Daniel Pugh has been sentenced to 7 years and 6 months in prison for running a £1.3m Ponzi scheme, following a prosecution brought by the FCA. Pugh, aged 35, set up a Ponzi scheme with another individual that netted over £1m. Run from his bedroom in Devon, the fraudulent Imperial Investment Fund (IIF) took money from 238 investors Pugh targeted largely through Facebook adverts. Investors were offered impossibly high returns of 1.4% a day, 7% a week or 350% a year.Pugh received £96,000 from the scheme. He used the money to support his lifestyle, including designer clothes, restaurants and withdrawing £18,000 in cash.The returns investors were promised did not materialise. Pugh duped investors into believing he was successfully trading and their money was safe. Even at the point he knew the scheme was collapsing, Pugh continued to try to attract more investors into the scheme.Steve Smart, executive director of enforcement and market oversight at the FCA, said:'Pugh made outlandish claims to hook in victims but in reality this was nothing more than a massive fraud. Fighting financial crime is a priority for the FCA. We will take action to ensure criminals face repercussions for their actions, including being denied access to any ill-gotten gains.'People’s online personas are often at odds with reality, as was the case with Pugh. Claims that sound too good to be true, are usually just that. Check the FCA Firm Checker before you invest.'In sentencing, His Honour Judge Weekes said there were 'persistent and knowing breaches of the regulatory framework' by Pugh and that any remorse for his actions came 'woefully late'.He added: 'The consequences for them [the victims] are marked and apart from financial loss they feel embarrassment.'The FCA is pursuing confiscation proceedings to deprive Pugh of the proceeds of his crimes and compensate the victims.Pugh was disqualified from being a Director of a company for 8 years, effective upon release from custody.A further individual is wanted in relation to the same offences.In the last 6 months alone, the FCA has secured criminal convictions in relation to 6 individuals for a range of financial crime offences including money laundering, insider dealing, and fraud.Unauthorised investment schemes pose a huge risk to consumers, and can offer little or no protection. Many will not realise their investments are at risk until it is too late. Use our FCA Firm Checker to see whether a firm is authorised by us.Notes to editorsDaniel Pugh’s date of birth is 19 April 1990.The FCA has attempted to contact investors who lost out. Anyone who was scammed by IIF and has not heard from the FCA should email ophainesconsumercontact@fca.org.uk.The FCA’s ScamSmart page has advice on how to spot and avoid investment scams.Mr Pugh was charged on 18 July 2023.FCA secures convictions against individual for £1.3m Ponzi scheme.The sentencing was made up as follows:Seven years and 6 months of imprisonment for conspiracy to defraud.Twenty four months of imprisonment for 2 offences of carrying on a regulated activity in the UK without FCA authorisation or an exemption, to be served concurrently.Twelve months of imprisonment for communicating an invitation or inducement to invest without FCA authorisation or the content of the communication being approved by an authorised person, to be served concurrently.The FCA enables a fair a thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

We will issue a statement to the market and publish our consultation on a proposed motor finance redress scheme, along with supporting evidence and analysis, shortly after markets close on Tuesday 7 October 2025.

