The UK Prudential Regulatory Authority (PRA) and the UK Financial Conduct Authority (FCA) have published a policy statement finalising amendments to the Binding Technical Standards (BTS 2016/2251) on margin requirements for non-centrally cleared derivatives under UK EMIR. Following feedback on its March consultation, the regulators confirm the rules are largely as proposed, including: (i) an indefinite exemption from the bilateral margining requirements for single-stock equity options and index options; (ii) the removal of the obligation to exchange initial margin (IM) on outstanding legacy contracts where a firm subsequently falls below the in-scope thresholds; and (iii) allowing UK firms to use another jurisdiction's threshold assessment calculation periods and entry into scope dates to determine whether those transactions are subject to certain IM requirements, when transacting with a counterparty subjected to the margin requirements in that jurisdiction. Other than these, only minor technical amendments were made. The final text of the FCA and PRA instruments amending BTS 2016/2251 can be found in the appendices to the policy statement. The amendments to the BTS are effective immediately, from 27 November.

The UK Financial Conduct Authority (FCA) has published its latest Regulation Round-up, a monthly newsletter to firms covering hot topics, events and sector news. Areas for firms to note include: (i) the launch of the InvestSmart Hype Type Revealer, a behavioural tool designed to help retail investors recognise how hype can influence their investment decisions; (ii) plans to standardise financial data collection at the authorisation gateway, introducing sector-specific templates to accelerate authorisation processes and reduce follow-up queries. The improvements are live for wholesale applicants with templates available on the FCA website, with further rollout coming for other sector firms; and (iii) enhancing the Digital Gateway experience by testing and rolling out a series of improved digital online forms for authorisations and notifications, providing clearer guidance and improved navigation for firms. The list of forms is included within the newsletter.

The Council of the EU and the European Parliament have announced a provisional political agreement on the EU payments package. While the final texts of the third Payment Services Directive (PSD3) and the Payment Services Regulation (PSR) are not yet available, press releases indicate that negotiations centred on three key areas: fraud prevention, transparency and open banking. For further details, you may like to read our blog post "European Council and Parliament reach provisional agreement on EU Payments Package".

The UK Financial Ombudsman Service (FOS) has launched a consultation on its plans and budget for 2026/27. Key proposals include increasing its case fee to GBP680 and compulsory levy to GBP86 million. The FOS has also announced that it will simplify its billing process for the next financial year by replacing the free case allowance with a monetary value of GBP2,000 for both respondent businesses and professional representatives. It is also introducing quarterly billing in advance for the largest businesses expected to account for the most cases. The FOS anticipates receiving 188,000 cases across a range of financial products, including bank accounts, credit cards and insurance, and resolving 245,000 cases as it works through its existing backlog. Of these, around 60,000 are expected to relate to motor finance commission complaints. The FOS is also preparing for deferred payment credit (buy now, pay later) complaints to fall within its remit from July 2026, meaning it is likely to start receiving these complaints in the second half of 2026/27. The deadline for comments is 21 January 2026.

HM Treasury (HMT) has published a letter from Rachel Reeves, Chancellor of the Exchequer, to Andrew Bailey, Bank of England Governor, setting out the remit and recommendations for the Financial Policy Committee (FPC) for 2025/26. The letter reaffirms the FPC's objectives to maintain UK financial stability and support the government's economic policy. The letter also highlights the need for regulation that balances resilience with growth, aligning with the Financial Services Growth and Competitiveness Strategy and the Leeds Reforms. Key priorities include reviewing the level of bank capital requirements, which should ensure the UK's capital framework strikes the optimal balance to deliver resilience, growth and competitiveness. Ms Reeves also looks forward to the FPC's findings on where there is potential to increase the ability of the financial sector to contribute to sustainable economic growth. The next steps in this work should identify how to support the supply of long-term capital for productive investment. The letter also highlights the critical nature of the FPC's work in the light of challenges for the global financial system such as the adoption of transformative technologies, climate change and the net zero transition, while also facing global macroeconomic uncertainty.

The UK Financial Conduct Authority (FCA) has published a new webpage with updated forms and checklists to support the UK's new Public Offers and Admission to Trading regime (POATR) which fully comes into force on 19 January 2026. The FCA's new sourcebook for admissions to trading on regulated markets, Prospectus Rules: Admission to Trading on a Regulated Market (PRM), also comes into force on 19 January 2026. From this date, the FCA will be able to approve documents under the new PRM sourcebook. From 1 December, the FCA confirms that issuers can submit a draft prospectus, registration document, universal registration document and/or a securities note and summary prepared under the new framework for review with a view to seeking approval once the new regime goes live. This can be done as usual via the FCA's Electronic Submission System (ESS).

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The Single Resolution Board (SRB) has published its 2026 work programme, outlining key priorities and building on the Single Resolution Mechanism (SRM) Vision 2028 strategy. The SRB will focus on advancing further the operationalisation of resolution tools and apply revised methodologies, including the revamped resolvability assessment and dry runs in close cooperation with the national resolution authorities. It will also implement the new multi-annual testing framework established under EBA guidelines to ensure banks' resolvability capabilities remain adequate over time. Further, the SRB will support EU and global policy debates on simplification initiatives without compromising on resolvability and contribute to regulatory work on the implementation of the crisis management and deposit insurance (CMDI) framework, completion of the Banking Union as part of the Savings and Investment Union, digitalisation in financial services, the macroprudential framework review and other global developments.

