On 3 April 2025, the Financial Ombudsman Service (FOS) published its 2025/26 Plans and Budget. Key points from the publication include: The FOS aims to bring down the number of non-car commission cases waiting for a resolution, to improve the time it takes for customers to receive an answer on their case and their experience of the FOS. It also plans to continue to work motor finance commission (MFC) cases as far as it can and within the parameters of the ongoing legal and regulatory action outside its control. The FOS is continuing to progress its plans to transform and improve its service for customers, with a focus on reducing the time it takes to provide customers with answers on cases by further increasing its capacity to resolve cases productively; building flexibility into its workforce to respond to reasonable changes in demand; and sharing greater insight with industry. At the start of 2025/26, the FOS will implement changes to its funding model so that professional representatives are charged a case fee for using the service. A further focus for the year will be to engage with the Economic Secretary to the Treasury’s review of the FOS and the feedback received as part of the FOS’s joint Call for Input with the FCA on whether and how it should play a role in resolving mass redress events in future.

On 2 April 2025, the Financial Conduct Authority (FCA) published the feedback it received to discussion paper DP23/1 on finance for positive change, along with its response and next steps. Background DP23/1 was published in February 2023, with the aim of encouraging an industry-wide dialogue on firms’ sustainability-related governance, incentives and competences. The FCA noted at the time that it intended to use the feedback in considering what the industry would find most helpful in this developing area and in developing its future regulatory approach. Feedback The FCA notes that the responses it received were generally positive about the importance of sustainability matters and the role of the themes outlined in DP23/1. It summarises the feedback received in relation to: Objectives, purpose, business and strategy. The role of the board and senior management. Accountability. Incentives and remuneration. Investor stewardship. Training and competence. Common themes across the responses received included the need for new regulations (e.g. the Consumer Duty and the Sustainability Disclosure Requirements (SDR)) to “bed in” before determining whether any additional rules would be needed. The role of the International Sustainability Standards Board standards, and previously the Task Force on Climate-Related Financial Disclosures recommendations, in establishing a global baseline for sustainability disclosures was also mentioned. FCA response In its response, the FCA welcomes the level of engagement and flags the important role the engagement and dialogue has played in building its understanding of the state of play. It highlights the rules it has introduced since DP23/1 in relation to some of the themes, including the Consumer Duty, the SDR and labelling rules, and the Anti-Greenwashing Rule, and notes that many respondents to DP23/1 acknowledged the importance of these measures. The FCA recognises the importance of allowing time for new measures to be implemented before introducing further rules in these areas, and that current practices are still developing in the areas covered by the DP that are not captured by these measures. Next steps The FCA confirms that it is not currently considering introducing new rules on the themes discussed in DP23/1, although it notes that those themes remain important to firms’ success in embedding sustainability considerations, delivering value to consumers, and supporting market integrity. It plans to continue monitoring developments in the market to ensure it is functioning well, focusing on areas where potential harm to consumers, market integrity or competition is greatest and where it thinks regulatory action can make a positive difference. The FCA also explains that it will continue to promote the themes discussed in DP23/1 through other domestic and international initiatives, including carrying out supervisory engagement, bringing market participants together to develop market-led solutions, and influencing the global stage.

On 3 April 2025, the European Securities and Markets Authority (ESMA) published MiFIR Review Consultation Package 4; On transparency for derivatives, package orders and input/output data for the derivatives consolidated tape. Background The MiFIR review (Regulation (EU) 2024/7913) introduces two new articles, Article 8a for pre-trade transparency and Article 11a for post-trade deferrals, that effectively separate the non-equity regime into two – one for bonds, structured finance products (SFPs) and emission allowances (EUAs) under the amended Articles 8 and 11; and another one for derivatives, with the new Articles 8a and 11a. In order to ensure a consistent approach of the transparency regimes in each asset-class and reflecting the clear political steer for prioritising the review of the transparency regime for bonds, ESMA decided to tackle these mandates in separate publications. On 16 December 2024, ESMA published a final report which addresses the transparency mandate for bonds, SFPs and EUAs. In this latest consultation ESMA addresses the transparency mandate for derivatives under Articles 8a and 11a of MiFIR. Proposals This consultation includes ESMA’s proposals: On the new MiFIR transparency regime for exchange-traded derivatives (ETD) and over-the-counter (OTC) derivatives. It sets out the new scope of derivatives subject to transparency, it proposes to apply the new liquidity determination to pre-trade waivers and introduces amendments to post-trade transparency fields and flags. On the new deferral regime for ETD and OTC derivatives, including the different size thresholds and deferral durations to be applied for post-trade transparency. For amendments to provisions related to the conditions under which MiFIR trade transparency requirements are disapplied to transactions entered by a member of the European System of Central Banks. To review Commission Delegated Regulation (EU) 2017/21942 (‘Package order RTS’) in particular taking into consideration the new scope and liquidity determination. Deriving from ESMA’s new mandate to develop draft regulatory technical standards prescribing data quality requirements for prospective consolidate tape providers and data contributors, covering the OTC derivatives tape. Next steps The consultation closes on 3 July 2025. ESMA expects to publish a final report and submit draft technical standards to the European Commission in Q4 2025.

