SME Banking (Behavioural) Undertakings 2002 (the 'Limitation on Bundling Provisions') are no longer appropriate and should be released. The Limitation on Bundling Provisions prevent the banks that gave the undertakings from requiring, as a condition of granting a business loan or approving the opening of a business deposit account, that a small or medium-sized enterprise (SME) customer should open or maintain a business current account with the bank. The proposed release is due to changes in the competitive landscape in the SME banking markets and changes in customer behaviour, and the decision follows the CMA's review of the undertakings earlier this year. The CMA is now consulting on this provisional decision before it makes its final decision. The deadline for comments is 5pm on 3 September.

The EU Single Resolution Board (SRB) has launched a consultation on its operational guidance for banks on separability and transferability. The SRB has updated its 2021 operational guidance on separability and seeks to align it with the SRB's operational guidance on resolvability self-assessment, with the SRB's focus now being on operationalisation, resolution testing, and crisis readiness. It is accompanied by an operational framework for transfer playbooks and an annex on testing. It is intended to clarify the procedures for banks and resolution authorities to operationalise the use of transfer tools, supporting enforcement of Articles 38-42 of Directive 2014/59 (BRRD) and applies to all banks under the SRB's remit with transfer tools in their resolution plans. The SRB states that this update 'does not introduce new deliverables, but instead it seeks to enhance the effectiveness of existing ones. The SRB invites feedback on the updates and their impact on banks' current deliverables by 22 October. The guidance is intended to be applicable from the resolution planning cycle 2026.

The European Banking Authority (EBA) has published a report on the use of SupTech tools in anti-money laundering and countering the financing of terrorism (AML/CFT) supervision, as well as a press release. In November 2024, the EBA surveyed competent authorities on their use of SupTech tools and in January 2025, a workshop was held on AML/CFT SupTech. The EBA's report provides its findings from both programs, considers the current use of SupTech tools at EU level and how the tools are implemented. The EBA concludes that SupTech tools can improve the effectiveness of AML/CFT supervision and competent authorities have identified benefits such as enhanced collaboration, improved data quality and analytics, and the ability to scale supervision under the new EU AML/CFT framework, particularly with the establishment of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism, known as AMLA. Poor data quality and governance, limited resources, legal uncertainty, operational risks, and friction related to institutional transformation are recognised as potentially impeding progress. Various good practices have emerged, including promoting a digital-first culture, adopting structured change management strategies, enhancing data governance and interoperability and leveraging synthetic data to safeguard privacy.

HM Treasury (HMT) has published a policy statement on the appointed representatives regime, setting out how it proposes to adjust the appointed representative (AR) legislative framework to provide further needed protection for consumers of AR firms. First, a new gateway for authorised firms will be implemented which will require an authorised firm that intends to use ARs to obtain permission from the Financial Conduct Authority (FCA) before doing so. The FCA's role will be to assess whether an authorised firm has the appropriate resources and expertise to properly oversee ARs. HMT states that it is already working with the FCA on a detailed proposal for designing and implementing the permission gateway. The intention is that the new gateway will not require existing principal firms to apply for the new permission and firms seeking a new authorisation will be able to apply for the permission during the authorisation process. The FCA will have powers to limit, vary, or revoke a permission to act as principal.

Secondly, HMT intends to mitigate consumer harm by closing a gap in the complaints redress system.

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The European Commission (EC) has published a draft delegated regulation amending Delegated Regulation 2017/567 as regards the obligation to provide market data on a reasonable commercial basis, the determination of what constitutes a liquid market for equity instruments, and the definition of and disclosure for post-trade risk reduction (PTRR) services under the markets in financial instruments regulation (MiFIR).

The proposed amendments follow and seek to reflect the MiFIR reform aimed at enhancing data transparency, removing obstacles to the emergence of consolidated tapes, optimising the trading obligations, and prohibiting receiving payment for order flow and parallel amendments to MiFID II.

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The Bank of England (BoE) and Financial Conduct Authority (FCA) have together published a consultation paper on proposed additional Q&A under the UK's European Market Infrastructure Regulation. The proposed Q&A relate to the reporting of FX swaps and reporting with technical ISIN. Responses to the consultation may be submitted to either the BoE or the FCA until 12 September.