Additionally, the SRB will host its first international economic conference to foster dialogue on resolution policy and competitiveness in the EU financial sector. The overarching goal is to ensure banks are resolvable not only in theory but in practice. The SRB will also intensify efforts to streamline decision-making processes and to foster a shared SRM culture together with national resolution authorities. Other priorities include advancing digital transformation through a Data Quality Framework, accelerating key data initiatives, conducting a mid-term review of the SRM Vision 2028 and progressing HR initiatives on mobility, talent management and diversity and inclusion.

The UK Financial Conduct Authority (FCA) has published findings from its data quality review of prudential regulatory reporting by MIFIDPRU investment firms, covering submissions from January 2024 to March 2025. The FCA found that 60% of firms passed all data quality tests and saw good practice in reporting across time periods and accurate cross-validation returns. However, the FCA identified significant areas for improvement firms, including: (i) inconsistent reporting across multiple data sources; (ii) inaccurate implementation of reporting guidance; (iii) incorrect reporting of type of investment firm; and (iv) incorrect reporting units and data entry issues. From the 10% of firms that were not meeting their reporting requirements, the FCA found recurring reporting errors, indicating weaknesses in these firms' regulatory systems and controls.

The FCA urges firms to review their reporting processes against the relevant provisions in its Handbook, including MIFIDPRU 9 Annex 2, and ensure accuracy, noting that no new requirements or guidance are being introduced. Notifications highlighting data quality failures will be issued to firms and further detailed examples of data quality issues the FCA has seen will be shared in an upcoming IFPR Newsletter.

The European Banking Authority (EBA) has published a peer review report assessing how competent authorities have implemented and supervised gender diversity requirements. EU legislation requires that credit institutions have robust governance arrangements, including gender-neutral remuneration policies and diversity policies. The review examined six competent authorities, including the European Central Bank, on the application of the respective requirements under the fourth Capital Requirements Directive (CRD IV), the Capital Requirements Regulation and certain EBA guidelines across six major areas. It found that most requirements checked have been fully or largely incorporated into the supervisory framework by all supervisors reviewed.

However, deficiencies were noted, particularly in the use of supervisors' own benchmarking of diversity practices, where three supervisors were rated "partially applied" overall, with five out of six supervisors being rated "partially applied" on the second criteria of that benchmark, which concerns the further use of own diversity benchmarking results. The EBA recommends improvements in collecting and publishing supervisors' benchmarking results to enhance transparency and to improve the ability of credit institutions to compare with their peers. Both individual and general follow-up measures, as well as best practices have been adopted to strengthen consistency and effectiveness across the EU. The EBA will conduct a follow-up peer review of the implementation of the measures included in the report in two years.

The UK Financial Conduct Authority (FCA) has published a new webpage announcing the launch of a special stablecoins cohort within its Regulatory Sandbox for firms issuing stablecoins. This will enable UK firms planning to issue stablecoins to test products under the UK's evolving regulatory regime. The cohort supports innovation in financial services and complements projects such as the Digital Securities Sandbox. For a successful application, firms must demonstrate: (i) clear readiness to begin testing; (ii) hold appropriate permissions and resources; (iii) prepare a well-aligned test plan consistent with the recent FCA stablecoin issuance consultation paper CP25/14; and (iv) include as much detail as possible. Applications close on 18 January 2026. Successful participants will be notified by the FCA, and feedback will be provided to unsuccessful applicants.

The UK Serious Fraud Office (SFO) has published updated guidance on evaluating corporate compliance programmes, clarifying when and how such assessments occur. The updated guidance identifies six scenarios in which it may need to evaluate an organisation's compliance programme: (i) determining decisions on prosecution; (ii) considering deferred prosecution agreements (DPAs); (iii) including compliance terms and monitorships as part of any DPA; (iv) determining whether an organisation has a defence of "adequate procedures" under the Bribery Act 2010; (v) determining whether an organisation has a defence of "reasonable procedures" under the Economic Crime and Corporate Transparency Act 2023 (ECCTA); and (vi) sentencing considerations. In relation to statutory defences, the updated guidance draws on the six statutory principles in relation to proportionate procedures, top-level commitment, risk assessment, due diligence, communication (including training), and monitoring and ongoing review. It includes a "FAQs/general guidance" section, explaining the distinction between "adequate" or "reasonable" procedures (for statutory defences) and an "effective compliance programme" under failure-to-prevent offences. The SFO stresses that assessments depend on an organisation's individual circumstances. Having policies and controls in place does not automatically mean a programme is effective; the focus is on how policies translate into conduct on the ground.

The European Parliament (EP) has adopted a resolution on the impact of AI on the financial sector. This follows the final report published by the EP's Committee on Economic and Monetary Affairs (ECON) earlier in November. The press release confirms that the resolution highlights AI's potential benefits to the financial sector, including through fraud detection, personalised advice, transaction monitoring and environmental, social and governance (ESG) data analysis. However, it also warns of risks such as data bias, model opacity, cybersecurity threats and over-reliance on major tech providers. MEPs call for human oversight, robust data governance and updates to supervisory tools — emphasising that no new legislation is needed; instead, existing rules should be clarified and streamlined to foster innovation without compromising consumer protection or financial stability. The resolution urges the European Commission and supervisors to provide proportionate guidance and to enhance cross-border cooperation and support initiatives such as setting up AI-specific regulatory sandboxes, increasing AI literacy, researching AI's environmental impact, and reducing regulatory barriers for AI-based financial firms.

