The UK Financial Conduct Authority (FCA) has published a document to help firms understand and prepare for the motor finance redress scheme. The document reflects common queries received by the FCA and is intended to address issues of wider relevance. It should be read in the context of the ongoing legal challenge to the scheme. The FCA notes that it may update the document or take further action in relation to the scheme's rules or guidance as that challenge progresses, and firms should monitor FCA announcements closely.

The UK Financial Conduct Authority (FCA) has published consultation paper CP26/18 as part of its mortgage rule review, proposing targeted reforms to improve access to mortgage lending for first-time buyers and underserved consumers. The proposals follow the June 2025 discussion paper on the future of the mortgage market and the FCA's feedback statement.

The proposals seek to:

• Widen access to interest-only and part interest-only lending.
• Make it easier to raise mortgage finance in later life.
• Lower barriers for firms that want to lend to consumers with irregular income.
• Encourage lenders to take a more individualised approach when assessing the creditworthiness of customers with impairment in their credit history, rather than declining them based on a definition designed for debt consolidation and reporting purposes.
• Lower barriers for firms that want to lend in a foreign currency or to consumers with a foreign income.
• Increase flexibility for borrowers who want bridging finance, which can help break a lengthy sales chain or fund a renovation.
• Increase the scope for firms to offer mortgages with different features and therefore, different risks.

The FCA's proposals take into account the potential for adverse outcomes for some consumers, and also consider the risk that consumers may need to rent for longer if they cannot purchase a home. The deadline for comments is 28 July. Feedback will be considered and a final policy statement is expected in the second half of the year.

The UK Financial Conduct Authority (FCA) has published a response letter (dated 8 June) to a letter from the House of Commons Treasury Committee sent in May, setting out the status of the motor finance redress scheme and the implications of ongoing legal challenges.

The FCA's view is that the scheme remains the quickest and most effective way to deliver redress to affected agreements but confirms that challenges brought by certain lenders and a claims entity will delay implementation. The FCA emphasises that firms must continue preparing operationally and financially, including identifying in-scope agreements and holding adequate capital, while warning of supervisory and enforcement action where preparedness is insufficient. The letter highlights significant concerns about misconduct in the claims management sector, including misleading marketing, multiple representation and potential fraud risks exacerbated by delays, and notes ongoing regulatory intervention and cross-authority cooperation to address these issues. The FCA also welcomes ideas from firms and consumer organisations on how, despite the legal challenges, firms who want to can start paying fair redress now.

Read more.

The UK Financial Ombudsman Service (FOS) has published its response to the UK Financial Conduct Authority's (FCA) consultation on simplifying pensions and investment advice rules. The FOS broadly supports the proposed shift from prescriptive requirements to greater reliance on a more principles-based framework and does not expect this shift to undermine its ability to determine complaints. However, it notes that greater reliance on high-level principles may increase the scope for differing views on how these principles should be applied, making clear regulatory guidance increasingly important. The FOS is also concerned that limited firm engagement on price and value assessments under the consumer duty could make complaint resolution more contentious, and it calls for further FCA guidance, including case studies and examples of good and poor practice.

The FOS further acknowledges that complaints may become more nuanced and consistency will be harder to demonstrate. However, it seeks to address this through close collaboration with the FCA and clear FCA guidance. Overall, it does not expect the reforms to have a material impact on its complaint-handling role or outcomes. The FOS will continue to monitor complaints in this area and share insights with the FCA.

HM Treasury has published a call for evidence for the independent review into access to banking services, assessing the impact of the decline in face-to-face services across the UK. The review will consider: (i) which services are important or essential for customers to be able to access; (ii) which groups of customers may need access to in-person banking services; and (iii) whether the decline in access is causing detriment to customers, and the materiality of the detriment caused. It will focus on those who require access (such as vulnerable customers), rather than those who simply desire or prefer in-person banking services. It will also consider the needs of both individual retail customers and organisations, including small businesses, non-profit and community groups.

The review is limited to banking services that currently lack statutory protections and excludes cash withdrawal and deposit services, which are already covered by legislation. The deadline for comments is 20 July and the evidence gathered will help inform the chair's recommendations to government.

The UK Financial Conduct Authority (FCA) has published a press release highlighting that some firms, when approving financial promotions, should be doing more to protect consumers in line with the consumer duty. The FCA carried out a review that assessed ten authorised firms that approve financial promotions for businesses which are not authorised by the FCA, looking at firms who were approving financial promotions for buy-now, pay-later (also now referred to as deferred payment credit), crowdfunding and corporate finance firms. The new rules on authorised firms approving promotions for unauthorised firms came into force on 7 February 2024. The FCA's review focussed on sampling promotions that had been approved since the firm was authorised.

The FCA found that the strongest firms were applying the consumer duty from the start of their processes and were able to make sure that every promotion approved was accurate, clear and reached the right audience. However, some firms approved adverts with unsubstantiated claims or allowed retail investors to see promotions intended for professional clients. In some cases, firms relied on third-party templates instead of doing the checks themselves. As a result of the FCA's work, one firm has already had to conduct a remediation exercise, and some websites have been blocked to retail customers. The FCA will continue to monitor compliance and hold firms to account if they fall short.

The House of Commons Treasury Committee has published a letter addressed to the UK Financial Conduct Authority (FCA) seeking further clarification on its motor finance redress scheme. This is following the FCA's announcement that the scheme is subject to legal challenges. The letter raises questions in relation to the consequences of the legal challenges, the additional administration caused by the legal challenges, the potential impact of any changes needed as a result of the challenges, the conduct of market participants more broadly, and the FCA's powers.

