Regulatory News
FCA: Insurance financial crime controls – multi-firm review
FCA has reviewed the design of financial crime systems and controls across a selection of large insurance firms to see how effective they are. FCA found that they are mostly effective. There are areas, however, for some improvement and firms should follow good practice on risk assessments, client due diligence arrangements and transaction monitoring. Overall, FCA found that the life insurance sector was the strongest portfolio.
HMT: First Time Buyer ISA
HMT is consulting on a new product which is intended to be offered in place of the Lifetime ISA. Responses are required by 17 August 2026.
FATF: 17-19 June 2026 plenary
FATF has published a synopsis of the 17019 June 2026 plenary held in Paris. Amongst other matters, it is noted that FATF will publish a seventh targeted update on the implementation of the FATF Standards on virtual assets and virtual asset service providers in July 2026, consult on new guidance that will support the implementation of the strengthened FATF Standard on cross-border payment transparency, and will publish a report in September 206 which will examine how underground banking, hawala, and other similar service providers can be exploited by criminals.
FCA: CP26/20: Adapting our rules for a changing market: self-invested personal pensions
FCA is proposing rules with regard to due diligence requirements to reduce the risk of scams and fraud as well as a new Pension Scheme Money and Assets (PSM&A) regime which is intended to ensure firms protect and accurately record pension scheme money and assets where they use unauthorised trustees. Responses are required by 24 August 2026.
BoE: Sterling-denominated systemic stablecoins
Further to the November 2025 consultation, BoE has now published a policy statement, including feedback from stakeholders and draft Code of Practice (rules) for systemic stablecoin issuers. BoE has also published further questions for feedback in section 3 of the document. It is noted that targeted revisions to the proposals have been made with regard to backing assets and temporary issuance guardrails. Subject to feedback by 22 September 2026, BoE intends to finalise the Code of Practice by the end of 2026. Further supporting materials will follow alongside continued joint work with FCA (see section 3.3 for more details).
BoE: Private markets system-wide exploratory scenario – publication of the stress scenario
BoE has begun the scenario analysis phase of the system-wide exploratory scenario and has sent participants a hypothetical stress scenario that details a severe, but plausible, global macro-economic recession over a five-year period.
For more information
- https://www.bankofengland.co.uk/financial-stability/boe-system-wide-exploratory-scenario-exercise/publication-of-the-stress-scenario-for-the-private-markets-system-wide-exploratory-scenario
- https://www.bankofengland.co.uk/financial-stability/boe-system-wide-exploratory-scenario-exercise/private-markets-system-wide-exploratory-scenario
EBA: Risk assessment publications
EBA has published its Spring 2026 risk assessment report, Q1 2026 Risk Dashboard and Spring 2026 risk assessment questionnaire results.
PRA: CP9/26: Basel 3.1 – adjustments to the internal model approach for market risk
PRA’s consultation proposes targeted changes to support international alignment and proportionality, including: extending the monitoring period for the profit and loss attribution test from one year to three; adjusting PRA’s treatment of activity that has limited trading data to include a more targeted approach to identifying risks that cannot be modelled, and reducing barriers to transitioning to full IMA approval by adjusting calculations for firms who use a mix of the internal models and standardised approaches. Responses are required by 18 September 2026.
BoE: CCP global international default simulation
BoE has reported on the outcome of an exercise undertaken in November 2025 in which 38 CCPs participated in a coordinated fire drill exercise simulating the failure of a hypothetical common participant. BoE participated in the lead authorities’ group with the Bundesbank, ESMA, BaFin and CFTC. The group helped design and oversee the exercise, and surveyed participants to identify lessons learned and improve future exercises.
IOSCO: SupTech – mapping the use of technology in financial supervision
IOSCO’s report provides a summary of a survey of 49 jurisdictions on their current and expected future use of SupTech tools for supervision and regulatory oversight.
For more information
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