The European Commission has adopted a Delegated Regulation amending Delegated Regulation (EU) 2017/567 as regards regulatory technical standards (RTS) on equity transparency requirements under the Markets in Financial Instrument Regulation (MiFIR). The amendments follow the EBA's final report in December 2024 and reflect changes introduced by the MiFIR review and the amendments to the second Markets in Financial Instruments Directive (MiFID II). The changes cover: (i) the determination of what constitutes a liquid market for equity instruments, with liquidity assessment now based on the "market capitalisation" criterion, replacing the previous "free-float" criterion; (ii) the obligation to provide market data on a "reasonable commercial basis"; (iii) the size specific to the financial instrument for the purposes of obligations for systematic internalisers; and (iv) the definition of, and disclosure for, post-trade risk reduction (PTRR) services. The Delegated Regulation will be subject to scrutiny by the Council of the EU and the European Parliament. If neither object, it will be published in the Official Journal of the European Union (OJ). It will enter into force on the third day following publication in the OJ, with Article 1, point (4), applying from 23 August 2026.

The European Banking Authority (EBA) has published a fact sheet summarising the findings from its 2025 mapping exercise on the interaction between the EU AI Act (Regulation EU 2024/1689) and existing banking and payments legislation. This includes the Capital Requirements Regulation (575/2013), the Consumer Credit Directive (2008/48/EC), the Mortgage Credit Directive (2014/17/EU) and the Payment Services Directive ((EU) 2015/2366). The EBA's key findings include: (i) no significant contradictions have been found between the AI Act and EU banking and payment legislation; (ii) the AI Act is complementary to EU banking and payment sector legislation, which already provides a comprehensive framework to manage risks. However, some efforts may be required by banks and other financial institutions to integrate the two frameworks effectively; and (iii) the co-existence of multiple authorities supervising financial entities' compliance highlights the importance of supervisory cooperation to ensure effective implementation of the AI Act.

The EBA also concludes that no immediate changes to its guidelines or new EBA guidelines are planned. Instead, the EBA will follow up with actions to contribute to a common supervisory approach to supervisory cooperation and implementation of sectoral requirements alongside AI Act requirements. The EBA will undertake specific activities in 2026–2027 to support the implementation of the AI Act in the EU banking and payments sector by: promoting common supervisory approaches and cooperation among national competent authorities responsible for financial sector supervision and market surveillance authorities; and providing input to the AI office, as appropriate, and participating in discussions of the AI Board Subgroup on Financial Services.

Commission Implementing Regulation (EU) 2025/2338 (Amending Regulation) has been published in the Official Journal of the European Union. The amendments update the implementing technical standards (ITS) under Commission Implementing Regulation (EU) 2016/100, which govern the joint decision process for competent authorities when granting permission to use internal models for credit risk, counterparty credit risk and market risk for prudential purposes for certain entities in banking groups, as required by Article 20(8) of the Capital Requirements Regulation (CRR). The Amending Regulation introduces three key changes: (i) the removal of the Advanced Measurement Approach for operational risk, reflecting amendments to the CRR by CRR III (Regulation (EU) 2024/1623); (ii) the alignment with new RTS and ITS on the functioning of supervisory colleges that were published in August (Commission Delegated Regulation (EU) 2025/791 and Implementing Regulation (EU) 2025/790); and (iii) Commission Delegated Regulation (EU) 2025/1496, which sets out that the current requirements on the calculation of own funds requirements for market risk will apply until 1 January 2027. The Amending Regulation enters into force on 11 December.

The European Central Bank (ECB) has published its guide on implementing the Threat Intelligence-based Ethical Red Teaming (TIBER-EU) framework for mandatory threat-led penetration testing (TLPT) of significant institutions under the Digital Operational Resilience Act (DORA). Under Articles 26 and 27 of DORA, significant institutions must conduct advanced operational resilience testing by means of TLPT at least every three years. To assist significant institutions in fulfilling the DORA TLPT requirements, the ECB has decided to adopt the TIBER-EU framework. The guide sets out: the ECB's role in identifying significant institutions subject to TLPT requirements; the testing process (preparation, execution and closure); key stakeholder responsibilities, including the use of external threat intelligence providers and red team testers; and general considerations for TLPT, including test management, secrecy and risk management. The ECB clarifies that while the TIBER-EU implementation guide provides detailed operational steps, only DORA and its accompanying regulatory technical standards on TLPT remain legally binding.

The UK Financial Conduct Authority (FCA) has published consultation paper CP25/32 setting out proposals to improve the UK transaction reporting regime under the Markets in Financial Instruments Regulation (MiFIR). HM Treasury previously confirmed that assimilated law (law inherited from the EU at the point of Brexit) in this area will be repealed, enabling the FCA to deliver a more streamlined framework aimed at reducing the regulatory burden on firms and increasing the FCA's ability to fight financial crime and protect market integrity. In particular, the FCA is looking to replace the regulatory technical standards in Commission Delegated Regulations (EU) 2017/590 (RTS 22), 2017/585 (RTS 23), and 2017/580 (RTS 24) with new rules in its Market Conduct Sourcebook (MAR). Key proposals are set out below.

