The UK Financial Conduct Authority (FCA) has published a new webpage with guidance aimed at improving the quality of applications for authorisation and registration by payments firms and digital asset firms. The FCA outlines its regulatory expectations through a series of video guides covering common deficiencies and best practices. For both payments firms and digital asset firms, the videos cover the role of a Money Laundering Reporting Officer (MLRO), highlighting common anti‑money laundering compliance gaps and fitness and propriety standards, and the application process for authorisation. Other video guides are directed specifically at payment firms, focusing on how firms (including e-money firms) can prevent financial crime through business‑wide risk assessments, senior management responsibilities and controls against authorised push payment fraud, as well as on demonstrating an effective governance structure as part of an application for authorisation.

The European Securities and Markets Authority (ESMA) has launched a consultation on proposed amendments to its guidelines on delay in the disclosure of inside information, under the Market Abuse Regulation (MAR). ESMA aims to streamline requirements and reduce administrative burdens for issuers. The proposals aim to align the guidelines with the changes introduced by the EU Listing Act to ensure compatibility with the new regime. Specifically, under the Act, from June onwards, issuers will no longer be required to immediately disclose inside information relating to protracted processes before those processes are completed. Consequently, ESMA proposes removing the existing references to legitimate interests that are linked to such protracted processes. It also introduces additional legitimate interests for delayed disclosure, including where a public authority requests non-disclosure of inside information, where additional time is needed to collect information, or where the issuer is involved in multiple similar procurement processes. ESMA also proposes deleting the section about the "no misleading the public" condition from the guidelines, reflecting its removal from MAR, and replacing it with the requirement that any delayed disclosure must not contradict the issuer's most recent public announcement on the same matter. The deadline for responses is 29 April, with a final report expected in Q4.

The Bank of England (BoE) has published its policy statement confirming the fees regime for financial market infrastructure (FMI) supervision for the 2025/26 fee year, following its October 2025 consultation. The BoE confirms that it will adopt the proposals set out in the consultation paper, including:

• Maintaining existing fee ratios across FMI categories and introducing a new Category 3 for UK payment systems, to align with other FMI types where this categorisation already exists. The BoE will provide further detail on the timing for applying the new fee ratios and implementing Category 3 in the 2026/27 FMI fees consultation paper, which is expected in April (rather than October as in previous years), following stakeholder feedback requesting earlier consultations on future annual fees. This approach will be maintained going forward.
• Increasing certain fees, notably for central counterparties (CCPs) and central securities depositories, to reflect expanded policy and rule‑making responsibilities under the Financial Services and Markets Act 2023, and to recover one‑off costs associated with developing the UK CCP rulebook over a three‑year period.

The BoE also confirms updated hourly rates for special supervisory projects, the treatment of under‑ or overspends from the 2024/25 fee year, and that enforcement fine revenues cannot be used to offset supervisory costs. It also confirms that HM Treasury are exploring options to increase the statutory fee cap for payment systems in future and will consult on any proposals in due course.

The UK government, through the UK Office of Financial Sanctions Implementation (OFSI), has launched a call for evidence on the application of the ownership and control test under the UK Financial Sanctions Regulations. The OFSI seeks industry input on how the test operates in practice and where firms experience challenges in implementing the regulations. Specifically, firms are requested to share evidence and practical examples of: (i) how often "hypothetical control" is present in real financial sanctions cases; (ii) its effects on compliance costs, legal risk and business decision‑making including de‑risking; and (iii) whether existing legal concepts and typologies of control are helpful in applying ownership and control regulations. OFSI states the evidence gathered will inform its assessment of whether the current approach is clear, effective and proportionate, with the aim of ensuring sanctions remain tough on those they target while workable for legitimate businesses. The call for evidence is open to businesses, financial institutions, legal and compliance professionals and other interested parties. The deadline for responses is 11:59 pm on 13 April.

The European Commission (EC) has published two new webpages announcing the forthcoming adoption of two draft Delegated Regulations. The first, under Directive (EU) 2024/1640 (AMLD6), will set out the indicators for assessing the gravity of failures by member states to report adequate, accurate and up-to-date information to the central registers, including in cases of repeated failures.

The second, under Regulation (EU) 2024/1624 (AMLR), will define the categories of breaches subject to penalties, liable persons, indicators of the gravity of breaches and criteria to consider when setting the level of penalties of beneficial ownership transparency requirements. The texts of both Delegated Regulations have not yet been published and no consultation details have yet been provided. The EC plans to adopt them in Q3.

The Financial Action Task Force (FATF) has published updates on high-risk jurisdictions and jurisdictions under increased monitoring. There are no changes to the high-risk jurisdictions, although the FATF notes where improvement is still required and confirms it may consider countermeasures if insufficient progress is made by June. For the jurisdictions under increased monitoring, two jurisdictions have been added, bringing the total number of jurisdictions under increased monitoring to 22. The FATF also remarks on improvements for certain jurisdictions and any identified next steps.

HM Treasury has launched a consultation on proposed reforms to the appointed representatives (ARs) regime, following its August 2025 policy statement. The aim is to strengthen confidence in the regime, enhance consumer protection and maintain its broad, cost-effective structure, so firms can engage in regulated activity without being authorised, allowing a broader range of providers to enter the marketplace.

