FinTech Global FS Regulatory Round-Up - W/e 17 July 2026

In this edition we round up FinTech-related financial services regulatory developments for the week ending 17 July 2026.

ICYMI

• Cybercrime & Compliance: Navigating Risks in a Digital World – A Conference Report
• Company law – implementation plan for digitisation of UK share ownership published
• UK Jurisdiction Taskforce publishes final legal statement on liability for AI harms
• Mansion House 2026 speech: financial system rewiring remains a work in progress

Global

Wolfsberg Group: Guidance on banking services to non-bank PSPs

The Wolfsberg Group has published new guidance on the provision of banking services to non-bank payment service providers (PSPs). The guidance provides a practical, risk-based framework to help banks understand, assess and manage the financial crime risks associated with providing banking services to non-bank PSPs while continuing to support innovation in payments. It expands on existing Wolfsberg Group guidance by detailing common relationship types, associated risks, compliance obligations and risk management expectations for financial institutions providing services to non-bank PSPs. [17 Jul 2026] #Payments

OECD paper: AI and open finance – synergies, trade-offs and policy implications

The Organisation for Economic Co-operation and Development (OECD) has published a paper on the interplay between AI innovation and data-sharing environments in the context of open finance, with the stated aim of supporting the responsible and scalable deployment of AI innovation within open finance ecosystems.

The paper highlights mutually reinforcing benefits alongside increased complexity, trade-offs and amplified risks. It also explores a forward-looking theoretical scenario of agentic AI in an environment of growing data-sharing. 16 Jul 2026] #AI #OpenFinance

UK

HM Treasury: Update on DIGIT pilot issuance

HM Treasury has published a policy paper which outlines progress on the Digital Gilt Instrument (DIGIT) pilot issuance. The government confirmed that the first DIGIT transaction will take place by Q1 2027 and that it is taking steps to prepare for potential future issuances. [16 Jul 2026] #DIGIT #DigitalAsset

Mansion House: Government consults on modernising payment services regulation

HM Treasury has published a consultation on its approach to modernising the UK's payment services regulatory framework. The consultation notes that the pace of innovation in payments requires the current framework to be updated and seeks views on how regulation should adapt to accommodate developments in tokenised payments, Open Banking and agentic payments, while maintaining robust consumer protections. Feedback is requested by 6 October 2026. [15 Jul 2026] #Payments #Tokenisation #OpenBanking

Mansion House: Financial Services AI Adoption Plan

HM Treasury has published an independent Financial Services AI Adoption Plan, setting out ten recommendations to accelerate safe and responsible AI adoption across the UK financial services sector. The plan identifies five key themes requiring action: regulatory clarity; regulatory perimeter; AI sovereignty and resilience; skills and talent; and agentic payment readiness.

Priority recommendations include:

• regulators working together to provide accessible, joined-up AI guidance;
• the FCA undertaking a comprehensive review of the consumer and competition impacts of financial guidance generated by general-purpose large language models (LLMs);
• developing a consistent consumer disclosure standard for AI-driven financial services; and
• accelerating implementation of the critical third-party regime to include critical AI and cloud providers.

The plan also sets out broader considerations for government on AI sovereignty and cross-sector resilience. The government welcomes the plan, accepts its recommendations for government, and will work with regulators and industry on next steps. [15 Jul 2026] #AI

Mansion House: Financial Services Skills Compact launched

HM Treasury has published the Financial Services Skills Compact, a voluntary compact developed by the Financial Services Skills Commission (FSSC) on behalf of industry, with support from TheCityUK and the City of London Corporation. Launched on 13 July 2026, the compact asks signatory firms to commit to four actions:

• ensuring their entire UK workforce is future-ready by upskilling them in AI and other critical skills over a rolling three-year period;
• maintaining and/or growing structured routes into their organisation for new talent;
• assigning one member of their senior executive team as responsible for closing skills gaps within the firm; and
• publishing annual updates on progress against these commitments.

21 firms had signed up at the time of launch. [15 Jul 2026] #AI

Mansion House: Transatlantic Taskforce for Markets of the Future publishes ten recommendations on digital assets and capital markets

HM Treasury and the US Treasury have published the recommendations of the Transatlantic Taskforce for Markets of the Future (TTMF), which was jointly established in September 2025 to develop recommendations to advance UK-US financial services collaboration across digital assets and capital markets.

Alongside the report, the UK and US published a joint statement on stablecoins, outlining a shared approach to supporting a cross-border stablecoin market, encouraging alignment between their regimes, and giving market participants greater confidence and clarity.

Both governments have committed to reporting back via the UK-US Financial Regulatory Working Group on progress against the capital markets recommendations. [15 Jul 2026] #DigitalAsset #Stablecoin

Mansion House: Dematerialisation Market Action Taskforce report published

HM Treasury has published a Dematerialisation Market Action Taskforce (DEMAT) paper setting out its plan to remove paper share certificates from the UK shareholding framework. The plan recommends that paper share certificates should no longer be recognised as evidence of share ownership and should be replaced by entries on digital share registers. The report sets out a roadmap of legislative actions for the government to take and what industry must do alongside this to make the system work in practice. It confirms that shareholders do not need to do anything in preparation for the new system and that their rights will be unaffected.