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The UK Financial Conduct Authority (FCA) has published consultation paper CP25/33 outlining its proposed changes to the fees and levies framework ahead of the 2026/27 fee cycle. The consultation paper is structured as follows:

• Chapter 2 sets out proposed changes to the fees manual of the FCA Handbook (FEES). These cover, among other things, introducing the Private Intermittent Securities and Capital Exchange System (PISCES) periodic fee, targeted support fees and levies, cryptoasset firms' application fees and deferred payment credit (often called buy-now, pay-later) fees and levies.
• Chapter 3 sets out proposed changes to FEES 5 (regarding the UK Financial Ombudsman) and FEES 6 (regarding the UK Financial Services Compensation Scheme).
• Chapter 4 sets out joint proposals with the UK Prudential Regulation Authority (PRA) to amend invoice due dates for firms which pay GBP50,000 or more in FCA and/or PRA fees in a year (referred to as "payments on account").
• Chapter 5 provides updates on various areas of fee policy, including section 166 costs for motor finance firms, pro-rating fees for firms which cancel their permissions, and technical changes to the financial penalty scheme. The FCA also confirms that it does not propose to charge fees to incoming Swiss firms for regulated activities they perform under the Berne Financial Services Agreement.

The deadline for responses is 9 January 2026 for targeted support proposals and 16 January 2026 for all other proposals.

The European Commission (EC) has adopted a proposal for a regulation to amend the Sustainable Finance Disclosure Regulation (SFDR). The SFDR, which has been in application since March 2021, sets detailed sustainability disclosure requirements for financial intermediaries and financial products regarding consideration of environmental, social, and governance (ESG) factors. The proposed amendments are aimed at simplifying the framework and making disclosures more retail friendly. An EC review found that the current regime produces lengthy, complex disclosures that hinder investor understanding and comparability.

Key elements of the proposal include: (i) removing entity-level disclosure requirements on principal adverse impacts and reducing product-level requirements; (ii) introducing a new clear categorisation system comprising of three product categories for ESG claims, based on existing market practice and the latest regulatory guidance; and (iii) repealing Commission Delegated Regulation (EU) 2022/1288 supplementing the SFDR, to remove the complex templates and entity-level requirements under it. The EC proposal will now be submitted to the European Parliament and Council of the EU for their deliberation.

The European Insurance and Occupational Pensions Authority (EIOPA) has published a Q&A under the Digital Operational Resilience Act (DORA) on the interpretation of Article 13 of Commission Delegated Regulation (EU) 2024/1774 (comprising the regulatory technical standards on ICT risk management), which supplements DORA. The clarification concerns the Article 13(c) which requires financial entities to implement the use of a separate and dedicated network for the administration of ICT assets. EIOPA confirms that such administration should be interpreted broadly so as to include both manual and automated activities and processes, and cross refers to other DORA articles which are relevant for interpreting this provision.

The draft Central Securities Depositories (Amendment) (Intended Settlement Date) Regulations 2026 has been laid before the UK Parliament, accompanied by a policy note . The draft statutory instrument (SI) amends the UK Central Securities Depositories Regulation to mandate settlement "no later than the first business day after trading," making T+1 the standard settlement period in the UK from 11 October 2027. The SI introduces exemptions for certain securities financing transactions, specifically: securities or commodities lending; securities or commodities borrowing; buy-sell back transactions; sell-buy back transactions and repurchase transactions (to the extent they involve transferable securities). The policy note explains the approach taken and clarifies issues not addressed in the legislation. The deadline for technical comments on the draft SI is 27 February 2026. Subject to feedback, the government intends to lay the final SI well before the implementation date, to allow for Parliamentary scrutiny and provide early certainty for the sector.

The Basel Committee has published a summary of its latest meeting in which members discussed a range of initiatives. The Committee reaffirmed its commitment to full and consistent implementation of Basel III standards and approved final principles for managing third-party risk in banking, which will be released next month. It also agreed to expedite a targeted review of its prudential standard for banks' cryptoasset exposures in response to market developments. Other priorities include examining synthetic risk transfers (SRTs), consulting on machine-readable Pillar 3 disclosures (expected in December) and consolidating guidelines into a more user-friendly format. The Committee also approved assessment reports on the UK implementation of the net stable funding ratio and large exposures framework, which are expected next month, and committed to pursue further analytical work of financial risks from extreme weather events.

The UK Financial Conduct Authority (FCA) has published consultation paper CP25/31 outlining a proposed framework for introducing an equity consolidated tape (CT) in the UK, operated by a consolidated tape provider (CTP). The proposals are linked to broader considerations on the structure and transparency of UK equity markets in CP25/20. The FCA plans a separate consultation on the equity transparency regime in 2026.For the purposes of this consultation, the FCA states an equity CT collates and distributes market data, such as prices and trade volumes, across trading venues and over-the-counter transactions, providing a comprehensive view of equity markets. In the paper, "equity" is defined as including shares, exchange-traded funds, depositary receipts, certificates and similar instruments.  

