The final report from the Risk Warnings Review was 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.

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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.

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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 Conduct Authority (FCA) and UK Prudential Regulation Authority (PRA) has 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.

The PRA proposes new rules in the Housing Part of the PRA Rulebook and a new supervisory statement, while the FCA will issue new general guidance replacing FG25/4. The regulators would publish quarterly data on aggregate high LTI lending and may expect firms to gradually reduce flows if the aggregate limit is exceeded; the consultation also clarifies scope, excluding further advances and retirement interest only mortgages. The deadline for responses is 1 July. Implementation is expected in the second half of this year with interim measures to remain in force up to the implementation date for the changes resulting from this consultation, with a backstop date of 31 December.

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.

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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.

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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.
• Perimeter Guidance Manual (Transfer of MiFID Organisational Regulation) Instrument 2026, which entered into force on 27 March and follows quarterly consultation paper No 49. This instrument updates the Perimeter Guidance manual following the making of the Markets in Financial Instruments (Miscellaneous Amendments) Regulations 2025, which restates the Markets in Financial Instruments Directive Organisational Regulation into the FCA Handbook.

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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.
• Supporting growth: the FCA highlights initiatives to unlock capital investment and liquidity across UK markets, accelerate digital innovation to improve productivity and support firms to start up and grow. This includes: (i) making rules for alternative investment fund managers more proportionate and streamlined; (ii) reforming capital requirements for solo-regulated investment firms to improve liquidity; (iii) simplifying the securitisation framework; (iv) establishing a bonds consolidated tape and progressing one for equities; (v) developing the long-term regulatory framework for open banking and advancing open finance work; (vi) expanding overseas presence; and (vii) supporting UK participants to adopt a trade plus 1 day (T+1) settlement cycle next year.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

The European Securities and Markets Authority (ESMA) has issued a statement reminding firms of their obligations under existing national product intervention measures on contracts for differences (CFDs). The statement is in light of the growing offering of derivatives marketed as "perpetual futures" or "perpetual contracts", including those providing leveraged exposure to cryptoassets such as Bitcoin.

ESMA emphasises that where such products meet the definition of a CFD, they are likely to fall within the scope of existing intervention measures adopted by national competent authorities and must therefore comply with applicable product intervention requirements. This includes leverage limits, mandatory risk warnings, margin close-out rules, negative balance protection and the prohibition on monetary and non-monetary incentives. The statement further reminds firms that derivatives require a narrowly defined target market and an aligned distribution strategy. Firms should be carrying out appropriateness assessments in accordance with the relevant requirements for complex financial instruments when providing non advised services, and must identify, prevent and manage any conflicts of interest arising from the offering of these products. While the public statement specifically refers to derivatives marketed as perpetual futures or perpetual contracts, ESMA states that firms should assess whether national product intervention measures apply to all derivatives offered, irrespective of their commercial name.

The UK Financial Conduct Authority (FCA) has published a new webpage about the consumer duty. The webpage explains how the consumer principle is underpinned by three cross-cutting rules requiring firms to act in good faith, avoid foreseeable harm and support customers to pursue their financial objectives. The FCA reiterates the four core outcomes it expects firms to deliver, relating to the governance of products and services, price and value, consumer understanding and consumer support and expands upon its expectations of firms in ensuring them. Specifically, the FCA expects firms to ensure that products and services are fit for purpose and targeted appropriately, that pricing represents fair value relative to the benefits provided, communications are clear, fair and timely, and that customer support is accessible and effective throughout the product lifecycle.

While the FCA recognises that implementation may look different for smaller firms, it emphasises that all firms are expected to deliver the same standard of good consumer outcomes. In parallel, it updated its webpage on good practice and areas for improvement on the requirements for consumer duty board reports, adding specific guidance for smaller firms. The FCA recognises that these firms face different challenges and outlines suggestions relating to governance, monitoring and outcomes, actions taken to comply with the consumer duty and future business strategy, to help them meet the requirements. The FCA is open to considering more targeted work where it would be beneficial and it will continue to engage with the Smaller Business Practitioner Panel and other smaller firm stakeholders.