The SEC voted to end its defense of the rules requiring disclosure of climate-related risks and greenhouse gas emissions. The rules created a detailed and extensive special disclosure regime about climate risks for issuing and reporting companies. The full update can be found here on our US Regulatory Intelligence platform.

House Republicans urged the SEC to reform current rules on shareholder proposals, warning that “the politicization of the proxy process continues to place a substantial burden on public companies[.]” The full update can be found here on our US Regulatory Intelligence platform.

SEC Commissioner Hester M. Peirce outlined seven strategies for Congress to streamline crypto regulation. The full update can be found here on our US Regulatory Intelligence platform.

On 2 April 2025, the Competition and Markets Authority (CMA) launched a consultation on its review of those provisions of the SME Banking Undertakings 2002 which remain in force. Background The CMA reviewed the SME Banking Undertakings 2002 in 2014 and decided in 2016 to release all but 4 provision in the Undertakings. The 4 remaining provisions prohibit 8 designated banks from compelling an SME customer to open or maintain a business current account as a condition of accessing business loans or deposit accounts. Review The CMA is now carrying out a review to determine whether, as a result of any change of circumstances, those remaining provisions are no longer appropriate and need to be varied, superseded or released. In particular, it is consulting on: Potential changes of circumstances that may mean that the provisions are no longer appropriate. If such changes are identified, whether they mean that the provisions should be varied, suspended or released. In the case of identifying the need to vary the provisions, which changes could be made. Next steps The consultation closes on 7 May 2025.

On 2 April 2025, the Association for Financial Markets in Europe (AFME) published an updated version of its MiFID II / MiFIR implementation guide for firms operating in wholesale secondary markets. The guide provides a holistic yet detailed overview of the state of play and key implementation pain points for AFME members, which are sell-side firms operating in wholesale secondary markets. This second iteration of the guide covers regulatory developments up until 20 March 2025, and will be reviewed periodically until end of 2025.

On 2 April 2025, the European Securities and Markets Authority (ESMA) published its latest annual review of EU central counterparty (CCP) supervision. The peer review focuses on the effectiveness of Member State competent authorities’ (NCAs) supervisory practices in assessing CCP compliance with the European Market Infrastructure Regulation (EMIR) requirements on outsourcing and intragroup governance arrangements. The review provides an overview of the approaches adopted by NCAs and sets out ESMA’s assessment of the degree of convergence reached by NCAs. The peer review provides an assessment of NCAs against three supervisory expectations relating to: (i) the NCAs’ established process for the CCP to notify any new outsourcing arrangement, (ii) the NCA’s review of the ongoing compliance of CCP outsourcing arrangements with the relevant requirements under EMIR, and (iii) the NCAs’ reviews of the compliance of CCP governance arrangements with the relevant requirements under EMIR. Next steps ESMA will follow up on the implementation of the recommendations made to NCAs and work to identify, where relevant, the most appropriate tools to further enhance supervisory convergence on the identification of major activities linked to risk management.