Key proposals include:

• An FCA permission to act as principal. The government proposes to introduce a regulatory gateway for authorised firms wishing to act as principal. The new permission regime would be modelled on section 55NA of the Financial Services and Markets Act 2000 (FSMA). This would provide the FCA with a specific mechanism to scrutinise prospective principals and ensure they are suitable, with the necessary expertise, resources and systems in place to provide effective oversight of ARs. Detailed requirements on the contractual relationship between principals and ARs will be contained in FCA rules.
• A targeted extension of the UK Financial Ombudsman Service (FOS) compulsory jurisdiction, through amendments to FSMA, to ensure that all consumers of regulated financial services, whether dealing with an authorised firm or an AR, have access to the FOS on a consistent basis. In cases where the FOS determines that a principal firm cannot be held responsible for its AR's acts or omissions, the FOS will be able to directly consider the complaint against the AR itself.

Read more.

The Bank of England (BoE) has published a policy statement on the partial revocation of the UK technical standard (UKTS) 2018/1624 on resolution reporting, specifically relating to COREP13 templates. Following the September 2025 consultation, the BoE is implementing the proposals as consulted on by deleting the six reporting templates that collect on- and off-balance sheet data from firms for resolution planning. The aim is to reduce duplicative and non-essential reporting for firms regulated by the UK Prudential Regulation Authority. The changes will be effective from 1 April.

Due to temporary systems limitations, the templates may remain in the RegData reporting system for some time after their revocation date. For the time being, firms are requested to use negative filing indicators for the six deleted reporting templates. The BoE expects to remove the deleted templates from the RegData reporting system in due course, thereby eliminating the need for firms to report negative filing indicators for these templates.

The European Banking Authority (EBA) has issued an opinion advising national competent authorities (NCAs) on how to proceed when the transition period (under its no-action letter of 2 June 2025) ends on 2 March. This transition period currently allows cryptoasset service providers (CASPs) to continue providing services involving electronic money tokens (EMTs) that qualify as payment services while submitting, and awaiting the response to, their application for authorisation under PSD2.

The opinion:

• Outlines the conditions under which NCAs are advised to allow CASPs to continue providing EMTs that qualify as a payment service after 2 March, while they do not (yet) hold a license under PSD2.
• Advises NCAs to require CASPs that do not meet all of these conditions to discontinue the provision of such EMT services.
• Advises NCAs to cooperate with the relevant NCA under MiCAR and/or other national enforcement authorities to ensure compliance.

Read more.

The European Commission (EC) has launched a consultation on a draft Delegated Regulation supplementing the European Market Infrastructure Regulation (EU) No 648/2012 (EMIR) as amended by EMIR 3 (EU) No 648/2012). The draft Delegated Regulation specifies the fees to be charged by the European Banking Authority to counterparties for the validation of pro forma models, and any changes to those models, used by those counterparties to mitigate the risk of their uncleared over-the-counter derivatives portfolios. It also specifies both the one off fee charged for validating any new pro forma models and the annual fee charged for validating changes to already validated pro forma models. The deadline for feedback is 12 March.

The European Commission (EC) has launched a call for evidence and consultation seeking views on its planned evaluation and potential review of the Shareholder Rights Directive (Directive 2007/36/EC, as amended by Directive (EU) 2017/828) (SRD). The SRD aims to protect and empower shareholders of listed companies by ensuring they have a say in the companies they invest in, and that their interests are represented and respected. The EC's initiative seeks to reduce fragmentation across EU capital markets and tackle longstanding inefficiencies, administrative burdens and financial costs faced by issuers, investors and intermediaries. The review is framed around potential simplification, digitalisation and streamlining measures to improve the functioning of the single market.

Read more.

The European Commission (EC) has launched a consultation and call for evidence on the competitiveness of the EU banking sector under its Savings and Investments Union strategy. The purpose of the consultation and call for evidence is to collect feedback on the EU banking sector's competitiveness and on how the EU's regulatory and supervisory framework can be improved.

The EC explains that persistent regulatory and supervisory fragmentation, including differences in national implementation, the involvement of multiple authorities both at EU and national level, and barriers that constrain an efficient allocation of capital and liquidity across the EU are limiting the competitiveness of EU banks. This presents obstacles to banks operating across borders, resulting in sub-scale business models, higher costs and an uneven playing field compared to global peers. The EC highlights the lack of progress on structural features of the banking union as being regularly identified as one of the main factors holding back banks' competitiveness and further integration of the single market.

The consultation seeks feedback on three main areas: (i) banking competitiveness in the EU and globally; (ii) the single market and the banking union; and (iii) complexity and effectiveness of the regulatory framework.

Read more.

Delegated Regulation (EU) 2026/323 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), has been published in the Official Journal of the European Union (OJ). The Delegated Regulation, which was first adopted on 29 October 2025, follows the expansion of ESMA's supervisory remit under the Benchmarks Regulation (EU) 2016/1011 (BMR) which now includes EU benchmark administrators endorsing third-country benchmarks.

The Delegated Regulation has updated Delegated Regulation (EU) 2022/805 to include supervisory fees for EU administrators that endorse third-country benchmarks. The Delegated Regulation entered into force on 12 February.

