The Treasury has published its policy statement today on reform of the Consumer Credit Act 1974 (CCA). Reform of the CCA is an important step towards a more flexible regime that supports effective competition and innovation, while maintaining appropriate consumer protection both now and in the future. The proposals set out a framework that places greater emphasis on FCA rules and guidance rather than prescriptive requirements set out in legislation.We intend to consult on the key elements of the consumer credit framework previously set out in legislation, where we have the powers to do so, considering the whole consumer credit process.Our approach will be underpinned by the Consumer Duty – which sets our expectations for firms to deliver good outcomes for consumers.As part of our policy development, we will consider existing consumer rights and protections, including for example, cancellation and withdrawal, and termination of agreements, including early settlement. Any proposals would be supported by evidence, including a cost benefit analysis and stakeholder feedback.We will continue to work closely with the Treasury, Government, Parliament, consumer bodies and other stakeholders as the reform programme develops. We will communicate openly about our emerging approach and next steps in due course.

UK financial firms can adopt tokenisation and distributed ledger technology (DLT) with greater confidence, as the Financial Conduct Authority (FCA) and the Bank of England set out a shared vision and seek industry views on the future of UK wholesale markets. Tokenisation is the process of creating a digital representation of a real-world asset – such as a share, bond or unit of currency – on a digital ledger. It has the potential to streamline wholesale markets, making everything from issuing securities to managing assets faster and more efficient. Along with greater functionality this could support market efficiency and resilience while lowering costs.The FCA and Bank have heard from industry that firms need more certainty on regulation and infrastructure as tokenisation grows. In response, they have set out their approach in key areas where firms want greater clarity, including prudential treatment, tokenised collateral and settlement instruments.They have also opened a discussion on key principles for regulation and infrastructure that could facilitate the development of tokenisation in wholesale markets.Simon Walls, executive director of markets at the FCA said:'Tokenisation has the potential to transform wholesale markets – reshaping how assets are issued, traded and settled. We want to support firms in adopting this technology to lower costs, reduce risk and unlock new services, andour partnership with the Bank of England will ensurea common approach across all parts of wholesale markets.'Today we are setting out the principles of asharedlong-term vision to give industry the clarity it needs to engage, invest and innovate with confidence. UK markets have always embraced new technology, and that will be central to ensuring the UK remains at the forefront of global wholesale markets.'Sarah Breeden, deputy governor for financial stability at the Bank of England said:'The Bank and FCA have done a huge amount to enable the responsible adoption of tokenisation in retail and wholesale finance in the UK, working with the government and the industry. The task now is for public and private sectors together to build on these strong foundations, moving from pilots to production to support financial stability and sustainable growth.'The FCA and the Bank of England are seeking industry views on where existing rules and infrastructure support or constrain the safe use of this technology. Feedback will help shape future work and inform the next steps of developing a joint roadmap for digital wholesale markets.Supporting action from the Bank of England and PRAThe Bank of England has published a consultation on extending RTGS and CHAPS settlement hours, setting out next steps towards near 24/7 settlement. The staged approach includes weekend and extended daily operating hours, subject to consultation and industry readiness. This will support cross border payments, and new payment and settlement models as tokenisation develops.The Prudential Regulation Authority (PRA) has published Dear CEO letters setting out updated guidance on the prudential treatment of tokenised asset exposures and on innovations in deposits, e-money and stablecoins. These reflect recent market developments and reaffirm expectations on risk management and compliance.The FCA's commitmentsThe FCA is committing to further work to support tokenisation in the UK, including considering how its approach to the application of client asset (CASS) rules may evolve in light of industry feedback. The FCA recently published its policy statement on progressing fund tokenisation.Notes to editorsRead the Call for Input.Feedback closes on 3 July 2026.A feedback statement will be published in the summer.The FCA recently published its policy statement on progressing fund tokenisation.The Bank and the FCA continue to work with 16 firms on the live issuance and settlement of tokenised assets through the Digital Securities Sandbox.The Bank is also committing today to launch a live synchronisationservice, targeted for 2028, and working to enable tokenised equivalents of already eligible assets to be used as collateral both at central counterparties and in its own central bank operations. This work is also supporting HM Treasury’s pilot issuance of a digital gilt instrument (DIGIT). The Prudential Regulation Authority (PRA) has published Dear CEO letters setting out updated guidance on theprudential treatment oftokenised assets,stablecoinsand othercryptoasset exposures and oninnovations in deposits, e-money and stablecoins, reflecting recent market developments and reaffirming expectations on risk management and compliance.The Bank has published a consultation on extending RTGS and CHAPS settlement hours, setting out next steps towards near 24/7 settlement, with a staged approach including weekend and extended daily operating hours, subject to consultation and industry readiness.Distributed ledger technology (DLT) is the underlying infrastructure that makes tokenisation possible. A distributed ledger is a shared, digital record of transactions that is maintained simultaneously across multiple locations or participants, rather than being held in a single central database..