The FCA, Solicitors Regulation Authority (SRA), Information Commissioner’s Office (ICO) and the Advertising Standards Authority (ASA) are joining together to tackle misleading advertising and inadequate information provided by some claims management companies (CMCs) and law firms working on motor finance claims, and the risk that excessive fees are charged to clients. Alison Walters, director, consumer finance, at the FCA, said:'Misleading advertising and inadequate disclosure have meant that people are signing contracts with some firms without the facts. When they try to exit, they face high fees. We’re acting where we see bad practice and, through our own advertising, we’re ensuring consumers can make informed choices.'Paul Philip, chief executive of the SRA, said:'The risks and issues facing consumers in this area of the market are unprecedented, and we are using all the levers at our disposal to protect consumers, identify poor practices and hold law firms to account.'Usingpowers under the Consumer Rights Act 2015 and, for the first time, under the Digital Markets, Competition and Consumers Act 2024,the FCA, working closely with the SRA, has required 9 law firms to provide information about their exit fees. Two FCA regulated CMCs have agreed to change their exit fee policies.Two others have agreed not to take on clients or to advertise until they’re able to show the FCA they comply with FCA rules. We’re expecting to write to FCA regulated CMCs involved in motor finance claims this week to reiterate our expectations.The FCA’s increased proactive monitoring has led to the removal or amendment of more than 740 misleading adverts by FCA regulated CMCs since January 2024.This number increased significantly following the Johnson judgment. Concerns include unrealistic claims about success rates and the value of potential compensation.The FCA has launched a £1m ad campaign to make people aware they don’t need to use a CMC or law firm to seek motor finance compensation, and that they stand to lose a chunk of any compensation they’re owed if they choose to. Research shows 4 in 10 people don’t know they can receive motor finance compensation without using a CMC or law firm. The campaign will run online and on radio.The SRA is investigating 76 law firms involved in high-volume claims and has closed five firms to protect the public.Its recent Thematic Review set out the key issues,and it has made clear its expectations on termination fees. The FCA and SRA continue to work closely, given that many FCA regulated CMCs refer motor finance claims to law firms.Since January 2025, the ICO has received over 230,000 complaints via the spam reporting service regarding unsolicited and unlawful direct marketing practices linked to motor finance claims. In response, the ICO has multiple investigations ongoing and is actively considering further regulatory action against several organisations.The ASA is also reviewing advertising practices in this sector.Consumer guidanceConsumers who believe they have been misled by advertising, signed up without their consent, charged unreasonable fees, had their data mishandled, or otherwise feel they have been treated unfairly by a CMC or law firm should first complain to the firm. If dissatisfied with the response, they should take their complaint to theClaims Management Ombudsman orLegal Ombudsman.To support the public, the SRA has also published guidance onmotor finance claims, and onno-win, no-fee agreements.Individuals concerned about direct marketing practices or those wishing to make a complaint, are encouraged to do so via theICO website. They can also report spam text messages to the ICO by forwarding the message for free to 7726 (which spells out SPAM).Notes to editorsTo require information from law firms it does not regulate, the FCA is using its powers under the Consumer Rights Act 2015. This is the first time the FCA has used these powers as a public designated enforcer under the Digital Markets, Competition and Consumers Act 2024.The FCA and SRA warning to CMCs and law firms over poor practices in motor finance claims.FCA campaign to raise awareness of motor finance compensation scheme.FCA announcement that it will consult on a motor finance compensation scheme.Letter to CMCs on financial promotions and motor finance claims 31 July 2025.

The FCA and the Practitioner Panel have published a report from our 2024/25 joint survey of FCA regulated firms. We have published the findings of the FCA and Practitioner Panel 2024/25 survey (PDF).The survey feedback gives us a clear picture of how firms see the FCA’s performance and are an important tool to help us focus on the issues that matter most.Feedback shows that firms’ views are broadly similar with previous years. Most continue to hold a positive perception of our performance (rated us 7 out of 10 for satisfaction) and trust (81% said trust levels had stayed the same as the previous year) in our role to deliver strategic priorities and maintain the integrity of financial markets.Matt Hammerstein, chair of the FCA Practitioner Panel said:'These results highlight both the progress the FCA has made and the areas where further improvement is needed. It is encouraging that trust levels, along with perceptions of staff knowledge and experience, have remained steady, and many of the areas for improvement align with priorities set out in the FCA’s new 5-year strategy.'The Practitioner Panel looks forward to using the valuable input gathered from the survey to continue to provide constructive challenge to the FCA throughout the next year.'Firms have also told us there are areas we can improve on, including:Taking further steps to support growth and competitivenessContinuing to reduce unnecessary data requests, by asking for only what we needStreamlining our supervision approach by reducing the amount of correspondence firms receiveNikhil Rathi, chief executive of the FCA said:'Listening to firms of all sizes helps us understand what really matters to them, and the feedback is essential to shaping how we operate. By acting on these insights, we can continue to strengthen our effectiveness and be a smarter regulator.'We’re already taking significant strides to address these priorities and drive meaningful improvements where they matter most. Since the survey was carried out, we have launched our new 5-year strategy focusing on helping consumers, fighting crime, supporting growth and being a smarter regulator.The survey was carried out between 3 February and 31 March 2025. Since then, we’ve delivered a range of measures to support our growth objective with many more to come. This includes the overhaul of the UK listings rules, reform of UK retail disclosure rules, better value for money for workplace pension savers and improved consumer advice, to promoting innovation through our AI lab. We have also been cutting back on data reporting returns, benefitting over 36,000 firms, and have plans to take a more flexible approach to our supervision.

