The European Central Bank Governing Council has announced its decision to move on to the next phase of the digital euro project in a letter to Aurore Lalucq, Chair of the European Parliament's ECON Committee. The announcement follows the successful completion of the two-year preparation phase launched in 2023, which laid the groundwork for issuing a digital euro. The digital euro is intended to complement cash by offering a secure, inclusive and resilient public digital payment solution across the euro area. The ECB states the final decision on whether to issue a digital euro, and when, will only be made once the relevant legislation has been adopted, which is expected by 2026. A pilot exercise and initial transactions could begin as early as mid-2027, with the ECB aiming to be technically prepared for a potential first issuance by 2029. Published alongside the announcement were: (i) a report on digital euro user research; (ii) a technical report focusing on the workstream led by the dedicated Euro Retail Payments Board; and (iii) an update from the Rulebook Development Group on the digital euro scheme.

The Bank of England (BoE) has published its first annual report on the wholesale cash distribution market oversight regime, following its full operationalisation on 12 June under Part 5A of the Banking Act 2009, as introduced by the Financial Services and Markets Act 2023. The report outlines the BoE's supervisory approach in promoting the effectiveness, resilience and sustainability of the UK's wholesale cash distribution (WCD) industry. It also highlights several market-wide risks to the WCD market, which are set out below.

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The European Banking Authority (EBA) has issued a report with its formal response to the European Commission's (EC) March 2024 call for advice on six regulatory mandates under the forthcoming EU anti-money laundering and countering the financing of terrorism (AML/CFT) framework. The formal response aims to support the operational launch of the new Anti-Money Laundering Authority (AMLA) and includes the EBA's proposals for the draft regulatory technical standards (RTS) which the AMLA will ultimately adopt. These RTS separately cover: (i) methodologies for assessing inherent and residual money laundering/terrorist financing risks of obliged entities; (ii) risk assessment criteria for AMLA's selection of institutions for direct supervision; (iii) customer due diligence requirements; and (iv) classification of the severity of breaches and determination of pecuniary sanctions.

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The UK Financial Conduct Authority (FCA) has issued a warning to investors regarding contracts for difference (CFDs), a type of derivative that allows speculation on the price movement of shares or assets without owning the underlying asset. The FCA expresses concern that some firms are using high-pressure tactics to encourage investors to self-certify as professional clients, which thereby removes key retail consumer protections, potentially exposing individuals to losses beyond their financial capacity.

The regulator also raises concerns about the role of social media influencers in promoting offshore firms and unrealistic returns, often without disclosing that such firms are unregulated. The FCA reminds firms that they must not push elective professional or redirection promotions onto their retail clients, otherwise it will take action against firms who breach its rules. The FCA also reiterates its commitment to targeting "finfluencers" who unlawfully promote financial products and services. Firms are also reminded of their obligations under the consumer duty and investors are encouraged to use the FCA's InvestSmart tools to support informed decision-making with their investments.

The European Banking Authority (EBA) has published its final report on the draft regulatory technical standards (RTS) under Article 382(6) of the Capital Requirements Regulation (CRR), as amended by CRR3. The RTS establish a quantitative framework for assessing the materiality of credit valuation adjustment (CVA) risk exposures arising from fair-valued securities financing transactions (SFTs). Following feedback to the July 2024 consultation, the EBA retained its proposed quantitative approach to assessing materiality, opting for a ratio-based threshold of 5% to determine whether such transactions should be included in CVA capital requirements. The final RTS also uphold quarterly assessments aligned with COREP reporting cycles and clarify that the CVA capital requirement metric, rather than broader own funds or exposure values, should be used for the materiality test.

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The European Commission (EC) has adopted a communication providing guidance clarifying how banks can benefit from preferential prudential treatment under Article 133(5) of the Capital Requirements Regulation (CRR) when investing in equity through legislative programmes, which are structured public investment schemes established under EU or national law. These programmes, which combine public support (e.g. guarantees or co-investment) with private funding and oversight mechanisms, target strategic sectors such as clean technologies, digital innovation and defence. The guidance promotes consistent application across the Single Market, enabling banks to apply lower capital charges to qualifying exposures, reflecting their reduced risk profile. This initiative supports financial stability while enhancing access to equity financing for EU companies and advancing the EC's broader goals under the Savings and Investments Union (SIU), including capital market integration and competitiveness. A public register of eligible legislative programmes has been published, as well as a website with questions and answers on legislative programmes under Article 133(5).

The European Commission has adopted a Delegated Regulation amending Delegated Regulation (EU) 2022/805 to update the supervisory fee framework for benchmark administrators under the oversight of the European Securities and Markets Authority (ESMA). This amendment follows the expansion of ESMA's supervisory remit under the revised Benchmarks Regulation (BMR), which now includes EU benchmark administrators endorsing third-country benchmarks. Following the draft published in July, the Regulation introduces application and annual supervisory fees for this new category, aligning them with those applicable to recognised third-country administrators.

