Financial firms have made progress in preventing sanctions breaches – with £37bn worth of assets frozen in the UK as of last year – but gaps remain, warns the FCA. The Office of Financial Sanctions Implementation (OFSI) and the Office of Trade Sanctions Implementation (OTSI) implement financial and trade sanctions. The FCA supports them through its role supervising firms within the financial services sector. This includes checking they have adequate sanctions systems and controls.Since February 2022, the FCA has proactively assessed the sanctions systems and controls of over 150 firms across a range of financial services sectors. In its latest review, the FCA found:Repeated examples of firms exhibiting strong controls and identifying potential sanctions breaches before they occurred.The most common root causes of reported sanctions breaches were weaknesses in due diligence, alert management, transaction and name screening, as well as the management of frozen assets and compliance with licences. Firms face challenges in detecting and preventing specific breaches of trade sanctions.The range of controls used for trade sanctions compliance - related to bans on the export and import of goods, technologies and services - was greater than those used for financial sanctions.The regulator is sharing good and poor practice it identified to help all firms further strengthen their sanctions controls.Reports from firms continue to relate primarily to the Russian sanctions regime, but the FCA also saw reports relating to Libya and, increasingly, Iran and North Korea.Today (28 May), the FCA has signed a Memorandum of Understanding (MoU) with OTSI (PDF). It sets out the arrangements for cooperation and the sharing of intelligence between the two organisations.There is already an MoU between the FCA and OFSI (PDF).Notes to editorsSanctions systems and controls in our firms: our findings.The FCA previously looked at firms’ sanctions systems and controls in 2023.

On 22 May 2026, Sukate & Bezeboh Ltd (SB Remit) entered administration. Charles Turner and Frank Ofonagoro were appointed as joint administrators. SB Remit is a small payment institution authorised by the FCA to provide payment services.On 13 May 2026, SB Remit agreed to a voluntary undertaking, which restricted the activities it could undertake. These measures included restrictions preventing the firm from accepting new customer funds.On 22 May 2026, Charles Turner and Frank Ofonagoro of Opus Restructuring LLP were appointed as joint administrators.Further details of the restrictions placed on the firm are available on the Financial Services Register. The joint administrators are responsible for:Managing customer claims against SB Remit.Returning funds to customers where possible.As SB Remit continues to be authorised by us, we will engage with the joint administrators to seek the best outcomes for customers.

Firms that approve financial promotions should be doing more to protect consumers, an FCA review has found. The FCA found that the strongest firms were applying the Consumer Duty from the start of their processes. They were able to make sure that every promotion approved was accurate, clear and reached the right audience.However, the FCA also found that some firms approved adverts with unsubstantiated claims or allowed retail investors to see promotions intended for professional clients. In some cases, firms relied on third-party templates instead of doing proper checks themselves.The review focussed on sampling promotions that had been approved since the firm was authorised.Lucy Castledine, director of consumer investments at the FCA, said:'Consumers see these promotions daily - in social media feeds, online adverts, websites and apps. When approvers fail in their responsibilities, people can be misled into harmful financial decisions. 'Firms must make sure every promotion they sign off is fair, clear and not misleading.' As a result of the FCA's work, one firm has already had to conduct a remediation exercise and some websites have been blocked to retail customers.The FCA will continue to monitor compliance and will hold firms that fall short to account.Notes to editorsThe review assessed 10 authorised firms that approve financial promotions for businesses which are not authorised by the FCA.Section 21 approvers are FCA-authorised firms that have the permission to approve financial promotions for businesses that aren't authorised. They must check that these promotions follow FCA rules, so the products can be legally marketed to UK consumers.The FCA looked at firms who were approving financial promotions for Buy Now Pay Later, crowdfunding and corporate finance firms. The rules on authorised firms approving promotions for unauthorised firms came into force on 7 February 2024.

We’re inviting applications from senior practitioners at smaller regulated firms in the general insurance and consumer credit sectors to join the panel. The Smaller Business Practitioner Panel provides independent advice and challenge from the perspective of smaller firms, helping to shape our work at a time of significant change in UK financial services regulation.Its key remit is to provide input to the FCA from the industry to help us meet our strategic and operational objectives from a smaller business standpoint.The deadline for applications is 11.59pm on Sunday 28 June 2026.Find out more and how to apply (PDF).

