On 8 December 2026, the Financial Conduct Authority (FCA) published webpages setting out further information in relation to its proposed approach to the new regulatory regime for Cryptoassets.BackgroundIn October 2023, HM Treasury (HMT) published proposals for the creation of a regulatory regime for cryptoassets and, in December 2025, the government laid The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 before Parliament, which will require firms wishing to carry out the relevant activities in or to the UK to be authorised and supervised by the FCA.SummaryThe FCA explained that it is publishing these webpages to help firms that are within scope of the new regime, in particular where this is the first time they will be regulated by the FCA, and that firms should consider familiarising themselves with the following: FSMA and the FCA Handbook:  HMT’s proposed new cryptoasset regulated activities, the Financial Services and Markets Act 2000 and an overview of the FCA Handbook. FCA standards: The FCA’s minimum standards for cryptoasset firms and individuals including its Principles for Businesses, the Consumer Duty and the Senior Managers and Certification Regime. Authorisation, supervision and enforcement: The FCA’s approach to authorisation, supervision and enforcement for firms that will be undertaking the new cryptoasset regulated activities. How the gateway will operate:  How the authorisations gateway for firms that want to undertake the new cryptoasset regulated activities will operate, including information sessions, pre-application support and details of the application period. The transitional provision: HMT’s proposed transitional provision for existing cryptoasset firms that are unsuccessful in securing authorisation to allow them to run-off their UK business in an orderly way and exit the UK market. Next stepsThe FCA confirmed that it will continue to publish further consultations setting out proposed rules and guidance and that, following consideration of the responses, its final rules and guidance will be set out in policy statements ahead of the implementation of the new regime.The FCA also confirmed that the new cryptoasset regime is expected to come into force on 25 October 2027 and that, as a result, firms wishing to undertake any of the new cryptoasset regulated activities will need to be authorised by the FCA with permission to undertake those activities at the point the new regime commences.

On 9 January 2026, the European Banking Authority (EBA) issued a report on the completeness and appropriateness of the definitions and provisions on consolidation under Article 18(10) of the Capital Requirements Regulation (CRR).The EBA states that the report is the first comprehensive assessment of the EU regulatory framework on prudential consolidation conducted pursuant to Article 18(10) of the CRR. As such it draws on a detailed data collection exercise involving 70 institutions from 26 EU/EEA countries, including global systemically important institutions, other systemically important institutions, and non-systemic banking groups. The assessment combines quantitative analysis of balance sheet data with qualitative insights into institutional practices so as to provide a robust evaluation of how the consolidation provisions are applied in practice.The EBA’s key finding is that it considers the prudential consolidation framework to be overall robust and fit for purpose. Nonetheless it has identified a number of targeted areas where further clarification, harmonisation, or legislative refinements may be warranted. The EBA puts forward a set of targeted recommendations and clarifications to further strengthen the prudential consolidation framework and its implementation among institutions.

On 9 January 2026, the European Banking Authority (EBA) issued a report on prudential consolidation and the final guidelines on ancillary services undertakings (ASU) under the Capital Requirements Regulation (CRR).The EBA has prepared the report in accordance with the mandate given to it under Article 18(10) of the CRR, which mandates the European Supervisory Authority to submit a report to the European Commission on the completeness and appropriateness of the definitions and provisions of the Regulation. The EBA has prepared the guidelines according to the mandate given to it under Article 4(5) of the CRR, which mandates the EBA to specify the criteria for the identification of activities referred to in paragraph 1, first subparagraph, point (18) of this Article.The report on prudential consolidation puts forward targeted recommendations that may support the Commission in considering further legislative adjustments to the EU regulatory framework. It also clarifies several areas where recent EBA investigations have identified implementation challenges across EU institutions. The guidelines on ASU set out criteria for identifying activities falling within the definition of ancillary services undertakings under Article 4(1)(18) of the CRR, namely: (a) activities considered a “direct extension of banking”, (b) activities “ancillary to banking”, and (c) “other similar activities”.