Why frontier AI matters for firmsArtificial intelligence (AI) continues to evolve rapidly. Frontier AI models represent a step-change in capability, with significant implications for cyber security and operational resilience.The cyber capabilities of current frontier AI models are already exceeding what a skilled practitioner could achieve, and at a significantly higher speed, greater scale, and lower cost. These capabilities, if used maliciously, amplify cyber threats to firms’ safety and soundness, customers, market integrity, and financial stability. As more advanced models become available, these risks are expected to increase. Firms that have underinvested in core cyber security fundamentals are likely to become progressively more exposed.What this means for regulated firmsIt is essential that firms have effective protective, detective, threat containment and cyber response capabilities including to address faster and more disruptive frontier AI-driven attacks.In line with our operational resilience rules and expectations, regulated firms and financial market infrastructures (FMIs) (referred to as 'firms'), need to take action to plan for and mitigate cybersecurity risks posed by frontier AI.The Government and UK financial authorities judge that firms should be taking active steps across several domains.*Governance and strategy: Firms should ensure their boards and senior management have sufficient understanding of frontier AI risks. This is important to set strategic direction and oversee how control functions manage risks. Investment and resourcing decisions should reflect the emerging threat, including increased exposure from end-of-life systems or those out of vendor support. Firms should also consider whether they have appropriate insurance in place.Identification and risk management of vulnerabilities: Frontier AI models can rapidly identify and enable exploitation of a potentially large number of vulnerabilities across firms’ technology estates. Firms should be able to triage, prioritise, risk assess, and remediate vulnerabilities more quickly, more frequently, and at scale, including through automation where appropriate, while mitigating the operational risks from doing so.Managing risks from third parties: Firms should effectively manage frontier AI cyber risks from third parties and supply chains, including open-source software. This means firms should have the capabilities to identify, monitor, and manage external applications, libraries, and services integrated into their networks. Firms should be prepared to address and remediate vulnerabilities identified by third parties at scale.Protection: Effective access management, network security, and data protection should enable firms to reduce the attack surface a frontier AI model might access and limit the likelihood and impact of such attacks. Firms should consider adopting automated and AI-enabled defences to operate at comparable speed to AI-driven attacks. Response and Recovery: Firms should be able to respond to and recover from disruption quickly. Firms should read and consider the effective practices on cyber resilience published by the Bank, PRA and FCA in October 2025.The Government and UK financial authorities will continue to actively monitor frontier AI developments and engage with industry through the Cross Market Operational Resilience Group (CMORG).Further information for firmsFirms should also keep up to date with relevant publications in this space by CMORG and the NCSC, the UK’s technical cyber authority. For example, firms can watch CMORG’s Frontier AI Risk Mitigation Webinar (14 May 2026).In addition, the NCSC continues to publish practical guidance on how firms should consider and manage the risks from frontier AI. This includes:Preparing for a 'vulnerability patch wave', National Cyber Security Centre.Why cyber defenders need to be ready for frontier AI, National Cyber Security Centre.10 questions to ask when using AI models to find vulnerabilities, National Cyber Security Centre, NCSC vulnerability management.

The conflict in the Middle East means cost of living pressures remain top of mind – with people facing increased costs for utility bills, food and fuel. We want to remind you about our clear expectations on the support you should offer consumers in challenging times, through the Consumer Duty and our rules on protections for borrowers in difficulty.