The European Central Bank (ECB) has announced a collaboration with the ONCE Foundation for Cooperation and Social Inclusion of People with Disabilities to ensure that the proposed digital euro is accessible to all users, including people with disabilities, older adults and those with limited digital skills. Under the agreement, the ECB will benefit from the foundation's expertise in providing technical advice on accessibility requirements and features for the digital euro application, collaboration on its design and testing accessibility functionalities in early prototypes once available. The collaboration aims to exceed the minimum legal requirements under the European Accessibility Act. The ECB intends to embed accessibility considerations from the earliest stages of design and development, ensuring that the application is clear, understandable and easy to navigate. The outcome of this work could also inform user experience requirements for payment service providers.

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".

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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 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.

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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."

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The European Securities and Markets Authority has published its second thematic note on clear, fair and not misleading sustainability-related claims in relation to environmental, social and governance (ESG) strategies. This note forms part of a broader thematic study to address greenwashing risks in support of sustainable investments and follows ESMA's first note on ESG credentials. The purpose of these notes are to provide market participants with information and build on observed market practices. As with the first note, this second note sets out four principles for making sustainability claims. In summary, claims should be: (i) accurate; (ii) based on accessible information; (iii) substantiated; and (iv) up to date. The note follows a similar format to the first, including practical "do's and don'ts" and examples of good and poor practice. It focuses on ESG integration, exclusions and strategies. While these notes do not create new disclosure requirements, they are intended to guide market participants on ensuring that communications, including non-regulatory oral and written communications, and those aimed at retail investors, are clear, fair and not misleading.

The UK Financial Conduct Authority (FCA) has published an update on its advice guidance boundary review – targeted support policy sprint. The six-week sprint, launched in February 2025, brought together 12 firms, including retail banks, investment platforms and wealth managers, to test the FCA's targeted support proposals. As a reminder, the new regulated activity of targeted support aims to allow authorised firms to provide recommendations for pre-defined consumer segments with common needs or objectives. The regime is outcomes-focussed, with bespoke rules in the FCA handbook and further underpinned by the consumer duty and product governance rules.

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The Council of the EU and the European Parliament (EP) have reached a provisional political agreement on an updated retail investment strategy package to empower and protect consumers and increase competitiveness in the EU's financial markets. The package takes the form of a directive containing targeted amendments to a number of other EU directives in the area of financial services such as the Markets In Financial Instruments Directive (MIFID), the Solvency II Directive, the Directive For Undertakings For Collective Investment In Transferable Securities (UCITS) and the Alternative Investment And Managers Directive (AIFMD), and a regulation amending the Packaged Retail And Insurance-Based Investment Products (PRIIPs Regulation).

The Council of the EU and EP confirm that agreement has been reached in the following areas:

• Value for money – firms must identify and quantify all costs borne by investors related to the investment products they advise. Products failing to offer value for money should not be released onto the market and sold to retail customers, and who should be able to compare investment products' costs, charges, performance and non-financial benefits.
• Inducements – a new test will be introduced to ensure firms act in the clients' best interests, enabling them to distinguish inducements from other fees.

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The Consumer Composite Investments (Designated Activities) (Amendment) Order 2025 has been published, accompanied by an explanatory memorandum. The Order, which enters into force on 6 April 2026, amends the Consumer Composite Investments (CCI) Regulations 2024 to provide temporary exemptions from the financial promotion and the scheme promotion restrictions of the Financial Services and Markets Act 2000. The temporary exemptions apply to the key information documents (KIDs) produced under the previous packaged retail and insurance-based investment products (PRIIPs) regime. This means that under the UK Financial Conduct Authority's (FCA) transitional provisions for the new CCI regime, firms may continue producing KID disclosure documents for the duration of the CCI transitional period. During this time, manufacturers can either continue using KIDs or comply with the new CCI product summary requirements. The CCI transitional period is due to end on 8 June 2027. However, Regulation 8A(3), inserted by the Order, sets a statutory long-stop date of 8 December 2028 for the effect of these exemptions.