Notably, fees are differentiated based on whether benchmarks are deemed significant under Article 24 of the BMR, with fixed fees for non-significant benchmarks and turnover-based fees for significant ones. The Regulation also clarifies the calculation of applicable turnover and introduces transitional provisions for administrators recognised or supervised as of 1 January 2026. Specifically, administrators who are already under ESMA's supervision or have obtained recognition before this date will be subject to the new fee framework starting from the 2026 fee cycle. The changes aim to ensure proportionality ahead of the 31 December transitional deadline for third-country benchmark use in the EU. The Regulation will enter into force on the day following its publication in the Official Journal of the European Union.

The UK Financial Conduct Authority (FCA) has published consultation paper CP25/29, alongside a press release, setting out proposed rules and guidance for the UK short selling regime. This follows the introduction of the Short Selling Regulations 2025 (SSR 2025) under the Financial Services and Markets Act 2023. The FCA proposes to establish a new Short Selling Sourcebook within its Handbook, aiming to consolidate existing requirements and introduce targeted changes to reduce regulatory burdens and improve market efficiency. This approach is informed by HM Treasury's 2023 response to its call for evidence.

Key proposals include:

• Extending the Net Short Position (NSP) notification deadline to 23:59 on the day after the trade (T+1) and providing guidance on calculating NSPs and determining issued share capital.
• Clarifying when NSPs must be calculated and how to report within corporate groups.
• Requiring short sellers to retain records of covering arrangements for a minimum of five years.

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HM Revenue & Customs (HMRC) has released a comprehensive handbook to add to its resources, aimed at identifying and tackling trade-based money laundering (TBML). The guide provides an accessible overview of TBML techniques, legal frameworks and investigative strategies, with a particular focus on Operation A, an HMRC-led investigation that successfully disrupted a major organised crime group. The handbook includes case studies, evidentiary approaches using customs and trade data, prosecution insights and lessons learned. While tailored to UK systems and authorities, the resource offers valuable guidance for professionals globally who are exposed to TBML risks.

The European Commission has adopted a Delegated Regulation supplementing the European Market Infrastructure Regulation (EMIR), setting out regulatory technical standards (RTS) for the new active account requirement introduced by EMIR 3. The RTS follow the European Securities and Markets Authority 2024 consultation and specify the operational conditions, representativeness obligations and reporting requirements for the active account mandate.

The RTS specify minimum operational conditions, including legal and technical arrangements to support clearing services and internal systems to handle increased clearing volumes. Firms must also conduct annual stress tests to demonstrate IT connectivity and operational readiness. Reporting is required every six months, with the first report due six months after the Regulation enters into force. The aim is to reduce systemic risk and strengthen the resilience of EU clearing infrastructure. The Regulation shall enter into force on the twentieth day following its publication in the Official Journal of the European Union.

The UK Prudential Regulation Authority (PRA) has published near-final policy statement PS18/25, confirming its intention to retire the refined methodology to Pillar 2A capital requirements. This decision follows the 2024 consultation and is aligned with the forthcoming implementation of the Basel 3.1 standardised approach to credit risk (CR SA), now scheduled for implementation on 1 January 2027. The PRA concludes that the refined methodology to Pillar 2A, originally introduced to address conservatism in CR SA relative to the Internal Ratings-Based (IRB) approach, is no longer necessary due to improvements in risk sensitivity under Basel 3.1.

Despite mixed feedback from respondents, the PRA maintains that the retirement will simplify the capital framework, reduce operational burdens and better reflect firms' risk profiles. Implementation will take effect from 1 January 2027, aligning with the extended implementation date of Basel 3.1. Final policy materials are expected in Q1 2026, following HM Treasury's revocation of relevant Capital Requirements Regulation (CRR) provisions. Final minor amendments to policies concerning interest rate risk in the banking book (IRRBB) and pension obligation risk have also been published, with implementation deferred to 1 July 2026. The appendices to this near-final policy statement contain the PRA's near-final policy materials regarding the retirement of the refined methodology, as well as final policy materials related to IRRBB and pension obligation risk.

The UK Prudential Regulation Authority (PRA) has published near-final policy statement PS19/25, setting out its approach to restating remaining provisions of the Capital Requirements Regulation (CRR) into the PRA Rulebook and associated policy materials. This follows the 2024 consultation and complements earlier finalised proposals in the PRA's July policy statement.