Speech by Nikhil Rathi, FCA chief executive at the FCA's financial crime conference. A new threat landscapeFinancial crime is changing – fast.It’s more technologically enabled. More organised than ever before. And moving at speed.Which is why the fight against financial crime sits at the heart of our 5-year strategy.But it’s not just the volume that’s changed; it’s who is behind it.Organised criminal groups running professional networks that operate across borders.Take investment fraud.A personal tragedy, and one many of us here today have seen touch friends or family.Leaving them grappling with an average loss of over £25,000 – a life-changing amount of money, that they’ve likely spent decades saving.But they’re losing more than money: confidence, security and, too often, their sense of self.However, zoom out and you’ll find something even more troubling.Farms of people, thousands of miles away, working to target as many people as possible.And proceeds that flow back into criminal enterprises funding more heinous crimes. The kind with a human cost, both here and abroad.These groups are blending fraud, money laundering, sanctions evasion and cyber‑enabled crime.Putting at risk trust in the whole financial system, even economic growth. Funds that could be productively invested, diverted instead into criminal coffers.Our response has to be just as broad and adaptable.Because the reality is that our financial system is part of that supply chain – exploited by criminals moving dirty money through complex layers designed to stay hidden.And, increasingly, there are links with actors connected to some states who are deliberately weakening trust in our institutions and exploiting openness in our systems.Using their ill-gotten gains to fund other illegal and destabilising activity – whether on the streets of Khartoum or Carlisle – while staying below the radar.The damage reverberates far beyond a single victim.It destabilises our society – eroding trust in our institutions, financial system and each other.That’s the scale of what we’re dealing with.I’ve said before that separating financial services from national security is outdated and dangerous.This is a question of fundamental economic and national security.No single organisation can see that threat clearly – or disrupt it effectively – alone.That’s why we’re all here today.Financial services. Technology and infrastructure providers. Regulators. Government. Law enforcement. Consumer groups.As a collective, we have a question to face honestly:Are the ways we’ve traditionally tackled financial crime still fit for the environment we are now operating in?

The FCA has announced 2 permanent appointments to its executive team, strengthening leadership at a pivotal time for UK and global financial markets. Simon Walls appointed executive director, marketsSimon Walls has been appointed permanent executive director, markets. Having taken on this role on a temporary basis since 2024, his appointment provides continuity at a vital and volatile time for the UK and global economy. Simon will be able to drive forward work he has already started to strengthen our approach on wholesale markets and to ensure a more resilient financial system by rebalancing risk and supporting growth. Simon joined the FCA in 2006 and has held senior roles across wholesale markets, including policy, asset management and banking supervision. He played a key role in navigating significant events affecting markets, including the LIBOR (the London Interbank Offered Rate) transition and the UK’s exit from the EU. Simon Walls said: 'Britain’s financial markets have been defined for centuries by innovation, openness and integrity. I’m delighted to lead such a committed and professional team at the FCA as we deliver our ambitious markets work to further these traditions. In partnership with government and industry, we are building momentum - ensuring great outcomes for domestic and international users of markets.'Johan Sekora to join as chief operating officerJohan Sekora has been appointed as chief operating officer, relocating from Stockholm to take up the role at the start of June. Johan will play a central role in supporting the FCA’s strategy and ambition to be a smarter, more effective regulator. Johan brings over 25 years’ experience in financial services.A leading European voice on the importance of industry collaboration and the use of technology to tackle financial crime, Johan has worked extensively on accelerating the use of data and artificial intelligence to address emerging risks.Johan Sekora said: 'I very much look forward to joining the FCA team. As the leading and largest European regulator, the FCA leads from the front in many regulated areas by protecting customers, driving smarter regulation, and combatting financial crime through collaboration and the use of AI.'Nikhil Rathi, chief executive of the FCA said: 'A strong leadership team is a crucial part of us being the smarter regulator we aspire to be. Simon’s appointment provides continuity as we continue to reform our wholesale markets, while Johan brings significant international experience that will help us operate more efficiently and effectively in the interests of consumers, markets and the wider economy.'Notes to editorsSimon has held a range of roles in wholesale markets across 20 years at the FCA (previously the FSA), including the supervision of buy-side, sell-side and infrastructure firms. He was the head of the wholesale markets department from 2016, before taking up the post of director of sell-side in 2022. Prior to joining the FSA, Simon started his career on the graduate scheme at the Bank of England and holds qualifications in Economics and Law.Johan joins the FCA from SEB, a major Swedish bank, where he was global head of financial crime prevention. He has also served as chair of SAMLIT, the Swedish banking sector’s financial crime collaboration with the Swedish Police. Prior to joining SEB, he spent 20 years with HSBC in the UK and internationally, most recently as global chief operating officer, regulatory compliance. Johan holds a degree in Politics and Parliamentary Studies from Leeds University.