We’re pleased to announce that our Annual Public Meeting (APM) will be held in Edinburgh for the first time on 6 October 2026, marking an important milestone for us a UK-wide regulator. The announcement coincides with a visit to Edinburgh on 26 May by our chair Ashley Alder, who was there to open a new office space, demonstrating our commitment to growing our presence in Scotland, and expanding our workforce of more than 350 colleagues.Edinburgh continues to strengthen its position in global financial centre rankings, underlining Scotland’s importance to the UK’s financial services sector and its international competitiveness.The decision to host the APM in Edinburgh reflects our ongoing investment in Scotland and our commitment to serving consumers and firms across the whole of the UK. The APM will take place at the Assembly Rooms and will be a hybrid event, with people able to join online as well as in person, helping to widen participation.Ashley Alder, chair of the FCA, said: 'Bringing our Annual Public Meeting to Edinburgh for the first time is a deliberate step to strengthen our visibility and accountability right across the UK.'Scotland is a critical part of the UK’s financial services sector, and as we continue to grow our presence here, we want to be closer to consumers and the firms we regulate. Holding the APM in Edinburgh, reflects our focus on being more outward-facing, more engaged, and better connected to the markets we serve.'Chris Cummings, chief executive of the Investment Association said: 'Edinburgh has a long heritage as a leading centre for financial services, including investment management, and it’s great to see that recognised as the city hosts the FCA’s Annual Public Meeting. This is the first time the meeting has been held outside London, underlining both Edinburgh’s importance to the financial services sector and the FCA's role as a UK-wide regulator.'Derek Mitchell, chief executive of Citizens Advice Scotland: 'We welcome the continued commitment and presence of the FCA in Scotland by holding their Annual Public Meeting in Edinburgh. This creates a stronger connection and gives greater voice to the consumers that Citizens Advice Scotland represents.'Sam Ghibaldan, chief executive of Consumer Scotland said: 'Consumer Scotland has a strong relationship with regulators, including the FCA. I am delighted the FCA has chosen to hold its Annual Public Meeting in Scotland for the first time. Consumers in Scotland face a variety of challenges such as access to cash, affordable credit and financial inclusion, and we look forward to continuing our work with the FCA on these issues.'

Fast‑growing and innovative financial services businesses can now apply for more support to help them grow. The FCA’s Scale-up Unit provides tailored support to firms, helping them navigate regulation so they can scale sustainably. The unit is now open to solo-regulated firms to apply.The unit offers a dedicated point of contact and practical support to help navigate regulatory processes, develop innovative products and understand the impact of policy changes.Jessica Rusu, FCA chief data, information and intelligence officer, said:'We want firms to be able to grow with confidence. This initiative will help them navigate regulation, scale sustainably and contribute to making the UK the best place to start and grow a financial services business.'The FCA and PRA are already supporting 6 dual-regulated firms through the Scale-up Unit as part of a pilot. This has provided the FCA insight into how it can best support growing firms and will continue this dialogue with solo-regulated firms.The FCA will use insights from participating firms to inform wider policy and process improvements, ensuring regulation keeps pace with innovation.Applications for FCA solo-regulated firms to join the Scale-up Unit are open from 20 May to 22 June 2026.Notes to editorsRead more about the eligibility criteria for solo-regulated firms and how to apply to the Scale-up Unit.Read more about the Scale-up Unit.The Scale-up Unit sits alongside the FCA’s existing programmes, including Innovation Pathways, Pre-Application Support Service (PASS) and Early and High Growth Oversight function, creating a clear pathway from start-up to scale-up.

