We're providing guidance to support firms to tackle bullying, harassment and violence in financial services, after they asked for additional support. In July, we changed our rules – setting clearer standards for how financial services firms should address non-financial misconduct.This more closely aligned the rules for banks and non-banks. We wanted to give firms the confidence to act against serious misconduct, drive consistency and make it clearer when non-financial misconduct is a breach of our rules.When we changed our rules, we asked firms if they wanted additional guidance to help them take action – and said we would only publish this if they did. 95% of those who responded to our consultation agreed, so we are now providing this final guidance. The guidance covers how firms can apply our rules on minimum standards of behaviour for financial services employees, and the factors they should take into account when assessing whether someone is fit and proper for their role. We have made some small changes to address the main areas of feedback:New examples and flow charts to support the application of the new rule.Clearer alignment with employment law.Clarification that managers' accountability is relative to their knowledge and authority.Clarification that firms are not expected to investigate trivial or implausible allegations or breach privacy law.Some firms asked us to go further, with more detailed examples. We can't provide guidance for every situation - firms will always need to exercise their judgement. The primary responsibility for preventing and dealing with non-financial misconduct lies with firms. But our new rules, supported by this guidance, will help drive higher and clearer standards across industry from 1 September 2026.

The FCA has fined Nationwide Building Society £44m for inadequate anti-financial crime systems and controls between October 2016 to July 2021. During this period, Nationwide had ineffective systems for keeping up-to-date due diligence and risk assessments for all its personal current account customers and for monitoring their transactions.Nationwide was also aware that some of those customers were using their personal accounts for business activity, in breach of its terms. Nationwide did not offer business current accounts at this point, so did not have the right processes in place to manage the financial crime risks from business activity. This meant Nationwide was unable to effectively identify, assess, monitor or manage the money laundering risks among its personal current account customers. It also meant Nationwide did not have an accurate picture of its customers who presented a higher risk of financial crime.In one serious case, Nationwide missed opportunities to identify a customer using personal current accounts to receive fraudulent Covid furlough payments. The customer received 24 payments totalling £27.3m over 13 months, with £26.01m of this deposited over 8 days. His Majesty’s Revenue & Customs (HMRC) recovered £26.5m, but approximately £800,000 remains unrecovered.Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said:'Nationwide failed to get a proper grip of the financial crime risks lurking within its customer base. It took too long to address its flawed systems and weak controls, meaning red flags were missed with serious consequences.'Building societies and banks have a key role in the fight against financial crime. Firms must remain vigilant in this fight.'Nationwide was aware of weaknesses in its systems and controls and undertook work to make improvements. However, it failed to adequately address those weaknesses in a timely manner. Nationwide subsequently commenced a large-scale financial crime transformation programme in July 2021.Notes to editorsRead the Final Notice: Nationwide Building society (PDF).Nationwide would have been fined £62,969,297, but it agreed to resolve these matters and so qualified for a 30% discount under the FCA's processes. The total fine is £44,078,500.The FCA continues to supervise firms to improve standards and ensure that they have the right systems and controls to manage financial crime risks. Since 2021, the FCA has imposed 13 fines – totalling £300,767,526 – on banks for anti-money laundering systems and controls failings.Fighting financial crime is a priority in the FCA’s 5-year strategy.The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