The FCA is reviewing how consumer investment firms support bereaved customers and whether they're getting it right. Fewer than half of bereaved customers (47%) felt they received the support they needed from financial firms, according to research (PDF).What the FCA is looking atThe review will focus on firms that advise, manage, or administer investments - including platforms, advisers and wealth managers. The FCA will examine the experience customers have from the moment the firm is told about a bereavement, through to settlement or transfer of investments.It will assess how firms communicate, how they support vulnerable customers, their service standards, and how fees are handled on bereaved accounts.Kate Tuckley, head of department, consumer investments, at the FCA, said:'When someone loses a loved one, the last thing they need is confusing letters, delays and poor service from their financial provider.'We want firms to design bereavement processes with people, not paperwork, at their centre. These processes are a real test of a firm’s culture and key to consumer trust.'Why this mattersThis follows similar FCA reviews in retail banking and insurance, where it found bereaved customers regularly faced unclear processes, repeated information requests and avoidable delays. Good practice existed but it wasn't consistent.What happens nextFrom May 2026, the FCA will contact selected firms as part of the review. It will publish findings later this year, highlighting good practice and areas for improvement.This is a priority under its Consumer Investments Regulatory Priorities (PDF) and forms part of its broader consumer duty work.Notes to editorsRead more in the vulnerability review (PDF).Find out more about the FCA.

The FCA has banned Frank Breuer from working in UK financial services and fined him £755,000 for repeatedly acting without integrity and putting customers at risk for personal financial gain. Mr Breuer was the joint owner and sole director of Bluesky Wealth Management Limited (Bluesky), which provided advice on investments and pensions. Although authorised to advise on defined benefit (DB) pension transfers, the firm did not have the appropriate professional insurance in place from April 2019. This meant Mr Breuer’s customers were at risk of not receiving compensation if something went wrong.Mr Breuer carried out at least 16 DB pension transfers while knowing he was uninsured. He also repeatedly misled the FCA about the firm’s insurance position.In October 2019, Mr Breuer agreed to restrictions introduced by the FCA to protect customers and the firm’s assets. Mr Breuer ignored these restrictions and stripped the firm’s assets by paying himself large dividends, taking personal loans and moving money through connected accounts. By September 2020, Mr Breuer knew that the FCA had concerns about the suitability of Bluesky’s DB advice and from June 2022 onwards, the Financial Ombudsman Service upheld several complaints against Bluesky on the DB advice Mr Breuer had given. He then placed Bluesky into an insolvency process in April 2023, leaving substantial customer liabilities of at least £214,772.88 to be met by the Financial Services Compensation Scheme (FSCS).Therese Chambers, joint executive director of enforcement and market oversight, said:'Mr Breuer sought to evade paying compensation due to customers as a result of his own bad pension advice and feathered his own nest in the process, stripping substantial assets from his firm. He repeatedly misled the FCA and flouted FCA restrictions. He’s not fit to work in financial services.'Anyone who has been affected by Mr Breuer’s advice should visit the FSCS website to check whether they’re eligible for compensation.Notes to editorsFinal Notice: Frank Breuer (PDF).The FSCS redress scheme is still open to claims and to date, £214,772.88 has been paid to affected customers.From June 2022 onwards, the Financial Ombudsman Service upheld complaints against Bluesky on DB transfer advice that Mr Breuer had given. In January 2023, the FCA was notified that Bluesky had failed to pay an Ombudsman award.Mr Breuer’s total financial penalty is £755,000 which includes disgorgement of financial benefit and interest.Mr Breuer breached Statement of Principle 1 (APER) and Individual Conduct Rule 1 (ICR 1) by acting without integrity.A DB pension provides a guaranteed retirement income. FCA rules require strong justification before advising a customer to transfer out of a DB pension scheme.