On 9 January 2026, the European Banking Authority (EBA) issued a final report containing final draft Regulatory Technical Standards (RTS) specifying the booking arrangements that third-country branches are to apply for the purposes of Article 48h of the Capital Requirements Directive IV (CRD IV), as amended by the Capital Requirements Directive VI (CRD VI).BackgroundArticle 48h of the CRD IV (as amended by the CRD VI) requires the EBA to develop draft RTS to specify the booking arrangements that third-country branches are to apply for the purposes of that Article. In particular, the EBA is required to specify the: Methodology to identify and keep a comprehensive and precise track record of the assets and liabilities booked by the third-country branch in the Member State. Methodology to identify and keep a record of off-balance sheet items and of the assets and liabilities originated by the third-country branch and booked or held remotely in other branches or subsidiaries of the same group, on behalf of or for the benefit of the originating third-country branch. The EBA issued a consultation on the draft RTS last July.The EBA is required to submit the draft RTS to the European Commission by 10 January 2026.RTSThe final draft RTS have been finalised by the EBA after considering the feedback received to its earlier consultation. The EBA’s response to the consultation feedback can be found in pages 23 to 35 of the final report and includes comments on the treatment of risk transfer to third parties, the use of group processes, systems or procedures and risk management information in the registry book.Next stepsThe draft RTS will be submitted to the Commission for endorsement following which they will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the European Union

On 8 January 2026, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2026/73 of 4 July 2025 amending Delegated Regulation (EU) 2021/2178 as regards the simplification of the content and presentation of information to be disclosed concerning environmentally sustainable activities and Delegated Regulations (EU) 2021/2139 and (EU) 2023/2486 as regards simplification of certain technical screening criteria for determining whether economic activities cause no significant harm to environmental objectives. Commission Delegated Regulation (EU) 2026/73 applies from 1 January 2026.

On 9 January 2026, the European Securities and Markets Authority (ESMA) issued non-binding principles for risk-based supervision which are intended to support a common and effective EU-wide supervisory culture and strengthen the EU Single Market.The principles apply to Member State competent authorities and ESMA when carrying out direct supervision. They are intended to apply to all mandates (markets, entities and products) under an authority’s remit and focus on the supervision of those mandates. The main concepts and processes covered concern: Definition and understanding of risk-based supervision. Risk identification. Risk assessment. Risk prioritisation and treatment. ESMA states that the principles do not constitute a one-size-fits-all common model nor a fully-fledged manual on risk-based supervision. Rather, they are intended to complement pre-existing frameworks, providing elements that promote the effective and consistent application of supervisory capabilities, building on collective practices across the EU. When following the guidance from these principles, Member State competent authorities are expected to use their supervisory judgment, and to consider the specific risks and characteristics of their national market and the entities (including products offered) under their supervision.

On 9 January 2026, the European Banking Authority (EBA) issued a final report containing final draft Regulatory Technical Standards (RTS) on cooperation and colleges of supervisors for third country-branches.BackgroundThe Capital Requirements Directive VI (CRD VI), which amends the Capital Requirements Directive IV (CRD IV), introduces a new regime for branches of third-country credit institutions operating in the EU. The regime establishes a minimum harmonisation framework for authorisation, prudential requirements – including booking arrangements, capital endowment, liquidity, internal governance, common reporting requirements – and supervisory practices and cooperation.RTSThe final draft RTS have been developed in accordance with Article 48p(7) of the CRD IV (as amended by the CRD VI) to specify the effective cooperation and exchange of information between Member State competent authorities supervising institutions and branches of the same third-country group and the conditions for the functioning of colleges of supervisors for class 1 third country branches.The final draft RTS are structured around two main chapters: Establishment and functioning of colleges of supervisors. Requirements for cooperation and information exchange in cases where no college of supervisors needs to be established. The first chapter contains four sections: Establishment of colleges of supervisors. Functioning of colleges of supervisors. Planning and coordination of supervisory activities in going concern situations. Planning and coordination of supervisory activities in preparation for and during emergency situations. The second chapter covers requirements for general cooperation and information exchange in instances where no college of supervisors needs to be established.Next stepsThe draft RTS will be submitted to the European Commission for endorsement following which they will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the European Union.