Over the next decade at least 18 million people could be offered extra help with their investments and pensions with the introduction of targeted support by the FCA. The ground-breaking new service will allow firms to make specific suggestions to consumers – so they can make better informed decisions about what to do with their money.The need for greater support is stark. According to the latest FCA data, there were around 7 million adults in the UK with £10,000 or more in cash savings who could be missing out on the benefits of investing throughout their lives. Fewer than 1 in 10 people obtain regulated financial advice. However, nearly 1 in 5 investors turn to social media for help making decisions.Sarah Pritchard, deputy chief executive of the FCA, said:'Targeted support will be gamechanging. It means millions of people can get extra help to make better financial decisions. 'We also hope it will build greater confidence to invest. While investing will not be right for everyone, we know people in the UK invest less compared to the EU or US. People in the UK could be missing out on the potential benefits of investing in the medium to long term.'What can people expect with targeted support?Targeted support is a flexible and futureproof framework underpinned by the Consumer Duty. It will enable firms to innovate and better support their customers.Consumers will receive recommendations, but they will not be based on a full, in-depth individual assessment. Firms will need to make sure the recommendations are suitable and should only be offered when it puts consumers in a better position. Earlier this week we finalised changes to the way that firms disclose information to consumers through new rules for retail disclosures (CCIs) to further support people making better informed decisions.The FCA is also consulting on ways to further modernise pension rules, including projections and non-advised defined contribution transfers to strengthen consumer protection as part of wider government and regulatory reforms.Notes to editorsRead the full Policy Statement, PS25/22: Supporting consumers’ pensions and investment decisions: proposals for targeted support.Read the FCA’s Consultation Paper, CP25/39: Adapting our requirements for a changing pensions market.We plan to open the gateway for applications in March 2026, before the new rules come into effect. New legislation will have to be passed by the Government before targeted support goes live.We are already helping firms to prepare for the gateway opening through our pre-application support service. Firms which come to the gateway demonstrably ready, willing and organised to undertake targeted support will be authorised swiftly after the provisional go-live date in April 2026.Read information clarifying expectations about risk warnings for mainstream investments.We have also published joint statements with the Financial Ombudsman Service and the Information Commissioner’s Office. These support firms in offering targeted support by clarifying the approach to consumer complaints and redress, and how to consider existing direct marketing rules such as Privacy and Electronic Communications Regulations (PECR).Over half (54%) of those who have £10,000 in cash savings – but who are not advised – say they have not really thought about investing or had not thought about this at all. We know that many consumers who could invest but don’t, say that this is because they don’t know enough, they feel overwhelmed or they need more support.Consumers find decision-making on pensions difficult. Three out of 4 (75%) of defined-contribution (DC) pension-holders, aged 45 or over, do not have a clear plan for how to take their money. Only 1 in 5 (22%) of DC pension holders aged 45 or over say they have a good understanding of their pension access options. Web copy has been updated to clarify that nearly 1 in 5 investors used social for research or to keep up to date with investments.

The latest edition of the Regulatory Initiatives Grid, setting out the regulatory pipeline for financial services over the next 2 years, has been published. The grid covers current and planned initiatives for 9 organisations. By providing a clear view of upcoming changes, the grid enables firms to plan effectively and establish a stable regulatory environment to support growth.This edition includes 124 live initiatives, representing a 13% reduction from the previous edition. Of these, 45 are joint initiatives, where there is strong collaboration across regulators and government departments.The grid also highlights work to support the Government’s Financial Services Growth and Competitiveness Strategy. Key initiatives include:Financial stability and regulatory efficiency: Implementation of Basel 3.1 standards, the Strong and Simple framework, Prospectus Regime Reform and Wholesale Markets Review.Innovation: Supporting the creation of a UK issued stablecoin regime, reforms to the UK captives insurance regime, and the National Payments Vision to deliver world-leading payment solutions.Consumer confidence and investment: The Advice Guidance Boundary Review and new regulation of Buy Now Pay Later products.Nikhil Rathi, chief executive of the FCA said: 'We remain committed to delivering at pace while ensuring agility. By reducing the overall number of initiatives and working together, we aim to advance regulatory objectives, support growth and strengthen the UK’s position as a global financial centre.'Sam Woods, chief executive of the Prudential Regulation Authority (PRA) said: 'The grid demonstrates our commitment to growth, built on a foundation of financial stability. It sets out measures to streamline regulation and harness innovation.'The Regulatory Initiatives Grid is produced by the Financial Services Regulatory Initiatives Forum, which brings together key UK regulators and government departments, including the FCA, Bank of England, PRA, Payment Systems Regulator, The Pensions Regulator and HM Treasury.

The consumer group Citizens Advice has raised concerns that individuals from minority ethnic backgrounds are paying £307 on average more for their motor insurance.We committed to examining the concerns raised by Citizens Advice and looking in more detail at whether specific customer groups pay more, including those from minority ethnic backgrounds. As a regulator, we have access to data which is representative of the wider market and detailed about policies, including risk measures.Our analysis drew upon data from 6 million policies, covering over half the UK market by insurer and including both predicted and actual claims costs. We merged our data with ethnicity data from the Office of National Statistics for local areas covering 1,000–3,000 residents.