Speech by Sarah Pritchard, deputy chief executive, at the Investment Association's Private Markets Summit 2026. Headlines are always a tough read when funds run into difficulty.And lately, the language has been stark.Some have even asked if private credit has a canary in the coal mine.That’ll make you sit up a bit straighter, won’t it?But in this moment, it’s important to remember that stress in markets is normal – and okay, as long as the system stays resilient.Private markets, done well, can support resilience.But the range of things we need to plan for is wider than it once was, and the challenges are becoming increasingly uncertain.We know there will be situations where stress could be a problem. Those are the ones we need to plan for. Early, and together.And with the entire system in mind.That’s why we are supporting the Bank of England’s new system-wide exploratory scenario (SWES) focused on risk in private markets – so we can support a joined-up view of how these markets may function under stress.I’m often asked whether conduct risks are important.Let me be clear: while different to financial stability risks, they are no less important.They can harm investors, erode market integrity and undermine trust.Those are the risks we’re looking at.And we’re looking at them early. Taking a system-wide view. And publishing our findings so that the market is clear on our expectations.You see this in our valuations work.We know that robust valuation frameworks and processes are key to investor confidence and critical to market integrity.They are not there to eliminate judgement, but to ensure that judgement is robust, well evidenced and capable of standing up under pressure.Our report, published in March 2025, set out expectations and good practice for governance in valuation processes. There’s already been tangible change across the sector.But confidence is earned over time, not through a single review.So we’ll continue to engage at both firm and industry level – and we expect to see clear evidence of how firms have reflected on the findings and embedded them in practice.Because in private markets, confidence is rarely lost when valuations change.It’s lost when they change without explanation, or too late.We are taking the same approach in our multi-firm review of conflicts of interest, which is currently underway.We are focusing on conflicts because confidence rests on knowing decisions are made in investors’ interests, with incentives aligned to delivering long‑term outcomes.We’ve already gathered information about how firms identify conflicts and design their frameworks.Next, we’ll consider how they operate in practice before publishing our findings later this year.These conduct risks matter and should be taken seriously.We need to train the spotlight on those places where standards may not hold under pressure.Because in private markets, many problems can be traced back to first-line controls that have broken down – or appear to have done so.We’ve seen this recently.A major US private credit firm was forced to cap investor withdrawals after redemption requests worth billions came in within a single quarter.It maintains that its underlying loans are sound and the mad dash for the exit was brought on by negative sentiment. Not reality.That may well be true.But the surge in withdrawal requests tells us something important.When investors can’t see clearly into a portfolio, they won’t wait to find out what’s there.The loss of confidence didn’t happen because controls had visibly broken down. It happened because investors couldn’t trust that they hadn’t.The question isn’t whether there will be turbulence. There will be.It’s whether the system can handle it.Which brings me to what I think truly matters: where confidence comes from.Because it doesn’t come from ignoring risk, or pretending it simply isn’t there.

Kingscrown Finance Limited (Kingscrown) has stopped onboarding new customers or undertaking new business with existing customers – including extending existing credit. Kingscrown, which was incorporated in 2014, provides lending for business and investment purposes, including property investment, buy-to-let and house in multiple occupation (HMO) finance.The voluntary restrictions on Kingscrown’s business came into effect on 21 April 2026. Kingscrown has never been authorised by or registered with the FCA.Kingscrown has notified all existing customers of the restrictions and their effects and will secure all books and records. Previous FCA communications regarding Annex 1 firmsWe recently reminded regulated firms about the risks when dealing with unregulated lenders.We also raised concerns in 2024 about anti-money laundering standards directly with Annex 1 businesses in a letter to CEOs.Firms applying to the FCA for registration under the 2017 Money Laundering Regulations must ensure they comply with the relevant regulatory requirements. We will consider using our regulatory tools where we consider it appropriate to do so, including restricting the business activity of firms who are seeking to obtain registration with us.

A convicted money launderer has been sentenced to an additional 499 daysin prison for failing to fully pay the money owed under a Confiscation Order. In 2021,RichardFaithfull,now36,wassentenced to5 years and 10 monthsin prisonfor laundering £2.5 million, following a prosecution brought by the Financial Conduct Authority (FCA).He was part of a trans-national organised crime group which laundered the proceeds of at least 7 overseas investment frauds.Mr Faithfullis required topay back £529,961,based on the Court’s findings on his available assets. However, he has only paid£349,214.37.When he was originally sentenced, theJudge remarked that Mr Faithfull’s was 'serious offending' linked to the 'human misery caused by boiler room fraud' and that 'money coming in(to accounts controlled by Faithfull)was not being invested, it was simply being slaughtered'.SteveSmart,executivedirector ofenforcement andmarketoversight at the FCA,said:'Mr Faithfull’s crimes enabled millions of pounds to bescammedfrom innocent victims. He tried to evade justice. Now, having failed to repay what he should,it’sright heis put backbehind bars.'Theadditionalprison sentence was activated on Friday8 Mayat aCity of London Magistrates’ Courthearing.Mr Faithfull had been released from custody in June 2025.Even after serving the sentence in default of payment, Mr Faithfull will continue to be liable for the outstanding debt.Money recovered from Mr Faithfullwill be used to compensate the victims of his crimes.Fighting financial crime is a priority under the FCA’s 5-year strategy.Notes to editorsRichard Faithfull (D.O.B 15/03/1990).Richard Faithfull sentenced to over 5 years imprisonment for money laundering.A Confiscation Order was made on 23 July 2023. Mr Faithfull was originally ordered to pay the sum of £562,636 within 3 months to satisfy the Confiscation Order or face four further years of imprisonment. The Order was subsequently varied downwards to £529,961 on 12 March 2024 and the further sentence was moved downwards to 45 months of imprisonment.Mr Faithfull’s outstanding balance isaccruinginterest at the daily rate of £39.62.This interestwillnot contribute tothecompensation for victims.The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

