Regulatory News
FCA: CP26/19: Decision Procedure and Penalties Manual updates
In this CP, FCA proposes changes to DEPP. These include: updating the minimum initial disciplinary penalty level for serious market abuse committed by individuals (which has not changed since 2010); clarifying FCA’s ability to increase penalties on individuals for deterrence having regard to their wealth, even where their relevant income was material; updating the treatment of individuals’ deferred income, when relevant to penalty calculation; updating income and capital thresholds for individuals’ SFH assessment; revising the composition for FCA’s settlement decision-making process where cases are referred from Market Oversight for investigation, and minor and consequential changes, following the introduction of the market abuse regime for cryptoassets. Responses are required by 10 August 2026.
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FCA: Operational resilience
FCA has updated its webpage to include a section on Frontier AI which includes links to relevant resources.
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BoE: Governance: recognised payment system operators
Further to a June 2017 policy statement and supervisory statement, BoE has now updated the supervisory statement (see Annex 2).
BIS: The anatomy of stablecoin transactions
This BIS working paper considers the economic role of stablecoins by distinguishing between individual transfer events and broader complex transactions in which individual transfers are embedded.
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TSC: Financial inclusion strategy
TSC has now published the transcript of a meeting held on 9 June 2026 attended by HMT and FCA executives. Additional topics discussed include: FCA powers; the motor finance compensation scheme, “buy now pay later”, and open banking.
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FCA: Lessons learned on publicising enforcement investigations
The HoL Financial Services Regulation Committee has now published a letter from Nikhil Rathi which sets out the conclusions of FCA’s “lessons learned” exercise into its consultation on publicising more enforcement investigations.
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FCA: Further information for firms on the motor finance compensation scheme
The Money Laundering and Terrorist Financing (Amendment) Regulations 2026/621
This SI makes changes to the MLRs and related legislation. Amongst other matters, it refines due diligence requirements, including for unusually complex or unusually large transactions, high risk jurisdictions and pooled client accounts and cryptoasset correspondent relationships; updates currency thresholds from euros to sterling; clarifies that a firm is excluded from the definition of an “insurance undertaking” to the extent it is carrying out or effecting a contract of reinsurance, and strengthens the regime for cryptoasset businesses (including change in control provisions) and aligns these arrangements with the new regulatory regime for cryptoassets.
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FCA: Emerging Technology Horizon Scan 2026
FCA’s report sets out plausible ways emerging technologies could combine to create new outcomes for consumers, firms and markets and highlights signals of new risks these technologies may enable.
FSB: Sound practices for responsible adoption of AI
FSB’s consultation report highlights the benefits and risks associated with AI use in the financial system and sets out a series of sound practices that financial institutions could apply in their organisation-wide AI governance and management of the relevant stages of AI development and deployment. It includes case studies taken from AI implementation practices by financial institutions. Responses are required by 22 July 2026.
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