The FCA has set out ambitious new growth measures for 2026 including supporting UK-issued stablecoins to provide faster and more convenient payments. To enable firms to experiment with the issuance of stablecoins, the FCA will open its regulatory sandbox for safe testing and to support innovative policy development.In a letter to the Prime Minister, the FCA also said that, following nearly 50 growth commitments laid out at the start of the year, the vast majority have been met, and more initiatives to support growth have also been delivered.The package of growth reforms enables firms to scale, supports home ownership, bolsters capital markets, and gives consumers more options to invest.Next year, the FCA will deliver a new wave of growth initiatives to focus on more efficient supervision, the digitalisation of financial services, increasing SME lending, and boosting trade and international competitiveness.Plans include deepening US-UK market integration through the Transatlantic Taskforce for Markets of the Future; and preparing to enable some early-stage firms to conduct regulated business before full authorisation, for when legislation is passed.Nikhil Rathi, chief executive of the FCA, said: 'Supporting growth helps consumers, improving their financial resilience and providing more choice. Our reforms help the UK maintain its global competitive edge in our world-leading wholesale markets, attract international investment, and lead on innovation in financial services. We will continue to embrace a bolder risk appetite to support growth, while maintaining our commitment to protect consumers and ensure market integrity.'Flagship growth reforms that have been delivered this year include:Unlocking capital investment and liquidity: To support wholesale markets, a groundbreaking new private stock market, PISCES, makes it easier and swifter to trade in private shares; and final rules for a new prospectus regime make it easier to raise capital and encourage investment.Accelerating digital innovation: The world’s first Supercharged Sandbox in partnership with Nvidia helps firms safely test AI; and the introduction of a Scale-up Unit with the PRA will support fast-growing, innovative firms navigate the regulatory landscape.Reducing regulatory burden: Saving time for 36,000 firms by reducing the number of data requests, only asking for the data needed; and proposed measures to simplify the Senior Managers and Certification Regime will drive UK competitiveness.Making it easier for firms to start up and grow: Extended pre-application support with 158 wholesale, payments and crypto firms applying since April; more support offered to early and high growth firms with 50% more dedicated supervisors; and authorisations have continued to improve, with 99.5% of cases processed on time and faster targets set to be introduced next year.Improving exports and inward investment: A presence has been established in the US and Asia-Pacific as part of plans to have a network of financial services attachés around the world; and the FCA is partnering with Government to support international firms to expand into the UK through the Office for Investment: Financial Services.As part of the FCA’s work to rebalance how it approaches risk, its mortgage market reforms have been taken up by 85% of the market, with lenders being able to offer home buyers around £30,000 more, on average. Proposals to introduce targeted support will also encourage a greater culture of retail investment to help people make informed financial decisions.In this year’s Global Financial Centres Index, London maintained its position as the second highest ranked financial hub, closing the gap on New York. Edinburgh and Glasgow also performed strongly, placed in 32nd and 34th position respectively.Notes to editorsRead the FCA’s letter to the Prime Minister and Chancellor.Read the FCA’s previous letter to the Prime Minister and Chancellor sent on 16 January 2025.The FCA is inviting firms that plan to issue a stablecoin in the UK and wish to test their products in its regulatory sandbox to apply by 18 January 2026.The FCA is working closely with the Bank of England to develop the regulatory regime for stablecoins.Read the FCA’s Secondary International Competitiveness and Growth Objective report 2024/2025.Read the FCA’s 5-year strategy.

Around 800,000 people reported losing money to investments or pensions‑related scams in the 12 months to May 2024, according to FCA research. To help fight this financial crime, the FCA has launched Firm Checker, a tool to help consumers avoid scams. By using the tool and checking if a firm is authorised and has the correct permissions to provide services, people can significantly reduce their chances of falling victim to fraud.Those who had experienced any Authorised Push Payment (APP) fraud or unauthorised consumer investments or pensions-related fraud, were most likely to have heard about it by seeing it promoted on social media – around 1 in 6 (17%) - or via a telephone call (17%).Sixteen per cent were initially approached via text message, WhatsApp or another messaging service.Scammers can make it difficult for consumers to know if they are dealing with the real firm. In addition to checking if a financial services firm is authorised by the FCA for the services being offered, people should also confirm that the contact details match those listed on the FCA Firm Checker.Sheree Howard, executive director of authorisations at the FCA, said:'Ruthless fraudsters are constantly evolving their tactics so they can steal money from innocent victims. Whether you’re considering an investment, pension opportunity, loan or other financial service, use Firm Checker to confirm the firm is authorised and help fight financial crime.'The research also found consumers are taking some precautions to protect against fraud, but there is room for improvement. Around 3 in 4 (72%) adults said they always or usually reject or ignore unsolicited calls, emails or text messages about investment or pension opportunities.Six in 10 (60%) consumers reported that they always or usually verify the authenticity of emails, messages or calls before providing personal or financial information.Notes to editorsVisit FCA Firm Checker.The latest FCA Financial Lives 2024 report was published in May 2025: Key findings from the survey (PDF).Fraud and scams, and financial promotions – selected findings (PDF).In the survey of 17,950 people, representative of all UK adults, 1.5% reported experiencing a pensions-related and/ or an investments-related (including cryptocurrency) fraud or scam in the 12 months to May 2024. Extended to the general population, this works out at around 800,000 people.The investments or pensions‑related fraud or scams figures are not comparable to previous years due to changes in how the FCA asked about fraud in the 2024 survey.Firm Checker has been specially designed for, and tested with, consumers to make sure it is effective and easy to use. The Financial Services Register remains in place as the full regulatory record of the authorised financial services population.The FCA continues to explore where further clarity can be added and is making improvements where necessary to ensure the best possible user experience.Firm Checker is one of a number of ways people can seek to protect themselves from scams.Using an authorised firm can also bring other benefits as authorised firms must meet FCA standards and follow the FCA's rules. Consumers can also take a complaint to the Financial Ombudsman Service and are more likely to benefit from protection from the Financial Services Compensation Scheme. The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