Half (49%) of young drivers have bought insurance through social media or messaging apps, new research reveals. With 4 in 10 (39%) unconfident in spotting the signs of a fake policy, thousands could be paying for cover that doesn’t exist. The FCA is warning 17-to 25-year-old drivers about 'ghost broking' scams where criminals sell bogus insurance policies through social media and messaging platforms.Ghost brokers pose as legitimate insurance sellers but offer cheap rates. The policies they sell are either entirely fake, are invalid because they falsify details to bring the price down, or are cancelled shortly after purchase. Victims are left unknowingly uninsured and at risk of prosecution, fines and even having their car seized.Almost half of those polled (45%) said they generally trust products or services bought through social media. Young drivers may also be at greater risk due to cost of living pressures – with 1 in 7 (15%) saying they find it difficult to fit insurance into their monthly budget.To avoid being taken for a ride, the FCA is urging young drivers to:Be wary of offers that sound too good to be true.Avoid deals only available through social media and messaging platforms. Genuine sellers should have a legitimate website, phone number and address.Use the FCA Firm Checker to confirm the firm is authorised. Drivers should check the firm’s contact details match those listed on Firm Checker to make sure they are dealing with the genuine firm.Graeme Reynolds, director of insurance at the FCA said:'Tight budgets make cheap offers tempting – and scammers take advantage of that. Don’t get ghosted by a policy that doesn’t exist. Check the FCA Firm Checker before you buy, because driving uninsured could cost you far more than any premium.'The FCA is working with social media influencers to warn young drivers about the growing threat of ghost broking.Notes to editorsInformation for consumers on ghost broking.Survey conducted by Kantar from 24 April to 1 May 2026 among 1,000 UK drivers aged 17 to 25.The Insurance Fraud Bureau and Aviva both report an increase in ghost broking. The Insurance Fraud Bureau found a 52% increase in ghost broking activity from 2022 to 2024 and Aviva saw a 22% surge in cases since 2023.Driving without valid insurance is a criminal offence in the UK and can result in a fixed penalty, points on a licence, or disqualification.The campaign supports the Government’s Motor Insurance Taskforce goals to tackle uninsured driving, fraud and crime.Fighting financial crime is a priority for the FCA, as part of its 5-year strategy.

When consumers are wronged, many rightly seek fair compensation. Some complain directly, without paying a penny using free Ombudsman services. Others turn to claims management companies (CMCs) or law firms.They can provide a valuable service and support access to justice.However, we’ve seen firsthand from the way some claims firms have handled car finance complaints that, all too often, they make a difficult situation worse.Poor practices include unwanted texts or emails sent to people who never asked to be contacted, driving 6 million complaints to the Information Commissioner’s Office; misleading adverts, particularly on social media, promising returns that don’t stack up; unfair cancellation fees quietly buried in contracts; consumers being signed up – sometimes to multiple claims firms – without meaningful consent; and reports of fraudulent signatures.All of this leaves consumers harassed, confused, potentially misled, and out of pocket.

The Treasury has published its policy statement today on reform of the Consumer Credit Act 1974 (CCA). Reform of the CCA is an important step towards a more flexible regime that supports effective competition and innovation, while maintaining appropriate consumer protection both now and in the future. The proposals set out a framework that places greater emphasis on FCA rules and guidance rather than prescriptive requirements set out in legislation.We intend to consult on the key elements of the consumer credit framework previously set out in legislation, where we have the powers to do so, considering the whole consumer credit process.Our approach will be underpinned by the Consumer Duty – which sets our expectations for firms to deliver good outcomes for consumers.As part of our policy development, we will consider existing consumer rights and protections, including for example, cancellation and withdrawal, and termination of agreements, including early settlement. Any proposals would be supported by evidence, including a cost benefit analysis and stakeholder feedback.We will continue to work closely with the Treasury, Government, Parliament, consumer bodies and other stakeholders as the reform programme develops. We will communicate openly about our emerging approach and next steps in due course.