In the latest episode of our mini-series looking at the UK’s approach to regulating cryptoassets, we discuss the proposed market abuse regime for cryptoassets as set out in the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 and the Financial Conduct Authority’s recent consultation paper on this topic (CP25/41).Listen to this episode here.

On 8 January 2026, the Joint Committee of the European Supervisory Authorities (ESAs) issued their Final Report on Joint Guidelines to ensure that consistency, long-term considerations and common standards for assessment methodologies are integrated into the stress testing of environmental, social and governance (ESG) risks pursuant to Article 100(4) of the Capital Requirements Directive IV (CRD IV) and Article 304c(3) of the Solvency II Directive.The Joint Guidelines should be read in conjunction with the CRD IV and Solvency II Directive which sets out obligations to Member State competent authorities’ (NCAs), procedural rules and prudential assessment criteria on how NCAs perform supervisory stress tests, either as part of the relevant regulatory framework or as an ad hoc assessment.  The Joint Guidelines do not include a new requirement for NCAs to carry out ESG supervisory stress tests. Rather, the Joint Guidelines have two main objectives which are to: Improve the legal certainty, clarity and transparency of the supervisory approval process with regard to the integration of ESG risks into NCAs stress testing frameworks and scenario analysis frameworks. Ensure consistency, long-term considerations and common standards for assessment methodologies throughout the EU and across sectors Next stepsThe Joint Guidelines will be translated into the official languages of the EU and published on the websites of the ESAs. The deadline for NCAs to notify the respective ESA whether they comply or intend to comply with the Joint Guidelines will be two months after the publication of the official translations.The Joint Guidelines apply from 1 January 2027.

Looking ahead into the new year, our latest briefing note looks at key regulatory topics for 2026 that will have a significant impact on institutions operating in the UK financial services space. This includes not every single reform but those that we expect to be the most significant as well as key regulatory enforcement developments.

To all of our global readers we would like to take this opportunity to wish you all a Merry Christmas and a Happy New Year.We will resume posting material following the festive period on 6 January 2026 although if there are any significant developments we will endeavour to provide an update.

In our latest briefing note, we look at key regulatory topics for 2026 that will have a significant impact on institutions operating in the UK financial services space. We have not attempted to list every single reform expected next year but rather pick out those with the potential to be most significant, as well as the key regulatory enforcement developments.