Sophie Hutcherson has been reappointed as a Non-Executive Director to the FCA Board by the Economic Secretary to the Treasury. Following her reappointment, Sophie will continue to serve on the FCA Board for a second 3-year term to expire 16 April 2029. Her first 3-year term will end on 16 April 2026 before her new term begins.Sophie brings over 30 years’ senior experience in financial services, with previous roles at Wells Fargo, Deutsche Bank UK, and Lehman Brothers. She is a Fellow of the Chartered Association of Certified Accountants and also holds a number of other non-executive roles, all unrelated to her FCA Board position, including directorships at Yacht Fractions Ltd and Bellecapital.Ashley Alder, chair of the FCA said:'I'd like to congratulate Sophie Hutcherson on her reappointment. We will continue to benefit from her wealth of commercial experience and counsel as the Board focuses on delivery of the FCA's strategy.'Lucy Rigby, economic secretary to the Treasury, Lucy Rigby, said:'I am pleased to confirm the reappointment of Sophie Hutcherson to the FCA Board. Sophie’s extensive experience and skills will continue to support the FCA’s important work to reform regulation and support the government’s growth mission.'About the appointment processReappointments are not automatic, and each case is considered on its own merits. Sophie Hutcherson’s reappointment was made in line with the requirements of the Governance Code on Public Appointments.Sophie Hutcherson has confirmed that she has not engaged in any political activity in the last 5 years.

The FCA has confirmed changes to simplify its rules and lower costs for insurers, while maintaining appropriate levels of protection for smaller commercial customers. The final rules aim to give more flexibility and responsibility to insurance firms, such as determining the frequency of their product reviews and how much continual professional development (CPD) staff should undertake.The FCA will make further changes to its insurance rules and cut unnecessary requirements next year, including reviewing the international application of its rules and the Consumer Duty.Separately, the FCA has also published proposals that will benefit insurers and other firms, including a raft of technical changes to streamline its rules and reduce complexity following the introduction of the Consumer Duty. This includes proposals to:remove 3 further insurance data returnsreview eligibility and disclosure rules for packaged bank accounts (PBA)streamline and simplify rules on collective investment client assetsremove Handbook references no longer needed now the Consumer Duty is in force.The FCA has also set out wider plans to better support smaller financial firms by creating sector guides to help them apply outcomes-based regulation, starting with consumer credit firms next year. The pilot will inform the FCA’s longer-term approach to supporting smaller firms.Graeme Reynolds, director of competition and interim director of insurance at the FCA, said:'We’re simplifying and removing rules for insurers and brokers, reducing regulatory costs and helping them focus on delivering better outcomes.'Our focus on smarter regulation is not once and done, and by using the Consumer Duty we’ll continue to look at rules we may no longer need. We want firms to keep engaging with us on further simplifications for the insurance sector, so we can support growth and innovation.'Notes to editorsRead PS25/21: Simplifying insurance rules.Read CP25/37 on Technical Handbook updates (Consumer Duty Requirements Review).On 23 September Which? submitted a super complaint to the FCA about poor consumer outcomes in the home and travel insurance markets. The FCA has 90 days to respond to Which? setting out how it will deal with the issues raised and any action it will take.The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

The FCA’s application to seek court approval for its proposals to distribute funds recovered for the benefit of Asset Land investors will be heard in the High Court remotely. It will take place on 19 December 2025. The session will be online from 10.30am.Investors wishing to attend the hearing must provide an email address to the FCA to whom the court will then issue an invitation with instructions on how to join the hearing.If you are an investor and wish to attend the hearing, please provide your email address to the email address given below stating your full name, postal address and the site in which you invested by 4pm on 12 December 2025.AssetLand.Investors@fca.org.uk