UK financial firms can adopt tokenisation and distributed ledger technology (DLT) with greater confidence, as the Financial Conduct Authority (FCA) and the Bank of England set out a shared vision and seek industry views on the future of UK wholesale markets. Tokenisation is the process of creating a digital representation of a real-world asset – such as a share, bond or unit of currency – on a digital ledger. It has the potential to streamline wholesale markets, making everything from issuing securities to managing assets faster and more efficient. Along with greater functionality this could support market efficiency and resilience while lowering costs.The FCA and Bank have heard from industry that firms need more certainty on regulation and infrastructure as tokenisation grows. In response, they have set out their approach in key areas where firms want greater clarity, including prudential treatment, tokenised collateral and settlement instruments.They have also opened a discussion on key principles for regulation and infrastructure that could facilitate the development of tokenisation in wholesale markets.Simon Walls, executive director of markets at the FCA said:'Tokenisation has the potential to transform wholesale markets – reshaping how assets are issued, traded and settled. We want to support firms in adopting this technology to lower costs, reduce risk and unlock new services, andour partnership with the Bank of England will ensurea common approach across all parts of wholesale markets.'Today we are setting out the principles of asharedlong-term vision to give industry the clarity it needs to engage, invest and innovate with confidence. UK markets have always embraced new technology, and that will be central to ensuring the UK remains at the forefront of global wholesale markets.'Sarah Breeden, deputy governor for financial stability at the Bank of England said:'The Bank and FCA have done a huge amount to enable the responsible adoption of tokenisation in retail and wholesale finance in the UK, working with the government and the industry. The task now is for public and private sectors together to build on these strong foundations, moving from pilots to production to support financial stability and sustainable growth.'The FCA and the Bank of England are seeking industry views on where existing rules and infrastructure support or constrain the safe use of this technology. Feedback will help shape future work and inform the next steps of developing a joint roadmap for digital wholesale markets.Supporting action from the Bank of England and PRAThe Bank of England has published a consultation on extending RTGS and CHAPS settlement hours, setting out next steps towards near 24/7 settlement. The staged approach includes weekend and extended daily operating hours, subject to consultation and industry readiness. This will support cross border payments, and new payment and settlement models as tokenisation develops.The Prudential Regulation Authority (PRA) has published Dear CEO letters setting out updated guidance on the prudential treatment of tokenised asset exposures and on innovations in deposits, e-money and stablecoins. These reflect recent market developments and reaffirm expectations on risk management and compliance.The FCA's commitmentsThe FCA is committing to further work to support tokenisation in the UK, including considering how its approach to the application of client asset (CASS) rules may evolve in light of industry feedback. The FCA recently published its policy statement on progressing fund tokenisation.Notes to editorsRead the Call for Input.Feedback closes on 3 July 2026.A feedback statement will be published in the summer.The FCA recently published its policy statement on progressing fund tokenisation.The Bank and the FCA continue to work with 16 firms on the live issuance and settlement of tokenised assets through the Digital Securities Sandbox.The Bank is also committing today to launch a live synchronisationservice, targeted for 2028, and working to enable tokenised equivalents of already eligible assets to be used as collateral both at central counterparties and in its own central bank operations. This work is also supporting HM Treasury’s pilot issuance of a digital gilt instrument (DIGIT). The Prudential Regulation Authority (PRA) has published Dear CEO letters setting out updated guidance on theprudential treatment oftokenised assets,stablecoinsand othercryptoasset exposures and oninnovations in deposits, e-money and stablecoins, reflecting recent market developments and reaffirming expectations on risk management and compliance.The Bank has published a consultation on extending RTGS and CHAPS settlement hours, setting out next steps towards near 24/7 settlement, with a staged approach including weekend and extended daily operating hours, subject to consultation and industry readiness.Distributed ledger technology (DLT) is the underlying infrastructure that makes tokenisation possible. A distributed ledger is a shared, digital record of transactions that is maintained simultaneously across multiple locations or participants, rather than being held in a single central database..

Why frontier AI matters for firmsArtificial intelligence (AI) continues to evolve rapidly. Frontier AI models represent a step-change in capability, with significant implications for cyber security and operational resilience.The cyber capabilities of current frontier AI models are already exceeding what a skilled practitioner could achieve, and at a significantly higher speed, greater scale, and lower cost. These capabilities, if used maliciously, amplify cyber threats to firms’ safety and soundness, customers, market integrity, and financial stability. As more advanced models become available, these risks are expected to increase. Firms that have underinvested in core cyber security fundamentals are likely to become progressively more exposed.What this means for regulated firmsIt is essential that firms have effective protective, detective, threat containment and cyber response capabilities including to address faster and more disruptive frontier AI-driven attacks.In line with our operational resilience rules and expectations, regulated firms and financial market infrastructures (FMIs) (referred to as 'firms'), need to take action to plan for and mitigate cybersecurity risks posed by frontier AI.The Government and UK financial authorities judge that firms should be taking active steps across several domains.*Governance and strategy: Firms should ensure their boards and senior management have sufficient understanding of frontier AI risks. This is important to set strategic direction and oversee how control functions manage risks. Investment and resourcing decisions should reflect the emerging threat, including increased exposure from end-of-life systems or those out of vendor support. Firms should also consider whether they have appropriate insurance in place.Identification and risk management of vulnerabilities: Frontier AI models can rapidly identify and enable exploitation of a potentially large number of vulnerabilities across firms’ technology estates. Firms should be able to triage, prioritise, risk assess, and remediate vulnerabilities more quickly, more frequently, and at scale, including through automation where appropriate, while mitigating the operational risks from doing so.Managing risks from third parties: Firms should effectively manage frontier AI cyber risks from third parties and supply chains, including open-source software. This means firms should have the capabilities to identify, monitor, and manage external applications, libraries, and services integrated into their networks. Firms should be prepared to address and remediate vulnerabilities identified by third parties at scale.Protection: Effective access management, network security, and data protection should enable firms to reduce the attack surface a frontier AI model might access and limit the likelihood and impact of such attacks. Firms should consider adopting automated and AI-enabled defences to operate at comparable speed to AI-driven attacks. Response and Recovery: Firms should be able to respond to and recover from disruption quickly. Firms should read and consider the effective practices on cyber resilience published by the Bank, PRA and FCA in October 2025.The Government and UK financial authorities will continue to actively monitor frontier AI developments and engage with industry through the Cross Market Operational Resilience Group (CMORG).Further information for firmsFirms should also keep up to date with relevant publications in this space by CMORG and the NCSC, the UK’s technical cyber authority. For example, firms can watch CMORG’s Frontier AI Risk Mitigation Webinar (14 May 2026).In addition, the NCSC continues to publish practical guidance on how firms should consider and manage the risks from frontier AI. This includes:Preparing for a 'vulnerability patch wave', National Cyber Security Centre.Why cyber defenders need to be ready for frontier AI, National Cyber Security Centre.10 questions to ask when using AI models to find vulnerabilities, National Cyber Security Centre, NCSC vulnerability management.