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The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2025 has been laid before the UK Parliament, accompanied by an explanatory memorandum. This follows the draft version laid in July. The order amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO) to reform the ancillary activities exemption (AAE). The AAE allows firms dealing in commodity derivatives, emissions allowances or related derivatives as an ancillary activity to be exempt from seeking investment firm authorisation. The order introduces changes giving the FCA a new rule-making power to set criteria for determining when such trading qualifies for exemption. The current AAE is replaced with a more proportionate regime offering two options: (i) assessing whether the activity is ancillary to the firm's main business at group level; or (ii) checking whether the activity is below an annual monetary threshold determined by the FCA. The order also makes consequential amendments allowing the FCA to direct how firms provide calculation data under both tests and removes references to assimilated law that FCA rules will replace.

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The UK Property (Digital Assets etc) Bill has completed its third reading in the House of Commons with further amendments and now awaits royal assent before becoming law. The Bill gives effect to recommendations of the Law Commission confirming in statute that a thing that is digital or electronic in nature can be recognised as personal property even if it does not fall within the traditional categories of "things in possession" or "things in action". The Bill applies to England, Wales and Northern Ireland.

The European Commission (EC) has adopted its Digital Omnibus Package with a set of proposals which seek to simplify rules on AI, data and cybersecurity. This forms part of the EC's broader digital initiative to help EU businesses innovate, scale and save on administrative costs. At the core of the package is the proposal for a regulation on simplification of the digital legislation which introduces technical amendments to a large range of digital laws.

Key measures include:

• AI – providing clarifications and practical measures to ensure smooth application of AI rules, including provisions for regulatory sandboxes and SME-friendly compliance pathways. Further targeted amendments to the EU AI Act are made through a separate legal proposal within the package.
• Cybersecurity – establishing a single-entry reporting mechanism that consolidates mandatory obligations under, among others, the NIS2 Directive, the General Data Protection Regulation (GDPR) and the Digital Operational Resilience Act (DORA). In a second stage, sector-specific rules in areas such as energy and aviation will also be integrated into this single-entry point.

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The European Central Bank (ECB) has published the results of its 2025 supervisory review and evaluation process (SREP) and supervisory priorities for 2026–2028. The review covers 105 banks under ECB supervision and looks at their capital, liquidity, profitability, governance and risk management. Overall, banks maintained robust capital and liquidity positions and strong profitability in the second quarter of 2025.

Looking ahead, the ECB's supervisory priorities for 2026–2028 reflect a comprehensive assessment of emerging risks and vulnerabilities for supervised entities. Each supervisory priority targets a specific set of vulnerabilities in the banking sector for which dedicated strategic objectives have been set and tailored work programmes developed.

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The European Commission (EC) has published a call for evidence on a proposed Delegated Act to amend market risk rules under the Fundamental Review of the Trading Book (FRTB) in Basel III. This follows the November consultation where responses are due by 6 January 2026. Although most Basel III requirements have applied since January, the EC postponed FRTB implementation on several occasions and most recently to 1 January 2027 due to delays and uncertainty regarding FRTB implementation in other major jurisdictions. As a result, the EC is evaluating whether to use the empowerment granted under Article 461a of the Capital Requirements Regulation, to adopt a Delegated Act to mitigate potential negative impacts arising from an unlevel playing field in the international implementation of the FRTB. It would also aim to incorporate those targeted changes already proposed by other jurisdictions that the EC believes can improve the EU framework (e.g. removing excessive rigidity and preventing excessive operational burden on banks). The deadline for responses is 18 December.

The UK Payments System Regulator (PSR) has published a compliance report on Specific Direction 17 which mandated the implementation of its name checking service, Confirmation of Payee (CoP), by UK payment service providers (PSPs) to prevent misdirected and fraudulent payments. PSPs were divided into two groups subject to different implementation timelines: Group 1 PSPs were required to implement CoP by 31 October 2023; and Group 2 PSPs by 31 October 2024. The report shows compliance is strong, with over 320 organisations now offering CoP checks. While most firms have met deadlines, the PSR opened enforcement investigations into a few non-compliant PSPs, including three Group 2 firms that missed the deadline and one ongoing case from Group 1. Directed firms are reminded of their obligations under General Direction 1 to maintain transparency regarding a PSPs ability to comply with PSR requirements, proactively communicate with the PSR if deadlines are missed or expected to be missed, plan regulatory changes early and ensure compliance before launching new services.

The European Supervisory Authorities, referred to as ESAs (comprising the European Banking Authority, European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority) have published the official list of designated critical ICT third-party providers (CTPPs) under the Digital Operational Resilience Act (DORA). This designation followed a structured process involving data collection from financial entities' ICT service registers, a criticality assessment in cooperation with national competent authorities and a notification process to those CTPPs identified as critical, after which they benefitted from their right to be heard by providing a reasoned statement. The final designation decisions were adopted following a careful review of all relevant information. Designated CTPPs, which deliver essential ICT services across the EU financial sector, will now be subject to direct oversight by the ESAs to ensure they have appropriate risk management and governance frameworks in place. The ESAs will continue engaging with CTPPs in the course of upcoming examination activities.

The UK Prudential Regulation Authority (PRA) has published policy statement PS24/25 on depositor protection and feedback to responses it received on its March consultation on the topic. The policy statement sets out final rules relating to the limits for deposit protection available from the Financial Services Compensation Scheme (FSCS).