Speech by Lucy Castledine, director of consumer investments, at the Personal Investment Management & Financial Advice Association (PIMFA) Compliance Conference 2025. Speaker: Lucy Castledine, director, consumer investmentsEvent: PIMFA Compliance Conference 2025Delivered: 25 September 2025Note: this is the speech as drafted and may differ from the delivered version.Reading time: 18 minutesKey messages:We want to challenge ourselves to be a smarter regulator and engage with you so we can raise standards together.Input into our proposals on targeted support and simplified advice – these will define the future for decades to come. Firms should continue to challenge themselves on Consumer Duty and how best to make sure clients have good outcomes.When firms see illegal content online, and have challenges reporting this content to tech platforms, let us know.

We are concerned people are being encouraged to invest in high-risk schemes offered by unregulated firms without appreciating the risks involved. Many of the firms offering these products don’t need to be authorised by the FCA, as they rely on exemptions in the law that take them out of our remit.If a firm offering an investment is not regulated by the FCA there are generally far fewer protections. For example, you are unlikely to be able to take complaints to the Financial Ombudsman Service and you’re unlikely to be able to make a claim through the Financial Services Compensation Scheme. That may make it much harder to get your money back if something goes wrong.Some of the particularly risky products we’ve seen have been unlisted loan notes or mini-bonds.Unlisted loan notes or mini-bonds come in several forms and are often used to finance property developments. This involves an investor lending money, often via a third-party firm, to fund property developments. While all investments come with risk, for these products the risk can be particularly high and they are generally for experienced investors who feel confident in assessing the quality of the company’s business and the likelihood of being repaid.People selling high risk, unregulated investments typically draw people in with enticing websites, marketing campaigns and social media finfluencer promotions. If someone introduces you to the investment, they may take a fee for doing so. This would generally be taken from the amount you've invested.The opportunities we have seen offered typically come with a fixed, high rate of return, which is a promised annual rate of interest paid to investors.However, behind the glossy promotional and eye-catching brochures can sit high risk, opaque or even non-existent enterprises.If you’re considering investing, use our Register to see whether a firm is regulated by us and consider if the level of risk is right for you. It is important to stress that some investments, including unlisted loan-note or mini-bond investments, are not suitable for everyday investors.Many of those who promote these high-risk investments don’t need to be regulated by us. Exemptions in the law mean certain high-risk investments can be marketed directly to those considered wealthy or if they’re an experienced investor, known as a ‘sophisticated investor’, under strict criteria.In the UK, potential investors can self-certify that they are sophisticated.If you’re asked to confirm that you are a sophisticated investor, think carefully about whether you genuinely have experience of similar high-risk investments, and whether it’s in your best interest. Otherwise, you could be exposed to investment opportunities that aren’t appropriate and certain regulatory protections will not apply.Taking higher investment risks can be right for some people, depending on your circumstances. But you need to make sure you’re aware of the risks you’re taking. And you should also be wary of putting all your eggs in one basket. Instead, spread your investments across different products and areas so you're less dependent on any one pick to perform well for you. By diversifying your investments like this, you can smooth out the effects of one performing badly, while still reaping benefits when others do well.