The conflict in the Middle East means cost of living pressures remain top of mind – with people facing increased costs for utility bills, food and fuel. We want to remind you about our clear expectations on the support you should offer consumers in challenging times, through the Consumer Duty and our rules on protections for borrowers in difficulty.

Speech by Nikhil Rathi, FCA chief executive at the FCA's financial crime conference. A new threat landscapeFinancial crime is changing – fast.It’s more technologically enabled. More organised than ever before. And moving at speed.Which is why the fight against financial crime sits at the heart of our 5-year strategy.But it’s not just the volume that’s changed; it’s who is behind it.Organised criminal groups running professional networks that operate across borders.Take investment fraud.A personal tragedy, and one many of us here today have seen touch friends or family.Leaving them grappling with an average loss of over £25,000 – a life-changing amount of money, that they’ve likely spent decades saving.But they’re losing more than money: confidence, security and, too often, their sense of self.However, zoom out and you’ll find something even more troubling.Farms of people, thousands of miles away, working to target as many people as possible.And proceeds that flow back into criminal enterprises funding more heinous crimes. The kind with a human cost, both here and abroad.These groups are blending fraud, money laundering, sanctions evasion and cyber‑enabled crime.Putting at risk trust in the whole financial system, even economic growth. Funds that could be productively invested, diverted instead into criminal coffers.Our response has to be just as broad and adaptable.Because the reality is that our financial system is part of that supply chain – exploited by criminals moving dirty money through complex layers designed to stay hidden.And, increasingly, there are links with actors connected to some states who are deliberately weakening trust in our institutions and exploiting openness in our systems.Using their ill-gotten gains to fund other illegal and destabilising activity – whether on the streets of Khartoum or Carlisle – while staying below the radar.The damage reverberates far beyond a single victim.It destabilises our society – eroding trust in our institutions, financial system and each other.That’s the scale of what we’re dealing with.I’ve said before that separating financial services from national security is outdated and dangerous.This is a question of fundamental economic and national security.No single organisation can see that threat clearly – or disrupt it effectively – alone.That’s why we’re all here today.Financial services. Technology and infrastructure providers. Regulators. Government. Law enforcement. Consumer groups.As a collective, we have a question to face honestly:Are the ways we’ve traditionally tackled financial crime still fit for the environment we are now operating in?

