Regulatory News
HMT: Draft SI: Central Counterparties Compensation Scheme (Independent Valuers) Regulations 2026
HMT has published draft Regulations which set out the obligations on HM Treasury following the resolution of a central counterparty in relation to its appointment of an independent valuer, as well as the methodology to be followed by such an independent valuer in determining whether any “no creditor worse off” compensation may be due. The Regulations come into force on the day after the day on which they are made.
UK Finance: Good practice in AI governance
UK Finance has published a report on emerging good practice in responsible AI governance and architecture for UK financial services. The report sets out observations relating to financial services firms’ current governance practices, emerging challenges for firms and practical considerations for responsible AI adoption.
FCA: Operational resilience: demonstrating resilience in practice
FCA has published a webpage setting out examples of good practice and areas for improvement in firms' compliance with its rules on operational resilience. Examples cover the following areas: important business services and impact tolerances; mapping resources and dependency risk; scenario testing and demonstrating resilience in practice; identification, remediation and validation of vulnerabilities; communication plans and strategy; and governance.
Financial Services and Markets Bill 2026-27
The Financial Services and Markets Bill 2026-27 (FSM Bill) has had its second reading in the House of Commons. The House of Commons Public Bill Committee has published a call for evidence to inform its consideration of the FSM Bill. The Committee will scrutinise the FSM Bill line by line and is expected to report on it by 15 December 2026.
PRA: PS20/26: Amendments to the Large Exposures Framework – Part 2
PRA has published its second policy statement on amendments to its large exposures framework (PS20/26). It sets out PRA's final policy on exposure value of securities financing transactions, trading book exposures, and the use of credit risk mitigation techniques. The changes set out in the policy statement take effect on 1 January 2028. PRA encourages firms seeking to have a permission to apply for the new non-core large exposures group permission or higher permission as early as possible from 1 July 2027.
BIS: Additional IRRBB Pillar 2 guidance
BIS has published a consultation paper on proposed additional Pillar 2 guidance on interest rate risk in the banking book (IRRBB). The proposals respond to shortcomings identified in banks’ management of IRRBB, particularly during periods of elevated inflation, sharp interest rate increases and heightened market volatility. Responses are required by 9 February 2027.
BIS: Technical amendments – consolidated guidelines and sound practices
BIS has finalised a new section of its website that sets out a consolidated version of its guidelines and sound practices for banks and supervisors and is consulting on consequential amendments to the Basel Framework to update cross-references to refer to the relevant chapters in the consolidated guidelines. Responses are required by 21 December 2026.
FCA: Blog by Sarah Montgomery: The not-so-fine print – making consumer contracts fair
In this blog, Sarah Montgomery discusses FCA’s reviews of consumer terms, including case examples, and what FCA expects of firms with regard to consumer contracts.
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FCA: Annual Public Meeting – unanswered questions
FCA has published a document containing responses to unanswered questions from its recent Annual Public Meeting covering a wide range of topics.
FCA: New rules for the public offers and admissions to trading regime
FCA has noted that, although it had considered consulting on perimeter guidance for the public offer regime, it has decided to allow more time for the regime to bed in.
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