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

Key proposals include:

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

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

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

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

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

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

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

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

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

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

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

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

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

The first edition of the newsletter covers three main themes:

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

The European Securities and Markets Authority and the UAE Securities and Commodities Authority have published a Memorandum of Understanding (MoU) signed on 29 December 2025. The MoU establishes a framework for cooperation and information sharing in the supervision of credit rating agencies (CRAs) operating across both jurisdictions. While non binding in nature, it sets out principles for mutual assistance, including cooperation on registration and certification processes, ongoing supervision, enforcement actions, cross border on site inspections and the handling of emergency situations. It creates mechanisms for exchanging both solicited and unsolicited information, subject to confidentiality and data protection safeguards. It also outlines procedures for managing outsourced functions and maintaining professional secrecy. Both authorities commit to periodically reviewing the MoU and may amend or terminate it with appropriate notice.

The European Securities Markets Authority (ESMA) has announced the adoption of its new digital strategy 2026–2028 and an updated data strategy 2023–2028, signalling a continued shift toward technology‑driven supervision and streamlined regulatory reporting. The new digital strategy sets out a roadmap focused on: enhancing EU‑wide digital synergies; strengthening the digital capabilities of both ESMA and the European System of Financial Supervision; improving operational efficiency; and ensuring a secure and future‑ready supervisory ecosystem.

The updated data strategy emphasises burden reduction and more integrated data management, with key new actions including major initiatives to streamline supervisory reporting, expansion of the ESMA data platform, further development of the MiCAR joint supervisory tool for crypto‑market monitoring and finalisation of the European Single Access Point. These goals are in line with its wider simplification and burden reduction initiative launched in 2025. ESMA's data and digital work will be guided by the roadmaps under both strategies. By 2029, ESMA expects to converge the two into one unified strategy.

The European Securities and Markets Authority (ESMA) has published its non-binding principles for risk-based supervision to promote a common and effective EU-wide supervisory culture and strengthen the EU single market. These principles apply to national competent authorities (NCAs) and ESMA when exercising direct supervision, covering the identification, assessment, prioritisation and mitigation of risks across all mandates (markets, entities and products) within an authority's remit. While acknowledging that different models for risk-based supervision exist, ESMA introduces an entity-based approach that can be adapted to other models (such as transaction or product-based approaches) depending on an authority's supervisory processes. The principles are intended to guide supervisory practice rather than prescribe a single supervisory model or operate as a full manual. As non-binding guidance, they are intended to be implemented practically under the relevant authority's existing framework. ESMA and NCAs will work together to advance implementation and promote high quality supervisory outcomes for market participants.

The Bank of England Financial Policy Committee (FPC) has issued its formal response (dated 19 December) addressing HM Treasury's November remit and recommendations for 2025/26. The FPC welcomes the recommendations made, confirming alignment with the government's aim of supporting sustainable economic growth while ensuring financial stability. It reflects on its recent work and refers to its assessment in the December Financial Stability Report (FSR) on the resilience of the UK financial system. It states that global macroeconomic and geopolitical risks continue to pose vulnerabilities, though, UK banks remain well capitalised, and results from the 2025 Bank Capital Stress Test show that the banking system could continue to support the economy even if conditions were materially worse than expected.

The FPC also reports progress on its medium term priorities including operational resilience, climate related financial risks and cryptoassets, noting that it remains alert to new and emerging risks which will remain a focus in the upcoming years. It also welcomes plans for a system wide exploratory scenario exercise on private markets, expected to be completed by the end of the year. As requested by HMT, the FPC also provides an update on areas where there is potential to increase the financial sector's ability to support sustainable economic growth, with conclusions set out in the FSR.

The European Banking Authority (EBA) has published a final report updating its guidelines on the equivalence of confidentiality and professional secrecy regimes in third countries. The amending guidelines: (i) expand the scope of the 2022 guidelines to include confidentiality and professional secrecy provisions under the Markets in Crypto-Assets Regulation; (ii) reflect recent EBA equivalence assessments confirming that regimes in Australia, China, Montenegro, Peru, Serbia and the UK are now deemed equivalent to EU standards; and (iii) streamline definitions, update legal references and clarify how competent authorities should apply the framework when sharing information or engaging in supervisory cooperation. The EBA states that while these guidelines inform opinions on equivalence, they do not address the need for cooperation arrangements or participation in supervisory colleges. The guidelines will be translated into all official EU languages and published on the EBA website. Competent authorities are required to report on whether they comply two months after the publication of the translations.