The statement is structured into four chapters:

• Chapter 1 – provides an overview, summarises feedback to the consultation and outlines the scope of the near-final rules.
• Chapter 2 – covers amendments to the securitisation requirements, including updates to supervisory statements SS9/13 and SS10/18 and introduces new statements of policy (SoP7/25 and SoP8/25).
• Chapter 3 – covers other CRR provisions including the Groups Part, Credit Risk: Internal Ratings Based Approach Part, Counterparty Credit Risk Part and introduces a new Settlement Risk (CRR) Part of the Rulebook. It also updates supervisory statements SS15/13 and SS4/24 and introduces SoP6/25 on Internal Model Method permissions.
• Chapter 4 – focuses on changes related to the mapping of external credit rating agency ratings to credit quality mapping aligned with Basel 3.1 standards.

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The UK Prudential Regulation Authority (PRA) has published near-final policy statement PS20/25, marking the second and final phase of its "strong and simple" framework. This introduces a simplified capital regime for smaller, domestically focused banks and building societies, referred to as small domestic deposit takers (SDDTs). The framework aims to reduce regulatory complexity and compliance costs for these firms while maintaining their financial resilience. Phase 1, which focused on liquidity and disclosure simplifications, was finalised in the December 2023 policy statement. Phase 2, as outlined in this near-final policy statement, builds on phase 1 and incorporates feedback from the 2024 consultation.

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The Basel Committee on Banking Supervision (BCBS) has published a final technical amendment to the Basel framework, clarifying the treatment of guarantees and credit derivatives used to hedge counterparty credit risk (CCR) from derivative exposures. The technical amendment, revised following consultation feedback, applies specifically to a bank's use of fixed or capped protection and excludes securities financing transactions (SFTs) and securitisation exposures. Amendments have been made to the credit risk and CCR standards to align the treatment of guarantees and credit derivative protection with that of eligible collateral under the CCR framework.

These changes aim to clarify how fixed or capped protection should be reflected in exposure calculations and address inconsistencies in the application of the framework. As a technical amendment, it does not constitute a substantial change to the standards but resolves ambiguities that could not be addressed under the existing rules. Supervisors and the BCBS will monitor implementation and potential circumvention strategies, with the possibility of extending similar treatment to SFTs and securitisations if necessary. BCBS members have agreed to implement the amendment as soon as practical and within three years at the latest.

The European Commission has adopted a Delegated Regulation amending the regulatory technical standards (RTS) under Delegated Regulations (EU) 2018/1645 and 2018/1646, pursuant to the Benchmark Regulation (EU) 2016/1011. These amendments update the form and content of applications for recognition, authorisation and registration of benchmark administrators, reflecting changes introduced by the BMR recognition regime under Regulation (EU) 2019/2175 as well as further reforms under Regulation (EU) 2025/914 aimed at reducing the regulatory burden on administrators of smaller benchmarks. The amendments to both RTS are consolidated in a single amending Delegated Regulation.

Key revisions include enhanced disclosure requirements relating to organisational structure, employees and governance integrity, including self-declarations for management and oversight personnel. Additional provisions address operational separation of the applicant's business, record-keeping and complaint handling mechanisms. Applications must now be submitted electronically and either in the official language of the Member State where the legal representative is established or in a language customary in the sphere of international finance. Personal data retention by national competent authorities and the European Securities and Markets Authority is limited to five years after the individual has ceased to perform its function. The Regulation shall enter into force on the twentieth day following its publication in the Official Journal of the European Union.

The UK Financial Conduct Authority (FCA) has published a statement outlining guidance for firms intending to offer crypto exchange-traded notes (cETNs) to retail investors, following the lifting of its ban effective from 8 October. The products are classified as Restricted Mass Market Investments and only cETNs listed on the FCA's official list and traded on a UK Recognised Investment Exchange are eligible for retail distribution. Firms are expected to hold the appropriate permissions and comply with the relevant financial promotion rules. This includes not offering investment incentives, conducting mandatory appropriateness assessments, categorising clients, providing cooling-off periods and issuing prominent risk warnings. Firms are also expected to meet consumer duty obligations, ensuring products offer fair value, transparency and good consumer outcomes. Firms seeking authorisation or new permissions may request a pre-application meeting with the FCA through its pre-application support service.

HM Treasury has published a consultation paper and call for evidence inviting views on a range of proposals aimed at enhancing the UK's Bank Referral Scheme (BRS) to improve its performance. The BRS requires lenders (designated banks) to refer small-and medium-sized enterprise (SME) customers that they reject for finance, with the SME's permission, to finance platforms that can match the SME with alternative finance providers, to improve access to finance. The BRS operates under the Small and Medium Sized Business (Finance Platforms) Regulations 2015, which were made under powers in the Small Business, Enterprise and Employment Act 2015.

Key proposals include:

• Expanding the scope to allow non-bank lenders (e.g. building societies) to be designated under the BRS.
• Introducing a voluntary opt-in mechanism for smaller lenders to participate in the BRS.
• Improving transparency and timing of information provided to SMEs during the application process, including minimum standards for how and when they are informed about the BRS.