The UK Financial Conduct Authority (FCA) has published final policy statement PS26/1 setting out its final rules for regulating Deferred Payment Credit (DPC), commonly known as Buy Now Pay Later (BNPL). This follows the July 2025 consultation and the related statutory instrument (Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025) which brings interest-free BNPL agreements offered by a third part lender within the regulatory perimeter. This means that from 15 July ("regulation day"), relevant DPC agreements can only be entered into by firms already holding the relevant FSMA permissions or who have successfully applied under the temporary permissions regime (TPR), which allows firms to continue operating while the FCA assesses their applications. All merchants undertaking credit broking activities in relation to DPC agreements, including domestic premises suppliers, remain exempt from the need to be authorised under the amending legislation (Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) (No. 2) Order 2025).

The FCA confirms it is largely implementing the rules and guidance as consulted on, with only minor amendments to ensure the rules and guidance work as intended. Key areas of change include: (i) key product information; (ii) credit reference agency disclosure; (iii) missed payment communications; (iv) debt advice signposting; and (v) the UK Financial Ombudsman Service voluntary jurisdiction. The FCA also concluded some new rules and guidance were needed to clarify its expectations on the application of the consumer duty to deliver its policy objectives. For more information on the changes, please see our blog post "Buy now, pay later – the final furlong... PS26/1 on the regulation of deferred payment credit published".

Read more.

The International Organization of Securities Commissions (IOSCO) has published its 2026 work programme , setting out its five strategic priorities for the year:

• Strengthening financial resilience and market effectiveness – new key initiatives in this field for 2026 include: (i) addressing over-the-counter derivatives reporting fragmentation; (ii) working on the impact of market microstructures on liquidity and of extended trading hours on equity trading venues; (iii) contributing to the Financial Stability Board's (FSB) work on issues of non-bank data availability, use and quality; and (iv) contributing, as necessary, to follow-up work on the issue of leverage in non-bank financial intermediation (NBFI). IOSCO will also continue to develop work to strengthen the operational resilience of financial market infrastructures (FMIs).
• Enhancing investor protection – IOSCO will launch a new TechSprint in partnership with the UK Financial Conduct Authority's AI Lab and will explore products such as cryptoasset funds, private credit vehicles and retail-facing derivatives. IOSCO will also continue to engage with platform providers to advocate for restrictions on harmful or fraudulent content and to promote the use of its I-SCAN tool (its Enhanced Investor Alerts Portal).
• The evolution of public and private markets – key initiatives in this field include assessing the growing interconnectedness between private equity activities and the audit sector, contributing to the FSB's deep dive on private credit and researching the functioning of public equity markets.

Read more.

The European Banking Authority (EBA) has launched a discussion paper on the simplification and assessment of the credit risk framework. The discussion paper presents preliminary ideas to streamline and improve the usability, efficiency and coherence of the existing credit risk rules, particularly given the significant number of mandates accumulated under the EU Banking Package. The EBA's 2025 report sets out principles to assess and strengthen the simplicity and efficiency of the regulatory and supervisory framework and recommends that the EBA conducts a comprehensive review of both the new flow of mandates (i.e. those not yet issued for consultation) and the existing stock (current products from the Single Rulebook). The discussion paper focuses on credit risk as a priority area given the significant accumulation of mandates and considers how a systematic review of these mandates could be organised, to ensure that the EBA's future work better supports efficiency and simplicity.

The discussion paper explores potential policy simplifications, consolidation of existing regulatory products and greater alignment of key definitions to enhance navigability of credit risk outputs. It also identifies challenges within specific mandates and suggests methodological improvements for future mandated reports under the Capital Requirements Regulation. The deadline for comments is 10 May.

The UK Office of Financial Sanctions Implementation (OFSI) has published updated financial sanctions enforcement and monetary penalties guidance following HM Treasury's (HMT) 2025 consultation on proposed reforms to the OFSI's civil enforcement processes. A consultation response was published in January confirming that the reforms would proceed, which we covered previously here.

OFSI has updated the guidance to reflect the enhancements set out in Chapter 4 on the new Early Account Scheme (EAS), Chapter 5 on the revised case assessment framework and Chapter 6 on the updated methodology for the monetary penalty process, including the incorporation of the EAS discount, the new voluntary disclosure and cooperation discount and the settlement scheme. Chapter 7 introduces guidance on financial hardship, explaining how OFSI may take this into account in exceptional circumstances. Chapter 13 is supplementary to Chapters 6 and 7 on monetary penalties and sets out how penalties will be imposed for certain cases dealt with by means of a fixed monetary penalty. Additional amendments have been made throughout to improve procedural clarity. These key changes are effective immediately.

The EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) has published three consultation papers on the following draft regulatory technical standards (RTS) under the EU AML package (for more background, you may like to read our article "The AML revolution: Are you ready?"):

• Draft RTS on pecuniary sanctions, administrative measures and periodic penalty payments under Article 53(10) of Directive (EU) 2024/1640 (AMLD 6). The RTS specify the indicators to assess the gravity of breaches, criteria for determining the level of pecuniary sanctions or applying administrative measures, and a methodology for the imposition of periodic penalty payments, including their frequency. They aim to ensure that the same breach is assessed in the same way by all supervisors in all Member States, and that the resulting enforcement measures are proportionate, effective and dissuasive. The deadline for comments is 9 March.
• Draft RTS on customer due diligence (CDD) under Article 28(1) of Regulation (EU) 2024/1624 (AMLR) specifying in detail how CDD requirements should be applied, including the information and documents to be collected. The deadline for comments is 8 May.

Read more.