The UK Financial Conduct Authority (FCA) and UK Payments Systems Regulator (PSR) have issued a joint letter to HM Treasury (HMT) (dated 11 November) providing an update on their progress against the 2024 recommendations HMT set for payments regulation and outlining focus areas through to 2026.

Key forward-looking priorities include:

• Co-ordination - the regulators set out how they have been working in an increasingly collaborative way to ease congestion in payments regulation.
• Open banking and open finance – the FCA has established a new department incorporating FCA and PSR capabilities, replacing the Joint Regulatory Oversight Committee (JROC) and streamlining decision-making for open banking and open finance. The FCA is working with industry to establish a future entity for open banking ahead of developing the statutory instrument with HMT and subsequently the long-term regulatory framework for open banking. In addition, the FCA has launched the smart data accelerator, with applications currently open for two prioritised open finance use cases in SME lending and mortgages. The FCA will publish a roadmap for this in early 2026, with regulatory foundations in place during 2027. The FCA is also collaborating with the Department for Business and Trade on cross-sector data sharing.

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The UK Financial Conduct Authority (FCA) has published feedback statement FS25/6 setting out its response to feedback received to its June discussion paper on the future of the mortgage market, and action the FCA will take as part of a longer‑term plan to modernise its mortgage rules.

The FCA plans targeted reforms across four key themes:

• Expanding access for first-time buyers and underserved consumers: The FCA will consult (with the UK Prudential Regulation Authority) on loan-to-income (LTI) ratio requirements in Q1 2026. It will also consult on responsible lending rules in 2026.
• Enhancing later-life lending: The FCA will review retirement interest-only requirements to enhance accessibility, explore ways to improve advice to help people confidently plan for later life, and conduct a focused market study to ensure the lifetime mortgage market can meet the changing needs of future customers.
• Enabling innovation: The FCA will continue to support innovation and adoption of new technology through its innovation services, including its Open Finance Tech Sprint, its Supercharged Sandbox and its AI live testing. It also wants to explore changes to disclosure and financial promotion rules to support innovation and smoother digital journeys. It will do this as part of its consumer duty review.

Protecting vulnerable consumers: The FCA will work with partners to support people affected by financial abuse and help those using a mortgage to manage or consolidate debt.

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The UK Financial Conduct Authority (FCA) has published policy statement PS25/22, setting out near-final rules for a new regulatory framework on targeted support. Under the framework, authorised firms will be permitted to provide tailored investment and pension recommendations to groups of consumers with similar characteristics. This will direct people to products or to take actions with existing products that could put them in a better position in their financial lives. This will be done without the need to conduct individualised suitability assessments, but subject to consumer duty and product governance requirements. The government has confirmed that only authorised firms may provide targeted support. The rules cover design and delivery standards, disclosure obligations, charging and remuneration, application of existing requirements and monitoring outcomes. Following the consultation, the FCA has made the following changes to its rules as set out below.

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HM Treasury has published its consultation response on introducing a new "targeted support" regime following the advice guidance boundary review. The regime will allow authorised firms to provide tailored investment and pension recommendations to groups of consumers with similar characteristics. The government confirmed that targeted support will be established as a distinct regulated activity under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 subject to bespoke conduct standards and authorisation from the UK Prudential Regulatory Authority and UK Financial Conduct Authority (FCA).

Key changes following feedback to the draft statutory instrument and policy note include: simplified disclosure requirements aligned with FCA rules; clarification of exemptions applicable to targeted support; decision to proceed with secondary legislation enabling workplace pension providers to deliver targeted support communications under the Privacy and Electronic Communications (EC Directive) Regulations 2003 and other technical adjustments. Appointed representatives will initially be excluded from delivering targeted support, with a review planned after reforms to their regime are implemented.

