3 Jun 2026
Our monthly Regulation Updates provide simple, concise regulation you can read anytime, anywhere...
GENERAL
FCA Announcement - Competition Act 1998 investigations
The FCA has announced that it is investigating Mastercard, PayPal, and Visa under Chapter I of the Competition Act 1998, and Mastercard and Visa under Chapter II of the Competition Act, for suspected anti-competitive conduct linked to the funding and usage of PayPal’s digital wallet.
The FCA is currently gathering evidence.
PSR Publishes Consultation Paper -Â UK regulatory financial reporting for Mastercard and Visa
The PSR has published consultation paper CP26/1 on a proposed direction and guidance for targeted regulatory financial reporting by Mastercard and Visa.
The proposed remedy follows the PSR’s market review of scheme and processing fees and is intended to ensure the regulator receives consistent, reliable financial information on the schemes’ UK card businesses. The consultation closes on 3 July 2026.
PSR consultation paper: UK regulatory financial reporting for Mastercard and Visa (CP26/1)
Enhancing Financial Services Bill announced in the King’s Speech
The 2026 King’s Speech confirmed plans for an Enhancing Financial Services Bill, led by HM Treasury, to implement key elements of the Leeds Reforms.
The Bill will modernise consumer protection and redress, including reforms to the Financial Ombudsman Service, and simplify the regulatory framework by consolidating the Payment Systems Regulator within the FCA. It will also reduce regulatory burdens on firms, including cutting the burden of the Senior Managers and Certification Regime by 50%, while maintaining core protections. Further measures will broaden credit union membership, support SME lending and investment, and update the ring-fencing regime for major banks. Most provisions are expected to apply across the UK.
FCA publishes findings of review - Review of financial promotion approvers
The FCA has published findings from its review of authorised firms that approve financial promotions for unauthorised businesses under section 21 FSMA, focusing on ten firms active in Buy Now Pay Later, crowdfunding and corporate finance.
The FCA found that stronger firms embedded the Consumer Duty from the outset, ensuring promotions were accurate, clear and appropriately targeted. However, some firms approved promotions with unsubstantiated claims, failed to restrict retail access to professional-client materials, or relied too heavily on third-party templates. Following the review, one firm must carry out remediation and some websites have been blocked to retail customers. The FCA will continue monitoring compliance and take action where firms fall short.
FCA publishes multi-firm review - Credit rating agencies
The FCA has published findings from a multi-firm review of UK-registered credit rating agencies, focusing on surveillance processes, rating methodologies and internal controls under the UK CRAR.
The FCA expects CRAs to keep comprehensive internal records and provide clear rationales for rating actions, including where ESG factors are relevant. It notes that AI and models can support earlier risk detection and more consistent surveillance, but only with robust governance, bias controls and analytical challenge. The review identifies examples of good practice as well as areas for improvement, including oversight of third-party models.
AMLA publishes consultation paper on draft RTS
AMLA has published a consultation on draft regulatory technical standards setting out how home and host AML/CFT supervisors should cooperate under AMLD6.
The draft RTS cover cross-border groups in both the financial and non-financial sectors and sit alongside the wider EU AML/CFT supervisory cooperation framework. They propose practical cooperation arrangements, communication channels, streamlined information sharing within the EU supervisory system, and mechanisms for cross-border inquiries and coordinated supervisory action. AMLA will hold a public hearing on the draft RTS on 28 May 2026.
AMLA consultation paper: Home and host AML/CFT supervisory cooperation
FCA and BOE Publish Joint Call for Input -Â Tokenisation in UK wholesale financial markets
The FCA and Bank of England have published a joint call for input on supporting tokenised securities in UK wholesale financial markets, covering issuance, trading, settlement and safekeeping.
The paper focuses on tokenised bonds, equities and fund units, and suggests tokenisation could significantly reshape wholesale markets. It sets out proposed regulatory and operational principles for future policy work, alongside an initial roadmap of UK initiatives. Responses are due by 3 July 2026, with workshops, a summer response statement and a fuller digitalisation roadmap expected later in 2026. The PRA has separately issued interim prudential expectations on tokenised assets, stablecoins and cryptoasset exposures.
FCA/Bank of England call for input: Tokenisation in UK wholesale financial markets
HM Treasury and FCA Publish Statement - Reforms to UK Money Market Fund Regulations regime
HM Treasury and the FCA have issued a joint statement on planned reforms to the UK money market funds regime.
HM Treasury intends to introduce legislation to replace the UK MMF Regulation with a new framework, under which most requirements for UK MMFs will sit in FCA rules and guidance. The regime is expected to include higher liquidity expectations for UK MMFs and is targeted for implementation by Q4 2026, subject to parliamentary approval. The FCA will publish further details on its plans shortly.
HM Treasury/FCA policy paper: Reforms to Money Market Fund Regulations
FCA Announcement - scale-up unit - Open to applications from solo-regulated firms
The FCA has announced that it will accept applications to its Scale-up Unit from solo-regulated firms. The Scale-up Unit offers practical support to help firms navigate regulatory processes, develop innovative products and understand the impact of policy changes. The FCA and PRA are already supporting six dual-regulated firms through the Scale-up Unit as part of a pilot. Applications from solo-regulated firms are welcome until 22 June 2026.