On 25 September 2025, HMRC published newsletter 173 which explains how:tax legislation applies to tax free lump sums andthe tax implications when lump sums are returned to pensionsTo support firms' understanding of that statement, we are providing an explanation of how our existing rules on cancellation rights operate in these scenarios.Under our rules, consumers have the right to cancel certain contracts, typically within 30 days of entering the contract, if they change their mind.However, the right to cancel does not arise in all circumstances. A consumer accessing tax-free cash in itself does not trigger cancellation rights under our rules.Our rules do not exempt firms from HMRC requirements. This means firms should be mindful how they structure their contracts in light of the interaction between HMRC requirements and ours.FCA rules: the right to cancelOur rules, specifically COBS 15.2, ensure that a right to cancel applies when a consumer enters certain specified contracts. In the context of pensions and retirement, specified cancellable contracts include a pension transfer contract and a contract to join a personal pension scheme.A contract allowing a person to take a Pension Commencement Lump Sum (PCLS), sometimes known as a tax-free lump sum, is not listed as a cancellable contract in COBS 15.2 so a contractual term allowing someone to take a PCLS does not of itself trigger cancellation rights.Taking a PCLSWe do not tell firms how to structure PCLS in their contractual arrangements with customers. This is a design choice for firms. In making that choice, firms should consider the interplay with tax legislation.Taking a PCLS and designating funds for drawdown are two separate activities. They do not have to take place at the same time. Designation to drawdown can happen up to 12 months before or 6 months after a PCLS is taken, or without a consumer choosing to access a PCLS at all. Also, PCLS can be taken with an annuity.We understand that firms have adopted varying approaches to structuring PCLS. For example:The original pension contract may already enable a consumer to take a PCLS, designate funds to drawdown and make income withdrawals from the drawdown fund, all without needing to establish a new contract or vary a contract.A firm may choose to give effect to PCLS in a separate contract from the contract giving drawdown or annuity options. Or give effect to PCLS in the same contract but limiting cancellation rights to the drawdown/annuity options.In such cases, a right of cancellation does not arise for the PCLS.Or a firm may have chosen to deliver PCLS as part of a:contract to join a pension schemepension transfer contractcontract to vary an existing pension scheme the first time a consumer exercises an option to make income withdrawalsUnless limited to the activities expressly specified in our rules, the firm will be treated as voluntarily adding cancellation rights in relation to other rights arising under that contract, including those relating to PCLS. Our rules do not prevent a pension provider from choosing to offer cancellation rights in their contracts in additional circumstances beyond those set out in our rules. Firms will need to consider the implications of tax legislation when voluntarily offering cancellation rights.Where a consumer has taken a PCLS and then wishes to return that money to a pension, tax legislation will affect what firms and their customers are able to do and whether a consumer will incur a tax charge. HMRC’s newsletter provides more information.

We have received a legal challenge to our decision to award the contract for the bond consolidated tape provider. In response, we said:'We undertook a fair, competitive 2-stage process to ensure the provider could deliver a high-quality tape and the best value for money. 'This challenge means we can’t enter into a contract with the successful bidder as quickly as planned. We will do so as soon as possible and, in the meantime, continue discussions with market participants to prepare for the tape.'

Speech by Therese Chambers, joint executive director of enforcement and market oversight, delivered at AFME's European Compliance and Legal Conference 2025. Speaker: Therese Chambers, joint executive director of enforcement and market oversightEvent: AFME's European Compliance and Legal Conference 2025Delivered: 22 September 2025Note: this is the speech as drafted and may differ from the delivered versionReading time: 10 minutesKey messages:Confidence is the foundation of competitive markets and economic growth. Tackling the financial crime that damages confidence in financial services is an FCA priority.That confidence comes from action across the whole system, not just enforcement. The FCA is playing its part to build confidence through empowering consumers, being more assertive in authorisations and supervision, and supporting innovation.The UK has considerable strengths and should feel confident about the future. From market reforms to proactive outreach and international cooperation, the FCA is strengthening the UK’s reputation for integrity and competitiveness in wholesale markets.

An individual has been convicted for breaching the Data Protection Act, but acquitted of fraud and unauthorised business offences, following a prosecution brought by the FCA. On Monday 1 September, Taunton-based Nicholas Harper, aged 26, pleaded guilty to encouraging or assisting an offence to be committed in breach of the Data Protection Act.Following a retrial at Southwark Crown Court, a jury today (19 September) found Harper not guilty of conspiracy to defraud and not guilty of an offence related to carrying out regulated activity in the UK without FCA authorisation.Harper was fined £100 and ordered to pay a £30 victim surcharge for the data protection breach.Raymondip Bedi and Patrick Mavanga were previously sentenced to a combined 12 years of imprisonment for their role in a scam which defrauded at least 65 investors out of £1,541,799.A further individual, Minas Filippidis, is wanted in relation to the same offences that Bedi and Mavanga were convicted for.Notes to editorsNicholas Harper’s date of birth is 21 December 1998.The FCA is unable to share further details about the breach of the Data Protection Act at this time.The individuals were charged in April 2023 - Four individuals face fraud charges.Harper was found not guilty of conspiracy to breach the general prohibition under the Financial Services and Markets Act (FSMA) 2000. Under Section 19 of the FSMA, a person cannot carry on a regulated activity in the UK unless they are FCA authorised or exempt (this is the General Prohibition).Harper was found not guilty of conspiracy to defraud which is an offence under the Criminal Law Act 1977 and the Fraud Act 2006.Find out more information about the FCA.