More specifically, key points of examination include: (i) current advice to consumers, the impact on complaint handling and compensation timelines, and potential risks such as fraud; (ii) details on the costs incurred by the FCA to date, additional costs arising from the litigation, and any impact on ongoing regulatory workstreams; (iii) how changes to or failure of the scheme could affect consumers, firms and the UK Financial Ombudsman Service; (iv) how lenders, claims management companies and law firms have responded to the scheme and the effect of their conduct on consumers; and (v) the adequacy of the FCA's powers to implement a compensation scheme and any lessons for Parliament. The Committee has requested the FCA to respond by 4 June.

The UK Financial Conduct Authority (FCA) has published a notice and terms of reference for a market study into claims management services. The study will examine the causes of potentially harmful practices, their impact on competition and consumer outcomes, and whether intervention is required. It will cover practices observed by FCA-regulated claims management companies (CMCs) and lead generators, as well as legal professionals. The FCA will be working closely with the Solicitors Regulation Authority as it carries out the market study.

The work will focus on claims management services provided in relation to financial services and financial products claims and housing disrepair claims. The deadline for comments is 19 June, with information requests to be issued to firms from June. The FCA intends to share early findings and consult on possible measures later this year, and will publish its final report by 19 May 2027.

The Financial Services and Markets Bill, first introduced in the King's speech as the "Enhancing Financial Services Bill", has had its first reading in the House of Lords. The text of the Bill was published with accompanying explanatory notes. It proposes significant amendments to primary legislation, including the Financial Services and Markets Act 2000, the Consumer Credit Act 1974 and the Financial Services (Banking Reform) Act 2013, as part of the government's growth and competitiveness strategy for the financial services sector.

Key proposals include: (i) modernising the Consumer Credit Act 1974 and reforming the UK Financial Ombudsman Service; (ii) consolidating the regulatory framework with the abolition of the UK Payment Systems Regulator; (iii) improving the operational effectiveness of the UK Financial Conduct Authority and the UK Prudential Regulation Authority; (iv) creating a new 'provisional licences' authorisation regime; (v) amendments to the appointed representatives regime including a requirement for principals to have specific permission to act as principal; (vi) creating a framework for HM Treasury to establish overseas recognition regimes for any financial services activity; (vii) reducing the burden of the Senior Managers and Certification Regime including repealing rules on the senior manager statements of responsibilities and the certification regime; (viii) updating the statutory framework underpinning the ring-fencing regime; and (ix) reforming the supervision of anti-money laundering / counter-terrorism financing.

HM Treasury (HMT) has published a policy statement on the reform of the Consumer Credit Act 1974 (CCA), setting out its response to the phase 1 consultation. HMT confirms plans to modernise the regime by aligning it with the Financial Services and Markets Act 2000 (FSMA) and transferring much of the detailed conduct regulation to UK Financial Conduct Authority (FCA) rules. The original proposals involved a phase 2 consultation; however, HMT considers that it has sufficient evidence to proceed without a further consultation. The related legislative proposals are in the Financial Services and Markets Bill which was published this week, including an enabling power for HMT to make secondary legislation on the transitional provisions to support a smooth transition.

The FCA rules will not replicate the CCA exactly but will be designed in line with the FCA's objectives and existing framework, including the consumer duty. Certain provisions will remain in legislation where necessary to preserve key rights, or where they cannot be replicated due to complexity. The government intends to repeal most prescriptive CCA information disclosure requirements and replace them with FCA rules (subject to consultation) and statutory sanctions, such as unenforceability and disentitlement to interest and fees, in favour of the FCA's supervisory and enforcement framework, but retain criminal offences as a deterrent.

The FCA has also published a statement setting out its approach to CCA reform and highlighting some of the existing rights and protections it will consider as part of its policy work.

For more detail on the reforms, you may wish to read our blogpost titled "Phase 2? We don't need phase 2 where we're going...".

The UK Prudential Regulation Authority (PRA) has issued a Dear CEO letter on innovations involving deposit-takers, e-money and regulated stablecoins. The letter supersedes the 2023 letter and provides clarification in light of recent developments including the UK cryptoassets regulatory framework. It should be read alongside the PRA's Dear CEO letter on the prudential treatment of banks' cryptoasset exposures.

The PRA's core expectations remain unchanged but the letter clarifies how firms should manage risks arising from innovation, especially as regards retail customers. In particular, the letter confirms that while deposit-takers may innovate within deposit structures (including tokenised deposits), any issuance of e-money or stablecoins within groups should take place through separate, non-deposit-taking and insolvency-remote entities, with clearly distinct branding and presentation. This should be supported by disclosures, warnings, on-boarding, and customer education, but should not be relied upon as the sole means of mitigating the risk of confusion.

Read more.

HM Treasury has announced the launch of an independent review into access to banking, assessing the impact of declining face to face banking services across the UK. This is in light of the shift towards digital banking and ongoing bank branch closures. The review will gather evidence on the real world effects of reduced in person services, identify affected groups and communities (including vulnerable consumers and small businesses), and consider whether further action is required to safeguard access to banking. Its findings and recommendations, expected by October, will inform the government's proposed powers to intervene where necessary to protect access to banking services. The announcement is accompanied by terms of reference which set out the review's scope and objectives.