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The draft Financial Services and Markets Act 2000 (Regulated Activities) (ESG Ratings) Order 2025 has been laid before UK Parliament and published alongside a draft explanatory memorandum. The draft Order seeks to bring the provision of environmental, social or governance (ESG) ratings within scope of regulation under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO), making it a specified activity where such ratings are likely to influence decisions to invest in instruments listed in Part 3 of the RAO. This will require providers of an ESG rating to be authorised and supervised by the UK Financial Conduct Authority (FCA). Savings and transitional arrangements will apply, allowing firms to continue providing ESG ratings without authorisation, provided they submit an application for authorisation within a relevant application period to be specified by the FCA.

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The European Securities and Markets Authority (ESMA) has announced that cyber risk and digital resilience will remain central to its Union Strategic Supervisory Priorities (USSPs) for 2026. This follows strong engagement from national competent authorities (NCAs) and aligns with the implementation of the Digital Operational Resilience Act (DORA), enhancing ICT risk management and supervisory coordination across EU financial markets. ESMA urges NCAs to sustain supervisory momentum into 2026, as coordination between authorities' supervisory work and the DORA oversight framework will be essential. Additionally, NCAs will target supervisory efforts to consolidate achievement under the environmental, social and governance disclosures USSP, with a focus on high-risk areas. ESMA will also consider the potential introduction of new supervisory topics to address emerging risks at the Union-wide level in the following years.

HM Treasury has announced the launch of a new Scale-up Unit in Leeds, designed to accelerate the growth of innovative financial services firms. Jointly led by the UK Financial Conduct Authority (FCA) and the UK Prudential Regulation Authority (PRA), the Unit will provide bespoke regulatory support to fast-growing firms across three distinct groups including banks and building societies, insurers and FCA solo-regulated firms. Support for fintech firms is expected to follow in early 2026.

The Unit aims to simplify regulatory navigation, remove barriers to investment and offer firms a clear point of contact for timely responses to regulatory queries and access to expert guidance. It is intended to complement, not replace, existing supervisory and support services. The FCA published a press release and new webpage outlining how the Unit will operate, who it is for and how it differs from existing support services. The PRA also published a new webpage describing the Unit's purpose and sector-specific support, including tailored pages for insurers and banks and building societies. This joint initiative forms part of the government's broader Financial Services Growth and Competitiveness Strategy.

The European Banking Authority (EBA) has launched a consultation on its revised guidelines for the supervisory review and evaluation process (SREP) and supervisory stress testing, mandated under the Capital Requirements Directive (CRD). The proposed guidelines consolidate all relevant SREP provisions into a single, comprehensive framework as part of the EBA's efforts to simplify and enhance the EU supervisory framework. The update integrates new elements, including environmental, social and governance factors, operational resilience and mandates under the revised Capital Requirements Directive (CRD VI) relating to third-country branches and the output floor.

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The European Banking Authority has published two Q&A under the Capital Requirements Regulation (CRR): (i) 2025_7363 addresses how exposures to institutions should be treated under the Credit Risk Standardised approach, if such institutions have been waived of individual capital requirements under Article 7 of the CRR; and (ii) 2025_7470 addresses the eligibility as collateral under Article 207(2) of the CRR of secured notes designed specifically to remove any material positive correlation between the value of the note and the credit quality of its issuer.

The Bank of England (BoE) has published an update on the ongoing design phase of the digital pound, a proposed form of central bank digital currency intended to complement existing payment methods. While no decision has yet been made on its introduction, the focus over the past year has been on developing a detailed blueprint, supported by design notes and practical experimentation through the Digital Pound Lab. The blueprint is expected to be published in 2026.

This work aims to deepen understanding of how public money could operate within a multi-money system and will inform a joint, evidence-based assessment by the BoE and HM Treasury in 2026. In parallel, payment trends in the UK and internationally will continue to be monitored to support this assessment. If a decision is made to proceed, a digital pound would only be introduced following the passage of primary legislation by the UK Parliament. The BoE will continue targeted experiments and stakeholder engagement to explore what is viable and what may need to change.

The UK Financial Conduct Authority (FCA) has published a letter addressed to asset management and alternative firms outlining its expectations ahead of the UK's transition from T+2 to a T+1 securities settlement cycle, effective from 11 October 2027. The FCA has identified that some small and medium-sized asset managers and alternative investment firms may not yet be fully aware of the operational changes required. As such, the FCA reiterates its expectations and urges all impacted firms to proactively assess their readiness. With two years remaining, firms are expected to plan now to ensure their settlement processes, particularly those reliant on manual workflows, are sufficiently automated to meet the demands of a shortened settlement cycle.