The UK Financial Conduct Authority (FCA) published Handbook Notice 136, outlining amendments to the FCA Handbook resulting from the following statutory instruments:

• Dispute Resolution: Complaints Sourcebook (Motor Finance Complaints Handing) Instrument 2025, which entered into force on 5 December 2025. This extends the deadline for firms to send final responses to certain motor finance complaints.
• Consumer Composite Investments Instrument 2025, entering into force on 6 April 2026 and 7 May 2026. This introduces a new product information regime to help consumers understand the investment products they are buying.
• Complaints Reporting Instrument 2025, entering into force on 7 April and 31 December 2026.  The changes seek to improve the quality of reported data allowing the FCA to detect consumer harm more quickly while also reducing firm burden.
• Simplification: Conduct and Product Governance of Non-Investment Insurance Business and Other Amendments Instrument 2025, which entered into force on 9 December 2025.
• Non-Financial Misconduct (No 2) Instrument 2025, entering into force on 1 September 2026. This introduces rules and guidance on non-financial misconduct to raise standards, increase accountability and build trust in financial services.

Read more.

HM Treasury (HMT) has issued its response to the House of Lords Financial Services Regulation Committee's reply regarding the UK government's earlier response to the Committee's report "Growing Pains: Clarity and Culture Change Required". The UK government acknowledges the Committee's concerns and reaffirms its commitment to embedding secondary objectives for growth and competitiveness, underpinned by the Financial Services Growth and Competitiveness Strategy. It highlights key milestones such as the UK Financial Conduct Authority's (FCA) consumer duty review, the joint FCA-PRA scale-up unit, and research on disruptive technologies, alongside measures to streamline authorisations and support innovation. The letter responds to the Committee's concerns around: evidence linking financial sector growth to the wider economy; SME financing; regulator-government relationships; growth and performance metrics; and international comparisons. The government acknowledges challenges in producing robust international cost comparisons. A further update from HMT is expected in the summer of 2026.

The Council of the EU has adopted conclusions on simplifying the EU's financial services regulation as part of its broader competitiveness agenda. The Council emphasises that simplification should reduce unnecessary complexity and administrative burdens, particularly for SMEs, without undermining financial stability or core regulatory pillars such as capital requirements, consumer protection, and anti-money laundering frameworks. Key principles include eliminating duplicative or outdated provisions, improving coherence across legislation, streamlining reporting requirements, and ensuring robust stakeholder consultation and impact assessments.

The Council calls on the European Commission (EC) to swiftly propose ambitious simplification packages, review existing legislation and explore technological tools like AI to enhance efficiency. It also urges better coordination among EU institutions and supervisory authorities, including the European Supervisory Authorities and the EU's Anti-Money Laundering Authority, and calls on them to adopt a simpler and more targeted approach to developing regulatory technical standards, implementing technical standards, guidelines, etc. The EC is invited to report back on progress with simplification initiatives, including preparing a report, scheduled for 2026, assessing the overall state of the banking system in the Single Market and evaluating its competitiveness.

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 Prudential Regulatory Authority (PRA) has sent a letter to the Prime Minister providing an update on measures taken to align regulation with its economic growth objectives. The PRA confirms completion of four out of five key actions announced last year, including: (i) implementing the "strong and simple" capital framework for smaller banks to reduce compliance costs; (ii) launching the matching adjustment investment accelerator to boost insurers' UK investments; (iii) improving the insurance special purpose vehicle (ISPV) regime to accelerate authorisations and attract capital; and (iv) amending remuneration rules by halving the minimum bonus deferral periods for senior bankers. The fifth initiative, simplifying regulatory data reporting, has begun through the future banking data programme, with further development and prioritisation of this programme, and additional cost reductions to follow. Additional progress includes establishing a concierge service for inward investment, rationalising the PRA's "have regards" framework and reducing legislative overlap. Further reforms under the Leeds package, such as Basel 3.1 implementation and Senior Managers Regime simplification, are ongoing to enhance competitiveness and support growth.