The UK Financial Conduct Authority (FCA) has announced a review into how investment firms support bereaved customers, following research indicating that only 47% felt they received adequate support. The review will focus on firms advising on, managing, or administering investments (including platforms, advisers and wealth managers), and will assess the end-to-end customer experience from notification of a death through to the settlement or transfer of investments. In particular, the FCA will examine firms' communication practices, treatment of vulnerable customers, service standards and handling of fees on bereaved accounts. The initiative builds on previous FCA findings where bereaved customers experienced delays, unclear processes and inconsistent support, and forms part of the FCA's broader consumer duty and consumer investments priorities. The FCA will begin contacting selected firms this month and intends to publish its findings, including examples of good practice and areas for improvement, later in the year.

The UK Financial Conduct Authority (FCA) has published a statement providing an update on the legal challenges to its motor finance redress scheme. The FCA confirms that, despite ongoing litigation (with a hearing unlikely before October), it continues to view the industry-wide scheme as the quickest and most effective route to deliver fair compensation and intends to defend it. It will provide a further update as soon as possible. In the meantime, firms are expected to continue preparatory work for implementation, including: (i) identifying relevant complaints; (ii) gathering data on commission arrangements and disclosure practices; (iii) working with claims companies to resolve instances where consumers are represented by more than one party; (iv) cooperating with the UK Financial Ombudsman Service (FOS) on any existing complaints that have been referred to it; and (v) submitting implementation plans (without formal attestations required) by 12 May. At the same time, the FCA is also considering whether, where complaints include both elements within the scheme and elements unrelated to motor finance commission, firms should progress the unrelated elements. Complaints that fall entirely outside the scope of the scheme should continue to be progressed in the usual way.

Read more.

The UK Financial Conduct Authority (FCA) has published a statement announcing it is launching a review of the claims management market, prompted by concerns that some claims management companies (CMCs) and law firms are delivering poor consumer outcomes. The review will examine the root causes of poor practices across the market, including aggressive marketing, misleading advertising, unfair exit fees, and instances where consumers are being signed up without their consent or by multiple firms, leading to confusion and delaying compensation. While these issues in relation to motor finance claims have been brought into sharper focus, the FCA has also noted concerns about the handling of other claims.

Working with the Solicitors Regulation Authority and other regulatory partners, the FCA will examine: (i) whether consumers receive fair value, and whether existing price caps are still fit for purpose; (ii) financial incentives and whether these create potential conflicts of interest; and (iii) review whether the full end-to-end consumer journey, including lead generation, marketing and advertising, delivers good consumer outcomes. The review will also consider whether different approaches across different regulatory regimes affect firm behaviour and if some firms are failing to secure the appropriate permissions. The FCA expects full and open cooperation from all firms in the review and indicates that it, together with its regulatory and enforcement partners, may take robust action where this is not the case. It will also make recommendations to the government for any potential legislative reform, including whether CMCs and law firms should be subject to stronger compensation mechanisms if they cause harm.

The UK Financial Conduct Authority has announced the creation of a joint regulatory taskforce—with the Solicitors Regulation Authority, Information Commissioner's Office and Advertising Standards Authority—to tackle poor practices in the handling of motor finance claims by certain claims management companies and law firms. The taskforce will coordinate intelligence sharing and take targeted, coordinated actions using the full extent of their powers to mitigate harm to consumers. Regulatory actions will be progressed, with outcomes communicated jointly, signalling a unified regulatory response and clear expectations for market behaviour. The taskforce will focus on addressing misleading advertising and sign-up processes, meritless claims, multiple representation and unfair exit fees. It will also look at firms' financial and operational resilience including, but not limited to, the quality and integrity of accounting and audit practices. The taskforce will run for a minimum of six months followed by a progress review.

The UK Financial Conduct Authority (FCA) has published consultation paper CP26/15, setting out proposals to review and simplify the financial promotions rules in the Consumer Credit sourcebook (CONC). This follows feedback to the 2024 call for input that the regime is overly complex and outdated, particularly in light of the consumer duty. The FCA proposes removing a number of prescriptive rules and guidance that overlap with the duty, while retaining key consumer protections. This includes the ability for consumers to bring private actions for breaches of the financial promotions rules, which is not available for breaches of the consumer duty. The draft rules also include minor amendments to CONC 3.3.1AG to reflect changes introduced by the Digital Markets, Competition and Consumer Act 2024.

Furthermore, CP26/15 includes a discussion paper on cost disclosure, seeking views on the effectiveness of representative annual percentage rate (commonly referred to as APR) disclosures in light of research that indicates a lack of understanding among consumers as to how APR functions as a measure of cost.

Read more.

The UK Financial Conduct Authority (FCA) has published a statement confirming that its proposed motor finance redress scheme has been formally challenged, which may delay compensation payments to affected consumers. The FCA expressed disappointment that the challenge could prolong uncertainty for both consumers and the motor finance market. The FCA is considering its response and will provide further details on its approach later this week.

The UK Financial Conduct Authority (FCA) has published Handbook Notice No. 140, outlining amendments to the FCA Handbook resulting from the following statutory instruments:

• Financial Services Compensation Scheme (FSCS) (Management Expenses Levy Limit 2026/2027) Instrument 2026, entering into force on 1 April. This amends the FEES manual to reflect the approved levy cap for 2026/27.
• Short Selling Rules Sourcebook Instrument 2026, entering into force on 13 July. This introduces a new short selling sourcebook, which replaces the assimilated EU short selling regime and establishes a new UK framework.
• Individual Accountability (SMCR Review) Instrument 2026, with most changes having entered into force on 24 April while certain provisions come into force later in July and September. This implements the Phase 1 reforms of the Senior Managers and Certification Regime, aimed at improving proportionality and efficiency.