Following the legal challenges to our motor finance compensation scheme, we are setting out further advice for firms and consumers. Our priorities remain to secure fair compensation for consumers as quickly as possible and ensure a healthy motor finance market.Our industry-wide scheme is the quickest, fairest and most cost-effective way to do this. As we have said, we welcome the commitment of most lenders to implement the scheme and will defend it robustly.We have summarised below the grounds of challenge we have received.It is unclear when the case will be heard. It is unlikely to be before October. We are engaging with the Tribunal and those who have challenged the scheme on the possibility of suspending some elements of it while retaining those relating to preparatory work. We will provide a further update as soon as possible.We recognise the operational strain and uncertainty firms face. We also acknowledge the frustration of consumers, many of whom have waited over 2 years for an answer.Firms should continue to prepare for the scheme until we communicate otherwise. Work that can be done now and would likely be needed in all scenarios includes:Identifying relevant complaints and agreements.Gathering the data needed to identify commission arrangements and disclosure practices, including where information is held by brokers.Working with claims companies to resolve instances where consumers are represented by more than one party. Cooperating fully and promptly with the Financial Ombudsman Service on any existing complaints that have been referred to it. To help us better understand firms’ approaches, they should still submit implementation plans by 12 May. We recognise they may need to qualify those plans and therefore we will not insist on receiving formal attestations by 12 May. Lenders should speak to their supervisor if they have any concerns.We will be pragmatic and will not require firms to communicate to customers as required by the scheme timetable.We will keep this under review as the Tribunal timetable becomes clearer and engage with lenders and consumer groups on whether any further consumer communications may be appropriate.Where complaints include both elements that fall within the scheme and elements unrelated to motor finance commission, we will consider whether firms should now progress the unrelated elements. Complaints that are entirely outside the scope of the scheme should continue to be progressed in the usual way.

On 6 May 2026, Kanda Products and Services Ltd (Kanda) entered liquidation. Philip Harris and Neville Side of FRP Advisory Trading Limited have been appointed as Joint Liquidators. Kanda is authorised by the FCA as a credit broker. It operated a network of around 700 introducer appointed representatives, mainly tradespeople who introduced consumers to finance for home improvement and other goods and services.On 16 February 2026, Kanda agreed to a voluntary requirement with the FCA which restricted it from appointing new appointed representatives while it addressed weaknesses in its systems and controls. Details of this restriction are available on the Financial Services Register (FS Register).On 6 May 2026 Philip Harris and Neville Side of FRP Advisory Trading Limited were appointed as Joint Liquidators of Kanda.The Joint Liquidators are responsible for managing the affairs of the firm during the liquidation process and can be contacted using the details below: Email: kandaproductandservices@frpadivsory.comTelephone: 01273 916666As the regulator of Kanda, the FCA will continue to engage with the Joint Liquidators and take any necessary actions to seek the best outcome for consumers.

Following the publication of financial reporting by PayPal Holdings Inc, we can confirm we are investigating Mastercard, PayPal and Visa under Chapter I in the Competition Act 1998, and Mastercard and Visa under Chapter II in the Competition Act 1998, for suspected anti-competitive conduct linked to thefunding and usage of PayPal’s digital wallet.The FCA has reached no conclusions nor made any findings with regard to competition law having been broken.Notes to editorsThe Competition Act 1998 prohibits agreements, practices and conduct that may damage competition in the UK.The Chapter I prohibition in the Competition Act 1998 prohibits agreements, concerted practices and decisions by associations of undertakings which have as their object or effect the prevention, restriction or distortion of competition within the UK or a part of it and which may affect trade within the UK or a part of it unless they are excluded or exempt.The Chapter II prohibition in the Competition Act 1998 prohibits conduct which amounts to the abuse of a dominant position in a market, and which may affect trade withinthe UK.The powers and processes that the FCA has and follows in relation to the Competition Act 1998 are separate and different from those followed in relation to enforcement of the Financial Services and Markets Act 2000. Further detail on the FCA’s procedures in CA98 cases is available in our CA98 guidance.Competition Act 1998 cases may also be brought by the Competition and Markets Authority.The FCA is currently gathering evidence. The FCA may proceed to issue a statement of objections setting out its provisional view that there has been an infringement of the law. Not all cases result in the FCA issuing a statement of objections. If the FCA ultimately proceeds to issuing a statement of objections, it will provide the addressee(s) of that statement of objections with an opportunity to make written and oral representations, before it makes a final decision on whether the law has been broken.