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The Financial Services Regulatory Initiatives Forum has published the ninth edition of the Regulatory Initiatives Grid. This sets out the regulatory pipeline for the next two years, outlining 124 live initiatives which is a 13% reduction since the last grid was published. Key priorities include implementing Basel 3.1 standards, advancing the strong and simple prudential framework and reforms to the prospectus regime and wholesale markets review. Innovation-focused measures cover stablecoin regulation, the national payments vision, and development of a UK captive insurance regime, while consumer-focused reforms include the advice guidance boundary review and regulation of buy now pay later products. The Grid also highlights efforts to streamline regulatory processes, with 45 joint initiatives across sectors, and provides indicative timelines for consultations and implementation through 2027. Separate press releases announcing the Grid have also been published by the UK Financial Conduct Authority and the Bank of England.

The UK Financial Conduct Authority has published two joint statements with regulatory partners addressing areas where firms have sought clarity on delivering targeted support. The first statement, issued with the UK Financial Ombudsman Service, explains its approach to handling consumer complaints related to targeted support. The second, published with the Information Commissioner's Office (ICO), provides guidance on communicating with consumers within the framework of existing direct marketing rules. There are two areas on which firms have asked for clarity in respect of providing targeted support. While the FCA acknowledges calls for legislative reform in this area, it notes that such changes fall within the government's remit. In this context, the FCA has welcomed the announcement by HM Treasury which has confirmed plans to introduce secondary legislation enabling workplace pension providers to send targeted support communications to members who have not opted out of direct marketing.

The UK Financial Conduct Authority (FCA) has published a new webpage clarifying its expectations for firms promoting mainstream investment products and addressing common misconceptions about risk warnings. The FCA states that financial promotions aimed at retail customers must comply with the consumer duty and COBS rules by being fair, clear, and not misleading, and by providing a balanced view of benefits and risks. Regarding common misconceptions, the FCA states that while firms must indicate if capital is at risk, there is no prescribed wording or requirement for risk wording or separate risk warnings. Instead, firms should ensure they include contextualised, prominent risk information that supports consumer understanding without diminishing or obscuring key details within the body of promotion. They must provide a balanced view of the benefits and risks, to give consumers a fair description of the product or service. The FCA has also highlighted that generic or repeated warnings can confuse consumers and encouraged behavioural approaches to improve engagement with risk disclosures.

The UK Financial Conduct Authority (FCA) has sent a letter to the Prime Minister providing an update on its growth strategy. It confirms delivery of most of the 50 pro-growth measures announced in January and outlines plans for 2026. The plans include finalising rules on stablecoins, setting out the delivery plan for open finance, reforming rules for venture capital and alternative investment fund managers and further speeding up IPO applications. The FCA also cites its plans to further overhaul mortgage rules so more people get on the housing ladder and is preparing for its expanded remit as anti-money laundering supervisor and integration of the UK Payments Systems Regulator. The letter highlights active support for firms digitising, with 31 already testing AI use cases, and commits to enabling tokenisation in asset management to drive efficiency and competition. The FCA also urges swift progress on digital ID to streamline know your customer requirements and calls for faster legislation to maintain reform momentum, including modernising the Consumer Credit Act. Finally, the FCA will use its convening power to galvanise system-wide responses to cross-cutting issues such as financial inclusion and mobilising defence investment to protect national and economic security.

The UK Financial Conduct Authority (FCA) has published consultation paper CP25/37, as part of the consumer duty requirements review and the workplan announced in the March feedback statement. The FCA sets out targeted amendments to reduce the administrative burden on firms in respect of UK UCITS investment powers, chapters 6 and 7 of the Client Assets Sourcebook, and certain changes to rules relating to insurance products and funeral plans. It also proposes to improve the existing support offering for smaller firms, by piloting a sector-specific directory-style guide which would signpost the relevant parts of the FCA Handbook for smaller firms and set out examples of good and poor practice. The FCA has identified the consumer finance sector as being an appropriate sector for the pilot, focussing initially on credit brokers.

The consultation paper also proposes amendments to the FCA Handbook and non-Handbook materials to remove references to historic guidance on the fair treatment of customers, and to update references to Principles 6 and 7 of the FCA's Principles for Businesses to clarify the scope of the consumer duty in areas where there may still be confusion. The deadline for comments is 27 January 2026.