The FCA has set out a suite of measures to empower retail investment, reinforce wholesale markets and maintain the UK’s position as a world-leading financial centre. With new rules for investment product information, the FCA is playing its part to build a stronger investment culture, supporting firms to innovate and make investing more engaging for consumers. And the FCA is seeking views to make sure regulation supports consumers to invest with confidence.Proposals to enhance how firms classify their clients will give confidence to firms when they deal with professional investors, drawing a line so wholesale markets can remain agile and innovative.The regulator has worked closely with industry and consumer groups to deliver practical policy that moves the dial on risk.Simon Walls, executive director of markets at the FCA, said:'Today’s measures support investment risk culture right along the spectrum. They ensure that firms can compete to give retail customers material that informs and engages them. They also draw a brighter line for professional markets, defined by contracting parties, informed consent and regulation that is proportionate to that.'Making it easier for consumers to understand investmentsIn retail investment disclosures, the FCA will make a decisive shift away from prescriptive and complex templates that consumers don’t find useful. This gives firms more freedom to put the consumer first, innovate, and help their customers understand potential returns as well as costs and risks. The FCA is also seeking views on how longer-term regulation can keep up with the evolving retail investment landscape and help shift the dial on risk appetite, to give consumers confidence to access investments that meet their needs and benefit from the potential returns. Distinguishing between professional and retailThe FCA is setting a clearer boundary between retail and professional investors, allowing firms to deal with professional investors with confidence operating outside retail regulations. This will free up firms to innovate and offer a more diverse range of products to truly experienced clients with the resources to bear more of the risks. The threshold to qualify as a professional investor will remain high, so only those with experience, advice or the ability to bear risk are taken out of retail protections, such as the Consumer Duty, that they don’t need. High standards in classification mean that wholesale regulation remains proportionate and firms are freed from unnecessary guardrails.Proposals remove some arbitrary tests and give firms more responsibility to get it right. This includes a new way for wealthy and experienced individuals to opt out of retail protections and streamline how firms assess professional investors.Notes to editorsRules for targeted support will be set out in the coming days. Elsewhere, the FCA supports the industry-led campaign that will help to explain the benefits of investing.CP25/36: Client categorisation and conflicts of interest: these proposals would allow firms to confidently operate with professional clients who don’t need retail protections. However, the regime only works if firms can demonstrate that their clients genuinely meet the threshold of a professional client and the clients give informed consent. The FCA has recently published findings from its supervisory work to ensure firms do this well, including:A warning for investors in contracts for difference.A review of client categorisation in corporate finance firms.The FCA is also streamlining our rulebook, removing duplications and simplifying our requirements.DP25/3: Expanding consumer access to investments: this paper seeks views from industry on what else can be done to ensure regulations help consumers take informed risks.PS25/20: Consumer composite investments: new rules to replace EU-derived packaged retail investment products (PRIIPs) and Undertakings for Collective Investment in Transferable Securities (UCITS) disclosure requirements for packaged investment products with a more flexible regime for the UK built on the Consumer Duty.Statement on Consumer Duty expectations for firms working together to manufacture products or services: updated expectations to help firms interpret the Consumer Duty where they work together to create products and services. The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

The FCA has launched a consultation on proposals to reduce the administrative fee for overdue or late regulatory returns from £250 to £100. The changes aim to make it fairer and more proportionate, particularly for smaller firms and those with limited resources.Since the fee was introduced, we’ve made major changes to processes, including how fees are paid, as well as launching My FCA earlier this year. This has resulted in an increased compliance rate amongst firms and reflects the positive impact of our continuous improvements. My FCA has now been used by 80% of firms.Under our new proposals, we’re proposing to provide clearer guidance and improved notifications, helping firms understand the process and avoid unnecessary admin fees.We’re also proposing to remove 3 more data collections for insurance firms that are no longer needed.The consultation reflects our ongoing commitment on continuously improving regulatory processes. Our proposals demonstrate a smarter approach to regulation by streamlining compliance and reducing firm burdens.For more information and to respond to the consultation, please review theDecember 2025 QCP chapter on Late Fee Reduction.