The FCA has announced 2 permanent appointments to its executive team, strengthening leadership at a pivotal time for UK and global financial markets. Simon Walls appointed executive director, marketsSimon Walls has been appointed permanent executive director, markets. Having taken on this role on a temporary basis since 2024, his appointment provides continuity at a vital and volatile time for the UK and global economy. Simon will be able to drive forward work he has already started to strengthen our approach on wholesale markets and to ensure a more resilient financial system by rebalancing risk and supporting growth. Simon joined the FCA in 2006 and has held senior roles across wholesale markets, including policy, asset management and banking supervision. He played a key role in navigating significant events affecting markets, including the LIBOR (the London Interbank Offered Rate) transition and the UK’s exit from the EU. Simon Walls said: 'Britain’s financial markets have been defined for centuries by innovation, openness and integrity. I’m delighted to lead such a committed and professional team at the FCA as we deliver our ambitious markets work to further these traditions. In partnership with government and industry, we are building momentum - ensuring great outcomes for domestic and international users of markets.'Johan Sekora to join as chief operating officerJohan Sekora has been appointed as chief operating officer, relocating from Stockholm to take up the role at the start of June. Johan will play a central role in supporting the FCA’s strategy and ambition to be a smarter, more effective regulator. Johan brings over 25 years’ experience in financial services.A leading European voice on the importance of industry collaboration and the use of technology to tackle financial crime, Johan has worked extensively on accelerating the use of data and artificial intelligence to address emerging risks.Johan Sekora said: 'I very much look forward to joining the FCA team. As the leading and largest European regulator, the FCA leads from the front in many regulated areas by protecting customers, driving smarter regulation, and combatting financial crime through collaboration and the use of AI.'Nikhil Rathi, chief executive of the FCA said: 'A strong leadership team is a crucial part of us being the smarter regulator we aspire to be. Simon’s appointment provides continuity as we continue to reform our wholesale markets, while Johan brings significant international experience that will help us operate more efficiently and effectively in the interests of consumers, markets and the wider economy.'Notes to editorsSimon has held a range of roles in wholesale markets across 20 years at the FCA (previously the FSA), including the supervision of buy-side, sell-side and infrastructure firms. He was the head of the wholesale markets department from 2016, before taking up the post of director of sell-side in 2022. Prior to joining the FSA, Simon started his career on the graduate scheme at the Bank of England and holds qualifications in Economics and Law.Johan joins the FCA from SEB, a major Swedish bank, where he was global head of financial crime prevention. He has also served as chair of SAMLIT, the Swedish banking sector’s financial crime collaboration with the Swedish Police. Prior to joining SEB, he spent 20 years with HSBC in the UK and internationally, most recently as global chief operating officer, regulatory compliance. Johan holds a degree in Politics and Parliamentary Studies from Leeds University.

The FCA is reviewing how consumer investment firms support bereaved customers and whether they're getting it right. Fewer than half of bereaved customers (47%) felt they received the support they needed from financial firms, according to research (PDF).What the FCA is looking atThe review will focus on firms that advise, manage, or administer investments - including platforms, advisers and wealth managers. The FCA will examine the experience customers have from the moment the firm is told about a bereavement, through to settlement or transfer of investments.It will assess how firms communicate, how they support vulnerable customers, their service standards, and how fees are handled on bereaved accounts.Kate Tuckley, head of department, consumer investments, at the FCA, said:'When someone loses a loved one, the last thing they need is confusing letters, delays and poor service from their financial provider.'We want firms to design bereavement processes with people, not paperwork, at their centre. These processes are a real test of a firm’s culture and key to consumer trust.'Why this mattersThis follows similar FCA reviews in retail banking and insurance, where it found bereaved customers regularly faced unclear processes, repeated information requests and avoidable delays. Good practice existed but it wasn't consistent.What happens nextFrom May 2026, the FCA will contact selected firms as part of the review. It will publish findings later this year, highlighting good practice and areas for improvement.This is a priority under its Consumer Investments Regulatory Priorities (PDF) and forms part of its broader consumer duty work.Notes to editorsRead more in the vulnerability review (PDF).Find out more about the FCA.

The FCA has banned Frank Breuer from working in UK financial services and fined him £755,000 for repeatedly acting without integrity and putting customers at risk for personal financial gain. Mr Breuer was the joint owner and sole director of Bluesky Wealth Management Limited (Bluesky), which provided advice on investments and pensions. Although authorised to advise on defined benefit (DB) pension transfers, the firm did not have the appropriate professional insurance in place from April 2019. This meant Mr Breuer’s customers were at risk of not receiving compensation if something went wrong.Mr Breuer carried out at least 16 DB pension transfers while knowing he was uninsured. He also repeatedly misled the FCA about the firm’s insurance position.In October 2019, Mr Breuer agreed to restrictions introduced by the FCA to protect customers and the firm’s assets. Mr Breuer ignored these restrictions and stripped the firm’s assets by paying himself large dividends, taking personal loans and moving money through connected accounts. By September 2020, Mr Breuer knew that the FCA had concerns about the suitability of Bluesky’s DB advice and from June 2022 onwards, the Financial Ombudsman Service upheld several complaints against Bluesky on the DB advice Mr Breuer had given. He then placed Bluesky into an insolvency process in April 2023, leaving substantial customer liabilities of at least £214,772.88 to be met by the Financial Services Compensation Scheme (FSCS).Therese Chambers, joint executive director of enforcement and market oversight, said:'Mr Breuer sought to evade paying compensation due to customers as a result of his own bad pension advice and feathered his own nest in the process, stripping substantial assets from his firm. He repeatedly misled the FCA and flouted FCA restrictions. He’s not fit to work in financial services.'Anyone who has been affected by Mr Breuer’s advice should visit the FSCS website to check whether they’re eligible for compensation.Notes to editorsFinal Notice: Frank Breuer (PDF).The FSCS redress scheme is still open to claims and to date, £214,772.88 has been paid to affected customers.From June 2022 onwards, the Financial Ombudsman Service upheld complaints against Bluesky on DB transfer advice that Mr Breuer had given. In January 2023, the FCA was notified that Bluesky had failed to pay an Ombudsman award.Mr Breuer’s total financial penalty is £755,000 which includes disgorgement of financial benefit and interest.Mr Breuer breached Statement of Principle 1 (APER) and Individual Conduct Rule 1 (ICR 1) by acting without integrity.A DB pension provides a guaranteed retirement income. FCA rules require strong justification before advising a customer to transfer out of a DB pension scheme.

