FCA: Application Notice and submissions – motor finance
FCA has published an application containing proposed summary grounds of intervention filed in the Supreme Court which relate to the motor finance case. FCA states that the Supreme Court is likely to gain assistance from hearing from the market regulator, in particular on: (i) the proper approach to the interpretation of its rules and related legislation; (ii) the interaction between private law remedies and the regulatory framework; and (iii) the broader context of the motor finance and related consumer markets.
Last updated · 13 Mar 2026
Regulatory News - Financial Services & Regulation
See allFCA: Market Watch 85
This edition of Market Watch considers how the Economic Crime and Corporate Transparency Act 2023 can help firms share customer information to fight economic crime.
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FCA: CP26/15: Reviewing the financial promotions rules for consumer credit
FCA proposes to remove provisions in CONC 3 which may be overly prescriptive or outdated and instead would rely on firms delivering the Consumer Duty’s consumer understanding outcome to ensure their communications meet consumers’ information needs and are likely to be understood. FCA is also exploring ways to improve how firms communicate APR and other credit costs to help retail customers better understand and make informed financial decisions. Responses are required by 17 June 2026. Two research papers have been published alongside the CP, which are available via the second link.
PRA: CP8/26: Funded reinsurance
PRA is proposing changes to the calculation of the counterparty default adjustment for funded reinsurance under the rules applicable to UK Solvency II firms, bringing the treatment of funded reinsurance closer to that of economically similar assets. PRA considers that the proposed changes would better reflect the underlying risks, reduce incentives for excessive use of funded reinsurance and ensure that future use of these arrangements matches the actual risks they carry. These changes would not apply to arrangements where all the risks covered are fully transferred to the reinsurer on or before 30 September 2026. Responses to the CP are required by 31 July 2026.
HMT/PRA: Changes to the Risk Transformation Regulations
Further to its July 2025 consultation, HMT has published its consultation response paper. PRA has welcomed HMT’s proposals to progress legislative reforms to the UK’s risk transformation regime, affecting ISPVs and to enable the use of PCC captives. The Government intends to take forward the reforms. Primary legislation will be introduced as soon as Parliamentary time allows to clarify funding expectations for transformer vehicles and to provide a power to make secondary legislation enabling protected cell companies to effect and carry out contracts of insurance. Secondary legislation implementing these changes would follow once that power is in place.
For more information
- https://assets.publishing.service.gov.uk/media/69ef89a808ecdb5c6f34b009/Changes_to_the_Risk_Transformation_Regulations_-_Consultation_Response_HMT_version_for_publication.pdf
- https://www.bankofengland.co.uk/prudential-regulation/publication/2026/april/pra-statement-hmt-risk-transformation-reg-response
PRA: Speech by Gareth Truran: Innovation and resilience in the BPA sector
Text of Gareth Truran’s speech of 29 April 2026 follows in which he discusses PRA’s consultation on funded reinsurance, and outlines expectations for firms and the market to support resilience, transparency and policyholder protection.