A raft of measures designed to support the growth of the mutuals sector have been announced by the financial regulators. They include a review of credit union regulations and the launch of a Mutual Societies Development Unit by the FCA.The proposals form part of a package of initiatives, published in a joint report from the PRA and FCA.These include:A new FCA Mutual Societies Development Unit that will act as a central hub of expertise and insight helping mutuals navigate policy and legislative changes. It will support initiatives such as co-operative networks that enable mutuals to collaborate, grow and build resilience.A PRA and FCA review of mutual credit union regulations, considering more risk-based capital requirements for larger, complex firms and proportionality for smaller credit unions.Free pre-application support by the FCA for firms setting up as a mutual society, innovating their business models, or seeking guidance applying for targeted support permission.A cut in application times for new societies – from 15 to 10 working days, encouraging more society registrations through the FCA’s Mutuals Society Portal.Confirmation from the PRA that the Building Societies Sourcebook has been removed from the PRA rulebook with immediate effect.The FCA has also published its own report as registering authority assessing the mutual societies sectors.Nikhil Rathi, chief executive of the FCA, said:'The mutuals sector is remarkably diverse and rooted in the communities and members it serves. They support people buy a home, insure against the worst events, increase financial inclusion and bring communities together, whether in the club, pub or on an allotment. We want to help them grow, and our new Development Unit will provide dedicated support. We’re also making it faster for mutuals to start-up.'Sam Woods, CEO of the PRA and deputy governor at the Bank of England, said:'Mutuals are a vital part of our financial system. Today’s report examines how the financial mutuals sector is growing, and what we can do to help it thrive in the period ahead.'Economic Secretary to the Treasury Lucy Rigby said:'We have committed to double the size of the mutuals sector, and are pleased the regulators are taking concrete steps to support the sector’s growth so it can deliver better value for members and communities.'Mutuals form an important part of the UK’s financial and business landscape, supporting the savings, borrowing, pensions and more of millions of people.'The announcements build on existing regulatory initiatives to support mutuals and the wider financial sector, including:The regulators' joint proposals to streamline the Senior Managers and Certification Regime to support competitiveness.The launch of the Scale-up Unit, providing tailored support to firms with growth ambitions.The PRA's Strong and Simple rules, which simplify capital requirements for smaller firms.The PRA’s introduction of Solvency UK, which significantly cuts red tape for insurance firms.The FCA’s mortgage market reforms, taken up by 85% of the market including building societies, has led to lenders being able to offer around £30,000 more.Mutuals are owned by their members, typically to serve their owners’ needs and financial mutuals have over 30 million members across the UK. This includes 93 mutual insurance firms, 42 building societies and 350 credit unions.There are also 12 million memberships across over 8,400 co-operative and community benefit societies. Collectively, these hold more than £223bn in assets and include housing associations, social clubs and retail societies.The reports were launched at an FCA and PRA event on Friday 5 December in Rochdale, attended by Economic Secretary to the Treasury Lucy Rigby MP.Notes to editorsRead the joint PRA/FCA Mutuals Landscape report.Read the FCA’s Mutuals Registering Authority Report.Read the PRA’s Policy Statement on the Building Societies Sourcebook.Additional new initiatives announced for the mutuals sector today include:New straightforward guidance from the PRA on Part VIII transfers, which allow smaller mutual insurers to be consolidated into a larger firm.The PRA and FCA opening discussions with mutual building societies on how best to prepare for mergers and acquisitions, which are becoming increasingly popular in the sector.

The FCA has charged Mr Henrik Schliemann with 9 criminal offences, including fraud by abuse of position, fraud by false representation and forgery. Mr Schlieman was a director of a merchant bank regulated by the FCA. He was responsible for financial matters and held authority over company accounts.The FCA alleges that Mr Schliemann transferred around $1.45m and €3.1m from company accounts to his own and additionally paid himself over £1.3m in excess dividends.Mr Schliemann appeared before Westminster Magistrates’ Court and gave no indication of plea. The case was sent to Southwark Crown Court, and his next appearance will be on 5 January 2026. Mr Schliemann has been released on conditional bail.Notes to editorsHenrik Oliver Schliemann was born on 27 June 1964. He is a German national resident in the United Kingdom.Fraud by abuse of position is an offence under sections 1 and 4 of the Fraud Act 2006.Fraud by false representation is an offence under sections 1 and 2 of the Fraud Act 2006.Using a false instrument is an offence under section 3 of the Forgery and Counterfeiting Act 1981.Mr. Schliemann held the authorised Director, Compliance Oversight and Money Laundering Reporting Officer functions.