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 its quarterly consultation paper No 50 inviting feedback on proposed amendments to its Handbook across reporting, fees, primary markets rules, the new Public Offers and Admissions to Trading Regulations (POATRs) framework and authorised fund concentration rules.

Key proposals include:

• Decommissioning three general insurance pricing practices returns (REP021a, REP021b and REP021d) and reducing the frequency of the baseline financial resilience report (FIN073) from quarterly to annually for firms that also submit RMA‑A and have GBP 150 million or less annual regulated revenue, while retaining quarterly submission for larger firms and those not submitting RMA‑A.
• Cutting the administrative fee for late regulatory returns from GBP250 to GBP100 and making minor clarifications to SUP reporting provisions.

Read more.

The UK Prudential Regulation Authority (PRA) and the UK Financial Conduct Authority (FCA) have published a joint report on the UK's mutual and cooperative sector, and their commitment to supporting this sector in respect of the regulators' objectives, including the secondary international competitiveness and growth objective. The report follows a request made in November 2024 by the Economic Secretary to the Treasury for a report on the current mutuals landscape before the end of year, as part of the government's commitment to unlock the full potential of this sector in the UK.

The report highlights the regulators' recent work impacting building societies, credit unions, mutual insurers and funeral plan providers. It also notes ongoing reviews and legislative modernisation efforts which support growth in the sector. In particular, the report suggests the government may wish to consider updating the Building Societies Act 1986 and the Credit Unions Act 1979 – commenting that there are other features of credit union legislation that may benefit from being reviewed. Finally, the report also observes that there are many countries with a greater variety of products and services in the mutual sector compared to the UK, and that even though credit unions received powers in 2023 to offer a wider range of products and services including conditional sale, hire purchase and insurance distribution, no credit union has yet applied to the FCA to take advantage of this new benefit.

HM Treasury has published a policy update on creating a provisional licences authorisation regime for early-stage financial services firms seeking FCA authorisation. The purpose is to reduce the barriers that financial services firms face when seeking authorisation. The proposed "provisional licences" regime will enable the FCA to grant time-limited permissions (generally up to 18 months) so that firms can get "up and running" in a controlled environment with strong regulatory oversight, whilst working towards full authorisation. The policy update sets out details of how the government intends to deliver this. It discusses the purpose and design of the regime including its scope and eligibility, the duration of provisional licences and other restrictions and requirements on firms during the provisional licence period. It concludes with a discussion of exiting the regime, ideally with full authorisation. This provisional licence regime will require. primary legislation, and the updates reports that the government will take this forward when parliamentary time allows. The FCA will engage with industry on the design of the regime and consult as necessary.

The UK Competition and Markets Authority (CMA) has published its final decision following a review of the SME Banking (Behavioural) Undertakings 2002, specifically the limitation on bundling provisions (LOBP). These provisions prohibited bound banks from requiring SMEs to open or maintain a business current account as a condition for obtaining a business loan or deposit account. Following its review, the CMA concluded that, due to significant changes in market conditions since 2002, including increased competition, reduced barriers to entry, technological developments, greater customer willingness to switch providers and the introduction of the consumer duty, the LOBP are no longer appropriate and should be released. The CMA found that banks previously bound by these undertakings no longer hold sufficient market power in SME loans and deposit accounts to justify retaining these restrictions, and that competitive constraints would prevent adverse effects on competition if such tying practices were reintroduced. The LOBP were the last remaining provisions of the SME Banking (Behavioural) Undertakings 2002 meaning that these have now been released in their entirety.

