FCA regulations UK

Description

The UK's financial regulatory landscape is undergoing significant changes aimed at enhancing market resilience, promoting economic growth, and ensuring consumer protection. Here are some of the latest updates:

1. Strengthening Resilience of Financial Services

In November 2024, UK financial regulators, including the Financial Conduct Authority (FCA), introduced new rules to bolster the resilience of technology and other third parties providing essential services to financial firms. These measures aim to mitigate risks associated with operational disruptions and ensure the stability of the financial sector.
FCA

2. Focus on Private Markets

In 2025, the FCA has intensified its scrutiny of private market firms through in-person visits. This initiative follows a comprehensive survey conducted in November 2024, targeting 36 firms to assess valuation practices, risk management, governance, and record-keeping. The objective is to balance the government's mandate to enhance international competitiveness and economic growth while addressing systemic risks linked to improper asset valuations.
FINANCIAL NEWS LONDON

3. Regulatory Reforms to Boost Economic Growth

The UK government is urging financial regulators to streamline rules that may impede economic growth. Chancellor Rachel Reeves has called on regulators to reduce stringent regulations and open markets to new entrants. This initiative aims to address higher borrowing costs and potential government spending cuts, fostering a more growth-friendly environment in the financial sector.
THE TIMES & THE SUNDAY TIMES

4. Enhancing the UK Listing Environment

Efforts are underway to revive London's stock market flotations, with a focus on reducing regulatory burdens on small asset managers. Proposed measures include regulatory simplifications, redefining client classifications, and easing liquidity rules. These changes aim to create a more conducive environment for initial public offerings (IPOs) and attract new listings to the UK market.
FINANCIAL NEWS LONDON

5. Upcoming Regulatory Changes in 2025

The year 2025 is set to bring substantial changes to the UK financial services regulatory landscape. Firms should prepare for evolving regulations that will impact various aspects of their operations, including compliance requirements and market conduct standards.
PINSENT MASONS

6. Implementation of the Consumer Duty

The FCA's Consumer Duty, which came into force on 31 July 2023, represents a significant overhaul in the UK's financial services industry. It establishes a "Consumer Principle" requiring firms to act to deliver good outcomes for retail customers. Firms are expected to review their products and customer journeys to ensure compliance, with full implementation for existing products by July 2023 and for closed products by July 2024.