FCA updates findings of multi-firm review - Quality controls in benchmarks sector
The FCA has updated its findings from a multi-firm review of data risk management by benchmark administrators, adding conclusions from work on calculation quality controls in the benchmarks sector.
The review considered how firms identify, classify, prioritise and notify errors in benchmark calculations. The FCA has also updated its next steps and plans further work later in 2026 on other risks identified in its December 2024 benchmarks portfolio letter, including corporate governance.
FCA publishes findings on good and poor practice - Sanctions systems and controls
The FCA has published findings from its review of sanctions systems and controls, setting out examples of good and poor practice across regulated firms. It has also published an MoU with HM Treasury’s Office of Trade Sanctions Implementation on cooperation and intelligence sharing.
The FCA found that firms have improved but still need stronger controls to prevent sanctions breaches. Common weaknesses included due diligence, alert management, transaction and name screening, frozen asset controls, and licence compliance. Reporting remains concentrated in payments, retail banking and wholesale markets, with most reports linked to Russian sanctions, though reports involving Libya, Iran and North Korea were also identified. The FCA also noted mixed governance standards and challenges in identifying trade sanctions breaches, particularly in open account finance and maritime insurance. It will work with firms on remediation and continue coordinating with OFSI and OTSI.
FCA review: Sanctions systems and controls in firms
PAYMENT SERVICES & EMONEY
FCA publishes updated approach document - Payment services and e-money
The FCA has published version 8 of its Payment Services and Electronic Money approach document, updating its guidance on how it applies the Payment Services Regulations 2017 and Electronic Money Regulations 2011.
The updates reflect new and revised requirements on safeguarding, resolution packs, safeguarding audits, and monthly returns, including changes under CASS 15, CASS 10A and SUP. The document has also been aligned with the 2025 contract termination regulations, including new rules on terminating framework contracts and minimum notice periods. The FCA has separately updated its safeguarding webpage for payment and e-money institutions to reflect these changes.
FCA Finalised Guidance - Version 8
PRA publishes Dear CEO letter - Innovations in digital money
The PRA has issued a Dear CEO letter updating its expectations for banks’ use of deposits, e-money and regulated stablecoins, replacing its 2023 letter on the same topic.
The PRA highlights risks where FSCS-protected deposits are offered under the same brand as non-FSCS-protected e-money or stablecoins. It expects firms to make clear distinctions in product naming and presentation, and for banking groups to issue e-money or stablecoins through a separate, non-deposit-taking and insolvency-remote entity. The PRA considers confidence risks lower where stablecoins are restricted to wholesale customers.
INVESTMENTS
FCA announces multi-firm review into how consumer investment firms support bereaved customers
The FCA has announced a multi-firm review into how consumer investment firms support bereaved customers, covering platforms, advisers, wealth managers and other firms that advise on, manage or administer investments.
The review will assess the customer journey from notification of bereavement through to settlement or transfer of investments, focusing on communications, support for vulnerable customers, service standards and fee treatment. The FCA said bereavement processes are an important indicator of firm culture and consumer trust, following earlier reviews in banking and insurance that found unclear processes, repeated information requests and delays. The FCA will contact selected firms from May 2026 and publish findings later in the year.
FCA Consults -Â Registration of authorised fund assets
The FCA has published consultation paper CP26/16 on the registration of authorised fund assets.
The proposals would allow depositaries of authorised AIFs managed by full-scope AIFMs to delegate certain asset registration and custody functions, including for assets that are not AIF custodial assets, such as UK commercial real estate. The changes would amend FCA rules derived from AIFMD and clarify how the CASS 6 custody rules apply to depositaries of authorised funds and unauthorised AIFs. Comments are due by 9 July 2026.
Consultation Paper: Registration of authorised fund assets (CP26/16)
INSURANCE
House of Lords Financial Services Regulation Committee launches inquiry - Consumer insurance regulation
The House of Lords Financial Services Regulation Committee has launched an inquiry into the regulation of the consumer insurance market.
The inquiry will examine insurance distribution, claims handling, enforcement of relevant rules, and how disputes between insurers and consumers are resolved. The Committee has issued a call for evidence, with responses due by 26 June 2026.
CONSUMER CREDIT
HM Treasury publishes approach and FCA makes statement - Reform of the Consumer Credit Act
HM Treasury has published a policy statement on reforms to the Consumer Credit Act 1974, following its May 2025 consultation.
The government considers many CCA provisions and related secondary legislation outdated in light of market, technological and regulatory developments. Most CCA information disclosure requirements will be repealed and, where appropriate, replaced with FCA Handbook rules following consultation, with related breach sanctions falling away. The reforms will be delivered through the Financial Services and Markets Bill, supported by transitional powers in secondary legislation. The FCA has said it will provide further details on its approach and next steps in due course.
Policy statement of Reform of the Consumer Credit Act 1974
FCA publishes new webpage -Â Regulatory guide for credit brokers
The FCA has published a new webpage providing a regulatory guide for credit brokers. The guide is part of a pilot to support smaller credit brokers (generally, firms with fewer than 10 people), aimed at helping them understand and implement the FCA’s requirements in a way that is proportionate to their business.