FCA

08/12/2025

Regulatory Updates

  • The FCA extended the deadline for responses to the motor finance compensation scheme to 12 December 2025. It expects to publish its response and any final rules in early 2026.    
  • The FCA has published its findings following a review of credit builder products.  The key findings were (a) there is little evidence of products significantly increasing credit scores, (b) they pose potential risks for consumers and (c) the majority of the credit builder products we looked at are unregulated and firms often fail to clearly explain their limitations and risks. 
  • The FCA has welcomed the Government’s decision to reform anti-money laundering and counter-terrorism financing supervision, supporting a simplified and more consistent regime that enhances oversight of professional services and strengthens collaboration with law enforcement to better disrupt financial crime. 
  • The FCA has published survey findings revealing that two-thirds of corporate finance firms not required to submit financial crime returns may be falling short of anti-money laundering rules, with gaps in risk assessments, due diligence, and oversight of appointed representatives, prompting the FCA to issue targeted improvement notices and share good practice examples to strengthen controls across the sector. 
  • Step Change commissioned new research highlighting an urgent need for additional support from financial services and debt advice providers for neurodivergent people in debt. 
  • As part of its Financial Inclusion Strategy, the UK Government announced people at risk of experiencing homelessness will be able to open bank accounts for the first time through a new pilot between Shelter and five major banks, which will allow Shelter to support people without a fixed address removing a major barrier which stops people being able to get paid work.    
  • The Financial Services Ombudsman reported a significant fall in cases which have dropped by more than a third, as professional representatives bring fewer cases following the introduction of a new charging model.  
  • The UK government has confirmed that digital ID checks under its new employment verification system will not be mandatory until individuals change jobs, aiming to reduce disruption and giving people time to adapt to the new process. It also launched the first digital ID rolling out digital veteran cards for ex-members of the armed service - the first step in the digitisation of every form of ID which will include passports, driving licences and national insurance cards.