The UK Financial Conduct Authority (FCA) has published Handbook Notice 135 outlining amendments to the FCA Handbook resulting from the following statutory instruments:

• Markets in Financial Instruments (Systematic Internalisers Multilateral Trading Facilities and Equity Transparency) Instrument 2025 – now in force – and the Technical Standards (Markets in Financial Instruments Regulation) (Equity Transparency) (Amendment) Instrument 2025, which will enter into force on 30 March 2026. These instruments make changes to repeal the systematic internaliser regime for bonds and derivatives and remove certain obligations and restrictions placed on UK venues by onshored EU legislation.
• Berne Financial Services Agreement Instrument 2025, which enters into force on 1 January 2026, to add a new Handbook guide and update related guidance provisions.
• Dispute Resolution: Complaints Sourcebook (Eligibility of Complainants) Instrument 2025, which entered into force on 28 November, to add new guidance to clarify DISP 2.7.6R(4).
• Compensation Sourcebook (Assignments Under Scots Law) Instrument 2025, which entered into force on 28 November, making changes to ensure the Financial Services Compensation Scheme's electronic assignments comply with Scots law.

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

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

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

Key measures include:

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

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

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

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

HM Treasury (HMT) has released its financial inclusion strategy, outlining a comprehensive national plan to remove barriers to financial participation and to build financial resilience. The strategy focuses on six main areas: (i) improving digital inclusion and access to banking through the roll-out of 350 in-person banking hubs and the launch of a pilot scheme enabling the opening of a bank account without standard ID; (ii) supporting savings by delivering regulatory clarity to enable employers to offer workplace savings schemes with confidence and driving uptake of the government's Help to Save scheme; (iii) ensuring the insurance market is supporting the financial wellbeing of households and vulnerable customers; (iv) increasing access to affordable credit; (v) strengthening debt advice provision; and (vi) introducing compulsory financial education in primary schools. HMT will review the strategy's implementation progress two years after publication and provide an update thereafter.

The House of Lords Financial Services Regulation Committee (the Committee) has issued a formal response to HM Treasury's (HMT) reply to its report "Growing Pains: Clarity and Culture Change Required" which evaluated the progress made by the UK Financial Conduct Authority (FCA) and UK Prudential Regulation Authority (PRA) in supporting growth and competitiveness in the financial services sector and the wider UK economy. The Financial Services and Markets Act 2023 introduced a secondary objective for the UK regulators focused on international competitiveness and growth. While welcoming initial steps taken by the UK government, the Committee notes that HMT did not engage with several key findings, critical to the success of the secondary objective and broader UK economic growth. The Committee uses this opportunity to restate some of its recommendations and raise further questions on the following themes as set out below.

Read more.

The Financial Services and Markets Act 2023 (Mutual Recognition Agreement) (Switzerland) Regulations 2025 have been published, accompanied by an explanatory memorandum. The Regulations will make changes to UK legislation to implement the UK's commitments under the Berne Financial Services Agreement (BFSA), signed with Switzerland in December 2023. The BFSA is an outcomes-based mutual recognition agreement covering a range of wholesale financial services, including asset management, banking, investment services, insurance and financial market infrastructure, as well as the provision of investment services to sophisticated high net worth clients. The BFSA allows UK insurance companies to offer certain wholesale insurance services in Switzerland without needing Swiss authorisation, while Swiss firms can offer certain investment services to sophisticated clients in the UK without requiring UK authorisation.

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

Key proposals include:

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

Read more.

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

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

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

Read more.

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

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

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

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

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

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

The Joint Committee of the European Supervisory Authorities (comprising the European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority) (ESAs) have published their 2026 work programme, setting out key priorities for cross-sectoral collaboration for 2026.

The programme focuses on joint efforts in relation to:

• Digital Operational Resilience Act (DORA) – the ESAs will concentrate on the effective operation of the new oversight framework and work related to supervisory convergence of DORA. The ESAs will designate third-party providers critical (CTPPs) to the EU financial sector by the end of 2025 and will conduct risk assessments to outline individual annual oversight plans for each CTPP, complemented by a strategic multi-annual oversight plan.
• Consumer protection and financial innovation – in 2026, the ESAs expect to work on drafting regulatory technical standards based on the empowerments in the proposed amendments to the PRIIPs Regulation in the European Commission's (EC's) Retail Investment Strategy. Work on consumer confidence and protection will consider the EC's strategy to develop a Savings and Investment Union.

