PRA: Final Notice: UK Insurance Limited
PRA has fined the firm, a subsidiary and principal underwriter of Direct Line Group and now part of Aviva plc, £10,625,000 in connection with a miscalculation of their Solvency II balance sheet during 2023 and 2024. This resulted in the firm overstating its solvency to the PRA and to the market. The miscalculation arose due to ineffective preventative and detective controls and resourcing issues in the firm’s finance and actuarial functions and went undetected by Direct Line Group’s internal controls for a significant period of time. PRA notes that this is the first time the Early Account Scheme has been used – the firm made early admissions and agreed to resolve the matter, thereby qualifying for a 50% enhanced reduction of the fine.
Last updated · 13 Mar 2026
Regulatory News - Financial Services & Regulation
See allFCA: CP26/22: Simplifying the insurance rules – a package of proposals on the scope of our rules, disclosure and advice
FCA is consulting on: narrowing the scope of the rules for non‑UK business; removing unnecessary disclosure requirements; increasing flexibility in means of disclosure; simplifying rules for advised sales of insurance products, and amending rules for PII. Responses are required by 4 September 2026.
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HMG/Government of Australia: MoU
The UK and Australia have signed an MoU (signed in April 2026 and published in June 2026). It is intended to support greater investment between superannuation and pension funds in both countries.
FCA: CP26/23: Consumer Duty – scope and proportionality
FCA is consulting on changes to its rules and non-Handbook guidance to: remove business with non-UK customers from the Consumer Duty's scope; clarify where the Consumer Duty applies and where it does not; clarify when and how firms can rely on each other when they work together in distribution chains, and explain the interaction between the Consumer Duty and other product governance rules. Responses are required by 18 September 2026. FCA emphasises that the changes are part of its plans to “give wholesale firms the confidence to apply the Duty proportionately”. A blog by Simon Walls has been published alongside the consultation.
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FCA: CP26/21: Proposed changes to the UK Listing Rules for closed-ended investment funds/ Engaging and enabling retail shareholders to vote – good practice
FCA is consulting on proposed changes to its UK Listing Rules for closed‑ended investment funds. FCA states that the changes are designed to strengthen the integrity of a board being able to act independently of any investment manager, apply consistent protections for all changes to investment manager fees and remuneration, and recognise the conflict arising where a substantial shareholder is also an investment manager. Responses are required by 14 August 2026. Alongside the consultation, FCA has published a note which sets out good practice to increase retail shareholder engagement and reduce barriers to voting.
FATF: Implementation guidance on FATF Recommendation 16
FATF is consulting on revisions to FATF’s Recommendation 16. Feedback is invited on a range of issues including whether the guidance provides sufficient clarity and support on; the detection and prevention of misdirected payments and how Recommendation16 applies to newer payment methods, such as digital wallets and mobile money. Responses are required by 21 August 2026. The consultation and an accompanying explanatory memorandum may be downloaded via the following link.