FCA: Supercharged Sandbox

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.

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.

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.

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.

Further to its November 2025 consultation, HMT has now published feedback and final policy position.  It is confirmed that the Government will transfer AML/CTF supervision of legal and accountancy professional services firms from Professional Body Supervisors to FCA.  Amongst other matters, the application of regulation 58 “fit and proper” requirements will be extended across legal and accountancy service providers; existing duties relating to risk-based supervision would apply to FCA’s expanded remit, and FCA will be given the power to appoint a skilled person and the power to issue directions to firms, subject to appropriate statutory safeguards to ensure their proportionate use.  Responsibility for issuing AML/CTF guidance will move to FCA, with HMT retaining a limited oversight role.  It is noted that there are no plans at this stage to introduce new legislative requirements to mandate the sharing of SARs.