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The European Banking Authority (EBA) has released its 2024 annual report on the convergence of supervisory practices across the EU. The report outlines the EBA's ongoing efforts to strengthen the alignment of supervisory approaches across Member States and across key areas of its activities, including prudential, resolution, digital finance, consumer protection and until the end of this year anti-money laundering/counter-terrorist financing (AML/CFT). In the area of prudential regulation, the report reflects on findings from its 2024 European Supervisory Examination Programme focused on liquidity and funding risk, interest rate risk and hedging, and recovery operationalisation. The report notes that risk levels in these areas remain stable, though challenges persist around data quality, stress testing scenarios and modelling assumptions. The EBA will continue monitoring risks related to online deposit platforms and compliance with Supervisory Outlier Tests in 2025.

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The European Banking Authority (EBA) has published a report on white labelling, accompanied by a fact sheet. In the report, the EBA considers the use of white labelling as a business model by the firms that are under its mandate, including credit institutions, e-money institutions, payment institutions, non-bank issuers of asset-referenced tokens and non-bank lenders. The report defines white labelling as a business model in which a financial institution (the provider) enters into an agreement with another entity (the partner, who may or may not be a financial institution) to distribute and offer one or more financial products and services under the partner's own brand only. The EBA finds that white labelling is being widely used, with 35% of surveyed banks employing the model to distribute a broad range of financial products and services, both domestically and cross-border, including account and payment services, credit provisioning and open banking services.

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The Financial Stability Board (FSB) has published a letter from its Chair, Andrew Bailey, to G20 Finance Ministers and Central Bank Governors ahead of their meeting on 15-16 October, alongside an interim report from the G20 strategic review of the FSB implementation monitoring work. In the letter, Mr Bailey highlights the importance of global standards and co-operation in preventing crises and supporting sustained growth. The letter also emphasises the urgent need for full, timely and consistent implementation of financial reforms, warning that incomplete efforts leave the global financial system vulnerable to shocks. To address this, the FSB confirms it will enhance its surveillance of vulnerabilities in the financial system and pivot from policy development to monitoring and facilitating the implementation of agreed reforms.

The accompanying interim report provides an initial assessment of progress across several key reform areas including too-big-to-fail policy measures, non-bank financial intermediation, over-the-counter derivatives market reforms, Basel III and crypto-asset markets and activities. The initial assessment of implementation status shows that full, timely and consistent implementation has not been completely achieved. This is despite the active programme of implementation monitoring by the FSB and standard-setting bodies. The next phase of the G20 strategic implementation monitoring review will reflect on why implementation gaps exist. The final report will make specific recommendations to strengthen the FSB's monitoring and implementation processes.

The European Securities and Markets Authority (ESMA) has published its 2026 annual work programme, guided by its 2023-2028 strategy.

Key priorities include: (i) continuing to build on existing priorities under the savings & investments union (SIU) strategy particularly by aligning supervisory practices across Member States, enhancing market data capabilities and contributing to upcoming reforms designed to create a more integrated and globally competitive EU financial system; (ii) continuing support for key legislative files such as the revised European Market Infrastructure Regulation (EMIR 3) and the European Single Access Point. Other legislative files that may warrant ESMA's involvement include the Retail Investment Strategy, along with the reviews of the Packaged Retail and Insurance-Based Investment Products Regulation, Sustainable Finance Disclosure Regulation and the Securitisation Regulation; and (iii) driving data innovation and market integration through the rollout of the ESMA Data Platform and the development of AI-powered supervisory tools. ESMA will also continue to focus on the effective implementation of the Markets in Crypto Assets Regulation, particularly on the authorisation and supervision of crypto-asset service providers and coordinate closely with market participants on the T+1 settlement cycle towards the agreed implementation date of 11 October 2027.

Alongside the work programme, ESMA has published its simplification and burden reduction document, outlining upcoming publications expected in Q1 and Q2 2026 aimed at streamlining regulatory requirements and reducing compliance burdens.