The government has accepted the recommendations and will legislate to remove paper shares and mandate digital registers before the end of 2027. [15 Jul 2026] #Dematerialisation

HM Treasury consults on updated fee regime for recognised payment systems and DSA service providers

HM Treasury has published a consultation proposing updates to the fee regime applicable to operators of recognised payment systems, specified service providers and digital settlement asset (DSA) service providers. The consultation also seeks views on caps for supervisory and special project fees payable by in-scope firms. Responses are requested by 31 August 2026. [15 Jul 2026] #Payments #DigitalAsset

FCA/BoE respond to TSC questions on frontier AI cyber risks

The Treasury Select Committee (TSC) has published letters from the FCA and the BoE in response to questions from the TSC on the cyber risks posed by frontier AI models to the financial sector. Both regulators assessed the threat as material and rapidly evolving and stressed that frontier AI cyber risk is a shared responsibility requiring close coordination between firms, regulators, government and national security authorities, as well as internationally through the G7 Cyber Experts Group and Financial Stability Board (FSB) workstreams.

Looking ahead, the BoE will incorporate frontier AI scenarios into system-wide cyber stress testing and is considering whether current recovery capability standards remain adequate. The FCA is conducting a review of cyber insurance, expected to conclude later this year, and is undertaking AI Live Testing with a sample of firms to better understand AI security risks. [14 Jul 2026] #AI #Cyber

Wholesale Digital Markets Champion publishes first report on future of UK wholesale financial markets

The Wholesale Digital Markets Champion has published his first report to the Chancellor setting out a framework and 12-month roadmap for the UK's transition to tokenised wholesale financial markets. The report identifies ten priorities and a corresponding set of industry actions and supporting actions for HM Treasury and the authorities.

The report estimates tokenisation could add up to £33 billion to UK annual economic output and £14 billion in annual tax revenues by 2035. A new Digital Markets Champion Industry Taskforce, made up of nine Action Groups and an Orchestration Group chaired by the Champion, will lead delivery of the Champion’s objectives. Feedback on the report is requested by 4 September 2026.

HM Treasury has also published the terms of reference for the Champion. The Champion's key deliverables include: establishing a cross-industry taskforce with representatives from across the market ecosystem; delivering a report to the Chancellor on how UK wholesale markets can best adopt tokenisation and related technologies; proposing recommendations on distributed ledger technology (DLT) interoperability; promoting delivery of the Digital Strategy across the sector; and coordinating with the chairs of the accelerated settlement (AST) and dematerialisation (DEMAT) workstreams to deliver T+1 and the removal of paper shares. The appointment runs for 18 months. [13 Jul 2026] #Tokenisation #DigitalMarkets #DLT

Europe

ESRB: Annual report 2025

The European Systemic Risk Board (ESRB) has published its 15th annual report, covering 1 April 2025 to 31 March 2026. The report sets out how the ESRB met its mandate to identify and mitigate systemic risks to EU financial stability and to report on its activities. The paper reports that risks to financial stability remained elevated throughout 2025 and into early 2026, while the financial system as a whole proved resilient.

The ESRB identifies the potential for a sharp and disorderly market correction, possibly amplified by the non-bank financial sector (NBFC), as its most severe systemic risk. This risk is driven by stretched valuations (particularly in AI-related technology stocks), concentrated market exposures and vulnerabilities among highly leveraged investment funds and private credit vehicles with limited liquidity buffers. [13 Jul 2026] #AI

Hong Kong

SFC to host webinar on cybersecurity against AI-enabled attacks on 30 July 2026

The SFC has issued a circular to inform licensed corporations, licensed virtual asset service providers and associated entities that it will be holding a webinar (one English and one Chinese session) on 30 July 2026 via Zoom.

The webinar (see rundown and speakers in the Appendix) aims to:

• Raise awareness of the evolving threats posed by artificial intelligence (AI)-enabled cyberattacks; and
• Share the SFC's expectations, guidance, and practical measures that licensed firms can implement to mitigate the risks of AI-enabled cyberattacks.

The SFC invites firms to nominate relevant management, compliance and information technology personnel to attend the webinar, and indicated that representatives from firms' system vendors may also attend.

Firms are required to submit a single enrolment form by 24 July 2026, with enrolment limited to a maximum of three representatives per firm. Places will be allocated on a first-come, first-served basis, with priority initially given to the first nominee identified in each enrolment form, followed by the second and third nominees if places remain available. [10 Jul 2026] #AI #Cybersecurity

Philippines

BSP issues AI governance principles for BSFIs

BSP has issued governance principles to guide BSP-supervised financial institutions (BSFIs) in adopting AI. The guidance aims to improve financial services while protecting consumers and preserving trust in the financial system. The BSP promotes the responsible and ethical use of AI through five key principles: sustainability, transparency, accountability, responsibility, and security (STARS).