On 17 December 2025, HM Treasury published plans to reform the UK’s benchmark regime on the basis that it is no longer proportionate to the risks it sought to address. The proposals would reduce the scope of regulation by 80-90% to include only a small number of benchmarks and administrators. The FCA has confirmed that it is working with Government on this and will consult on the regulatory requirements in due course.It is not yet clear when the new Specified Authorised Benchmark Regime might be introduced. HM Treasury requests responses to its consultation paper by 11 March 2026. It also flags that the proposal may change as a result of those and further stakeholder engagement.Below is a brief summary of how the current proposals would apply:HM Treasury: It will designate benchmarks and/or administrators.Benchmarks would be designated if they have no or few substitutes or it is not reasonably practicable for one or more users to switch to one of the substitutes and, if they were to cease to be provided, there would be an impact on: the integrity of the UK financial system and consumers; or the market the benchmark seeks to measure. Administrators could be designated even if none of their benchmarks have a significant impact individually but taken together they would have a significant and adverse impact on the integrity of the UK financial system and consumers if they were to cease without sufficient notice, were provided on the basis of data that was not fully representative or was unreliable or they were not administered correctly.FCA: The FCA would advise HM Treasury on the application of the designation criteria, set the requirements that designated administrators must comply with (which might differ according to the benchmark), and exercise supervisory and enforcement powers.UK administrators: Only administrators and benchmarks designated by HM Treasury would be regulated. There would be no distinction between critical, significant or other benchmarks, or (in the legislation) between interest rate, regulated data and commodity benchmarks, although the FCA may calibrate the requirements applicable to these different types. The government will consider how to ensure a smooth transition from regulation under the current regime to the new one.Other administrators will not be regulated and there will be no ability to opt into the regime. It is not yet clear how the process of ceasing to be authorised will work.Overseas administrators: Overseas benchmarks and administrators could be designated. The government proposes to create an Overseas Recognition Regime to replace the equivalence route in the Benchmarks Regulation so that, where a designated benchmark or administrator is regulated in a jurisdiction with ORR determination, it would not need to be regulated by the FCA as well.  Where a designated benchmark is administered in a jurisdiction that does not have an ORR determination, the government is considering the options. It could maintain the recognition or endorsement regime under the existing Benchmark Regulation or require them to become regulated as a UK branch or subsidiary with responsibility for the oversight function.Article 2 exempt benchmarks: These would remain out of scope.Contributors: The proposal is to retain obligations for authorised contributors. The government is considering whether to extend the definition of input data to non-price data given the increasing use of ESG metrics and qualitative indicators in benchmark methodologies.Users: Users will no longer be required to use benchmarks on the FCA register. Authorised firms will still have to undertake due diligence on whether a benchmark is appropriate for their business and there should be no regulatory advantage to using a regulated benchmark over an unregulated one. The FCA would be able to make rules on how to manage risk associated with both types of benchmarks and the FCA will consult separately on this.We would be pleased to discuss the new regime and the impact it may have for you in the new year.In the meantime, we wish you a restful break.

In this special edition of our EMEA APAC regulatory insights series colleagues from the EU cover the European Commission’s recent market integration and supervision legislative package – a core pillar of the Savings and Investments Union. The package is a major initiative designed to unlock the full potential of the EU Single Market.Listen to the episode here.This article was originally published by Law 360 on 4 December 2025.

On 19 December 2025, the Albanese Government published, as part of its Better Targeted Super Concessions policy, the Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2025 and the Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2025. Together these Bills reduce the tax concessions for people with total super balances over $3 million by imposing new taxes under a new Division 296 of the Income Tax Assessment Act 1997.SummaryDivision 296 tax is imposed at a rate of: 15 per cent on a percentage of earnings equal to the percentage of superannuation balances that exceed the large superannuation threshold ($3 million) for an income year. 10 per cent on a percentage of earnings equal to the percentage of superannuation balances that exceed the very large superannuation threshold ($10 million) for an income year. Special rules for working out Division 296 tax apply to: Individuals with defined benefit interests. State higher level office holders with superannuation interests in constitutionally protected funds. Commonwealth justices and judges in respect of defined benefit interests in a superannuation fund established under the Judges’ Pensions Act 1968. Territory Supreme Court judges in respect of defined benefit interests in their judicial pension scheme. The amount of Division 296 tax is assessed by the Commissioner and is generally due and payable within 84 days of the Commissioner giving the notice of assessment. For defined benefit interests, Division 296 tax is generally deferred for payment until 21 days after the first benefit is paid from the interest. Individuals can have amounts released from certain superannuation interests to facilitate payment of this tax.LISTOThe Albanese Government is also boosting the superannuation savings of more than a million low‑income workers through changes to the Low‑Income Superannuation Tax Offset (LISTO) that ensure they receive a fairer tax concession on their superannuation contributions. The LISTO eligibility threshold will be increased from $37,000 to $45,000 to align with the lowest income tax threshold (after the tax-free threshold). The maximum LISTO amount will be increased from $500 to $810, reflecting the superannuation guarantee rate of 12 per cent. Changes to the LISTO will commence on 1 July 2027 and apply from the 2027-28 income year onward.Next stepsThe Government welcomes feedback from stakeholders on the draft legislation and explanatory materials by 16 January 2026.