Delegated Regulation (EU) 2026/305 supplementing the European Market Infrastructure Regulation (EU) No 648/2012 (EMIR) has been published in the Official Journal of the European Union (OJ). The Delegated Regulation, which was first adopted on 29 October 2025, sets out the regulatory technical standards (RTS) for the new active account requirement introduced under Article 7a of EMIR 3. The RTS follow the European Securities and Markets Authority 2024 consultation and specify the operational conditions, the representativeness obligations and the reporting requirements for the active account requirement. In particular, the RTS require CCPs to:

• Demonstrate operational capability, including appropriate contractual arrangements, policies and procedures, IT connectivity, internal systems and sufficient resources capable of supporting high‑volume clearing at short notice.
• Conduct annual stress testing of the operational conditions of the active account to evidence ongoing operational readiness.
• Comply with the "representativeness obligation" by following the prescribed methodology for selecting relevant subcategories of euro‑ and Polish zloty‑denominated interest rate derivatives and short‑term interest rate derivatives to be cleared through the active account.
• Meet periodic reporting obligations, with firms required to report every six months and the first report due six months after the Delegated Regulation enters into force.

The Delegated Regulation enters into force on 26 February, 20 days following its publication in the OJ.

The UK Financial Ombudsman Service (FOS) has published its Q3 2025/26 complaints data, revealing a notable decline in case volumes to 47,300 complaints, down from 68,400 cases in the same period in 2024/25. This includes a significant reduction in motor finance commission cases (400 compared to 14,400 at the same time last year) and a fall in the number of irresponsible and unaffordable lending cases brought by professional representatives (4,800 compared to 13,200 in the same period the previous year). The decline is attributed to the UK Financial Conduct Authority's (FCA) complaint handling pause and planned redress scheme for motor finance commission complaints, alongside the FOS's ongoing reform programme. This includes the introduction of charges for professional representatives which has resulted in fewer poorly evidenced, withdrawn or abandoned cases. The most complained about product in this quarter was current accounts, with the FOS receiving 8,500 new complaints, up from 7,900 in the previous quarter but down from 8,800 in the same period reported in 2024/25. The FOS states it continues to work with HM Treasury and the FCA on modernising the redress system, with more consumers now bringing complaints directly, including vulnerable consumers.

The European Securities and Markets Authority (ESMA) has published its programming document for 2027–2029. In an evolving regulatory and market landscape, ESMA remains committed to effective and consistent supervision across the EU, strengthening investor protection and supporting orderly and resilient financial markets. A central priority is advancing the Savings and Investments Union (SIU), with ESMA contributing through policy development, enhanced supervisory convergence and potential new direct supervisory responsibilities. Simplification and burden reduction also remain key themes. ESMA intends to use upcoming SIU reforms to review and streamline its guidance and Level 2 instruments to reduce complexity. Additional priorities include risk based supervision, improving market data and digital capabilities, and contributing to reforms aimed at making EU capital markets more integrated, accessible and efficient. ESMA will also progress supervisory reporting reforms to lower compliance costs while improving data quality and will continue the phased implementation of the European Single Access Point (the EU-wide digital platform for public financial and sustainability information) with the first phase scheduled to launch in the second half of 2027.

The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) has published its first single programming document (SPD) for 2026-2028, setting out its strategic priorities and providing transparency on AMLA's timelines as it transitions to full operational capacity. AMLA's key objectives include finalising the Single Rulebook, driving supervisory convergence and enhancing cooperation between Financial Intelligence Units (FIUs). These are translated into five workstreams that will shape AMLA's work in 2026, including delivering regulatory mandates, advancing direct supervision, operationalising the FIU framework, preparing the foundations for indirect supervision and oversight, and developing AMLA's risk frameworks. The SPD also provides a digital roadmap for 2026-2028 which focuses on three priorities including building state-of-the-art digital solutions, taking over and modernising mission-critical systems, and positioning AMLA as a leader in data analytics and innovation. AMLA also seeks to systematically integrate AI in the development of all its operations. AMLA has separately published an explainer of the SPD and a list of 2026 mandates.

The UK Joint Money Laundering Steering Group (JMLSG) has published final amendments to Part I of its anti-money laundering and counter-terrorist financing (AML/CFT) guidance for the financial services sector. This follows the consultation in November 2025. The amendments are made 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 revisions have been submitted to HM Treasury for Ministerial approval.

The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 have been made and published with an accompanying explanatory memorandum. The statutory instrument (SI) introduces a comprehensive UK regulatory framework for cryptoassets under the Financial Services and Markets Act 2000 (FSMA). This follows the draft version laid before Parliament in December 2025, which we covered previously here. The transitional and savings provisions in the SI enable the FCA to specify a relevant application period and provide for the treatment of, and obligations on, those that do or do not secure all relevant authorisations within that period. This applies to firms seeking authorisation for the first time, FSMA- authorised firms needing to vary permissions, payments and e-money firms, firms that may be accessing the market through section 21 approvers, and firms which are FCA-registered for the purposes of the money laundering regime. The FCA confirmed through its updated webpage that this will be open from 30 September 2026 until 28 February 2027. The provisions enabling the FCA to make or approve rules, guidance, directions etc., in relation to the new regime come into force on 26 February. The go-live date for the new regime is 25 October 2027.

Read more.

The UK Financial Conduct Authority has issued a Dear CEO Letter to claims management firms and law firms regarding motor finance complaints, specifically where more than one professional representative (PR) is appointed for the same complaint. The letter reiterates the position set out in the previous Dear CEO Letter issued in October 2025.