Speech by Sarah Pritchard, deputy chief executive, at the Investment Association's Private Markets Summit 2026. Headlines are always a tough read when funds run into difficulty.And lately, the language has been stark.Some have even asked if private credit has a canary in the coal mine.That’ll make you sit up a bit straighter, won’t it?But in this moment, it’s important to remember that stress in markets is normal – and okay, as long as the system stays resilient.Private markets, done well, can support resilience.But the range of things we need to plan for is wider than it once was, and the challenges are becoming increasingly uncertain.We know there will be situations where stress could be a problem. Those are the ones we need to plan for. Early, and together.And with the entire system in mind.That’s why we are supporting the Bank of England’s new system-wide exploratory scenario (SWES) focused on risk in private markets – so we can support a joined-up view of how these markets may function under stress.I’m often asked whether conduct risks are important.Let me be clear: while different to financial stability risks, they are no less important.They can harm investors, erode market integrity and undermine trust.Those are the risks we’re looking at.And we’re looking at them early. Taking a system-wide view. And publishing our findings so that the market is clear on our expectations.You see this in our valuations work.We know that robust valuation frameworks and processes are key to investor confidence and critical to market integrity.They are not there to eliminate judgement, but to ensure that judgement is robust, well evidenced and capable of standing up under pressure.Our report, published in March 2025, set out expectations and good practice for governance in valuation processes. There’s already been tangible change across the sector.But confidence is earned over time, not through a single review.So we’ll continue to engage at both firm and industry level – and we expect to see clear evidence of how firms have reflected on the findings and embedded them in practice.Because in private markets, confidence is rarely lost when valuations change.It’s lost when they change without explanation, or too late.We are taking the same approach in our multi-firm review of conflicts of interest, which is currently underway.We are focusing on conflicts because confidence rests on knowing decisions are made in investors’ interests, with incentives aligned to delivering long‑term outcomes.We’ve already gathered information about how firms identify conflicts and design their frameworks.Next, we’ll consider how they operate in practice before publishing our findings later this year.These conduct risks matter and should be taken seriously.We need to train the spotlight on those places where standards may not hold under pressure.Because in private markets, many problems can be traced back to first-line controls that have broken down – or appear to have done so.We’ve seen this recently.A major US private credit firm was forced to cap investor withdrawals after redemption requests worth billions came in within a single quarter.It maintains that its underlying loans are sound and the mad dash for the exit was brought on by negative sentiment. Not reality.That may well be true.But the surge in withdrawal requests tells us something important.When investors can’t see clearly into a portfolio, they won’t wait to find out what’s there.The loss of confidence didn’t happen because controls had visibly broken down. It happened because investors couldn’t trust that they hadn’t.The question isn’t whether there will be turbulence. There will be.It’s whether the system can handle it.Which brings me to what I think truly matters: where confidence comes from.Because it doesn’t come from ignoring risk, or pretending it simply isn’t there.