On 19 December 2025, the European Securities and Markets Authority (ESMA) issued its latest report on Suspicious Transaction and Order Reports (STORs).The report seeks to provide the market with an overview of the use of STORs in different jurisdictions across the EU and how this has evolved over time.Compared to previous years ESMA notes that there are no major changes, albeit a slight decrease in the total number of notifications received by Member State competent authorities.

On 19 December 2025, there was published in the Official Journal of the EU, Guideline (EU) 2025/2595 of the European Central Bank (ECB) of 10 December 2025 on the supervisory approach by Member State competent authorities (NCAs) to coverage of non-performing exposures held by less significant supervised entities.The Guidelines are addressed to the NCAs of the participating Member States and the ECB.The Guidelines specifies the supervisory approach which NCAs shall use for reviewing the provisioning policies and treatment of assets in terms of own funds requirements of less significant supervised entities established in the same Member States as the relevant NCA.The Guidelines take effect on the day of its notification to the NCAs of the participating Member States.

On 19 December 2025, the Financial Conduct Authority (FCA) issued Handbook Notice No. 136.This Handbook Notice describes the changes to the FCA Handbook and other material made by the FCA Board and ERPC the under their legislative and other statutory powers on 27 November, 9 December and 18 December 2025.On 27 November 2025, the FCA Board approved the following instruments: Dispute Resolution: Complaints Sourcebook (Motor Finance Complaints Handing) Instrument 2025. Consumer Composite Investments Instrument 2025. Complaints Reporting Instrument 2025. Simplification: Conduct and Product Governance of Non-Investment Insurance Business and Other Amendments Instrument 2025. On 9 December 2025, the FCA Board approved the following instrument: Non-Financial Misconduct (No 2) Instrument 2025. On 18 December 2025, the FCA Board approved the following instruments: Commodity Derivatives (Ancillary Activity Exemption) Instrument 2025. Decision Procedure and Penalties Manual (Amendment) Instrument 2025.

On 19 December 2025, the Prudential Regulation Authority (PRA) published a set of low impact amendments to its rules in Low Impact Amendments Finalisation 03/25.The amendments include: The conditional disapplication of the PRA General Provisions to give effect to the deference arrangements under the UK Swiss-Berne Financial Services Agreement. An amendment to the Transitional Measure on Technical Provisions Part of the PRA Rulebook, TMTP Calculation, Rule 5.2. An Amendment to the Insurance Special Purpose Vehicle Part of the PRA Rulebook, Solvency Requirements, Rule 2.2A(3) and an amendment to Supervisory Statement 2/25 – Prudential considerations for insurance and reinsurance undertakings when transferring risk to Special Purpose Vehicles. A collection of miscellaneous amendments to the PRA Rulebook. The PRA is also making the following amendments without further consultation: Updates to hyperlinks in the CRR Firms Reporting Pillar 2 Part of the PRA Rulebook. An amendment to the Fees Part of the PRA Rulebook to reflect confirmed policy.

On 19 December 2025, the Payment Systems Regulator (PSR) issued a consultation paper, CP25/3, setting out changes that will give businesses more information on the card payment (scheme and processing) fees they pay and give the PSR a better understanding of how the level of these fees is set.CP25/3 follows an earlier remedies consultation (CP25/1) and seeks to implement two proposed remedies: Information, transparency and complexity remedy (the ITC remedy) to ensure that acquirers, and merchants through their contractual relationship, receive better information to understand the fees they are charged. This is to remedy the schemes’ failure to provide sufficient information to acquirers. Pricing governance remedy (the Pricing Governance remedy) to ensure that there is evidence behind pricing decisions, a remedy to the current absence of evidence showing how pricing decisions are made. The deadline for comments on CP25/3 is 13 February 2026.