The FCA notes that some customers have appointed multiple representatives for the same complaint without informing them, resulting in a high volume of complaints where it is unclear who is acting for the complainant. With the current pause on motor finance commission complaints ending in May, the FCA intends to publish its final rules by the end of March. To avoid delay in the handling of existing complaints, the FCA expects lenders to identify instances of multiple representation, assess the facts of each case, seek legal advice where appropriate and take the following steps:

• Contact all PRs linked to the complaint to determine who the sole representative is and copy the customer on all correspondence.
• Provide sufficient information to the PRs and customer so they can reach a clear view on who the sole representative is.
• Support constructive engagement between PRs and help customers understand the implications of appointing more than one representative, including any potential termination fees.

Read more.

The Financial Stability Board (FSB) has published a report highlighting vulnerabilities in government bond-backed repurchase agreement (repo) markets with recommendations for authorities to address them. The FSB explains that although repo markets are essential for short term funding, collateral sourcing and liquidity management across the financial system, their structure can also amplify systemic risk. Identified vulnerabilities include: (i) facilitating the build-up of leverage in the financial system; (ii) the potential for heightened demand and supply imbalances during periods of stress, particularly if repo lenders are unwilling or unable to provide funding to meet spikes in liquidity demand; and (iii) high concentrations across various dimensions, which could lead to market disruptions in the event of failures.

The measures suggested in response include closing data gaps, strengthening surveillance capabilities and considering the FSB's recommendations on leverage in non-bank financial intermediation (NBFI) and the Global Securities Financing Transactions exercise, as well as other relevant international standards, to address vulnerabilities related to liquidity imbalances and leverage.

The UK Prudential Regulation Authority (PRA) has published discussion paper DP1/26, outlining its proposed reforms to banking regulatory data under the Future Banking Data (FBD) programme. The FBD programme aims to deliver tangible cost reduction for banks in line with the PRA's secondary competitiveness and growth objective, as well as improvements to the relevance, quality and timeliness of data collection. The PRA is aware that while regulatory data are essential for its supervision, financial stability, policymaking and stress testing, current reporting imposes significant cost and complexity on firms. Therefore, while the PRA states its current approach already aims to be proportionate, it notes there are areas which can be further streamlined.

Building on initial template deletions implemented from PS27/25 in December 2025, the PRA proposes a programme of further incremental, proportionate reforms guided by four principles: (i) ensuring data collections are objectives driven; (ii) reducing duplication through a "collect once and well" approach; (iii) making it easier for firms to supply data; and (iv) ensuring data remain fit for purpose over time. The PRA identifies potential streamlining opportunities across legacy templates, reporting processes, and instructions, and highlights trade‑offs around timeliness, comparability, granularity and international alignment. The deadline for responses to the discussion paper, which will inform a future roadmap for reporting reform, is 5 May.

HM Treasury (HMT) has announced that the inaugural UK‑China Financial Working Group in Beijing resulted in several landmark agreements aimed at strengthening bilateral cooperation in financial services. According to the press release, the key commitments secured during the forum will make it easier for UK businesses to trade with China and will reinforce London's position as the world's leading international financial centre. Agreements were also reached to pursue new forms of cooperation between the UK and China on innovative financing, including the potential issuance of renminbi denominated sovereign biodiversity bonds to cement the UK's role as the global hub for green finance, as well as more efficient cross-border settlement services, supporting trade and investment flows.

A joint readout has also been published confirming that both sides have agreed to work towards the signing of a Memorandum of Understanding on cooperation in central counterparty (CCP) supervision between the People's Bank of China and the Bank of England, and to continue all necessary cooperation to support UK equivalence and recognition processes for Chinese CCPs and Chinese processes for UK CCPs.

The Financial Stability Board (FSB) has published its 2026 work programme. The FSB states it will continue its mission to promote global financial stability by addressing systemic financial risks and fostering international cooperation. Key priorities for the year include:

• Vulnerabilities assessments – the FSB will complete a report on private credit and will begin new work on vulnerabilities, possibly including work on foreign exchange derivative markets or private finance.
• Non-bank financial intermediation (NBFI) – the FSB will work to improve its methodologies to assess vulnerabilities in the non-bank sector as well as work on non-bank leverage and over-the-counter derivatives.
• Cross-border payments – the FSB will continue to coordinate the implementation of the G20 cross-border payments roadmap by helping jurisdictions with the development of their voluntary, specific and time-bound action plans.
• Digital innovation and AI – the FSB will continue to monitor developments regarding cryptoassets and will examine issues related to possible stablecoin vulnerabilities. It will also undertake work on sound practices for AI adoption, use and innovation by financial institutions, in close coordination with the standard-setting bodies.

Read more.

The UK Office of Financial Sanctions Implementation (OFSI) has published new regime pages following the closure of the OFSI Consolidated List of Asset Freeze Targets, which is now replaced with the UK Sanctions List (UKSL). The UKSL became the sole official source for UK sanctions designations from January. The new regime pages will host future sanctions notices, covering all changes to designations made under each regime on the UKSL. The old financial sanctions regime pages, while they will remain available for reference, will no longer be updated.