In particular:

• From 1 December, the deposit protection limit increases from GBP85,000 to GBP120,000.
• From 1 December, the limit applicable to certain temporary high balance claims increases from GBP1 million to GBP1.4m.

In response to feedback, the PRA has made additional amendments to the depositor protection part of the PRA Rulebook (DPP rules). These include amending the requirement for firms to display the FSCS compensation sticker and poster to exclude branches where a firm does not deal with depositors in person, clarifying the scope of "third-party premises" to tighten the requirement and more closely reflect models such as banking hubs, and updates to the information sheet to address points raised about accessibility. Firms are required to update their single customer view systems to reflect the new limit from December 1. Deposit takers will then have up to six months to make changes to disclosure materials, which will need to be completed no later than 11.59pm on 31 May 2026.

The Financial Stability Board (FSB) has published a letter from the FSB's Chair, Andrew Bailey, addressed to G20 leaders. The letter urges G20 leaders to accelerate efforts to modernise financial regulation while safeguarding stability, citing significant gaps in reform implementation and a challenging economic outlook. The next phase of the FSB's work will look deeper into where full, timely and consistent implementation of global standards, such as Basel III, was not achieved.

The letter highlights the growing influence of non-bank financial intermediaries in global financial markets, now estimated at USD2 trillion globally, and stresses the need for robust monitoring to prevent systemic risks. It also calls for continued attention to national policy barriers to achieve the objectives of the G20 Roadmap for enhancing cross-border payments. With the rise of digital assets, the FSB calls on authorities to carefully consider how frameworks are designed to ensure they are effective, consistent, and supportive of safe innovation and notes that it will be equally important to consider how stablecoins can operate effectively and safely across borders. The FSB's work programme for the year ahead will include a focus on stablecoins and other forms of payment.

The Financial Stability Board (FSB) has published a practices paper outlining how authorities can operationalise transfer tools to ensure the orderly resolution of failing banks without taxpayer losses. Transfer tools, a key element of the FSB's "key attributes of effective resolution regimes", help maintain continuity of critical banking functions by transferring all or part of a failed institution to a private purchaser or bridge entity. The paper covers defining transfer perimeters, arrangements for operational continuity (such as transitional service agreements and management of third-party contracts) and approaches to marketing the transfer perimeter under tight timelines and confidentiality. It also explains mechanisms for loss absorption in line with creditor hierarchy, including write-downs and conversions, and outlines challenges in cross-border execution. Case studies of real resolution cases are also included, illustrating operational issues and practices to enhance readiness for deploying these tools effectively.

The European Securities and Markets Authority (ESMA) has published a peer review report on the supervision of depositary obligations under the Undertakings for Collective Investment in Transferable Securities Directive (UCITS) and Alternative Investment Fund Managers Directive (AIFMD) frameworks. The review assessed five jurisdictions: Czechia, Ireland, Italy, Luxembourg and Sweden, with a focus on compliance with oversight and safekeeping obligations. While all national competent authorities (NCAs) have foundational supervisory frameworks in place, ESMA identified notable divergences in the depth and maturity of supervisory practices across jurisdictions. Czechia and Luxembourg fully met expectations, Ireland and Italy largely met expectations and Sweden only partially met expectations, prompting calls for an overall scale up of supervisory assessments, intrusiveness and intensity.

Key findings highlight the need for more frequent and risk-proportionate supervisory engagement, particularly given the concentration of depositaries and their potential systemic importance. There are also concerns over the depth and intrusiveness of supervisory assessments where depositaries entrust significant tasks to third parties. The report recommends that NCAs strengthen risk-based supervision by increasing the frequency and intrusiveness of engagement with higher-impact entities and ensuring risks are properly identified, assessed and mitigated. Jurisdiction-specific recommendations are detailed in the report's tables. ESMA will follow up on these recommendations and continue discussions on strengthening depositary supervision.

The International Organization of Securities Commissions (IOSCO) has issued a consultation report proposing 13 updated recommendations for valuing collective investment schemes (CIS). The revisions seek to update IOSCO's 2007 principles for the valuation of hedge fund portfolios and its 2013 principles for the valuation of collective investment schemes, in light of market developments, including increased exposure to illiquid and private assets and heightened retail participation. The key updates cover: oversight arrangement; governance under stressed market conditions; management of conflicts of interest; fair value; back testing; use of third-party valuation service providers; stale valuations; and record keeping. IOSCO emphasises that robust valuation practices are critical to ensure accurate net asset value calculations of funds and maintain investor protection and market confidence. The deadline for comments is 2 February 2026, with a final report expected in mid-2026.

The European Commission has adopted two Delegated Regulations: (i) Delegated Regulation supplementing the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (AIFMD) and; (ii) Delegated Regulation supplementing the Undertakings for Collective Investment in Transferable Securities Directive (Directive 2009/65/EC) (UCITS). These regulations lay down regulatory technical standards (RTS) specifying the characteristics of liquidity management tools (LMTs), following the recent amendments made to AIFMD and UCITS by Directive (EU) 2024/927.