We are launching a review of the claims management market, following concerns that consumers are being failed by some claims management companies (CMCs) and law firms. The review will look at the root causes of poor practices across the market, like aggressive marketing, misleading advertising and unfair exit fees. Other concerns include consumers being signed up without their consent - without clear, upfront explanations of the implications of signing up or ticking a box, for example on social media adverts - or by multiple representatives, potentially causing confusion and delaying compensation.While the approach to motor finance claims by some CMCs and law firms has put these issues into sharper focus, we are also concerned about the handling of other claims, such as housing disrepair. Last year, we set out areas where firms were not meeting our expectations (PDF), but we and other regulators continue to see poor behaviours. Working in close collaboration with the Solicitors Regulation Authority (SRA) and other regulatory partners, we will use our review and supervisory and enforcement powers to rigorously examine: Whether consumers receive fair value, including competition on price and quality, and whether existing price caps are still fit for purpose, especially where free-to-use redress mechanisms exist.Financial incentives, including fee structures, funding and insurance arrangements, and whether these create conflicts of interest and/or lead to poor conduct and outcomes.Whether the full end-to-end consumer journey, including lead generation, marketing and advertising, delivers good consumer outcomes.Whether different approaches across different regulatory regimes affects firm behaviour and if some firms are failing to secure the appropriate permissions. We will look at practices of firms we regulate, including lead generators, as well as those authorised by others – working with our regulatory partners. We expect full, prompt and open cooperation from all parties we engage in the review. We, with our regulatory and enforcement partners, will take robust action if this is not forthcoming. Where we believe legislative change is needed, we will make recommendations to Government, or relevant bodies, including whether CMCs and law firms should be subject to stronger compensation mechanisms if they cause harm. Alison Walters, director of consumer finance, said:'CMCs and law firms can help consumers secure compensation they are owed. But too often consumers are being let down, eroding trust in firms that should be supporting them and damaging the economy.'This review will give us a clear picture of how the market is working and galvanise the further actions that are needed.' Aileen Armstrong, SRA executive director, strategy, innovation and external affairs, said:'When they work well, claims management services can benefit consumers. But we are concerned about poor practices and behaviours that are not looking after consumers’ best interest. 'We will work closely with the FCA on this important review. This is a cross-sectoral problem that requires joined-up solutions.'We will publish further information on the review by mid-May. We will continue to intervene where we see harm, including through the joint regulatory taskforce set up to tackle the poor handling of motor finance claims. This includes action against misleading advertising and sign-up processes, meritless claims and multiple representation. The taskforce will also look at firms’ financial and operational resilience including, but not limited to, the quality and integrity of accounting and audit practices.More informationThis is the latest measure by the regulators to improve standards in this market. A joint taskforce was announced in March to tackle poor handling of motor finance claims by some claims management companies (CMCs) and law firms. The FCA has removed or amended 800 misleading adverts, in excess of 28,000 consumers have been able to exit contracts free of charge, and 3 CMCs reduced their unreasonable fees protecting over 500,000 consumers. Formal investigations are also under way, with 1 announced by the FCA.The SRA regulates around 9,000 law firms in England and Wales. As of 30 April 2026, it has 109 open investigations relating to 76 firms that manage high-volume consumer claims. It has also closed 7 firms working in this area.Lead generators are firms that identify potential customers ('leads') and pass their details to another business, usually for payment.

Three people have been arrested as part of a crackdown on suspected illegal financial promotions. Two homes in the Chelmsford and Romford areas were searched, as part of an operation led by the FCA and the Eastern Regional Special Operations Unit (ERSOU), a specialist policing unit that tackles serious and organised crime.Adverts from firms that aren't FCA-regulated can be a warning sign of a scam. If something goes wrong, these firms aren't covered by the rules that protect people's money – meaning you could lose it with no way to get it back. If you're thinking of investing or dealing with a firm, use the FCA Firm Checker to confirm it’s authorised.All 3 individuals have been interviewed under caution.The investigation is ongoing, and further updates will be provided in due course.Notes to editorsThe Financial Services and Markets Act 2000 gives the FCA powers to investigate and prosecute unauthorised business cases.Breaching the General Prohibition is an offence under Sections 19 and 23 of the Financial Services and Markets Act 2000, punishable upon conviction by a fine and/or up to 2 years’ imprisonment.Communicating unauthorised financial promotions is an offence under Sections 21 and 25 of the Financial Services and Markets Act 2000 punishable upon conviction by a fine and/or up to 2 years’ imprisonment.Making false or misleading statements is an offence under Section 89 of the Financial Services Act 2012 by providing misleading statements, punishable upon conviction by a fine and/or up to 10 years’ imprisonment.Almost all firms offering financial services in the UK must be authorised by the FCA. Consumers are urged to search our Warning List of unauthorised firms and individuals and remain especially wary of companies operating without permission, as this increases the risk of financial harm.Consumers are encouraged to use the FCA’s firm checker to check whether a firm is authorised before engaging with its financial services.The FCA cannot comment further at this time but will make further announcements when appropriate.The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