The European Commission has published a draft Implementing Regulation for consultation which introduces a list of certain spot foreign exchange (FX) benchmarks that will be exempt from the requirements under Article 18a of the Benchmark Regulation (BMR). The draft follows the May 2025 consultation to identify spot FX benchmarks used for hedging in jurisdictions where currencies are not freely convertible and where administrators, often unregulated and based outside the EU, cannot benefit from equivalence under Article 30, nor are incentivised to apply for recognition or endorsement due to costs and limited market benefit. Following consultation feedback, the draft Regulation identifies the following benchmarks as meeting the conditions of Article 18a and therefore to be excluded from the scope of the BMR:

• USD/INR (U.S. dollar/–Indian rupee).
• USD/KRW (U.S. dollar/–Korean won).
• USD/TWD (U.S. dollar/–Taiwan dollar).
• USD/PHP (U.S. dollar/–Philippine peso).

Read more.

The Bank of England (BoE) has issued a Dear CFO Letter setting out information on the third resolvability assessment framework (RAF) assessment. The assessment will evaluate firms' overall ability to meet the three resolvability outcomes, review progress in remediating issues from previous assessments and conduct targeted testing of capabilities under the continuity and restructuring outcome. This assessment will be carried out with an emphasis on testing capabilities in a manner consistent with how the BoE expects to engage with firms during contingency planning, and reflecting lessons from the use of the resolution regime in 2023. The letter highlights the type of targeted testing the BoE intends to conduct, and specific information banks are expected to provide including in their resolution assessment reports by 2 October. As part of the assessment, the BoE also intends to engage with the Accountable Executive and Board Risk Committee chairs to discuss their firms' approach to resolvability.

The letter also gives early notice of a review expected to take place in H2 2026 of the internal minimum requirement for own funds and eligible liabilities (MREL) scalar for ring‑fenced banks (or other entities at the top level of a material sub-group with a ring-fenced bank). This may involve further information requests from the BoE to assess the deployability of MREL resources under paragraph 7.9 of the MREL Statement of Policy. Finally, the BoE has confirmed that subject to the findings of the third assessment, the fourth RAF cycle is not expected to begin before 2029–30.

The Single Resolution Board (SRB) has launched a consultation on its draft operational guidance for banks on business reorganisation plan analysis reports (BRP AR) and the accompanying quantitative template. Following the implementation of the bail-in tool, institutions are required to prepare and deliver a BRP within one month. To ensure resolution readiness and demonstrate their business reorganisation-related capabilities, banks are requested to prepare a BRP AR in the resolution planning phase.

The consultation forms part of the SRB's shift under the SRM Vision 2028 from resolution planning to operationalisation, resolution testing and crisis readiness. While introducing no new expectations, the draft guidance consolidates and clarifies existing requirements in a single document and is intended to steer banks' work to comply with Principle 7.3 of the SRB's Expectations for Banks. In particular, the guidance further elaborates on governance arrangements for drawing up BRPs, the relevant descriptions of the targeted business model post reorganisation, the criteria for selecting valid reorganisation measures and the approach for demonstrating post bail in long term viability. The deadline for comments is 30 March. The SRB will meet with the banking industry and other relevant stakeholders on 3 March to address any questions, before the consultation ends. Following the consultation, the SRB will publish the final materials together with the feedback received.

The Bank of England (BoE) has announced the launch of three new engagement forums under the Retail Payments Infrastructure Board as part of its National Payments Vision, aimed at informing the development of the UK's next generation retail payments ecosystem. The BoE will shortly invite nominations to join the Payments End User Forum, the Payments Innovation Design Group and the Payments Academic Advisory Group, each of which will provide specialist input from consumers and small businesses, innovators and fintechs, as well as academics respectively. Applicants will be assessed on: (i) relevant expertise in the forum's area (end-user insight, payments innovation or academic research); (ii) ability to make time to participate as set out in the terms of reference; (iii) diversity of perspective; and (iv) alignment with the purpose of the specific forum. The initiative is intended to support a more resilient, inclusive and innovative payments landscape by ensuring that system design is shaped by practical user needs, emerging technological opportunities and evidence‑based policy insights.

The Financial Services and Markets Act 2000 (Regulated Activities) (Providing Targeted Support) (Amendment) Order 2026  has been laid before UK Parliament and published with an explanatory memorandum. The instrument, following the draft version published in July 2025, amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO) to introduce a new specified activity of "providing targeted support". This will enable firms to make recommendations that are designed for groups of consumers with similar characteristics and circumstances. Targeted support will be expressly distinguished from the existing regulated activity of "advising on investments" under Article 53. The UK Financial Conduct Authority (FCA) has said, "These once-in-a-generation reforms will help people navigate their financial lives and give them greater confidence to invest. This is a win-win for consumers and firms alike."

Read more.

The UK Financial Conduct Authority (FCA) has published consultation paper CP26/5 on the evolution of its sustainability disclosure rules for listed companies, following the government's draft UK Sustainability Reporting Standards (UK SRS). The FCA's current requirements are aligned with the Task Force on Climate-related Financial Disclosures (TCFD), which disbanded in 2023. With over 40% of jurisdictions, including the UK, transitioning to the International Sustainability Standards Board (ISSB) Standards, the government is developing the UK SRS to tailor the ISSB framework for the UK market. The FCA therefore needs to update its regime accordingly.

The FCA proposes replacing its TCFD aligned listing rules with requirements for in scope listed companies to report against the UK SRS. The scope would remain broadly aligned with existing TCFD-based obligations and consistent with the ISSB's approach.