The RTS aim to harmonise the characteristics of LMTs across the EU for open-ended AIFs and UCITS, enhancing investor protection and financial stability. The harmonised list of tools, which are set out in the annexes to the Directives, include: suspension of subscriptions, repurchases and redemptions; redemption gates; extension of notice periods; redemption fees; swing pricing; dual pricing; anti-dilution levy; redemption in kind; and side pockets. Under the amended Directives, managers must select at least two appropriate LMTs from this list for potential use, considering the fund's investment strategy, liquidity profile and redemption policy. The Council of the EU and the European Parliament will scrutinise the Delegated Regulations. If neither object, they will enter into force 20 days after publication in the Official Journal of the European Union and apply from 16 April 2026. The RTS also establish a transitional period of application for existing funds constituted before this date.

The UK Joint Money Laundering Steering Group (JMLSG) has launched a consultation on proposed amendments to Part I of its anti-money laundering and counter-terrorist financing (AML/CFT) guidance for the financial services sector. The consultation proposes amendments to: (i) chapter 3 related to guidance on the standing of the MLRO, and on monitoring the effectiveness of money laundering controls and; (ii) chapter 6 relating to guidance on subject access requests in cases where a suspicious report has been made. The deadline for comments on the proposed revisions is 14 January 2026.

The UK Financial Conduct Authority (FCA) has issued a statement following its September update regarding the legal challenge to its decision to award the bond consolidated tape provider contract. The FCA confirms it has applied to the High Court to lift the suspension on awarding the contract to Etrading Software. If granted, this will allow the FCA to proceed with signing the contract while defending the ongoing legal challenge, which it considers meritless. The FCA emphasises that delivering the tape's benefits promptly is in the public interest and confirms that its formal defence to the legal challenge will be submitted by the end of the week.

The UK Financial Conduct Authority (FCA) has published an updated statement of policy regarding statutory investigations into regulatory failure under the Financial Services Act 2012. The statement of policy sets out the FCA's approach and process for deciding whether to conduct an investigation into possible regulatory failure and give a report of the findings and recommendations to HM Treasury (HMT) for publication. Following its review of the statement of policy to ensure it remains fit for purpose, the FCA has introduced one substantive change: revising the monetary thresholds for assessing the "significance" of consumer detriment in line with inflation. The FCA will continue to review and adjust these thresholds periodically.

The European Commission's International Platform on Sustainable Finance (IPSF) has published its 2025 annual report, assessing progress in sustainable finance framework design to implementation across jurisdictions. The report highlights significant progress in consolidating the core elements of sustainable finance frameworks including: refinement of taxonomies; increased regulatory focus on transition plans; and convergence of disclosure frameworks around international standards, notably the International Sustainability Standards Board (ISSB) and the EU's European sustainability reporting standards (ESRS). The report underscores efforts by IPSF members in preventing greenwashing and enabling credible capital allocation aligned with real economy needs. There is also a dedicated chapter in the report that addresses transition finance for strategic sectors and critical raw materials. The IPSF notes these sectors (such as metals, mining, and heavy industry) are indispensable for clean technologies but are also among the hardest to decarbonise. The chapter explores how sustainable finance frameworks can help steer investment into these complex areas. Looking ahead, the IPSF will continue this work in 2026, with further attention to transition frameworks, taxonomies, strategic sectors and comparability.

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The European Parliament (EP) has announced it has adopted its negotiating mandate on the Omnibus I sustainability package which proposes targeted amendments to, amongst other things, the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D), aimed at reducing administrative burdens for businesses. The EU has already published Directive (EU) 2025/794 which implemented the "stop-the-clock" proposal, postponing the application date of aspects of CSRD and CS3D.

It follows the EP's rejection of the mandate proposed by its Legal Affairs Committee just last month. Although the text of the mandate has not been published, the announcement states that the mandate proposes sustainability reporting will only apply to companies with over 1,750 employees and annual turnover exceeding EUR450 million, with simplified standards and voluntary sector-specific disclosures. Only businesses within this scope would also be required to provide sustainability reporting under taxonomy rules (i.e. a classification of sustainable investments).

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The Network for Greening the Financial System (NGFS) has released an updated guide on climate scenario analysis for central banks and supervisors, building on the 2020 edition. The revised guide reflects significant methodological progress and best practices in scenario design, data and modelling, with a new emphasis on short-term scenarios to assess near-term financial risks from climate change and evolving policy developments. While retaining the original four-step framework, which includes: (i) identifying objectives and scope; (ii) choosing climate scenarios; (iii) assessing economic and financial impacts; and (iv) communicating and using results; the guide expands on each step with new insights, methodologies and examples. It serves as a practical reference for authorities and financial institutions integrating climate scenario analysis into their risk management frameworks and will continue evolving alongside ongoing sector developments.

The Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2025 have been laid before UK Parliament, accompanied by an explanatory memorandum. The Regulations extend, by a further 12 months, the transitional arrangements under Parts 2 and 3 of the Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2019 to 31 December 2026. These temporary provisions allow specified categories of Gibraltar-based firms to provide financial services in the UK and, similarly, UK-based firms to access Gibraltar's financial services market. Last extended by the Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2024, the temporary arrangements ensure continuity while secondary legislation for the long-term framework, the Gibraltar Authorisation Regime, established under the Financial Services Act 2021 is finalised. HM Treasury engaged with the Government of Gibraltar and both parties agreed to the extension.