On 2 April 2025, the Single Resolution Board (SRB) issued a public consultation on expectations on valuation capabilities. The consultation is part of the SRB’s engagement with industry in order to achieve its mandate and deliver on the Single Resolution Mechanism Vision 2028 strategy’s focus on improving crisis readiness. In the consultation the SRB proposes expectations on: Valuation Data Index (VDI): the VDI strives to make a sufficient comprehensive set of information available to the SRB and/or independent valuers for performing valuations so that the risk of lacking sufficient data to tune their valuation models is mitigated. The VDI consists of: (i) an enhanced Valuation Data Set (VDS), which includes data field requests on single asset and liability level, and data at portfolio level (for trading books and liabilities); and (ii) a set of documents, which includes audit reports, risk reports, business plans, information on internal models for valuation purposes, etc. Data Repositories for Resolution (DRR): the VDI information is expected be submitted to the DRR at a predefined frequency. The minimum functionalities expected for the DRR are outlined and banks are expected to ensure the capability to regularly provide and submit the information expected in the VDI to the DRR, as well as any other additional information upon request, if necessary. The data must be of high-quality and reconcilable with other financial information. Valuation playbooks: the SRB establishes expectations on the content and structure of the valuation playbooks, which will help the independent valuer gain an in-depth understanding of banks’ internal valuation models and their application in business processes.   Next steps The deadline for comments on the consultation is 2 July 2025.

On 2 April 2025, the European Securities and Markets Authority (ESMA) issued a short press release clarifying certain aspects of the Consolidated Tape Provider (CTP) for bonds. In the press release ESMA provides clarification on the: Timing of the entry into force and application of the delegated acts related to CTP and the transparency regime. ESMA has no indication that the European Commission intends to introduce substantial changes to the draft technical standards that ESMA published on 16 December 2024 and expects them to be adopted shortly. Possibility of ESMA granting a transition period to the selected and authorised CTP for bonds. ESMA acknowledges the possibility – foreseen within the Markets in Financial Instruments Regulation – to grant a transitional period to the selected CTP, if it is requested by the applicant. In that case, ESMA can grant a short transition period to the authorised CTP, to ensure its readiness and the readiness of its contributors for the start of the CTP activities. ESMA encourages market participants to prepare for the start of the CTP without counting on an extended transition period after the authorisation of the entity.

On 1 April 2025, the Information Commissioner’s Office (ICO) published detailed findings from its review into the use of children’s data by financial services. The review looked at the gathering of children’s data from services supplying them with current accounts, savings accounts, trust accounts, ISAs and prepaid cards, with a focus on the following areas: governance, transparency, use of information, individual rights, age verification, and further contact and marketing. The review report summarises: Evidence of good practice. Evidence of risks to data protection compliance. Instances where the ICO found that improvements may be necessary to data practices. Examples of areas identified in the report where financial services organisations need to make improvements include the need to revisit privacy information as children age and their understanding increases, having specific training for staff on children’s data protection, and making more of a distinction between parents and children when conducting marketing.

On 1 April 2025, the Financial Conduct Authority (FCA) published an update relating to the notification and disclosure of net short positions. The update relates to: The publication of an update to the UK List of Exempted Shares. The Short Selling Regulations 2025. Updated UK List of Exempted Shares The FCA notes that it has completed the second stage of its biannual review of the UK List of Exempted Shares, with the updated list applying to all positions from 1 April 2025. Short Selling Regulations 2025 The update also notes that HM Treasury published the final Short Selling Regulations 2025 in January 2025, setting out high level requirements for the new UK short selling regime and also giving the FCA powers to set out more detailed rules to complete and implement the new regime. The FCA is aiming to consult on its new short selling rules in Q3 2025. It also notes that certain aspects of the regulation will be implemented once the new rules have been finalised and once there has been enough time for the FCA to make any technical and operational changes; this includes the new requirement to publish aggregated net short positions by issuer. In the interim, the existing UK short selling regime will continue to apply, including the current public disclosure of individual firms’ net short positions in issuers at the 0.5% threshold and above.

On 1 April 2025, the European Central Bank (ECB) published issue 28 of its Macroprudential Bulletin. In this issue the ECB explores the link between geopolitical risk and bank solvency. It finds that geopolitical risk weakens bank solvency, with major geopolitical shocks having the strongest impact. Macroprudential policy and microprudential supervision are key to helping banks stay resilient and absorb such shocks.