Our objective has been, and remains, to ensure consumers receive fair compensation as quickly as possible and to maintain a healthy motor finance market. An industry-wide scheme is the fastest, simplest route for consumers and the most efficient way for firms to put things right and give certainty to their investors. Alternative approaches would be slower and much more costly for firms.We engaged widely in designing the scheme. While being clear not everyone would get everything they would like, we made changes to reflect feedback from both consumer groups and lenders. The final scheme is fair to consumers and proportionate for firms.We welcome the broad support for the scheme and the commitment from most lenders to implement it. They have taken a pragmatic approach, recognising that introducing a scheme on this scale promptly has required us to make judgements to simplify in a reasonable and lawful way some complex legal and operational issues.We recognise that for some lenders this has been a difficult decision. We appreciate that they have ultimately decided to put a resolution for their customers first, many of whom have been waiting for more than two years for an answer. They have also chosen to provide certainty for investors and to help rebuild trust in the market.However, we have received four legal challenges: one from Consumer Voice (a limited company), represented by Courmacs Legal Ltd; and three from lenders - Volkswagen Financial Services, Mercedes Benz Financial Services, and Crédit Agricole Auto Finance.We respect the right of any party that the Courts decide has standing to challenge the scheme. We also note that none of the claims received are expressly in the name of individual consumers.We will defend the scheme robustly as lawful and the best way to resolve such a widespread, long-running and complex issue.These legal challenges create fresh uncertainty for millions of consumers and for the second-largest consumer credit market, with £39bn borrowed in 2024. We are therefore engaging at pace with lenders and consumer groups to understand the breadth of views as we determine next steps for the scheme, including contingency planning.We will provide further advice to firms next week. Our current advice to consumers remains that the best step, if you have concerns, is to complain directly to your lender.This is free - weexplain how to do it and the contact details for lenders. You do not need to use a law firm or claims management company, which may charge over 30% of anycompensation.

The FCA has charged Shaun Lawrence for operating as a mortgage broker without authorisation. Mr Lawrence, who also goes by the names Shaun Lawrence-Bright and Shaun Bright, was previously authorised to give mortgage advice.However, in 2008 he had his permissions revoked and was fined. He was also banned from working in financial services.The FCA alleges that Mr Lawrence has breached the Financial Services and Markets Act by continuing to provide mortgage broking services when already banned.Mr Lawrence will appear before Hull Magistrates' Court on 2 July 2026.Notes to editorsShaun Lawrence was born on 15 August 1967.The FCA alleges that Mr Lawrence breached Section 19 of FSMA by carrying on regulated activities without FCA authorisation. The alleged regulated activity being carried out was Article 25A of the Regulated Activities Order – arranging regulated mortgage contracts.Find out more about the FCA.

From 11 May 2026, cryptoasset firms preparing for the new FSMA regime will be able to request a pre-application meeting with us via our Pre-Application Support Service (PASS). Pre-application meetings are free of charge and give firms the opportunity to discuss their plans with us and ask questions before submitting an application for authorisation or variation of existing permissions.This comes ahead of the new regime for cryptoasset regulation, where firms wanting to undertake the new regulated cryptoasset activities will need to be authorised by us.The pre-application meetings will take place from July 2026 but we will schedule them as requests come in.The authorisation gateway will open on 30 September 2026 and the new regime will commence 25 October 2027.Find out more about the new regime for cryptoasset regulation.

Speech by Nikhil Rathi, FCA chief executive, at the Association of Foreign Banks (AFB) luncheon. When I saw that a boxing ring had been temporarily installed in this room last autumn, I wasn’t quite sure whether it was a warning to us regulators…Or some kind of art installation commenting on the past few years in financial markets.At some points it has felt bruising, to say the least.Some pressures have been sharp and immediate – geopolitical shocks, sudden market events.Others slower but no less significant – shifting liquidity, evolving market structures.And then areas moving at exceptional pace – particularly in technology – where the direction of travel is clear, even if the endpoint is not.We are hearing how difficult it is to make decisions with confidence, not just today, but for the longer term.So the question for regulators is: how do we contribute to the conditions you and your customers need to succeed?Not just stability and predictability, but also the space and confidence to innovate and take risk.And how do we do that in a way that supports the UK’s competitiveness and growth?