The FCA, SRA, ICO and ASA are collaborating to address misleading advertising, inadequate information, and excessive fees by some claims management companies (CMCs) and law firms handling motor finance claims. The FCA and SRA have required law firms and CMCs to change exit fee policies and improve compliance, while the FCA has removed or amended over 740 misleading adverts since January 2024. The FCA’s £1m campaign highlights that consumers do not need to use a CMC or law firm for compensation. The SRA is investigating 76 law firms and has closed five. The ICO is investigating unlawful direct marketing, and the ASA is reviewing advertising practices.

The Payment Systems Regulator (PSR) and Financial Conduct Authority (FCA) have shared that they welcome government proposals to consolidate PSR’s functions within the FCA, aiming for a streamlined approach to payment systems regulation. Both regulators agree this consolidation will promote competition, innovation, and user interests, while enhancing efficiency and regulatory coherence. They highlight recent collaborative efforts, such as joint project teams and updated coordination frameworks. The response supports retaining the scope and substance of PSR’s powers and objectives, ensuring effective economic regulation. The regulators emphasise the need for careful legislative drafting and ongoing engagement to deliver a coherent, future-proof regulatory framework.

The Financial Conduct Authority (FCA) is seeking feedback on proposals for a new short selling regime. The consultation aims to support growth by removing unnecessary barriers to short selling, while maintaining sufficient visibility and controls to manage risks and ensure orderly financial markets. Key proposals include aggregated net short position disclosures, which will anonymise and combine individual positions above the 0.2% reporting threshold; extending the deadline for firms to submit position reports; and streamlining systems for market maker notifications to make submissions easier and less burdensome. The FCA states these changes will enhance transparency and efficiency, supporting capital market participants and the UK’s financial markets.

The FCA has shared its review of consolidation in financial advice and wealth management, focussing on groups acquiring financial advisers and wealth management firms, examining how these groups manage risks, debt, governance and integration during and after acquisitions. The review found consolidation can support efficiency and sustainable growth, but if not effectively managed, could lead to poor outcomes for consumers, employees and the wider financial system. Good practice included clear group structures, strong governance, effective monitoring of group debt and comprehensive risk management. Firms with well-planned acquisition strategies and thorough integration planning were more likely to deliver positive outcomes for customers. The review encourages firms to consider its findings, assess their arrangements and make any needed adjustments.

The Financial Conduct Authority’s (FCA) November 2025 review found that some Contracts for Difference (CFD) providers are not meeting the Consumer Duty’s requirements for fair value and consumer protection. While certain firms have simplified fees and restricted access for unsuitable investors, issues remain, such as inadequate consideration of customer complaints, insufficient product changes, and unclear or unjustified overnight funding charges. The FCA will engage directly with firms to address these shortcomings and may take further regulatory action where necessary. The review emphasises the complexity and risks associated with CFDs, urging providers to deliver good outcomes and clear communication. A forthcoming consultation will address client categorisation and consumer protections.

The Bank of England has published a consultation paper outlining its proposed regulatory regime for sterling-denominated systemic stablecoins, aiming to support innovation and maintain public trust in digital money. Key proposals include permitting issuers to hold up to 60% of backing assets in short-term UK government debt, with higher limits for systemic issuers at launch, and considering central bank liquidity arrangements to reinforce financial stability. Temporary holding limits are proposed to safeguard access to credit during the transition to new forms of digital money. Non-systemic issuers will be regulated by the Financial Conduct Authority, with joint regulation for those recognised as systemic. The consultation is open until 10 February 2026.

The former CEO and former CFO of Metro Bank have been held to be personally liable for inaccurate information included in one of the company's RNS announcements. The decision provides a reminder of the high standards expected of directors of listed companies in relation to market disclosures. In our recent article we explore the case background, key issues and tribunal findings, and potential implications for listed companies and their directors.

The FCA's latest proposals on non-financial misconduct (NFM) will add an additional factor to corporate transactions in the financial services sector. With new rules extending the regulatory spotlight to a wider range of firms, acquirers should consider NFM risks and policies as part of their due diligence processes. This development is set to influence risk assessment and post-completion integration, making NFM compliance a concern for buyers and sellers alike. Our recent article explores the proposals and what these mean.

After a long and tortuous process, covering pauses to complaint handling timeframes, FOS decisions, judicial reviews and Supreme Court decisions, the FCA has finally published its consultation paper on a motor finance Consumer Redress scheme under s.404 of FSMA. The sums at stake (£8.2bn) are considerably lower than some of the eye watering previous estimates but the potential exposure is still significant. Our financial services regulation experts discuss the proposal in our recent article.

On 16 September 2025, the Pensions Regulator (TPR) launched a consultation on its proposed enforcement strategy, inviting responses by 11 November 2025. While TPR’s powers remain unchanged, the consultation outlines a shift towards a more focused, risk-based approach, prioritising saver outcomes and early intervention. Key proposals include targeted enforcement, enhanced cross-functional collaboration, greater transparency, and increased use of digital tools. The changes aim to create a more agile and outcomes-driven enforcement model. However, the proposals are viewed as somewhat vague, and TPR may have missed an opportunity to align with forthcoming pension reforms. PTL insurers are advised to monitor these developments, with final strategy publication expected in early 2026.