The UK Financial Conduct Authority (FCA) has published its findings from its multi-firm review of contracts for difference (CFD) providers, assessing compliance with the consumer duty's "price and value" outcome. The review found examples of good practice but highlighted significant concerns and areas needing improvement. While some firms simplified charging structures and restricted high-risk retail clients, many failed to make meaningful changes following implementation of the duty, with board reports often restating requirements rather than analysing compliance. Fair value assessments (FVAs) were frequently inadequate, focusing narrowly on spreads and execution speed while overlooking material costs such as overnight funding charges and ancillary fees. The FCA highlighted poor transparency on fee structures and unjustified overnight funding charges, including on matched positions, which can create substantial costs with little benefit.

Few firms pay interest on client margin deposits despite high market rates, raising further concerns about fair value. Weaknesses also persisted in monitoring vulnerable clients, appropriateness testing and not adequately considering consumer complaints in FVAs. CFDs remain complex and risky products, and the FCA warns that foreseeable harm could arise from practices such as charging for hedged positions without offsetting costs. The regulator will engage directly with firms showing poor compliance and consider further action, stressing that CFD providers must deliver good outcomes, communicate clearly and ensure fair value under the consumer duty. The FCA encourages CFD manufacturers and distributors to consider these findings and address these identified gaps.

The House of Lords (Industry and Regulators Committee) has issued a call for evidence for its new inquiry into the role of UK regulators in promoting economic growth. This follows the government's action plan on its new approach to ensure regulators and regulations support growth. The inquiry will explore how regulators contribute to economic growth, how implications of prioritising growth might impact their other duties and how regulators are responding to the action plan. The call for evidence includes a list of questions to consider and provide responses to. The deadline for submissions is 9 January 2026.

The International Organization of Securities Commissions (IOSCO) has published its final report on neo-brokers. These are a sub-set of digital-first broker-dealers leveraging social media and online platforms to provide low-cost, online-only investment services with minimal human interaction. While these evolving business models enhance market access, IOSCO highlights the associated risks and provides five key recommendations for regulators and firms to ensure that neo-brokers operate in an environment that upholds investor protection and market transparency.

These include: (i) acting honestly and fairly with retail investors; (ii) providing clear disclosure of fees and charges to retail investors and advertising; (iii) ensuring transparency of revenue and obtaining consent before providing ancillary services; (iv) assessing the impact of payment for order flow on the best execution of customer orders; and (v) maintaining robust IT infrastructure to prevent service disruptions.

The UK Prudential Regulation Authority (PRA) has published policy statement PS22/25, confirming changes to the retail deposits threshold for the UK leverage ratio requirement. Following feedback on its March consultation, the PRA has amended the final policy to increase the retail deposits threshold for major UK firms from GBP50 billion to GBP75bn, compared to the GBP70bn initially proposed. It will also calculate the metric of firms' retail deposits assessed against this threshold using a three-year averaging mechanism. The non-UK assets threshold remains unchanged at GBP10bn. Modifications by consent granted during the review, which allowed firms to disapply the leverage ratio part of the PRA Rulebook while thresholds were under consideration, will cease on 30 June 2026. The final policy will take effect on January 1, 2026. The PRA will continue annual reviews of both thresholds as part of the Financial Policy Committee's oversight of the leverage ratio framework. The final policy and rules are set out in the appendices to the policy statement.

The Investment Association and the Investment Management Association of Singapore, in partnership with the UK Financial Conduct Authority (FCA) and Monetary Authority of Singapore (MAS), have released a joint report on challenges and opportunities in tokenised asset markets across the UK and Singapore. The report highlights an "adoption gap" between innovation in digital assets and investor requirements. It introduces a practical operational readiness checklist in section 4, to guide market participants looking to design and launch tokenised financial products.

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The UK Financial Services Compensation Scheme (FSCS) has published its November 2025 Outlook newsletter, providing an update on compensation figures for the current financial year and an early view of the levy forecast for 2026/27. It confirms that the 2025/26 levy remains at GBP356 million, with no additional levies expected for firms. Compensation payments are forecast to decrease by 5% to GBP315m, primarily due to changes in the types of claims expected. Recoveries remain a priority, with GBP40m anticipated by year-end. An early forecast for 2026/27 indicates a levy of GBP342m (a slight decrease from 2025/26) based on compensation costs of GBP294m. The FSCS will publish a budget update in early 2026 detailing expected management expenses for 2026/27, which form part of the overall levy and are jointly consulted on by the UK Prudential Regulation Authority and UK Financial Conduct Authority. The final levy will be confirmed in May 2026.

The European Central Bank (ECB) has issued its opinion on the European Commission's proposed amendments to the EU securitisation framework, which was submitted in June. The package consists of a proposal to amend the EU Securitisation Regulation, a proposal to amend the Capital Requirements Regulation as regards exposures to securitisations and a consultation on measures to amend the Liquidity Coverage Ratio (LCR) Delegated Regulation. The ECB broadly supports the reforms aimed at enhancing the functioning of the EU's securitisation market, but makes a number of general and specific observations, including that:

• Proposed changes to synthetic securitisations require careful consideration. Although this segment is driving market growth, if not properly managed by originator credit institutions, large synthetic securitisations could amplify procyclicality through rollover risk, potentially affecting financial stability.

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