Read more.

The UK Financial Conduct Authority (FCA) has published a blog post discussing the findings from firms' year 2 consumer duty board reports and what firms can do now to help them prepare for the next round of reporting in Q3. Under the consumer duty, firms must report annually on what their monitoring found about customer outcomes, and what actions they will take as a result. The FCA notes that while firms have improved, further progress is needed ahead of the third reporting cycle.

The FCA observed stronger governance and board oversight, including more formal board review and approval of reports, better action plans and ownership, and wider use of quantitative and qualitative data to demonstrate customer outcomes. There is also more evidence of firms improving how they identify and monitor outcomes for vulnerable customers. However, the FCA notes that the quality and depth of analysis was variable.

Read more.

The final report from the Risk Warnings Review has been published. The report was commissioned by HM Treasury as part of the Leeds Reforms and sets out recommendations to improve the communication of investment risk to retail consumers.

The report advises moving away from the widespread use of standardised risk warnings which may be misunderstood by less experienced investors and disregarded by more experienced investors. Instead, it recommends rebalancing risk communications towards clearer, more contextual explanations of how investments can rise and fall, presented alongside potential benefits and relevant time horizons, which are seen as more likely to encourage positive actions.

Read more.

The UK Financial Conduct Authority (FCA) has published an updated webpage with newly issued directions, setting out the process for firms to register for the temporary permission regime (TPR) for deferred payment credit (DPC), formerly known as buy now, pay later. The directions came into force the same day.

DPC will be regulated by the FCA from 15 July ("regulation day"). Firms which were carrying on DPC activity on 15 July 2025 may continue operating under the TPR while their authorisation applications are considered. To enter the TPR, firms must notify the FCA using the prescribed form during the notification window, which runs from 15 May to 1 July, and pay the registration fee of GBP280. Firms granted temporary permission will be able to submit their substantive authorisation applications from 8 July.

Firms that were not carrying on DPC activity on 15 July 2025, or do not intend to continue after regulation day, do not need to register. Firms without authorisation or temporary permission may also continue to service DPC agreements that were taken out before regulation day as these agreements will remain exempt.

The UK Financial Ombudsman Service (FOS) has published its response (dated February) to the FCA's Mills Review on the long‑term impact of AI on retail financial services. The response focuses on two areas: the increasing use of AI by consumers and professional representatives in complaint submissions; and financial firms' use of AI.

The FOS observes an increase in consumers using AI, noting that AI can help consumers organise complaints, overcome language barriers and present clearer cases—especially consumers who are vulnerable and have difficulty expressing themselves in writing. However, there are also concerns where generative AI is used excessively or inaccurately, leading to lengthy, incoherent submissions and "hallucinations". The FOS reports early indications from a small sample analysis that AI may have contributed to around 35% of responses to initial assessments, which can lead to a disproportionate amount of time spent on verifying accuracy. The FOS welcomes the FCA's focus on AI in retail financial services and calls for consistent guidance to firms and consumers as AI use evolves in the complaint process, offering to provide its own insights to support this work.

Read more.

The UK Financial Conduct Authority (FCA) and UK Prudential Regulation Authority (PRA) have published consultation papers (CP26/12 / CP6/26), proposing changes to the loan to income (LTI) flow limit rule in mortgage lending. The regulators propose to remove the firm level 15% cap on high LTI lending (mortgages with an LTI ratio of 4.5 or above), while retaining the 15% limit in aggregate across the market, giving individual lenders greater flexibility to set their own high LTI strategies. This follows interim measures introduced in July 2025, under which PRA firms were permitted, via a modification by consent, to disapply the firm level cap, while FCA firms could seek individual guidance to lend above 15%, pending completion of the policy review.

Read more.

The UK Financial Ombudsman Service (FOS) has announced that the UK Financial Conduct Authority (FCA) has confirmed increases to FOS' award limits for the 2026/27 financial year, in line with inflation measured by the Consumer Prices Index. From 1 April, the maximum award the FOS can require a firm to pay will increase to GBP455,000 for complaints relating to acts or omissions occurring on or after 1 April 2019 (an increase of GBP10,000 on the previous year), and to GBP205,000 for complaints relating to acts or omissions before that date (a rise of GBP5,000 over the previous year). The different limits set annually continue to apply depending on when the relevant complaint was brought to the FOS, with more information available on the FOS webpage on understanding compensation.

The UK Financial Ombudsman Service (FOS) has published its final plans and budget for 2026/27, setting out its priorities for the next 12 months. The FOS expects to receive 199,000 new complaints in 2026/27 (down from nearly 306,000 in 2024/25 and around 210,000 in 2025/26), a decline which it attributes to fewer motor finance commission cases and fewer complaints from professional representatives. It does expect an increase in credit card and consumer credit complaints, however, because of cost of living pressures. It plans to resolve 266,500 cases over the year (covering both new and existing cases).

On its funding, the FOS states that while case fees and levies were held flat for two years at significantly reduced levels, increases are now needed due to inflationary challenges, reduced reserves and the cost of implementing reforms. Therefore, as consulted on in its November plans and budget consultation, from 1 April it will set the compulsory levy at GBP86 million, charge respondent firms GBP680 per case and introduce charges for professional representatives—GBP80 for cases they refer that are found in favour of the consumer and GBP260 where the case is found in favour of the firm (in which case the firm's case fee reduces to GBP500).