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The UK Financial Conduct Authority (FCA) has published Primary Market Bulletin 59 (PMB59). It begins with findings from a review of issuers' compliance with Article 17.4 of the UK Market Abuse Regulation (MAR) on delayed disclosure of inside information (DDII) under certain conditions. Notably, the FCA observed a 39% drop in DDII notifications, alongside an increase of approximately seven days in average delay periods compared to its previous review in November 2020. While this could be due to fewer instances of information being classified as inside information, or a reduced use of delayed disclosure rather than non-compliance, the FCA reminds issuers of their obligations under UK MAR, including timely DDII submissions and maintaining confidentiality.

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The Financial Conduct Authority (FCA) has updated its Climate Financial Risk Forum (CFRF) webpage, announcing the release of a comprehensive suite of publications aimed at enhancing the financial sector's capacity to manage climate and nature-related risks. These are set out below.

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The UK Financial Conduct Authority (FCA) and the UK Payment Systems Regulator (PSR) have published a joint response to HM Treasury's consultation on consolidating the PSR's functions within the FCA's legislative framework. Both regulators support the proposed integration, agreeing with the overarching approach to the consolidation, and believe that the proposed model enables a coherent and holistic view of regulatory issues that impact payment systems and payment services. Their response outlines work already completed as well as ongoing efforts to prepare for the transition. In terms of next steps, beyond development of the detailed legislation, and in the longer term, they consider that there may be aspects of the FSMA regime that may be appropriately adapted to payment systems regulation. There may also be further opportunities to review how the developing regime for the regulation of activities involving stablecoins or other crypto-assets fits together with the regulation of systems that use such technology to transfer funds. In the accompanying annex, the PSR and FCA set out their responses to the specific consultation questions. You may also like to read our opinion piece "UK Payment Systems Regulator to be abolished - what's next?" which explores key considerations and potential impact of the transition of the consolidation.

The European Securities and Markets Authority (ESMA) has published its final report with draft regulatory technical standards (RTS) that establish an EU code of conduct for issuer-sponsored research. The RTS supplement the revised Markets in Financial Instruments Directive, as amended by the Listing Act Directive. Under the revised framework, research distributed by investment firms to clients or potential clients that is paid for, fully or partially, by an issuer must be labelled as "issuer-sponsored research". No substantive changes have been made following the December 2024 consultation. A feedback statement is included in the final report in section 3. While the code is non-binding, ESMA emphasises that all research providers (whether independent or not) must comply with the EU code of conduct if they wish their analysis to be labelled and distributed as "issuer-sponsored research", otherwise it would have to be labelled as a marketing communication. The final draft RTS have been submitted to the European Commission for adoption, who has three months to decide whether to adopt them. If adopted, they will apply from 6 June 2026.

The European Parliament has rejected the negotiating mandate, adopted by its Legal Affairs Committee on 13 October, on the Omnibus I package on simplified rules for sustainability reporting and due diligence. The Legal Affairs Committee's report (A10-0197/2025) was published on 17 October. Members of the European Parliament will vote on amendments to the file at the upcoming plenary session in Brussels on 13 November, after which trilogue negotiations with the Council of the EU and the European Commission may begin. The Council of EU adopted its mandate in June. The aim is to finalise the legislation by the end of the year.

The European Banking Authority (EBA) has released its fifth and final report on the functioning of anti-money laundering and countering the financing of terrorism (AML/CFT) colleges, covering the period from 1 January 2024 to 31 May. Overall, the EBA found that the state of the colleges framework has remained stable since December 2023. It concludes that these colleges have been effective in facilitating information exchange and strengthening AML/CFT supervision across the EU. However, the EBA identifies limited progress by supervisors in addressing two key priorities: (i) applying a risk-based approach in the functioning of AML/CFT college meetings meaning that resources were not always allocated to the most strategically important colleges; and (ii) ensuring systematic, meaningful discussions on coordinated responses to shared risks. From 1 January 2026, oversight of AML/CFT colleges will transition to the new Anti-Money Laundering Authority (AMLA), with the EBA's findings expected to inform AMLA's supervisory framework going forward.

The European Securities and Markets Authority (ESMA) has published its final report on the draft regulatory technical standards (RTS) for open-ended loan-originating alternative investment funds (OE LO AIFs), pursuant to the Alternative Investment Fund Managers Directive (AIFMD). Following consultation feedback, ESMA has made the following changes to the draft RTS: removed the requirement for Alternative Investment Fund Managers (AIFMs) to determine a target appropriate amount of liquid assets, instead AIFMs must ensure their OE LO AIFs have sufficient liquidity to honour redemption requests; revised the frequency of liquidity stress testing, requiring AIFMs managing OE LO AIFs to conduct such tests at least annually, rather than quarterly as previously proposed and; clarified certain provisions to improve interpretability. The final draft RTS have been submitted to the European Commission for adoption but, as the RTS are classified as non-essential Level 2 acts, they are not expected to be adopted before 1 October 2027 at the earliest.