The memorandum applies to all BSFIs. Its implementation should be proportionate to the nature, extent, scale, complexity, and materiality of their AI systems. It should also be proportionate to the BSFI’s overall operational complexity and risk profile. The memorandum also covers outsourced service providers that support AI-related activities under a shared responsibility model.

While the principles are voluntary and non-binding, they reflect the BSP’s minimum supervisory expectations for AI adoption. BSFIs are encouraged to integrate the principles into their governance frameworks, risk management strategies, and operational processes.

Meanwhile, risks related to emerging technologies continue to be covered by the BSP’s existing Information Technology Risk Management framework.

The principles are aligned with guidelines developed by the Organization for Economic Cooperation and Development (OECD), the Association of Southeast Asian Nations (ASEAN), the Financial Stability Institute (FSI), and other organizations. [13 Jul 2026] #AI

India

RBI issues draft guidance on data governance

The RBI has issued the draft Guidance on Regulatory Expectations for Data Governance for comments. The draft Guidance is applicable across a range of entities, including banks, financial institutions, non-banking financial companies (NBFCs), asset reconstruction companies, and credit information companies (CICs).

The RBI explains that with the increasing digitalisation of the financial sector and growing adoption of technology-driven business models, data has emerged as a critical asset for regulated entities. As the volume, variety and velocity of data continue to increase, effective data governance has become essential to ensure that data remains accurate, consistent, secure and fit for purpose across functions and systems. Weaknesses in data governance and its management can lead to broader financial, operational, compliance and reputational risk for the firms.

The proposed Guidance is intended to provide support to firms in strengthening their data governance framework and promoting sound practices relating to data management across the data lifecycle. The Guidance sets out broad regulatory expectations relating to data governance, roles, architecture, metadata and lineage, quality, and third party arrangements involving data sharing.

Responses are requested by 17 August 2026. [15 Jul 2026] #Data

US

Fed, FDIC and OCC issue joint statement handling of highly sensitive information during bank examinations

The Federal Reserve Board (Fed), Federal Deposit Insurance Corporation (FDIC), and OCC have issued a joint statement setting out enhanced security procedures for the handling of highly sensitive information in connection with bank examinations. The statement describes a coordinated approach to identifying highly sensitive data and documents, and outlines enhanced review procedures to reduce cybersecurity risk whilst ensuring agencies retain full access to information throughout the examination process.

The agencies have committed to notify affected banks of any potential or confirmed material data breach involving confidential supervisory information no later than 72 hours after discovery, unless legal restrictions apply. [Jul 16, 2026] #Cybersecurity

FSOC meeting: Geopolitical risk and AI in financial services

The Financial Stability Oversight Council (FSOC) met in executive session on 15 July 2026. FSOC received a briefing on a recent interagency tabletop exercise on geopolitical risk hosted by Treasury and an update on the work of the Council's AI Working Group and four public-private roundtables held as part of the Council's AI Innovation Series. It also received the quarterly financial stability monitor covering Q2 2026 developments in banking, financial markets, household finances, financial innovation, supply chain risks, AI implications for labour and capital markets, and cybersecurity. [Jul 15, 2026] #AI #Cybersecurity

Vice Chair Bowman calls for calibrated regulatory approach to AI and financial inclusion

Fed Vice Chair for Supervision Michelle W. Bowman delivered remarks at the Fed’s third annual Financial Inclusion Conference, emphasising the central role that responsible innovation, particularly AI, can play in expanding access to financial services for underserved consumers and businesses.

Bowman explained that clear regulatory expectations, appropriately calibrated supervisory oversight, and flexibility are essential to enable banks of all sizes to innovate and reach more Americans with affordable services. She highlighted AI's potential to expand credit access for unbanked and underbanked populations through improved use of alternative data, while acknowledging the significant legal compliance challenges that arise where AI directly affects individual credit decisions. [Jul 14, 2026] #AI

U.S.–UK Transatlantic Taskforce for Markets of the Future publishes recommendations on capital markets and digital assets

The Treasury and HM Treasury have jointly published the recommendations of the Transatlantic Taskforce for Markets of the Future. The recommendations aim at deepening cross-border financial activity between the U.S. and the United Kingdom, reducing unnecessary frictions, and advancing open, market-based standards that promote innovation and growth.

The recommendations identify opportunities to enhance cross-border capital raising, update supervisory cooperation, and provide clarity for tokenised financial activity, and include support for continued industry engagement channels as markets evolve. Alongside the recommendations, the U.S. and UK released a joint statement on stablecoins supporting dynamic cross-border stablecoin activity and highlighting the key role of the private sector in money and payments. [Jul 14, 2026] #DigitalAsset #Stablecoin #Tokenisation