HMT/PRA: Safeguarding stability, enabling growth: the ringfencing review
HMT reports that the Government will bring forward relevant changes to primary legislation through the upcoming Financial Services and Markets Bill which are intended to create a more agile and proportionate ring-fencing framework. It will also publish a consultation on the operation of the “New Growth Allowance” and other reforms to allow ringfenced banks to provide more products and services to businesses which will be delivered by secondary legislation after the Bill has been enacted and as soon as Parliamentary time allows. PRA and FPC will review how ringfencing interacts with certain capital requirements, including how the Basel 3.1 output floor and the leverage ratio are applied to banks in the regime. PRA has announced that a consultation will be published this summer that will propose allowing firms more flexibility as to how they share operational resources across the ringfence. The Government will consult on legislation to enable surpluses in closed ringfenced bodies pension schemes to be shared with other schemes in a wider banking group, subject to certain conditions.
Last updated · 18 May 2026
Regulatory News - Financial Services & Regulation
See allHoL Financial Services Regulation Committee: Regulation of the consumer insurance market
The Committee has launched an inquiry into the regulation of the consumer insurance market, including the regulation of insurance distribution and insurance claims handling, as well as the enforcement of these regulations and the resolution of disputes between insurance firms and consumers. Responses to its call for evidence are required by 26 June 2026.
TSC: Motor insurance compensation scheme
TSC has written to Nikhil Rathi setting out a number of questions with regard to consequences of the legal challenges, administrative issues, the conduct of market participants, and FCA’s powers. TSC has requested a response by 4 June 2026.
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PRA: PS13/26: Insurance third-country branches – policy implementation and other updates
Further to CP20/25, FCA has now published feedback and final policy, including amended rules, supervisory statements and statements of policy, as well as details of changes to the draft policy.
FCA: Financing climate solutions – exploring findings from the transition finance pilot
FCA’s findings suggest many climate solutions still face a gap between technical readiness and becoming commercially investable, and that, although there is strong investor interest and capital available, it does not always match the risk profile, scale or time horizon of climate opportunities.
FCA: CP26/16: Registration of authorised fund assets
In this CP, FCA is proposing rule changes that would, amongst other matters: have the effect of allowing depositaries of authorised AIFs managed by AFMs that are also defined as AIFMs to delegate some of their safekeeping functions in respect of some private markets asset types to certain third parties; allow depositaries to delegate the relevant safekeeping function for “non-custodial” private market asset types to the AFM’s affiliates clarify elements of the authorised fund registration function requirements and clarify how the CASS 6 custody rules apply to depositaries of all authorised funds and unauthorised AIFs. Responses are required by 9 July 2026.
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