United Kingdom: Financial Services

The FCA's Consumer Duty consultation CP26/23 proposes clarifications on how firms should support vulnerable customers, maintaining core protections while introducing more proportionate, risk-based approaches tailored to each firm's role in the distribution chain.

The FCA's Mortgages and Open Finance Policy Sprint brought together 80 stakeholders to explore how open finance could transform mortgage journeys in practice. The sprint identified that access to more data alone won't solve market challenges - success depends on whether data can be treated as trusted evidence, supported by proper infrastructure, accountability arrangements, and participation from key organizations. Critical questions emerged around liability for incorrect shared data, advice boundaries for

If you are separating and do not control the family finances, it can feel as though your former partner has an immediate advantage — particularly if you are worried about how you will pay for legal advice. In many cases, however, a lack of direct access to income, savings or liquid funds does not mean that you are unable to obtain proper representation or pursue a fair financial settlement. There may be a number of funding options available, including agreement with the financially stronger party, family or commercial borrowing, specialist litigation funding or, in appropriate cases, an application to the court.

For overseas fund managers distributing to UK retail investors, the new Consumer Composite Investments regime represents a fundamental shift in disclosure requirements. Understanding manufacturer responsibilities, distributor arrangements, and the UK's financial promotions framework will be critical to meeting the June 2027 implementation deadline.

This comprehensive weekly roundup examines the FCA's proposed streamlining of investment fee disclosures, exploring whether standardized cost reporting will enhance consumer confidence or introduce new complexity. The bulletin also covers Companies House's intensified identity verification enforcement, PASA's concerns about the new defined benefit surplus regime, and the FCA's research revealing widespread misconceptions about AI-generated investment advice among young investors.

The Financial Stability Board (FSB) has published a letter from its Chair and Governor of the Bank of England, Andrew Bailey, to G20 Finance Ministers and Central Bank Governors.

The United Kingdom has introduced a new disclosure regime for investment products that are made available to retail investors in the United Kingdom. The new requirements apply to consumer composite investments (CCIs) and took effect on 6 April 2026. The CCI regime is a significant regulatory change that applies to any firm—including non-UK firms—that make investment products that are CCIs available to retail investors in the United Kingdom.

The UK's Office of Financial Sanctions Implementation has issued its second-largest penalty against Citibank NA for nearly £4.8 million, stemming from 970 payments that breached Russian sanctions totaling over £19.7 million. The fine highlights critical failures in customer screening processes and preparedness, with OFSI applying discounts for voluntary disclosure and settlement while criticizing the bank's delayed reporting and policy changes that complicated payment prevention.

The FCA has published CP26/23, proposing significant changes to the Consumer Duty framework nearly three years after its implementation. These proposals aim to clarify the regime's scope, enable more proportionate compliance approaches, and address uncertainties that have led firms to adopt overly cautious practices, particularly in wholesale markets and complex distribution chains.