The Better Data Sharing Regulation (Regulation (EU) 2025/2088) has been published in the Official Journal of the European Union (OJ). The regulation introduces targeted amendments to certain reporting requirements in the fields of financial services and investment support. It amends seven foundational EU laws to streamline supervisory reporting and improve data sharing among EU financial authorities. Key features include: (i) a requirement for the European Supervisory Authorities, through the Joint Committee and in cooperation with other EU bodies, to deliver a feasibility report within five years on a cross-sectoral integrated reporting system. Based on its findings and a comprehensive impact assessment, the European Commission may, where appropriate, put forward a legislative proposal; (ii) calls for consistent application of the "report once" principle, whereby authorities should obtain information from other authorities that have already collected it, rather than requesting it again from reporting entities, provided this does not compromise the entities' ability to perform their tasks; (iii) a shift from biannual to annual reporting under the InvestEU Programme; (iv) clarification of the scope and conditions for both mandatory and voluntary data sharing; and (v) encouragement for authorities to enter into memoranda of understanding to support information exchange. The Regulation will enter into force on 10 November.

The European Commission (EC) has published a communication alongside a fact sheet outlining its 2026 work programme, which sets out a comprehensive legislative and policy agenda to strengthen the EU. The programme includes 38 new policy objectives across key areas including energy, defence and digital innovation, among others.

Key initiatives include the European Innovation Act, Cloud and AI Development Act and Quantum Act, which seek to accelerate technological progress and support the EU's digital transition. In the area of sustainable finance, the EC includes a package of measures for "the decade ahead" on climate and the Energy Union, aiming to strengthen the EU's climate and energy frameworks. These measures include revising national targets, updating the emissions trading system, and establishing new infrastructure and regulatory frameworks for CO₂ transport, energy efficiency and renewables. A notable focus of the programme is regulatory simplification, with over half of the legislative initiatives designed to reduce administrative burdens and deliver net cost savings, particularly for small and medium-sized enterprises. The annexes accompanying the work programme list the new initiatives, pending proposals and those the EC proposes to withdraw, among other elements.

HM Treasury (HMT) has published its consultation response and policy statement on the reform of the anti-money laundering and counter-terrorism financing (AML/CTF) supervision regime, following its 2023 consultation. The consultation had proposed four potential models to reform the current supervisory framework, which comprises of three public sector supervisors, namely the UK Financial Conduct Authority (FCA), the Gambling Commission and HMRC, as well as 22 professional body supervisors (PBSs) responsible for overseeing the legal and accountancy sectors' compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. HMT now confirms its intention to implement the Single Professional Services Supervisor (SPSS) model. Under this model, the FCA will become the sole AML/CTF supervisor for in-scope legal service providers, accountancy service providers and trust and company service providers, consolidating supervisory responsibilities previously held by 23 separate bodies, with the aim of improving consistency, effectiveness and coordination across the regime.

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HM Treasury has published a policy paper, setting out a six-month progress update to the UK Government's Regulation Action Plan, originally launched in March. It reflects on commitments it has delivered upon, including with UK regulators, and outlines a series of forward-looking initiatives aimed at reducing regulatory burdens and fostering economic growth in several key areas for financial services which are set out below.

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The European Securities and Markets Authority (ESMA) has published its final report on the draft implementing technical standards (ITS) extending the use of the alleviated format of insider lists to all issuers under the amended Market Abuse Regulation (MAR), as mandated by the Listing Act (Regulation (EU) 2024/2809). The draft ITS consolidates the existing five insider list templates into three: two templates for event-based and permanent insider lists applicable to non-SME issuers and SME Growth Market issuers in Member States that have opted out of the simplified regime, and a third template for SME GM issuers under the simplified regime, covering persons with regular access to inside information.

Following its April consultation, ESMA has made no major changes to the templates. It maintained its view that all issuers should report the national identification number of insiders, and where not applicable, their date of birth. ESMA also added a recital clarifying that issuers may include one contact person per external provider with access to inside information. The draft ITS has been submitted to the European Commission, which has three months to decide whether to adopt them.

The UK Department for Science, Innovation and Technology (DSIT) has announced its plans to establish an AI Growth Lab, a new blueprint for AI regulation. This regulatory sandbox is designed to support responsible AI innovation by allowing firms to pilot AI technologies in real-world conditions, under temporary and closely supervised environments. The Lab would operate issue specific sandboxes, focusing on sectors where there is opportunity for innovation and adoption, but where regulatory modification may be needed and existing regulatory sandboxes are not in place. Within the Lab, certain regulations may be temporarily "switched off" or adjusted for a limited period to enable experimentation.