Motor insurers have changed their settlement and compensation practices after the FCA found some insurers had short-changed customers on stolen or written off vehicle claims. It means that an estimated 270,000 motorists are expected to receive £200m in compensation for historic claims that were underpaid, breaching rules on handling claims fairly. Of this, £129m has been paid to date to almost 150,000 customers.The FCA has carried out detailed work with insurers, following an initial review last year, which found that in some cases, automatic deductions to payouts were made for assumed pre-existing damage. This particularly disadvantaged careful drivers who had looked after their vehicles and made it hard for them to buy like-for-like replacements. Insurers have now overhauled their claims processes in line with the regulator’s Consumer Duty.Sarah Pritchard, deputy chief executive of the FCA, said:'We’ll step in when consumers aren’t getting fair value - and we are pleased to see that the practices which led to some unfair payouts have already changed. This means thousands of motorists are getting back what their car was really worth, in cases where cars have been stolen or written off. If you’re owed compensation, your insurer will contact you, or will have already done so - there’s nothing you need to do.'If customers are due this compensation, they will be contacted by their insurer. For anyone else who is dissatisfied with how a claim is handled, they should speak to their insurer first and then contact the Financial Ombudsman Service if they are not satisfied with the response. Customers do not need to use a Claims Management Company (CMC) to complain or make a claim.The changes now made to claims practices follow action from the FCA on vehicle valuations:In December 2022, the FCA warned insurers not to undervalue cars and other insured items when settling insurance claims and set out its expectations for firms when handling claims.In March 2024, the FCA published a multi-firm review (MFR) which identified shortcomings in insurers' valuation of vehicles. It engaged directly with firms with issues and committed to investigating further. The MFR included 12 firms and the regulator engaged with a further 6 firms, covering around 90% of the market.These changes reflect the FCA's focus to drive improvements to support a well-functioning retail insurance market which helps consumers navigate their financial lives, provides peace of mind and supports growth through the effective management of risk.Notes to editorsIn June 2023, the FCA published a Voluntary Requirement (VREQ) in relation to vehicle valuations on the Financial Services Register. This required Direct Line Group to review five years of claims outcomes and pay redress where appropriate. The VREQ has since been removed.In August 2025, Admiral announced it had set aside £50m to compensate customers who were not given a fair settlement when claiming for stolen or written off cars.The FCA’s Consumer Duty requires firms to act to deliver good outcomes for retail consumers, and that they are supported while using a financial product, including when they make claims.Wider action from the FCA to make sure consumers get fair, competitive prices and claims are handled fairly and promptly includes:Pausing Guaranteed Asset Protection (GAP) insurance sales over fair value concerns. Firms made changes to commission structures, which will save consumers £70m.Reforming pricing rules so customers are no longer charged more for their insurance at renewal for being an existing customer.Reviewing the premium finance market.A review of home and travel claims handling.Scrutinising whether the pure protection market offers fair value.Analysis showing the rise in motor premiums has largely been driven by external costs that insurers cannot control.