On1 December2025, ESE Capital LimitedenteredCreditors’ VoluntaryLiquidation. On 1 December 2025, ESE Capital Limited entered Creditors’ Voluntary Liquidation.Adam Price and Lane Bednash of CMB Partners UK Limited were appointed as Joint Liquidators of the firm.ESE Capital Limited is authorised by the Financial Conduct Authority (FCA) (Firm Ref No. 469499). The firm provides financial management services and specialises in alternative investment opportunities.On 11 July 2025, ESE Capital Limited agreed that it will not: take on any new customersaccept new funds from existing customersprovide any regulated services to any existing customersdiminish the value of any of its own assets, and any funds it holds, except for payments in the ordinary and proper course of businessThese requirements will continue to apply during the liquidation process.The Liquidators are responsible for managing customer claims against the firm and distributing funds back to customers where possible.If you have any questions regarding the liquidation process, please contact the Liquidators directly by emailing: ese@cmbukltd.co.ukThe FCA does not regulate liquidations or the Liquidators, but we will continue to engage with the Liquidator/s and take any necessary actions as appropriate.

We have reached an agreement to lift the freeze on the bond consolidated tape contract award. Once ordered by the High Court, the lifting of the suspension will clear a path to sign the contract with Etrading Software (ETS).This means we can move forward on delivering the tape and continue defending the legal challenge in tandem. We will continue to engage data contributors and users alongside ETS.This is an important milestone in our work to maintain the UK’s position as a highly competitive and compelling place to invest and grow.We will provide an update shortly on the progress we have made in establishing a bond consolidated tape provider.BackgroundWe recentlyfiled an application with the High Court asking to lift the freeze on the contract award.We aim to determine Etrading Software’s authorisation as soon as possible, ahead of the launch of the tape in June 2026.

The FCA has confirmed plans to streamline the way firms report complaints to them. The improvements will improve data quality and strengthen consumer protection across the sector.Five separate existing complaints returns will be replaced by a single consolidated return. This approach will simplify reporting for firms, reduce duplication, and support more consistent and comparable data collection.A key feature of the new process is the requirement for firms to report complaints involving customers in vulnerable circumstances. This will enable us to monitor outcomes for those at risk and ensure that firms are providing appropriate support to those customers.Sarah Pritchard, deputy chief executive of the FCA said:'These improvements are a significant step forward in ensuring transparency and consistency across the sector. By streamlining returns and introducing clearer guidance, we’re making it easier for firms to provide high-quality complaints data while strengthening our ability to protect consumers, particularly those who are most vulnerable.'We will also introduce improved guidance and fixed 6-month reporting periods for all firms. This will provide timely insights, drive better benchmarking, and help ensure that consumers and the market benefit from high-quality, actionable complaints data.These changes reflect the FCA’s commitment to protecting consumers and being a smarter regulator, while reducing unnecessary burdens on firms. We will work closely with industry to support a smooth transition to the new reporting process, with the first reporting period under the new process running from 1 January to 30 June 2027. For more information, view the full policy statement and updated guidance on our website.

The FCA is working with major firms to test AI in a safe place to better understand the potential benefits and risks. The AI Live Testing initiative is the first of its kind in the financial sector to help firms who are ready to use AI in UK financial markets. Participating firms receive tailored support from the FCA’s regulatory team and its technical partner Advai, to develop, assess and deploy safe and responsible AI.Gain Credit, Homeprotect, part of the Avantia Group, NatWest, Monzo, Santander, Scottish Widows, part of Lloyds Banking Group, and Snorkl are the first group to take part.AI testing is helping firms to address key questions around evaluation frameworks, live monitoring governance and risk management to ensure that AI is deployed safely and responsibly for consumers and markets.Many of the AI applications currently being tested as part of the project focus on retail financial services including use cases to harness AI to support debt resolution or provide financial advice. Applications are also exploring the potential for AI to help improve customer engagement, streamline complaints handling and help consumers to make smarter spending and saving decisions.Jessica Rusu, chief data, information and intelligence officer at the FCA, said:'Our new AI Live Testing service helps firms who are ready to use AI in live markets. By working closely with firms and our technical partner Advai, we’re helping to make sure that AI is developed and deployed safely and responsibly in UK financial markets.'The project will help the FCA better understand how AI could shape UK financial markets and inform its future approach to the technology.AI Live Testing complements the FCA’s Supercharged Sandbox which helps firms who are in the discovery and experiment phase with AI.Applications for the second cohort for AI Live Testing will open in January 2026 and participating firms will be able to start testing in April.Notes to editorsIn September 2025, we published a Feedback Statement on the potential benefits, opportunities and challenges raised by our proposal for AI Live Testing.We set out how the FCA is working to accelerate digital innovation in our response to the Prime Minister’s letter (PDF), including that we would avoid additional regulations for AI by relying on existing frameworks.Read more about how our rules apply to AI.Advai is a UK-based AI company specialising in automated testing, evaluation and assurance of AI systems, providing independent technical evidence so organisations can deploy AI safely and confidently at scale.