Key proposals include:

• Mandatory reporting against UK SRS S2 (covering climate‑related disclosures) but Scope 3 emissions would continue to be reported on a "comply or explain" basis.
• Non‑climate sustainability reporting (UK SRS S1) to be on a "comply or explain" basis, as this will be new for many issuers and may present challenges.

Read more.

The UK Financial Conduct Authority (FCA) has published a blog on its AI live testing service. The service is voluntary and open to firms that have developed AI proofs of concept and are active in UK financial markets, subject to competitive selection criteria. The initiative aims to support safe and responsible AI deployment through a collaborative, real-world testing environment and complements the FCA's Supercharged Sandbox. The blog sets out: (i) what the FCA is testing; (ii) how the testing operates in practice; and (iii) what the FCA aims to learn from the process. The first cohort joined in October 2025. The FCA confirms it has opened a second application window and is now inviting applications until 2 March. The FCA has provided Terms of Reference with further detail and confirms that successful applicants will be notified by mid-March. The testing is due to commence from April.

The UK Financial Conduct Authority (FCA) has published Handbook Notice No 137, confirming that it is delaying changes to the Collective Investment Schemes Sourcebook (COLL), and specifically to the concentration rule (COLL 5.2.29R). The concentration rule governs the ability of UK undertakings for the collective investment in transferable securities funds to invest in other collective investment schemes. The FCA previously made changes, which came into force on 31 January 2025, which seek to clarify the level at which the restrictions apply (including for sub-funds of umbrella schemes). These changes were subject to a transitional period. The transitional period is now extended to 31 January 2027 from the previous expiry date of 30 January 2026, as provided for by the Collective Investment Schemes Sourcebook (Concentration Limits) Instrument 2026. This instrument entered into force on 29 January and feedback is published in Chapter 3 of the notice.

Delegated Regulation (EU) 2026/264 amending the regulatory technical standards (RTS) in Delegated Regulations (EU) 2018/1645 and 2018/1646, pursuant to the Benchmark Regulation (EU) 2016/1011, has been published in the Official Journal of the European Union (OJ). The Amending Regulation was first adopted on 27 October 2025. These amendments update the form and content of applications for recognition, authorisation and registration of third-party benchmark administrators and those located in the EU. They reflect changes introduced by the BMR recognition regime under Regulation (EU) 2019/2175, including the transfer of responsibility for recognising and supervising third country benchmark administrators from national competent authorities to the European Securities and Markets Authority, 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 Regulation which enters into force on 19 February.

The European Banking Authority (EBA) has published its draft single programming document (SPD) for 2027–2029, outlining its strategic priorities and resource needs over the three‑year period. The EBA confirms it will focus on implementing new mandates for banking and payments including its oversight role under the Digital Operational Resilience Act, supervision of significant issuers of asset referenced and e money tokens under the Markets in Crypto-Assets Regulation and validation of initial margin models under the amended European Market Infrastructure Regulation (EMIR 3). The EBA will also focus on addressing emerging risks arising from geopolitical instability. This will require new approaches to risk assessment, financial stability monitoring and consumer protection. Supporting EU co legislators also remains central for the EBA as the SPD reflects the priorities for the financial sector and aims to keep the financial system strong while also ensuring it can fund the European economy.

Against this backdrop, the EBA identifies three strategic priorities for 2027–2029: (i) evolving and simplifying the Single Rulebook for banking and financial services; (ii) carrying out risk assessments to support effective risk analysis, supervision and oversight; and (iii) embracing innovation to enhance technological capacity across the sector. The EBA notes that close cooperation with relevant EU and third-country authorities will be required to meet its objectives.

The European Banking Authority (EBA) has published a consultation paper proposing updates to existing guidelines (EBA/GL/2020/13) on the use of systemic risk buffers (SyRB) to address climate-related and broader environmental risks under Article 133 of the Capital Requirements Directive (CRD), as amended by CRD VI (Directive (EU) 2024/1619). The EBA notes that climate risks, both transition and physical, are expected to have a material impact on individual institutions and the wider financial system. Article 133 permits relevant authorities to apply a SyRB where climate related risks could have serious negative consequences for the financial system and the real economy. The current guidelines, published in 2020, were not designed to target exposures subject to climate risk. The consultation therefore proposes revisions to enable SyRB measures to better capture climate risks of both types. It also incorporates some changes based on lessons learned from national authorities that have previously implemented SyRB measures, with the aim of improving their design and monitoring. The guidelines are expected to be finalised by mid-2026 and are expected to apply six months after publication. The deadline for comments is 30 April.

HM Treasury (HMT) has published a consultation response and blog on proposed reforms to the UK Office of Financial Sanctions Implementation's (OFSI) civil enforcement processes. The reforms aim to increase efficiency in resolving enforcement cases and would apply solely to OFSI's civil enforcement powers concerning financial sanctions breaches, including Russia-related designated person asset reporting. They do not apply to criminal enforcement or non-financial sanctions. Following feedback to its July 2025 consultation, the OFSI confirms it will proceed with all proposals but with the following improvements:

• Additional case assessment guidance, including a new case assessment matrix and a Voluntary Disclosure and Co‑operation discount of up to 30% of the baseline penalty.
• 20% baseline penalty discount for subjects who settle under the new settlement scheme.

Read more.