The ribbon was cut on a new banking hub in Monmouth, Wales, marking the first anniversary of the FCA’s access to cash rules. The rules mean that before banks and building societies change cash services, such as closing a branch or ATM, they must assess the impact. If significant gaps in cash access are found, they must plug them. Monmouth is the 121st banking hub to open in 12 months. A further 93 cash deposit services – such as ATMs and Post Office counters - have also been set up. 20 of the banking hubs were established following requests from local communities for their cash provision to be assessed.David Geale, executive director of payments and digital finance at the FCA, said:'Cash still matters - for many consumers it’s a key budgeting tool, and for small businesses, a way to handle daily takings. We’re helping to keep cash accessible in communities across the UK.'Gareth Oakley, chief executive officer of Cash Access UK said:'We’re pleased to be bringing vital cash and banking services to communities where these are needed. Our shared banking hubs and deposit services, which serve the customers of multiple banks, can provide a sustainable solution in communities where essential cash services are needed. From banking hubs to cash hubs and deposit ATMs, our services come in different shapes and sizes to best meet the needs of each community, but whatever their format, they all provide easy and convenient access to cash and banking services.'John Howells, chief executive officer of LINK said:'While the way we pay for things is changing, around five million people still rely on cash or can't use digital alternatives. Cash also provides vital resilience when digital systems fail or are unavailable. Protecting access to cash therefore remains essential. One year on, the regulations have had a positive impact and build on LINK’s ongoing work to ensure every community can continue to access cash.'As part of its 5-year strategy, the FCA is focused on helping consumers navigate their financial lives, and for many this will include the use of cash. FCA data continues to show that more than 95% of the UK population can access cash within the distances set out by the government. Notes to editorsThe FCA collects data to monitor cash coverage at a national level and regularly reports its findings publicly.The FCA monitors and supervises how designated banks and building societies are complying with the rules protecting access to cash. The different cash solutions include withdrawal and deposit ATMs, banking hubs, and Post Office counters.Consumers and communities who are concerned about accessing cash in their area can request a cash access assessment.Discussions with key stakeholders on what is working well, and how else access to cash can continue to improve, will be held later in the year. The FCA says these initial forums will focus on access to cash, with future forums broadening the scope to also consider wider banking services. However, any changes to the FCA’s powers over access to cash or banking services would have to be implemented by the government.Cash Access UK provides cash and basic banking services to communities across the UK, including sourcing and opening shared banking hubs and deposit services. LINK helps to connect a reliable ATM network to banks and building societies and is also responsible for carrying out cash access assessments.

Speech by Jessica Rusu, FCA chief data, information and intelligence officer, delivered at Merchant Taylors’ Hall, Future of Fintech 2025. The invite for this conference highlights that is has been a momentous summer for regulation – I would agree.Technology and innovation are central to both the Government’s growth plans and our own 5-year strategy.We have history here – the UK remains a leading destination for global fintech investment, attracting more capital investment than France and Germany combined in the first half of this year. Our top 11 fintechs employ over 26,000 people.For over a decade, we at the FCA have helped firms navigate regulation, providing support through a range of world-leading services like Sandboxes and Innovation Pathways.

We have decided to take no further action against Wellesley & Co Limited (WCL) after our investigation found no evidence of serious misconduct. We announced the investigation into WCL in 2022 following Wellesley Finance Ltd (WFL), an unregulated entity, entering into a Company Voluntary Arrangement (CVA) with its creditors in October 2020. At the time of WFL’s CVA, around 12,000 investors were owed £134.7m. About £80m has been returned to investors but, unfortunately, some investors have lost all that they invested. The investigation's focus was whether investors had been given misleading information and defrauded by WCL. It found that the risks were fairly described to investors and there were no signs of fraud.Background to the investigation WCL promoted and arranged high-risk investments that related to property development. These products were not covered by the Financial Services Compensation Scheme (FSCS).WCL was responsible for approving financial promotions used to market certain products to investors. There were other unregulated companies within the Wellesley Group.The amounts returned to investors under the CVA varied according to the products held. While around 60% of the money invested has been returned, investors who received preference shares as part of the CVA lost all the money they invested. This accounts for about £10m of the total money owed to investors.On 30 April 2025, WCL entered administration.We launched an investigation into WCL, the only authorised entity in the Wellesley Group of companies, after concerns emerged through our supervision of the firm.

The FCA is seeking feedback on proposals on the minimum standards crypto firms will need to comply with. The proposals mirror many requirements which already apply to traditional financial firms, such as on operational resilience and systems and controls to fight crime.The rules aim to be proportionate, allowing UK firms to compete internationally.In recognition of some of the unique features of the cryptoasset market, the FCA has opened a discussion on how the Consumer Duty, which would require firms to act to deliver good outcomes for their consumers should apply to crypto. The regulator is also seeking views on how complaints should be managed, including whether consumers should be able to refer them to the Financial Ombudsman Service.David Geale, executive director of payments and digital finance said: 'We want to develop a sustainable and competitive crypto sector – balancing innovation, market integrity and trust. Our proposals won’t remove the risks of investing in crypto, but they will help firms meet common standards so consumers have a better idea of what to expect.'We are working now on what those standards should look like, ahead of legislation to bring it within our regulation.'The proposals follow HM Treasury’s (HMT) draft legislation published in April 2025. The deadline for feedback on the consultation paper is 12th November 2025. The deadline for feedback on the discussion paper is 15th October 2025. The FCA will publish final rules in 2026.Notes to editorsRead the consultation paper.The FCA rules will apply once the necessary legislation is in place.Find out more about existing rules firms must comply with.