We are lifting the pause on the handling of motor finance complaints on 31 May 2026. This timeframe enables us to finalise and begin implementing any compensation scheme, while giving firms a reasonable period to prepare. We paused the handling of some motor finance complaints in January 2024. This was to prevent disorderly, inconsistent and inefficient outcomes for consumers and knock-on effects on firms and the market while we assessed whether there had been adequate disclosure of commissions between motor finance lenders and brokers.We now have legal clarity from the Supreme Court and High Court to proceed with setting out how firms should deal with very large numbers of complaints and are consulting on a compensation scheme for customers who were treated unfairly. It is important that complaints are now dealt with promptly, not least as some consumers have been waiting almost 2 years for an answer. We are clear that complaints cannot be paused indefinitely. It is likely that we will go ahead with a scheme and complaints that fall within it will be dealt with under specific rules, which will include timeframes for them to be dealt with. We are consulting on these timeframes now and are receiving much useful feedback on what is needed to ensure a scheme runs smoothly.We are consulting on a scheme with a broad scope, so the number of complaints falling out of the currently proposed scheme should be relatively low. Those who have submitted such complaints should not have to wait longer than necessary.We have decided, therefore, to lift the pause on the handling of certain motor finance complaints on 31 May 2026. Ending the pause on 31 May 2026, rather than 31 July 2026 as originally consulted on, reflects our commitment to ensuring consumers receive fair and timely outcomes.It gives firms sufficient time to be ready to respond to complaints, whether inside or outside of a scheme, given they should already have been investigating them. It also takes account of the fact that firms will, in most cases, have up to 8 weeks after 31 May 2026 to send a response to complaints outside the scheme with the exact amount of time depending on when they received the complaint. In a letter (PDF) sent on 3 December, we have reminded firms again that they should be progressing complaints. This is to ensure firms are ready to start issuing final responses to complaints if they are not covered by any scheme. We have said we will publish final scheme rules in February or March 2026. If we go ahead with a scheme, we will consider how the rules interact with the end of the complaint handling pause, to avoid firms having to send final responses that would otherwise be dealt with in the scheme.In our final rules, we intend to set out how firms should respond to complaints involving both scheme and non-scheme elements, recognising that it may be simpler and less confusing for consumers if firms send a final response to any scheme and non-scheme complaints at the same time.

This marks the FCA's first enforcement outcome against a professional body supervisor. The FCA has censured the Institute of Certified Bookkeepers (ICB) for serious deficiencies in its anti-money laundering (AML) supervision.ICB is a professional body supervisor responsible for overseeing the AML compliance of over 3,000 bookkeepers under the Money Laundering Regulations 2017.Between January 2022 and July 2023, ICB breached key AML regulations relating to its role as an AML supervisor, thereby increasing the risks of financial crime amongst members.ICB failed to adopt an adequate risk-based approach to its supervisory functions and did not effectively monitor its members. The most serious breaches were caused or made worse by ICB’s decision to suspend all inspections - both onsite and virtual - for nine months. During this period, ICB’s ability to scrutinise members’ compliance with AML regulations was seriously undermined. The failings exposed the sector to greater money laundering risks.Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said:'Anti-money laundering rules stop criminals from exploiting the financial system and help protect people, businesses and wider market trust. Strong AML supervision matters because it ensures these safeguards work in practice.'This outcome demonstrates that the FCA is prepared to take enforcement action against professional body supervisors where their oversight of member organisations falls below the high standards weexpect.'The Government has recently announced planned reforms to make the FCA the Single Professional Services Supervisor, aiming to deliver a more effective approach to combatting illicit finance. These reforms will take time to implement. In the interim, OPBAS will continue to work with professional body supervisors to ensure compliance with AML regulations.More informationRead the Final Notice issued to ICB.ICB is supervised by the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), part of the FCA.OPBAS was established to strengthen the UK’s AML supervisory regime.ICB breached certain provisions in the MLRs 2017, which set statutory obligations for AML compliance and supervision of relevant businesses.The FCA considers that a public censure is the appropriate sanction in this case. The FCA does not have power to impose a financial penalty under the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision Regulations 2017 (OPBAS Regulations 2017).The FCA enables a fair and thriving financial services market for the good of consumers and the economy.Find out more about AML supervision and OPBAS on the FCA website.