Target sectors include professional services, healthcare, transport and advanced manufacturing. DSIT has issued a call for views to help shape the Lab's operating model. The proposals cover its design (including whether it should be centrally operated by the government or relevant regulator-led on a sandbox-by-sandbox approach), application criteria, necessary safeguards and the length of the sandbox. DSIT is also considering powers for government to make permanent responsible regulatory modifications, validated through Lab testing, by secondary legislation. This would be subject to appropriate parliamentary scrutiny. If adopted, this mechanism would mean that the Lab is not only a safe and controlled way to trial responsible AI, but also a driver for dynamic regulatory reform. The deadline for responses is 2 January 2026. During the response window, DSIT will organise roundtables for stakeholder and public engagement.

The Bank of England, UK Financial Conduct Authority (FCA) and UK Prudential Regulation Authority (PRA) have published a joint document outlining effective practices in cyber response and recovery capabilities across systemic firms and financial market infrastructures (FMIs). The publication highlights practices drawn from firms' operational resilience self-assessments and is structured around the following four key areas:

• Response to a high severity cyber disruption – maturer firms are using a broader set of impact tolerance metrics, beyond just duration, to define critical service levels. These include metrics such as value, volume, critical activity, end-users and types of payments. Effective self-assessments also feature clear, timely crisis communication plans and resilient communication capabilities.

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The European Systemic Risk Board (ESRB) has published a report highlighting trends and systemic risks associated with the crypto-asset ecosystem, with a particular focus on stablecoins, crypto-asset investment products and multi-function groups:

• The report notes that global stablecoin market capitalisation has more than doubled since the ESRB's previous assessment in May 2023, driven in part by U.S. policies promoting the adoption of U.S. dollar-denominated stablecoins. The ESRB flag policy challenges in ensuring that stablecoins issued outside the EU that are non-compliant with MiCAR are not widely used within the EU. The ESRB also flags financial stability risks posed by stablecoins jointly issued by EU and third-country entities, noting that such schemes are not explicitly addressed under the current Markets in Crypto-Assets Regulation (MiCAR).

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The UK Financial Conduct Authority (FCA) has published findings from its multi-firm review of client categorisation practices in corporate finance firms. The review assessed compliance with COBS 3 and COBS 4 requirements and identified both good practices and areas for improvement. While most firms conducted client categorisation assessments under COBS3, many were found to be superficial, lacking supporting records and relying on invalid criteria, particularly in elective professional categorisations. The FCA expects firms to use structured assessments to evaluate whether a client meets the specific criteria in COBS3.5.3R for the elective professional categorisation and to keep adequate supporting records.

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The UK Financial Conduct Authority (FCA) has published its findings from a recent survey on financial crime controls in corporate finance firms not required to submit financial crime data returns. The findings reflect firms' self-reported practices and are not based on an FCA review. They highlight both good practices and areas needing improvement. Approximately two-thirds of respondents may be non-compliant with one or more aspects of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (Money Laundering Regulations). Key deficiencies include the absence of documented business-wide risk assessments, gaps in customer due diligence and inadequate oversight of appointed representatives. Despite these concerns, the FCA did identify good practices, such as regular reporting to senior management and the use of risk registers. The FCA has begun contacting firms falling short of expectations to prompt remedial action and will follow up to assess progress. Firms are reminded of their obligations under the Money Laundering Regulations and are expected to address identified gaps in their financial crime frameworks.

The UK Financial Conduct Authority (FCA) has updated its webpage on the proposed motor finance consumer redress scheme consultation to announce the launch of a data room. The facility is intended to support stakeholder engagement during the consultation period, which closes on 4 November. The data room provides controlled access to underlying datasets relevant to the FCA's analysis of consumer loss, particularly in relation to the APR adjustment remedy and high commission arrangements. Access is restricted to individuals with demonstrable expertise in handling large datasets and financial modelling and is granted solely for the purpose of responding meaningfully to the consultation. Entry is conditional upon signing a confidentiality agreement. The FCA clarifies that the data room is not designed to enable firms to calculate their own redress liabilities, as they would need to calculate this from their own data.

A draft of the Financial Services and Markets Act 2023 (Prudential Regulation of Credit Institutions) (Consequential Amendments) Regulations 2025 has been laid before the UK Parliament, and published together with a draft explanatory memorandum. The draft regulations are part of the UK's continued process to repeal and replace assimilated EU financial services law following Brexit, under the Financial Services and Markets Act 2023 (FSMA 2023). Under section 1 of FSMA 2023, several provisions of the UK Capital Requirements Regulation (UK CRR) will be revoked, effective from 1 January 2026, by virtue of the FSMA 2023 (Commencement No. 10 and Saving Provisions) Regulations 2025. These provisions, which set prudential standards for credit institutions and investment firms, will largely be replaced by rules made by the UK Prudential Regulation Authority (PRA) and the Bank of England.