Speech by Kate Collyer, FCA chief economist, at Warwick Business School, Financial Regulation in Support of the UK's Growth. Productivity in our sector has stalled over the past decade and UK economic growth has disappointed since the financial crisis.There are lots of ways to measure productivity. But if we look at the ten years since 2015, the annualised change in productivity was just 0.4%. That compared to 1.1% across the whole economy over the same period.And multifactor productivity in the UK financial services sector is more or less the same today as it was in 2006, despite the huge technological change that has taken place since then. The first iPhone launched in 2007 and in financial services, we’ve gone from 3 days to make international payments to being able to complete transfers almost instantly.And that raises a challenge for regulators: could we do more to adapt our approach, and so better promote productivity and growth within our sector?Risk is goodAppropriate risk-taking has an important role to play in both regulation and well-functioning markets, and it underpins economic activity and growth.There are risks in not taking risks.For consumers, the seemingly 'safe' option can mean missing out in the long run and can have life-changing consequences.For markets and firms, risk-taking can lead to both efficiency and dynamism. And regulatory risk-taking affects how markets function and adapt to change, it affects competition and innovation and ultimately, economic growth and competitiveness.So risk is good and is a critical feature of financial markets. What role can regulation play?

The FCA is launching a £1 million campaign, letting motor finance customers know they don’t need to use a claims management company (CMC) or law firm to access an industry-wide compensation scheme the regulator is proposing. As part of the campaign, which will feature radio and online advertising, the FCA is teaming up with influencers, such as Cameron Smith (@cazza_time), to get the message to consumers.New research commissioned by the FCA shows that 79% of motor finance customers are aware that they may be owed compensation and 61% of a possible compensation scheme.However, 41% of those aware they may be owed compensation didn’t know they would not need to use a CMC or law firm if a redress scheme is introduced. Using a CMC or law firm to make a motor finance claim could cost consumers around 30% of any compensation paid. Of motor finance holders aware of the possibility of being owed compensation, 25% have already made a claim and a further 39% intend to. Among those who have already made a claim, just under half (46%) did so using a CMC or law firm.Over the next 2 months, a number of influencers will be posting information for consumers on their social media channels, including Instagram and TikTok. Online video and radio ads will launch in October. Sheree Howard, executive director at the FCA, said: 'We’ll set out plans for a free, easy-to-access motor finance compensation scheme. We’re concerned a significant number of people are unaware you don’t need to use a CMC or law firm to claim compensation. If you do, you could lose over 30% of any money you’re owed.'The FCA has recently warned consumers about scammers pretending to be car finance lenders and falsely claiming that people are owed compensation, despite there being no car finance compensation scheme in place yet. Consumers should hang up immediately and not share any information if they receive calls like this.The FCA plans to launch a consultation on the compensation scheme in early October. If the compensation scheme goes ahead, the first payments should be made in 2026.The FCA recently issued a joint statement with the Solicitors Regulation Authority warning CMCs and law firms over poor practices in motor finance commission claims. Concerns include the volume and accuracy of marketing materials, and how information is shared or verified when clients are passed on from third parties.The FCA has also required CMCs to remove or amend 396 motor finance commission promotions between January 2024 and August 2025. Notes to editorsThe survey was conducted by Critical Research between 1 and 12 August. An analysis of the survey findings will be published when the consultation launches in early October. Respondents consist of previous and existing motor finance customers.Links to Cameron Smith’s Instagram, TikTok and Instagram video.Consumers who are concerned that they were not told about commission and think they may have paid too much for their motor finance should complain now. Consumers do not need to use a CMC or law firm to complain and doing so could cost them around 30% of any compensation paid.The FCA has posted a number of Instagram videos answering key car finance questions, including what consumers should do if they’ve already signed up with a CMC or law firm and want to cancel.