The UK Financial Conduct Authority (FCA) has published policy statement PS26/3 on the motor finance redress scheme, following the UK Supreme Court ruling on 1 August 2025. This follows the October 2025 consultation, which we cover in more detail in our blogpost titled "FCA consultation on motor finance redress scheme". Following feedback, the FCA will proceed with the scheme although with several material changes, including:

• Splitting the originally proposed single scheme into two separate schemes, covering agreements from 6 April 2007 to 31 March 2014 and from 1 April 2014 to 1 November 2024, to mitigate the risk of a legal challenge delaying redress for later-period consumers. This means if the earlier period is subject to a legal challenge, redress for consumers with agreements from April 2014 shouldn't be delayed.
• Tightening eligibility criteria so only consumers treated unfairly are compensated. Inadequate disclosure of one or more of the following will give rise to a presumption of unfairness: (i) discretionary commission arrangements (DCAs), where the broker could adjust the interest rate offered to a customer to obtain a higher commission; (ii) a high commission arrangement; and (iii) certain contractual ties that gave a firm exclusivity or a right of first refusal, except where the lender can prove there were visible links between the lender, manufacturer and franchised dealer.

Read more.

The UK Financial Conduct Authority (FCA) has announced the launch of a joint regulatory taskforce with the UK Solicitors Regulation Authority, Information Commissioner's Office and Advertising Standards Authority to tackle poor practices in motor finance claims handling by some claims management companies and law firms. The taskforce will share intelligence and take coordinated enforcement action to mitigate harm to consumers, including by tackling unsolicited and misleading advertising, meritless claims, multiple representation and unfair exit fees. The announcement comes as the FCA published its final policy statement on the motor finance redress scheme. 

The UK Financial Conduct Authority (FCA) and the Information Commissioner's Office (ICO) have published a joint statement clarifying regulatory expectations on the use and sharing of vulnerability related data. The statement explains how firms should approach this in delivering good outcomes for retail consumers under the consumer duty, while complying with UK data protection law.

Firms are expected to understand and identify indicators of vulnerability within their customer base, design products, communications and support that respond appropriately to those needs, and put in place systems that allow consumers to disclose relevant circumstances so that support can be delivered consistently and fairly. Firms are also expected to apply and demonstrate compliance with the UK GDPR principles when processing customers' personal information.

In relation to sharing data across distribution chains, manufacturers (such as lenders and payment networks) and distributors (such as intermediaries and financial advisers) are expected to work collaboratively and share relevant vulnerability‑related information, where necessary to avoid foreseeable harm. They are also expected to apply ICO's data sharing code of practice on how to share personal information in compliance with data protection law.

Read more.

The UK Financial Conduct Authority (FCA) has published Handbook Notice No. 139, outlining amendments to the FCA Handbook resulting from the following statutory instruments:

• Redress Reforms Instrument 2026, which partially entered into force on 17 March with the remaining provisions coming into force on 1 June. This clarifies when firms should report emerging issues to the FCA and to improve the operational efficiency of the UK Financial Ombudsman and the Financial Services Compensation Scheme by streamlining processes and reducing the operational costs ultimately met by levy-paying firms.
• Notification of Third Party Arrangements and Operational Incident Reporting Instrument which comes into force on 18 March 2027. This makes changes to the Handbook to enhance incident and third party risk management, strengthen firms' operational resilience and minimise harm.

Read more.

The UK Financial Conduct Authority (FCA) has published its annual work programme for 2026/27 setting out its planned activity for the second year of its five-year strategy. The programme is structured around the following four strategic priorities:

• Being a smarter regulator: to improve regulatory efficiency and proportionality, the FCA will continue to invest in digital, data and AI capabilities, reduce administrative burdens by simplifying rules and streamlining data returns (including removing three regular returns in April), and improve the authorisation process by further reducing authorisation timelines and continuing to report against new, shorter voluntary targets. In a press release published on the same day, the FCA announced it is developing a new internal AI-enabled authorisation tool, integrated into its existing systems. The FCA will also use generative AI to review documents received from firms, which, following successful testing, it will begin rolling out more widely across authorisations and supervision.

Read more.

The UK Financial Conduct Authority (FCA) has published consultation paper CP26/10 on simplifying rules relating to providing pensions and investment advice to consumers. With the targeted support rules now in place, the FCA's focus is on completing its outstanding policy work so that the market can develop and deliver a wide range of support for consumers. The consultation delivers on two separate commitments: (i) to consolidate, simplify and reframe the advice rules; and (ii) to review the FCA's existing rules relating to financial advisers' ongoing services. These changes will complement targeted support and enable firms to provide a range of services to meet different consumer needs.

Key proposals include:

• Consolidating the suitability requirements in the Code of Business Sourcebook (COBS) 9 and COBS 9A into one set of common rules and expectations.
• Clarifying the existing flexibility in the FCA's suitability rules to offer different advice services and different recommendations to different clients, by replacing the rule requirement to consider "necessary" information with an expectation that advisers consider "sufficient" information when assessing suitability.
• Clarifying that firms do not always need to assess a customer's knowledge and experience before making a recommendation, where the type of product the firm envisages recommending is one reasonably identified as having a target market that includes clients with no experience in investing.

Read more.

The UK Financial Conduct Authority (FCA) has published a statement confirming the timing of its announcement on its planned approach to the motor finance redress scheme, initially consulted on in October 2025. The statement follows an earlier FCA announcement on 4 March, in which it indicated that it was proposing to make several changes to the planned scheme. The FCA states that it intends to set out its approach shortly after markets close on Monday 30 March.