The Bank of England (BoE) has published a policy statement confirming its amendments to the trade repository reporting requirements under the UK's European Market Infrastructure Regulation (EMIR). In June last year, the BoE had consulted on proposed revisions to the Technical Standards (EMIR Reporting and Data Quality and Miscellaneous Amendments) Instrument 2023. In the policy statement, the BoE confirms that the changes will take effect largely as proposed, except for minor changes to validation rules. On the same day, the Financial Conduct Authority (FCA) published the Technical Standards (EMIR Reporting and Data Quality and Miscellaneous Amendments) Instrument 2025. Both the FCA and BoE changes take effect on 26 January 2026.

Commission Delegated Regulation 2025/791 and Commission Implementing Regulation 2025/790, with regard to the functioning of colleges of supervisors referred to in Articles 116 and 51(3) of Directive 2013/36 (CRD IV) have been published in the Official Journal of the EU. Commission Delegated Regulation 2025/791 contains regulatory technical standards specifying the general conditions for the functioning of supervisory colleges, and repeals Commission Delegated Regulation 2016/98. Commission Implementing Regulation 2025/790 sets out implementing technical standards regarding the operational functioning of colleges of supervisors, and repeals Implementing Regulation 2016/99. Both the Delegated Regulation and the Implementing Regulation enter into force on 28 August.

The UK Financial Conduct Authority (FCA) has published a feedback statement on the design of the Future Entity for UK open banking (FS25/4). The feedback statement responds to the feedback received to the consultation, which was issued by the Joint Regulatory Oversight Committee (JROC). However, in line with the National Payments Vision, JROC has been wound down and the FCA is progressing the further development of open banking. In the feedback statement, the FCA states that subject to legislation the Future Entity will be the primary standard setting body for open banking Application Programming Interfaces (APIs) in the UK. It will set common standards for a minimum level of service and interoperability across open banking services, monitor API performance and compliance with standards (although it will not have enforcement powers), provide directory and certification services and assist in development standards to enable commercial schemes. It is not envisaged that the Future Entity will own or operate commercial schemes where market innovation incentives exist. The FCA expects that the Future Entity and commercial scheme operators will be regulated as interface bodies under the Data (Use and Access) Act. The FCA intends to progress the design of the Future Entity, which is intended to be established by the end of the year.

The European Banking Authority (EBA) has published its final draft implementing technical standards (ITS), amending the Implementing Regulation on the benchmarking of credit and market risk for the 2026 exercise. The EBA flags that the most significant change is in the area of market risk, where it is proposing to restrict the data collection to the information on the alternative standardised approach (ASA) from those banks that were granted the internal model approval. In light of the additional delay to the application of the Fundamental Review of the Trading Book (FRTB), the templates based on the alternative internal model approach (AIMA) have not been implemented.

On credit risk, the EBA report that only minor changes are being made to align the definitions used with the ITS on supervisory reporting following the implementation of Basel III. In particular, the EBA has introduced a mapping between the asset classes used in the benchmarking exercise and the breakdown of credit risk IRB templates adopted in the revised ITS on supervisory reporting.

The draft ITS will be submitted to the European Commission for endorsement and will apply 20 days after publication in the Official Journal of the European Union.

The European Banking Authority (EBA) has published a statement confirming that following the European Commission's Delegated Act postponing the application of the market risk framework (FRTB) by one more year, to 1 January 2027, the EBA's no action letter published on 12 August 2024 would remain fully valid and in place. 

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The European Banking Authority has published single rulebook Q&A relating to the Digital Operational Resilience Act (DORA). The answers to the questions were given by the joint European Supervisory Authorities. The Q&A cover:

• The identification of ICT service providers (2024_7089).
• Guidance on completing the refPeriod field of the parameters.csv file for the DORA register of information (2025_7387).
• The obligation to maintain a register of information for FEs exempt under article 16, DORA (2025_7388).

The European Banking Authority has published single rulebook Q&A relating to the Securitisation Regulation. The answers to the questions were given by the European Commission. The Q&A cover:

• The use of conditional sale agreements to season assets by an originator instead of the originator purchasing the assets and then selling the same to a securitisation SPE (2021_5851).
• The meaning of "established in the Union" (2022_6539).
• Qualification of a branch as originator, designation of Competent Authority and compliance with STS requirements (2024_6984).

