Regulatory changes…. like buses

We've been waiting a long time (in fact for nearly a year) for an officially updated Regulatory Initiatives Grid. But now we have it and it's long! There are a few overall themes, and several sectoral initiatives.

Here are just a few of the key papers we can look forward to, in addition to some key papers recently released. For a longer list, see our FIN post.

General themes

Finishing Brexit: there are 19 initiatives underway resulting from the repeal and replacement of assimilated law.

Data transformation: reducing burdens on firms by deleting little-used or duplicative templates and putting in place as simple and cohesive a reporting system as possible.

Rule simplification: gradual progress and proposals throughout 2025 to retire old guidance and portfolio letters, and action plan due in Q3 2025.

Redress framework: possible consultation on modernising.

Governance and operational requirements

Resilience: consultation on ICT and cyber-resilience likely in mid-2025, with policy statement on incident and outsourcing and third party reporting by year end.

Governance: commitment to remove certification regime, but no timeline for this.

Non-financial misconduct: Delayed, but FCA to publish next steps by the end of June 2025.

Tech

Open Banking and Open Finance: legislation to put a long-term regulatory framework for open banking in place (by the end of 2025).

Payment services

Payment and e-money safeguarding: policy statement and interim final rules in late 2025 to take effect in 2026, then legislation to allow end-state final rules.

Review of PSRs and EMRs: commitment but no timetable.

Consumer Finance

Consumer credit advertising: full review of CONC3 "in the next year".

Mortgage rule review: Consultations from the FCA in May and June on simplification of mortgage rules and future of the mortgage market.

Motor finance commission: FCA decision on redress scheme or other next steps likely over summer 2025.

Buy Now Pay Later regulation: legislation imminent, with FCA regulation taking effect 12 month later.

Consumer Credit Act reform: Initial policy proposals imminent with further consultation in early 2026.

Insurance

Commercial insurance market regulation: consultation on rule simplification before summer 2025.

Retail investments

Advice guidance boundary review: 2025 consultations for pensions and retail investments.

Funds

Repeal and replace of UCITS Directive: planned but no fundamental policy changes – unlike the alternative investment fund managers regime already under consultation.

ESG

Transition plans: Consultations in 2025 from Government on implementing credible transition plans to align with 1.5˚ goal of the Paris Agreement and from Government and FCA on sustainability reporting and disclosure.

Crypto

Full cryptoasset regulation: At least 5 papers during 2025.

We'll be keeping tabs on all of these in FIN. Please get in touch if you'd like to talk about how any of them may affect your business.