The UK Financial Conduct Authority (FCA) has published a new webpage setting out good and poor practice to support firms when designing consumer segments under the new targeted support regime. The FCA emphasises that firms have flexibility in how they comply with the FCA's rules and that these examples are illustrative only; they should not be treated as a template nor as an exhaustive list of the things firms should consider when designing their segments.

Key points to note include:

• Defining common characteristics: firms must judge how to design consumer segments at a sufficiently granular level while not comprehensively considering the consumer's circumstances or characteristics. The complexity of a situation is likely to be relevant to the type and/or number of common characteristics needed to ensure that segments are sufficiently granular to ensure a ready-made suggestion is suitable for an individual in the consumer segment. More complex situations will usually require a higher number, or more detailed set, of common characteristics to define suitable ready-made suggestions. Where a firm cannot define a suitable suggestion without undertaking a comprehensive consideration of a consumer's circumstances or characteristics, it is likely that the consumer will be in a situation that cannot be addressed through targeted support.

Read more.

The UK Financial Conduct Authority (FCA) has published a call for input seeking views on how its regulatory framework can better support small- and medium-sized enterprises (SMEs) in accessing finance. The FCA considers this part of its commitment to make sure businesses have better access to capital and its strategic priority of supporting growth. The work is intended to help the FCA design its regulatory approach, prioritise future work and complement the joint initiatives being undertaken by HM Treasury with the Bank of England on access to finance for "high potential growth firms" and by the Department for Business and Trade on demand and supply side barriers for SME finance through their call for input.

The FCA aims to understand how regulation affects SME access across debt, equity, hybrid and alternative finance, including any regulatory barriers, opportunities for improvement and sector specific challenges, particularly in high growth sectors. While focused on regulated products and services, the FCA will also consider impacts on services offered to SMEs which are outside the regulatory perimeter but offered by regulated firms.

The FCA seeks views from both SMEs on their experience of applying for finance, as well as from finance providers and distributors on any regulatory blockers or opportunities they have seen. The deadline for responses is 17 April. The FCA will engage with SME representatives and trade associations in March, hold a stakeholder roundtable in May, and later in 2026 publish a summary of insights from this engagement and research commissioned into the approach in comparable international jurisdictions, together with an update on next steps. Potential outcomes could include a review of the FCA's rules or clarifying specific requirements.

The UK Financial Conduct Authority (FCA) has published its regulatory priorities report for the consumer finance sector. These reports replace the FCA's previous portfolio letters and aim to provide a clearer and more consistent articulation of regulatory expectations. The FCA highlights that the credit sector is one of the UK's most varied markets, fuelling consumption and supporting economic growth. While consumer credit lending continued to grow throughout 2025 and interest rates have eased slightly, household budgets remain under pressure. This reinforces the need for responsible lending and early, effective support for consumers in financial difficulty.

The FCA sets out three priority areas for the next 12 months:

• Access to credit that meets consumers' needs: Firms are expected to lend responsibly, providing well-designed credit that offers fair value and meets consumers'. The FCA encourages firms to consider how to support consumers excluded from credit—whether through innovation, new product design, budgeting tools, eligibility checks for grants and benefits, or appropriate referrals.

Read more.

The UK Financial Conduct Authority (FCA) and the UK Financial Ombudsman Service (FOS) have jointly published CP26/9 on modernising the redress system. It should be read alongside HM Treasury's (HMT) confirmation of its final plans for reform of the FOS, published on the same day.

CP26/9 sets out in Chapter 2 proposed measures possible within the existing framework, including initial implementation of the new registration stage, amendments to the dismissal grounds and proposed updates to the 'fair and reasonable' test. It also serves as a policy statement finalising elements of CP25/22 including the criteria for considering whether an issue is a mass redress event, the introduction of a lead complaints process, guidance clarifying when firms should report emerging issues to the FCA and amendments to COMP and DISP sourcebooks intended to improve the Financial Services Compensation Scheme's operational efficiency.

The amendments to COMP and minor amendments to DISP 1 came into force on 17 March. Other rule changes stemming from CP25/22 come into force on 1 June. The deadline for comments to the proposals in Chapter 2 of CP26/9 is 11 May.

HM Treasury has published its response and final plans for reform of the UK Financial Ombudsman Service (FOS) following its July 2025 consultation. The reforms are intended to restore the FOS to its original role as a simple, impartial dispute resolution body (to prevent it acting as a quasi-regulator), to improve regulatory coherence with the UK Financial Conduct Authority (FCA) and to provide greater certainty and predictability for consumers and firms who use the FOS. Following feedback, the government confirms it will:

• Legislate to align FOS's "fair and reasonable" test (used to determine cases) more closely with FCA rules, such that compliance with relevant FCA requirements will mean that firms have acted fairly and reasonably.
• Introduce a referral mechanism requiring the FOS to seek the FCA's view where it considers there may be ambiguity in what the FCA rules require or in relation to issues which may have wider implications across the financial services industry.

Read more.

The UK Financial Conduct Authority (FCA) has published findings from its review into how firms approach and apply the consumer understanding outcome under the consumer duty. The FCA sets out expectations for how firms, regardless of size, should design, test and govern customer communications to ensure retail customers can make informed decisions, with approaches applied proportionately to a firm's scale and resources.