The UK's House of Lords Financial Services Regulation Committee (the Committee) has published its letter to the UK Financial Conduct Authority (FCA), expressing concern and requests for further information in relation to the FCA's motor finance redress proposals. The letter is in response to Nikhil Rathi's letter (also published) to The Rt Hon. the Lord Forsyth of Drumlean PC KT, Chair of the Committee, dated 4 August which followed the UK Supreme Court's decision in the cases of Hopcraft, Johnson, and Wrench. The Committee requests more information about: i) the legal grounding which underpins the FCA's proposals to limit the scheme to agreements dating back to 2007 rather than aligning the scope with the six year limitation period for bringing a claim for breach of the Consumer Credit Act; ii) the FCA's modelling of indicative costs to industry; iii) administrative costs to firms and how the FCA intends to ensure these are proportionate to the amount of redress paid; and iv) the likely impact of the redress scheme on the integrity of the motor finance market in the UK. The Committee notes the importance of the motor finance market to consumers and requests the FCA to appear before it in September to respond to the concerns raised.

The UK Financial Conduct Authority (FCA) has published a policy statement (PS25/12) setting out changes to the safeguarding regime for payments and e-money firms. The FCA consulted on the proposals in CP24/20 in September 2024. The changes to the rules are in the Payment and Electronic Money (Safeguarding) Instrument 2025 (FCA 2025/38) which will come into force on 7 May 2026, allowing for an implementation period of nine months (an extension to the originally proposed six months). In addition, the FCA also published the proposed related amendments to its payment services and e-money approach document.

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The European Banking Authority (EBA) has launched a consultation on proposed revisions to its guidelines on internal governance under the Capital Requirements Directive (CRD). The revisions form part of the EBA's broader roadmap for implementing the EU Banking Package and reflect changes introduced by CRD VI and other relevant legislation including the Digital Operational Resilience Act (DORA). The proposed amendments seek to: (i) align the guidelines with the new requirements under Article 88(3) of CRD VI, to ensure that each member of the management body, senior manager and key function holder have a documented statement of role and duties, and that a mapping of duties of the members of the management body, senior managers and key function holders has been drawn up; (ii) incorporate findings from supervisory practices and the EBA's benchmarking report on diversity and gender-neutral remuneration policies; and (iii) provide specific guidance to ensure that third-country branches establish and maintain robust governance frameworks. The deadline for responses is 5 October, with a virtual public hearing scheduled for 5 September.

The UK Financial Ombudsman Service (FOS) has published its Q1 2025/26 complaints data alongside a press release, revealing a notable decline in case volumes to 68,000, down from 74,600 in the same period last year. Complaints about motor finance commission dropped significantly from 36,000 in the last three months of 2024/25 to 21,500 processed in the first three months of this year, while irresponsible lending cases halved to 10,000 compared to the same period last year. Fraud and scam complaints also fell, with 6,800 cases reported, including 3,400 in relation to authorised push payment fraud. The introduction of charges for professional representatives submitting over ten complaints annually, which entered into force on 1 April, has led to a reduction in such cases, from 36,600 to 30,800. The FOS is working with HM Treasury and the UK Financial Conduct Authority to modernise the UK's redress system, aiming to improve efficiency, encourage early resolution and ensure complaints are well-evidenced before investigation. These reforms, which include changes to complaint processing and industry guidance on mass redress triggers, are subject to consultation until 8 October.

The UK Financial Conduct Authority (FCA) has published a new "Wholesale banks supervision" webpage which consolidates insights from the FCA's multi-firm and other supervisory work involving wholesale banks. The webpage covers a range of topics and the outcome of FCA multi-firm reviews, which we summarise here.

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The Single Resolution Board (SRB) published its Operational Guidance for Banks on Resolvability Self-Assessment, accompanied by a press release. This marks a shift towards a more structured and standardised approach for banks to resolvability self-assessments and rigorous testing. The guidance, part of the SRM Vision 2028 strategy, introduces a set of criteria to assess the extent to which banks meet the resolvability capabilities outlined in the Expectations for Banks (EfB). It includes a self-assessment template structured around the seven resolvability dimensions set out in the EfB, covering all elements of crisis readiness. It outlines the capabilities that banks should have in place to effectively execute resolution measures during a crisis. The methodology will also reflect how well banks' resolvability capabilities work in practice through their regular testing. The guidance was consulted on in December 2024, with key feedback summarised in a feedback statement. In response to consultation feedback, the framework has been simplified to reduce administrative burden. Key changes include cutting resolvability capabilities by 20%, changing the reporting frequency to every two years and the introduction of a less granular reporting structure, notably for testing activities. Banks are required to submit their first self-assessment report under the new format by 31 January 2026, reflecting their resolvability self-assessment as of 31 December. In light of the ongoing development of new policies and guidance, the self-assessment report may be subject to targeted amendments in the future. The SRB confirms that operational guidance on the testing framework, which complements the self-assessment approach, will be published later this year.