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The European Securities Markets Authority (ESMA) has published two Q&A's relating to the Markets in Crypto-Assets Regulation (MiCAR): (i) ESMA_QA_2653 provides guidance on how crypto-asset service providers (CASPs) should distinguish between different types of execution services; and (ii) ESMA_QA_2654 clarifies the respective responsibilities of offerors, persons seeking admission to trading, trading platform operators and other CASPs referenced in Article 66(3) of MiCAR, relating to white papers for crypto-assets (excluding asset-referenced tokens and e-money tokens) that were admitted to trading before 30 December 2024.

The UK Financial Conduct Authority (FCA) has published its findings from a multi-firm review assessing how UK payment service providers (PSPs) (including banks and other businesses offering payment accounts) detect and respond to romance fraud, a growing financial crime where victims are deceived into sending money to fraudsters who engineer false romantic relationships or friendships. The review covered 60 cases across six firms and the conclusions highlight examples of good practice and areas for improvement. Whilst some firms are leading the way with proactive engagement and compassionate support reflecting best practice, these examples were not consistent across the industry and it is clear that staff play a critical role in interventions. Equally, the review also examined the effectiveness of firms' systems and controls in detecting romance fraud, to avoid missed opportunities to detect suspicious activity, including transactions to overseas jurisdictions, multiple payments over a short period and sudden increases in the value of funds being sent.

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HM Treasury (HMT) has announced the launch of the "Office for Investment: Financial Services" a new free one-stop support service designed to make the UK more attractive to global financial services investors. The service operates through a partnership between HMT, UK financial regulators including the UK Financial Conduct Authority and the UK Prudential Regulation Authority, and the City of London Corporation. It aims to help international financial firms expand their operations in the UK, including in financial clusters such as Leeds, Liverpool, Belfast and Bristol, removing barriers to investment, offering regulatory assistance and providing broader business support. The launch delivers on commitments made in the Chancellor of the Exchequer, Rachel Reeves, Mansion House speech and forms part of the government's broader strategy to strengthen the UK's position as a global financial hub.

The International Transition Plan Network (ITPN) has launched a new interactive global map to help track the regulatory status of climate-related transition plans across jurisdictions. The map allocates jurisdictions into one of three categories: (i) mandatory, where rules or guidance are in force; (ii) upcoming, where mandatory rules are under development; and (iii) voluntary, where guidance encourages disclosure. The map will be regularly updated, with stakeholders invited to contribute to its accuracy.

The UK Financial Conduct Authority (FCA) has published Primary Market Bulletin 58, setting out updates to its guidance in the Knowledge Base, in preparation for the new Public Offers and Admissions to Trading Regulations (POATRs) regime, which will take effect on 19 January 2026. Specifically, the FCA: (i) confirms that from 1 December, issuers will be able to submit draft prospectuses, registration documents, and other relevant materials for review, with a view to seeking formal approval on or after 19 January 2026. The FCA intends to publish updated forms and checklists on its webpage to accompany these submissions; and (ii) provides feedback on its consultation in PMB 57, finalising two technical notes, TN 710.2 (Sponsor Services: Principles for Sponsors) and TN 638.1 (Complex Financial Histories and Significant Financial Commitments).

Additionally, the FCA is consulting on new draft technical notes described in policy statement PS25/9, which are intended to take effect alongside the POATRs regime, proposes updates to 42 existing notes and the deletion of seven notes from the Knowledge Base. The deadline for comments on the four new technical notes and proposed updates to PN 902, TN 602, TN 619, TN 628, TN 801 and TN 802 is 5 December. For all other notes it is 21 November. The FCA plans to finalise these updates in a further Primary Market Bulletin to be published shortly before the new rules come into force in January 2026.

The Single Resolution Board (SRB) has launched a consultation on new operational guidance for banks' communication in resolution scenarios, along with a communication testing supplement to its existing operational guidance on resolvability testing for banks. The consultation aims to enhance the timeliness, accuracy and consistency of communication from banks when they are failing or likely to fail. It builds on the SRB's expectations for banks and further clarifies the strategic communication expectations during resolution. Key areas covered include: (i) coordination between banks and the resolution authorities; (ii) consideration of moratorium tools under the Bank Recovery and Resolution Directive in communication planning; (iii) banks' communication plans for resolution; and (iv) governance arrangements for communication during resolution.

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Regulation (EU) 2025/1958 of the European Central Bank (ECB), amending Regulation (EU) 2015/534 on the reporting of supervisory financial information (the Financial Reporting Regulation) under the Single Supervisory Mechanism (SSM), has been published in the Official Journal of the European Union. Adopted on 9 September, the Regulation amends the Financial Reporting Regulation to allow the ECB to collect additional data from less significant credit institutions and branches with total assets of EUR3 billion or less. The additional information is considered necessary for the ECB to foster comparability of the outcomes of the supervisory review and evaluation process assessment. The Regulation enters into force on 6 November and will apply from 30 December.