The FCA identified several areas where firms need to improve, including weak evidence of communication testing, inaccessible or overly complex communications, insufficient consideration of diverse customer needs, weak monitoring, and unclear accountability for who is responsible for decisions and how they are made.

The FCA highlights effective approaches to strengthen communications and meet expectations including:

• Using insight to identify where consumers struggle—by analysing insights from multiple sources, such as call listening, complaints, chat transcripts, website analytics and surveys. This evidence should be reviewed regularly and meaningful improvements should be prioritised.
• Testing communications with real customers—by testing both before and after changes whether understanding improves. Firms should use proportionate tools such as surveys, comprehension checks and feedback from frontline interactions.

Read more.

The UK Financial Conduct Authority (FCA) has published its regulatory priorities report for the retail banking sector. These reports replace the FCA's previous portfolio letters and aim to provide a clearer and more consistent articulation of regulatory expectations.

In the report, the FCA notes that retail banking is undergoing significant change as customers use branches less and rely more on digital channels. Business models are also diversifying, with increased fintech activity and the continued development of open banking and new payment types.

The FCA sets out four priority areas for the next 12 months:

• Access to cash and essential banking services: As firms pursue digital first transformations, the FCA emphasises that firms must ensure these do not create foreseeable harm, particularly for customers with lower digital capability. Alternative services must be in place before any branch closures. The FCA will continue to monitor firms' approaches under its branch closures or conversions guidance and the consumer duty and will intervene where necessary.
• Good outcomes from products and services: Firms are expected to continue improving the data they use to monitor customer outcomes so they can identify where further action is needed. The FCA will take targeted action where it identifies poor outcomes, including poor value or issues affecting vulnerable customers.

Read more.

The UK Financial Conduct Authority (FCA) has published its regulatory priorities report on mortgages. These reports replace the FCA's previous portfolio letters and aim to provide a clearer and more consistent articulation of regulatory expectations.

The FCA identifies three priority areas:

• Improving consumer outcomes under its mortgage rule review by simplifying rules. Most proposals are expected to be permissive, creating opportunities for firms to operate differently. The FCA expects firms to continue to set and manage their own independent risk appetites and take responsibility for the outcomes they deliver.
• Encouraging responsible lending and supporting mortgage borrowers in financial difficulty. Second charge lenders are advised to review the findings of the FCA's recent supervisory review of second charge mortgages to ensure that their affordability assessments are robust and expenditure assessments are realistic for their customers.

Read more.

The European Securities and Markets Authority (ESMA) has published a report outlining its key takeaways from the 2025 call for evidence on the retail investor journey, particularly regulatory requirements under the revised EU Markets in Financial Instruments Directive (MiFID II) that impact retail investors when engaging with capital markets. The responses indicate that there are multiple factors, of regulatory and non-regulatory nature, which may create barriers for people to start investing.

Stakeholders highlight the need to address the following areas:

• Disclosures: Stakeholders support the need for appropriate disclosures but find them insufficiently effective due to volume, complexity, and fragmentation of information. They call for clearer and layered information, delivered in mobile-friendly formats.
• Suitability and appropriateness assessments: Stakeholders value the investor protection benefits of suitability and appropriateness requirements, but ask for simplification and proportionality, particularly for simple products and those distributed through digital channels. Many also consider the integration of sustainability preferences as being overly complex.

Read more.

The UK Financial Conduct Authority (FCA) has published findings from its good and poor practice review of second charge mortgages, assessing whether intermediaries and lenders are delivering good consumer outcomes in line with the consumer duty and relevant Mortgage Conduct of Business (MCOB) requirements. Second charge mortgages typically carry higher interest rates than first charge mortgages, and are commonly used to consolidate debt.

The FCA identified examples of good practice, including thorough collection and assessment of customer information, evidence of discussions around planned retirement age and innovative use of technology aimed at improving customer outcomes. However, it also highlighted several weaknesses that risk consumer harm including: (i) poor-quality advice on debt consolidation, sometimes without clear evidence that consolidation was appropriate or affordable; (ii) shortcomings in affordability assessments, which appeared to overlook key living expenses; (iii) weak information flows and oversight between intermediaries and lenders (where the FCA particularly noted that even when intermediaries are involved, lenders remain responsible for affordability assessments); (iv) inadequate record‑keeping; and (v) high intermediary fees in comparison to first charge mortgages that consumers found difficult to compare or assess for value.

The FCA emphasises that firms must ensure recommendations are genuinely suitable, affordability assessments are robust and evidence‑based, and fees represent fair value. It confirms that supervisory monitoring will continue; it will engage directly with firms requiring remedial action and that it may consider potential rulebook changes to further protect consumers consolidating debt.

The UK Financial Conduct Authority (FCA) has announced it is proposing to make several changes to its planned motor finance compensation scheme, initially consulted on in October 2025 following the UK Supreme Court ruling on 1 August 2025. If the scheme goes ahead, the FCA indicates it is likely to publish final rules in late March, outside of market hours, and will confirm the date in advance. While final decisions have not yet been made, the FCA outlines several intended adjustments designed to streamline the consumer journey and make it smoother for firms to operate.

In response to consultation feedback and the scale and complexity of the scheme, the FCA is considering a three‑month implementation period, with up to five months for older agreements. Firms would have the option to begin processing claims under the scheme earlier should they wish to do so. The FCA also proposes several measures to streamline the process for consumers and firms:

• Removing the opt‑out requirements so consumers who complain before the scheme starts are no longer asked if they wish to opt-out, with lenders instead notifying consumers whether they are owed compensation, and the amount, within three months of the end of the implementation period.
• Allowing consumers to accept a redress offer immediately, without waiting for a final determination.
• Permitting firms to use a wide range of communication channels to write to consumers rather than relying solely on recorded delivery, with appropriate safeguards to prevent fraud.