The UK Financial Conduct Authority (FCA) has published a research note examining the potential applications of quantum computing within UK financial services, and exploring how firms can prepare for their emergence. Points of particular interest include: (i) the UK is well-positioned to benefit from quantum computing in financial services, but coordinated action across industry, government, academia and regulators is required to realise this potential; (ii) leading firms are already building quantum readiness strategies, focusing on optimisation, machine learning and stochastic modelling through hybrid quantum classical methods; (iii) regulatory change is not immediately required, though future quantum applications may intersect with existing themes of explainability and operational resilience which are already central in regulatory frameworks (iv) regulatory awareness among quantum computing vendors remains limited, presenting an opportunity to build early relationships with regulators, which can help provide technical and regulatory clarity; and (v) regulators could evolve existing innovation tools to better support quantum development, including sandboxes, which could be expanded to offer firms safe environments for experimentation.

The European Banking Authority (EBA) has published its 2026 work programme, setting out its key priorities and planned initiatives. The programme is driven by three overarching priorities: (i) developing a rulebook to foster a resilient and efficient financial single market, with proposals to simplify rules, improve public sector coordination and assess the framework's impact. This includes continuing work on the EU banking package and advancing proposals on the forthcoming revised Payment Services Directive 3, the Payment Services Regulation and the Financial Data Access Act; (ii) strengthening risk assessment capabilities through improved data, methodologies and oversight under the Digital Operational Resilience Act (for critical ICT third-party providers), Markets in Crypto-Assets Regulation (for supervision of crypto-asset issuers) and European Market Infrastructure Regulation (for validation of initial margin models); and (iii) advancing innovation and technological capacity across the financial sector, with a focus on AI and machine learning, including its contribution to the implementation of the EU AI Act. In parallel, the EBA has published a report (EBA/REP/2025/26) proposing ways to streamline the EU's regulatory and supervisory framework, following a comprehensive review earlier this year of four key areas: level 2 and 3 measures, reporting burdens on financial institutions, the EBA's role in the prudential framework and its internal processes. The review resulted in 21 recommendations which are set out in the report.

HM Treasury (HMT) has launched a consultation and call for evidence to assess potential enhancements to the UK's Commercial Credit Data Sharing (CCDS) scheme. CCDS, established under the Small and Medium Sized Business (Credit Information) Regulations 2015, mandates that designated banks share SME credit data with designated credit reference agencies (CRAs) to improve access to finance. The consultation sets out specific proposals aimed at improving CCDS operations, including a standardised data format, enhancing data amendment processes, tightening deadlines for data submission and exploring expansion of the scope of CCDS to include a wider range of finance providers. HMT is also seeking views on several related areas, including whether CRAs should set up online data amendment portals (similar to those used under the consumer credit data sharing scheme) and the costs and benefits of them doing so; whether changes are needed to the CCDS regime to improve the timely amendment of data by CRAs and/or lenders, which could potentially be supported through legislative changes or guidance; and the status quo for amending data and what challenges may arise to help formulate a position. The deadline for comments is 11:59am on 20 November. The consultation will help determine whether changes should be made to the existing CCDS regulations or whether policy objectives can be achieved through non-legislative means.

HM Treasury has announced the formation of a "Transatlantic Taskforce for Markets of the Future", jointly established by UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent. The Taskforce aims to strengthen collaboration between the UK and U.S. financial systems, particularly in capital markets and digital assets. Reporting back with recommendations to both ministries through the UK-U.S. Financial Regulatory Working Group (FRWG), the Taskforce will explore short- and long-term opportunities on digital assets while legislation and regulatory regimes are still developing, and in wholesale digital markets innovation. It will also assess ways to reduce cross-border capital-raising burdens and enhance market competitiveness in both UK and U.S. markets. The Taskforce is expected to deliver its recommendations within 180 days.

The Swiss Financial Market Supervisory Authority, the UK Financial Conduct Authority (FCA), and the Bank of England (including the UK Prudential Regulation Authority) have entered into a Memorandum of Understanding (MoU) under Article 14 of the Berne Financial Services Agreement (BFSA). The MoU establishes a framework for supervisory cooperation and information sharing between the UK and Switzerland in the insurance and investment services sectors. It sets out procedures for mutual assistance, the exchange of confidential information, and sector-specific cooperation, including notification, reporting and the maintenance of public registers for covered financial services suppliers. The general provisions of the MoU are complemented by annexes and an appendix, which further specify aspects of cooperation.