The House of Lords (Financial Services Regulation Committee) has announced the launch of an inquiry into the growth and proposed regulation of stablecoins in the UK. The Committee will examine the development of global and UK stablecoin markets (and its comparison to US and EU markets), expected future growth of sterling‑denominated stablecoins and the opportunities and risks posed to the UK economy, financial services sector, retail consumers and monetary policy. It will also consider the implications of the Bank of England and UK Financial Conduct Authority's proposed regulatory regimes for systemic and non‑systemic stablecoins and whether they are measured and proportionate. A call for evidence, including six questions for written submissions, accompanies the press release. The deadline for responses is 23:59 on 11 March.

The House of Commons Treasury Committee has published a letter (dated 21 January) from Nikhil Rathi, the Chief Executive of the UK Financial Conduct Authority (FCA), responding to the Committee's outstanding questions from the oral evidence session on 16 December 2025. Mr Rathi explains that the FCA is working at pace to deliver the Financial Services Growth and Competitiveness Strategy, including the Leeds Reforms, but that progress in several areas depends on legislation or government action. Mr Rathi notes that the FCA has completed nine initiatives under the strategy and is sequencing its rulemaking to align with expected legislative timetables, progressing in phases where possible.

He sets out the FCA's immediate priorities alongside the wider programme of work expected to progress this year, including associated timelines. Mr Rathi also outlines the FCA's key areas where it is awaiting legislative change or government action before it can advance other priorities.

The UK Financial Conduct Authority (FCA) has published its first Enforcement Watch newsletter, following the FCA's updated enforcement guide (ENFG) finalised in June 2025. The FCA proceeded with modest changes to its publicity policy, allowing the FCA, in certain circumstances, to publish more detailed information about issues under investigation on an anonymised basis. For more information you may like to read our blog post titled "The end of the road for (most of) the FCA's transparency proposals".

The first edition of the newsletter covers three main themes:

• Updated publicity policy in action – information on the updated powers the FCA can use under the revised policy, including announcing investigations without identifying firms and naming subjects only in "exceptional circumstances".
• Enforcement case priorities – an overview of enforcement operations the FCA opened since June 2025 and listing the areas the investigations covered.
• International partnerships – a reaffirmation of ongoing collaboration with global bodies, including through the International Organisation of Securities Commissions.

The UK Financial Conduct Authority (FCA) has published two separate updated webpages:

• The first updated webpage confirms an extension to the application deadline for those wishing to participate in the stablecoin sprint on 4-5 March and the trade payments roundtable on 15 May. Applications must now be submitted by midnight on 8 February. The FCA will continue to notify applicants of the outcome by 13 February.
• The second updated webpage confirms that the application period for firms wishing to undertake the new cryptoasset regulated activities will be open from 30 September until 28 February 2027.

The European Securities and Markets Authority (ESMA) has published official translations of its final guidelines under the Markets in Crypto-Assets Regulation (MiCAR) specifying the criteria for assessing the knowledge and competence of staff at crypto-asset service providers (CASPs). The guidelines, first published in July 2025, aim to promote greater convergence in the criteria for assessing the knowledge and competence of staff providing advice or information about crypto-assets or related services and their application. It offers key guidance to help CASPs meet their duty to act in their clients' best interests and to support competent authorities in assessing compliance. The guidelines will apply from 28 July. Competent authorities must notify ESMA by 28 March whether they comply or intend to comply with guidelines or, where relevant, provide ESMA with their reasons for non-compliance. CASPs are not required to report on whether they comply.

The UK Office of Financial Sanctions Implementation (OFSI) has published a blog confirming that it is working closely with UK law enforcement and regulatory partners to combat the abuse of cryptoassets and associated money laundering activities. OFSI has joined forces with the Crypto Cash Fusion Cell (CCFC), a pilot, multi-agency initiative bringing together the UK National Crime Agency, the Metropolitan Police Service, His Majesty's Revenue and Customs, the UK Financial Conduct Authority, City of London Police and OFSI, to target criminal funds linked to sanctions offences.

Through this collaboration, OFSI shared detailed intelligence with the CCFC to enable joint working against specific, prioritised targets. This led to action against potential breaches of financial sanctions involving cryptoassets by UK-based individuals. OFSI wants the sector to know that the use of cryptoassets to evade sanctions will be treated no differently to the exploitation of traditional currencies.

The UK Financial Conduct Authority (FCA) has published a statement following its November 2025 update on the bond consolidated tape provider (CTP) contract. It has now signed a contract with Etrading Software (ETS) to act as the UK's bond CTP, following the High Court's decision in December 2025 to lift the freeze on the contract award. A new website launched by ETS outlines key milestones and technical information for data contributors and users. The FCA will continue to support ETS and industry participants ahead of the planned launch of the tape in June, while simultaneously defending the ongoing legal challenge to the contract award.

The European Banking Authority (EBA) has announced the launch of its Pillar 3 data hub, a new harmonised digital platform which, for the first time, provides public access to prudential information from all EEA credit institutions in a single location. The hub offers users access to official data alongside a tool to enable comparisons across institutions, reference dates and other dimensions. Bulk data downloads are also available.

The EBA expects the full data set for the first three reference dates (June, September and December 2025) to be available by June this year. In line with transitional arrangements under the final draft implementing technical standards published in February 2025, institutions must now submit, via the platform, the Pillar 3 reports for the 2025 reference date already published on their own websites. The transition period enables institutions to familiarise themselves with the platform and submission process, before moving to the steady state. The EBA has provided a comprehensive user guide covering all features of the Pillar 3 data hub.