The UK Financial Conduct Authority (FCA) has published its regulatory priorities report for the consumer investments sector, setting out key priorities for the year ahead. The report is for advisers, wealth managers, investment platforms and other-related consumer investment firms. These regulatory priorities reports replace the FCA's previous portfolio letters and aim to provide a clearer and more consistent articulation of regulatory expectations.

The FCA identifies four consumer investments priority areas:

• Building a stronger investment culture—The FCA will focus on firms giving consumers products and services that meet their needs at a fair price. The FCA will help firms prepare for the Consumer Composite Investments (CCI) rules and continue its Advice Guidance Boundary Review (AGBR). The FCA's targeted support policy comes into force in April, and it will publish new proposals for simplifying the advice rules soon.
• Strengthening trust—The FCA will work with firms to ensure strong governance, robust risk systems, and responsible innovation. It will also ensure firms act quickly when risks emerge, stay resilient, and pay redress where due. The FCA will support responsible innovation by helping firms test AI applications and other propositions through its sandbox.

Read more.

The UK Financial Conduct Authority (FCA) has announced it has opened the authorisation gateway for targeted support, enabling firms to apply for permission to provide a new regulated form of support. From 6 April, authorised banks, pension providers and other financial firms that are authorised for targeted support will be able to offer tailored recommendations to groups of consumers with common characteristics, particularly in relation to pensions and investments. The FCA launched its pre-application support service (PASS) for targeted support last year and has engaged with a range of firms so that they understand what is expected for a good quality and complete application for the targeted support regulated activity. The FCA encourages firms with questions about the authorisations process to engage with it through the PASS. Firms can submit applications for targeted support permissions via Connect, the FCA's online system.

Separately, on 27 February, the FCA updated its webpage on rules for targeted support to confirm the near-final rules, published in December 2025, as final. The FCA confirms that it has made only minor changes to the rules since they were published as near-final to largely cross-refer to the legislation that the government has brought forward to create the new targeted support activity.

Read more.

The UK Financial Conduct Authority (FCA) has published Handbook Notice 138, outlining amendments to the FCA Handbook resulting from the following statutory instruments:

• Deferred Payment Credit Instrument 2026, which comes into force on 1 April, 15 July and 31 December. The instrument introduces the FCA's new regulatory regime for deferred payment credit (previously known as buy-now, pay-later (BNPL) credit).
• UK Listing Rules (Notification of Purchases) Instrument 2026, which came into force on 27 February. This instrument amends the requirements in UKLR 9.6.6R and UKLR 9.7.3R, which relate to the notification of purchases of own securities under the UK Listing Rules.
• Advice Guidance Boundary Review (Targeted Support) Instrument 2026, which introduces the framework for the new form of targeted support for consumers' pensions and retail investment decisions. The instrument came into force partially on 2 March, and the remaining provisions will come into force on 6 April, 31 December and 6 April 2027.

Read more.

The UK Financial Conduct Authority (FCA) has published consultation paper CP26/7 outlining its proposed approach to implementing the FCA led remedies arising from the credit information market study. The study introduced a package of measures aimed at improving the credit information market, including proposed new FCA rules and guidance, reforms to industry governance arrangements and other industry-led remedies. A new Credit Information Governance Body is now in place and industry participants are progressing the industry-led remedies.

This consultation focuses on the FCA-led remedies, proposing new Handbook rules to improve the coverage, quality and consistency of consumer credit information. Specifically:

• Remedy 2A: a mandatory reporting framework requiring firms that share consumer credit information with at least one designated consumer credit reference agency (DCCRA) to share all such information with all DCCRAs. The FCA proposes to designate Equifax, Experian and TransUnion but allows for the designation of further credit reference agencies (CRAs) or the de-designation, if appropriate.
• Remedy 2D: requirements to improve data accuracy, error correction and dispute handling and to require firms to report satisfied County Court Judgments and decrees. Some obligations relate to information provided under the mandatory reporting requirement, while others have a broader application.

Read more.

The UK Financial Conduct Authority (FCA) has published an updated webpage on the CCR009 return for relevant ancillary credit firms. The update confirms that, for data covering 1 January 2025 to 31 December 2025, the reporting window will open on 2 March. The webpage also includes a new explanatory video. Firms will have 40 business days to submit their returns via the My FCA portal. The FCA reiterates that annual reporting will be based on the calendar year rather than firms' accounting reference dates.

The UK Financial Conduct Authority (FCA) has published a new webpage introducing its regulatory priorities reports, introducing nine annual, sector‑specific reports to replace its previous portfolio letters. The FCA explains that this new approach is intended to provide a clearer and more consistent articulation of regulatory expectations, setting out the key priority areas for each sector, alongside related work the FCA plans to undertake over the coming year. Firms are expected to assess which priorities apply to them in light of their business models, including whether aspects of their activities fall within the scope of other sector reports. The FCA notes that the reports have been shaped by feedback from firms and trade bodies, and that it will continue to respond to emerging market events and risks, which may result in new or reprioritised supervisory work beyond what is set out in the reports. The FCA confirms that reports on consumer investments, retail banking, mortgages, consumer finance, wholesale buy side, wholesale markets and payments are all expected in March.