The European Banking Authority (EBA) has published its final draft regulatory technical standards (RTS) clarifying what constitutes an "equivalent legal mechanism" for unfinished property exposures under the Capital Requirements Regulation (CRR), as amended by the CRR3. These RTS form part of the initial phase of the EBA's roadmap for implementing the EU Banking Package. Article 124 of the CRR sets out the requirements for assigning risk weights to exposures secured by mortgages on immovable property, including conditions under which exposures to properties under construction may qualify for preferential treatment.

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The UK Financial Conduct Authority (FCA) has published the findings from its multi-firm review of climate reporting by asset managers, life insurers and FCA-regulated pension providers under the Taskforce on Climate-related Financial Disclosures (TCFD) regime. The review found that the rules have strengthened firms' consideration of climate risks and improved transparency, but challenges remain around data availability and consistent, well-developed methodologies. Firms reported that while the disclosures are useful for institutional investors, they are often too complex for retail investors, particularly at the product level, where reports were also harder to find. Most firms were generally able to report on backward-looking data, such as carbon emissions, but struggled with providing quantitative data to support forward-looking disclosures like scenario analysis, limiting comparability between reports. Asset managers, in particular, viewed the rules as overly granular given their broader, overlapping sustainability disclosure obligations and called for simplification of the requirements. Firms also sought clarity on the future of the TCFD rules in light of the global shift towards ISSB standards, urging the FCA to ensure international alignment and a practical, industry-informed approach.

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The European Banking Authority (EBA) has issued an Opinion in the form of a no-action letter dated 5 August, addressing the application of ESG Pillar 3 disclosure requirements under the EBA disclosure implementing technical standards (ITS). The letter includes recommendations to national competent authorities aimed at easing the implementation timeline for revised ESG Pillar 3 disclosure requirements under the Capital Requirements Regulation (CRR). The objective is to alleviate operational burdens on institutions pending the adoption and publication of amendments to Commission Implementing Regulation (EU) 2024/3172 in the Official Journal of the European Union.

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The UK Financial Conduct Authority (FCA) has published an updated Enforcement Information Guide, which reflects changes in the FCA Handbook to its revised Enforcement Guide (ENFG) and the Decision Procedure and Penalties manual. The updated guide provides a high-level overview of the FCA's enforcement powers under the Financial Services and Markets Act 2000 and the process for a typical enforcement case, to help firms and individuals understand how enforcement operates in practice. Key aspects covered include early resolution options, the FCA's discount scheme for settlement, the decision-making roles of the Settlement Decision Makers and the Regulatory Decisions Committee, and the potential use of mediation. The guide also explains how cases may be referred to the Upper Tribunal and outlines the FCA's publicity approach, including when the FCA may publicly share that it is (or is not) investigating a matter. The FCA confirms that the guide does not cover information about its criminal or other processes.

Commission Recommendation (EU) 2025/1710 of 30 July 2025 on a voluntary sustainability reporting standard for small and medium-sized undertakings (SMEs) has been published in the Official Journal of the European Union. The Recommendation serves as an interim measure ahead of a formal delegated act, which will establish a future voluntary standard as part of the Omnibus I simplification package. Among other things, the Omnibus I package amends the EU Corporate Sustainability Reporting Directive (CSRD) to make sustainability reporting more accessible and efficient.

The European Banking Authority has launched a consultation on proposed revisions to its regulatory technical standards (RTS) on resolution plans and resolution colleges, under Delegated Regulation (EU) 2016/1075, adopted in accordance with the EU Bank Recovery and Resolution Directive. For resolution plans, the proposed changes seek to tackle the issue of increasingly long and detailed plans which have limited optionality by: (i) simplifying and streamlining resolution plans; (ii) making plans more operational to improve their usability, including by separating choice and execution of resolution strategy from assessment of an institution's resolvability; and (iii) introducing greater optionality to improve the flexibility of resolution planning. On resolution colleges, the proposed changes aim to simplify processes, improve cooperation and information exchange among authorities and improve coordination in the implementation of a resolution scheme. The deadline for responses on the consultation is 5 November, with a public hearing scheduled for 16 September. Registration for the public hearing is due by 10 September.