Speech by Steve Smart, joint executive director of enforcement and market oversight, at the 1LoD Financial Crime Summit. Financial crime is still too often seen as a lesser offence. A small-scale scam here, a phishing email there. Non-violent, technical, almost victimless.After more than 30 years in national security and law enforcement, I can tell you that’s a dangerous misunderstanding.I’ve seen up close how it directly fuels some of the most serious crime: human trafficking, terrorism, hostile state activity.And financial crime doesn’t just steal money – it also steals confidence. Research by Lloyds Banking Group found that nearly 40% of fraud victims had lost confidence in online platforms.When people lose money to fraud, they understandably become more cautious. They lose trust in the system.And that has consequences, because trust is the foundation of growth.Without it, fewer people invest. Innovation slows and markets suffer. Capital doesn’t flow where it’s needed.So if we want a confident, competitive economy, tackling financial crime isn’t optional – it’s a prerequisite for growth.It’s how we keep the game clean and attract new players.

Charles Hunter, Kayan Kalipha and Luke Desmaris appeared before Westminster Magistrates’ Court, each individually charged with an offence relating to their social media posts. The individuals – often referred to as ‘finfluencers’ – are alleged to have encouraged social media followers to invest in foreign exchange (forex or FX) trading through high-risk products known as contracts for difference, without having the authorisation to promote these investments.The charges follow the FCA’s announcement in June 2025 of a coordinated global enforcement action targeting illegal financial promotions by finfluencers across multiple jurisdictions. As part of that operation, the FCA authorised criminal proceedings against these three individuals.All three defendants pleaded not guilty and will appear at Southwark Crown Court for a hearing on 8 October 2025.Anyone who believes they have suffered loss in relation to this matter is encouraged to contact the FCA consumer contact centre on 0800 111 6768 (freephone).Notes to editorsThe defendants’ backgrounds are as follows:a. Charles Hunter (DOB 10/09/1996), from Exeter.b. Kayan Kalipha (DOB 30/01/1990), from London.c. Luke Desmaris (DOB 01/11/1994), from Harlow.The individuals are each charged with one count of communicating an invitation to engage in investment activity, contrary to section 21(1) of the Financial Services and Markets Act 2000.A person who contravenes Section 21(1) of the Financial Services and Markets Act 2000 can be punished on indictment by a fine and/or up to 2 years' imprisonment.These charges form part of the FCA’s wider crackdown on unlawful financial promotions by finfluencers. In June 2025, the FCA led a coordinated international enforcement effort involving nine regulators across six countries. The operation resulted in arrests, interviews, cease and desist letters, and over 650 takedown requests across social media platforms and websites.Finfluencers are social media personalities who use their platform to promote financial products and share insights and advice with their followers. Many are acting legitimately and not breaking any laws. Others are individuals who tout products or services illegally and without authorisation through online videos and posts, where they use the pretence of a lavish lifestyle, often falsely, to promote success.Contracts For Difference (CFDs) are high-risk derivatives. The FCA has previously said that 80% of customers lose money when investing in CFDs because of the risks. They are often highly leveraged, which means they use debt to try and amplify returns, which can result in investors losing more than they invested. In the UK, the FCA has imposed restrictions on how CFDs and CFD-like options can be sold and marketed to retail customers. The FCA has been carrying out work to address consumer harm in the UK in this sector.Consumers should use the FCA’s Firm Checker to find out if a firm is authorised and permission for the service it’s offering. The FCA’s InvestSmart page contains useful information to help people make better investment decisions.

We’re proposing to make further cuts to data reporting, that will benefit 11,000 retail intermediary firms. Regular submission of the Retail Mediation Activities Return (RMAR) helps support firms, understand consumer outcomes, and flags any issues that may come up with retail intermediary activities.Our analysis has enabled us to reduce the reporting frequency of selected RMAR sections.Jessica Rusu, chief data, information and intelligence officer of the FCA said:'We welcome the positive feedback from firms on our earlier data reporting consultations. This latest proposal cuts unnecessary reporting, focuses only on essential information, and reflects our role as a smarter regulator, maintaining strong oversight while easing the burden on firms.'We propose to amend the reporting frequency from quarterly and bi-annually, to annual for the following returns:Section E of RMAR (known as RMA-E) – Professional indemnity insuranceSection G of RMAR (known as RMA-G) – Training and competenceSection M of RMAR (known as RMA-M) – Pension transfer specialist adviceThe consultation closes on 15 October 2025 and forms part of our Transforming Data Collection programme, which is a joint venture between the FCA and Bank of England. The programme has already reduced data reporting burden for over 36,000 firms.