Kingscrown Finance Limited (Kingscrown) has stopped onboarding new customers or undertaking new business with existing customers – including extending existing credit. Kingscrown, which was incorporated in 2014, provides lending for business and investment purposes, including property investment, buy-to-let and house in multiple occupation (HMO) finance.The voluntary restrictions on Kingscrown’s business came into effect on 21 April 2026. Kingscrown has never been authorised by or registered with the FCA.Kingscrown has notified all existing customers of the restrictions and their effects and will secure all books and records. Previous FCA communications regarding Annex 1 firmsWe recently reminded regulated firms about the risks when dealing with unregulated lenders.We also raised concerns in 2024 about anti-money laundering standards directly with Annex 1 businesses in a letter to CEOs.Firms applying to the FCA for registration under the 2017 Money Laundering Regulations must ensure they comply with the relevant regulatory requirements. We will consider using our regulatory tools where we consider it appropriate to do so, including restricting the business activity of firms who are seeking to obtain registration with us.

A convicted money launderer has been sentenced to an additional 499 daysin prison for failing to fully pay the money owed under a Confiscation Order. In 2021,RichardFaithfull,now36,wassentenced to5 years and 10 monthsin prisonfor laundering £2.5 million, following a prosecution brought by the Financial Conduct Authority (FCA).He was part of a trans-national organised crime group which laundered the proceeds of at least 7 overseas investment frauds.Mr Faithfullis required topay back £529,961,based on the Court’s findings on his available assets. However, he has only paid£349,214.37.When he was originally sentenced, theJudge remarked that Mr Faithfull’s was 'serious offending' linked to the 'human misery caused by boiler room fraud' and that 'money coming in(to accounts controlled by Faithfull)was not being invested, it was simply being slaughtered'.SteveSmart,executivedirector ofenforcement andmarketoversight at the FCA,said:'Mr Faithfull’s crimes enabled millions of pounds to bescammedfrom innocent victims. He tried to evade justice. Now, having failed to repay what he should,it’sright heis put backbehind bars.'Theadditionalprison sentence was activated on Friday8 Mayat aCity of London Magistrates’ Courthearing.Mr Faithfull had been released from custody in June 2025.Even after serving the sentence in default of payment, Mr Faithfull will continue to be liable for the outstanding debt.Money recovered from Mr Faithfullwill be used to compensate the victims of his crimes.Fighting financial crime is a priority under the FCA’s 5-year strategy.Notes to editorsRichard Faithfull (D.O.B 15/03/1990).Richard Faithfull sentenced to over 5 years imprisonment for money laundering.A Confiscation Order was made on 23 July 2023. Mr Faithfull was originally ordered to pay the sum of £562,636 within 3 months to satisfy the Confiscation Order or face four further years of imprisonment. The Order was subsequently varied downwards to £529,961 on 12 March 2024 and the further sentence was moved downwards to 45 months of imprisonment.Mr Faithfull’s outstanding balance isaccruinginterest at the daily rate of £39.62.This interestwillnot contribute tothecompensation for victims.The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

Following the legal challenges to our motor finance compensation scheme, we are setting out further advice for firms and consumers. Our priorities remain to secure fair compensation for consumers as quickly as possible and ensure a healthy motor finance market.Our industry-wide scheme is the quickest, fairest and most cost-effective way to do this. As we have said, we welcome the commitment of most lenders to implement the scheme and will defend it robustly.We have summarised below the grounds of challenge we have received.It is unclear when the case will be heard. It is unlikely to be before October. We are engaging with the Tribunal and those who have challenged the scheme on the possibility of suspending some elements of it while retaining those relating to preparatory work. We will provide a further update as soon as possible.We recognise the operational strain and uncertainty firms face. We also acknowledge the frustration of consumers, many of whom have waited over 2 years for an answer.Firms should continue to prepare for the scheme until we communicate otherwise. Work that can be done now and would likely be needed in all scenarios includes:Identifying relevant complaints and agreements.Gathering the data needed to identify commission arrangements and disclosure practices, including where information is held by brokers.Working with claims companies to resolve instances where consumers are represented by more than one party. Cooperating fully and promptly with the Financial Ombudsman Service on any existing complaints that have been referred to it. To help us better understand firms’ approaches, they should still submit implementation plans by 12 May. We recognise they may need to qualify those plans and therefore we will not insist on receiving formal attestations by 12 May. Lenders should speak to their supervisor if they have any concerns.We will be pragmatic and will not require firms to communicate to customers as required by the scheme timetable.We will keep this under review as the Tribunal timetable becomes clearer and engage with lenders and consumer groups on whether any further consumer communications may be appropriate.Where complaints include both elements that fall within the scheme and elements unrelated to motor finance commission, we will consider whether firms should now progress the unrelated elements. Complaints that are entirely outside the scope of the scheme should continue to be progressed in the usual way.