The European Banking Authority (EBA) has published its final report containing final draft regulatory technical standards (RTS) on the prudential treatment of cryptoasset exposures under the Capital Requirements Regulation (CRR), as amended by the CRR3. The RTS specify the technical elements necessary for institutions to calculate and aggregate cryptoasset exposures in relation to the prudential treatment of such exposures. The draft RTS, initially consulted on in January, remain largely unchanged. However, in response to consultation feedback, the EBA: (i) removes the requirement for prudent valuation of fair value cryptoasset exposures; and (ii) introduces a provision clarifying how institutions should aggregate long and short positions when determining the exposure limit. Together with the transitional provisions in CRR3, the RTS provide institutions with an interim method to capitalise cryptoasset exposures until a permanent prudential framework is in place, enabling institutions to participate in the rapidly evolving crypto markets.

The UK Financial Conduct Authority (FCA) has published a letter dated 31 July, addressed to claims management companies (CMCs) involved with motor finance claims, urging them to review their financial promotions to ensure compliance with the FCA Handbook and standards set out under the Consumer Duty. The FCA has seen an increase in activity with CMC firms. From 1 January 2024 to 30 June 2025, the FCA's engagement with 14 authorised CMCs specialising in motor finance claims has resulted in 225 financial promotions being amended/withdrawn. The letter sets out the FCA's concerns regarding financial promotions across a range of media platforms, including websites, social media, banner advertisements and paid Google ads, that may breach the requirements set out in the Claims Management: Conduct of Business sourcebook (CMCOB) and the Consumer Duty.

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The European Supervisory Authorities—the European Banking Authority, European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority—have published an updated version of their consolidated Q&A document (JC 2023 18) on the Sustainable Finance Disclosure Regulation (SFDR) and on Commission Delegated Regulation (EU) 2022/1288 supplementing the SFDR. The latest update includes four new Q&As addressing: (i) the definition of the term "water usage"; (ii) how to calculate useful internal floor area for owned real estate assets; (iii) best practice about disclosure of percentages for environmentally and socially sustainable investments; and (iv) whether financial products should calculate top investments or shares of investments in periodic disclosures in a specific way over the reference period.

HM Treasury (HMT) has announced an extension to the consultation deadlines set out in its policy update on applying the Financial Services and Markets Act 2000 (FSMA) model of regulation to the Capital Requirements Regulation (CRR). HMT had published a policy update inviting responses on the Overseas Recognition Regimes and Key CRR Definitions, as well as on the associated draft legislation, on 15 July. Responses were originally requested by 5 September. In response to industry feedback that additional time would be helpful for respondents, HMT has extended the deadline for responses on: (i) the Basel 3.1 transitional Statutory Instrument (The Capital Requirements Regulation (Amendment) Regulations 2025) to 12 September; and (ii) the proposed Overseas Recognition Regimes and Key UK CRR Definitions (as outlined in Chapters 3 and 4 of the policy update), together with the associated draft legislation (The Credit Institutions and Investment Firms (Miscellaneous Definitions) (Amendment) Regulations 2025) to 30 September.

The European Banking Authority (EBA) has published a final report containing three final draft regulatory technical standards (RTS) aimed at standardising the collection and recording of operational risk losses under the Capital Requirements Regulation (CRR) as amended by the CRR3. The RTS also clarify exemptions for the calculation of the annual operational risk loss and on the adjustments to loss data sets that banks must perform in case of merged or acquired entities or activities. The draft RTS were previously consulted on in June 2024.

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The UK Financial Conduct Authority (FCA) has issued a statement alongside a press release confirming its intention to consult on a motor finance redress scheme for consumers affected by unfair commission arrangements. This follows the UK Supreme Court's ruling on 1 August. The FCA states that its aim is to create a redress scheme which is fair and easy for consumers to participate in, so there is no need to use a claims management company or law firm. In its statement, the FCA confirms that the consultation, expected in early October, will consider the following topics as set out below.

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