On 1 April 2025, the European Central Bank issued an opinion on the proposed Regulation amending Regulation (EU) No 909/2014 as regards a shorter settlement cycle in the Union. The short opinion only contains general observations which include the ECB welcoming the proposed Regulation’s objective of reducing the maximum duration of the settlement cycle as regards certain transactions in transferable securities from two business days to one business day after the trade date, commonly referred to as T+1.

On 1 April 2025, the European Parliament issued a press release stating that it had voted in favour of fast tracking its work on the stop-the-clock proposal to postpone the application of social and environmental reporting and due diligence measures. The European Parliament will decide on Thursday whether to delay the application of the requirements. If MEPs endorse the text on Thursday, the draft rules will only need formal approval by the Council to enter into force. Our earlier blog on the stop-the-clock proposal is here.

On 1 April 2025, the EU Platform on Sustainable Finance (Platform) published a report ‘Advancing Sustainable Finance: Technical Criteria for New Activities & First Review of the Climate Delegated Act’. In the report the Platform responds to the European Commission’s request to review and provide recommended amendments to the technical screening criteria of the economic activities included in the Climate Delegated Act adopted in 2021. The report also develops technical screening criteria for a list of new economic activities and ‘do no significant harm’ (DNSH) criteria for activities to be included in Annex II of the Climate Delegated Act, as “adapted” activities.

On 31 March 2025, the Prudential Regulation Authority (PRA) published a consultation paper, CP4/25, setting out proposed changes in relation to the deposit protection available from the Financial Services Compensation Scheme (FSCS). The PRA is responsible (under the Financial Services and Markets Act 2000) for making rules in relation to depositor protection. There are two sets of proposals, which relate to: Increasing the limits on the protection available to a firm’s depositors from the FSCS if a firm fails. Updating the rules that would be needed to facilitate the implementation of proposals made in the Bank Resolution (Recapitalisation) Bill (the Bill). Increase in depositor protection limit The PRA’s proposals in relation to protection limits include: Raising the deposit protection limit from £85,000 to £110,000 with effect from 1 December 2025 (for firm failures occurring on or after that date). Increasing the limit applicable to certain temporary high balance (THB) claims from £1 million to £1.4 million, also with effect from 1 December 2025 (for firm failures occurring on or after that date). Changes to the information firms are required to disclose to depositors and other consumers, both in relation to the updated protection limits and the availability of protection more generally. A six-month transitional period is proposed, until 31 May 2026, for firms to update their disclosure materials. Updates relating to Bank Resolution (Recapitalisation) Bill The Bill proposes to introduce a new resolution tool which would enable industry funds (provided via the FSCS) to be used to recapitalise a failing firm to support its sale or transfer to a bridge bank, where its use is judged to be in the public interest. Those proposals, which HM Treasury consulted on in January 2024, would expand the FSCS’s functions to include making recapitalisation payments and levying firms to recoup those payments. The PRA is proposing to introduce new and amended rules to enable the FSCS to fulfil those new functions under the Bill. It explains that it is consulting on the proposals now on the assumption that the Bill remains in substantively the same form, so that the proposed consequential changes to the PRA rules can be made to implement the new mechanism as soon as possible. If the proposals set out in the Bill are not ultimately made, the PRA would not introduce its associated proposed changes. Other changes The PRA has also identified certain provisions that are now spent and references that are no longer required, and is proposing to modify or delete certain chapters of its Rulebook accordingly. Next steps The deadline for responses to CP4/25 is: 30 June 2025 for proposals related to the FSCS protection limits. 30 April 2025 for proposals related to the Bill. (This shorter consultation period is to ensure that the necessary rule changes can be made in time to allow the FSCS to fulfil its new functions should the Bill receive royal assent.) The PRA expects to confirm its final rules (including final implementation dates) for the new deposit protection limits in a policy statement in November 2025. Any changes to the deposit protection limit will require approval from HM Treasury. Timings for a policy statement on the changes relating to the Bill will depend on when it receives royal assent.  

On 31 March 2025, the European Commission (Commission) issued a proposed Regulation amending the Capital Requirements Regulation (CRR) on prudential requirements for credit institutions and investment firms. The amendment, if adopted, will render permanent the current transitional approach to the Net Stable Funding Ratio (NSFR) requirement. Background Under the Basel NSFR standard, positive required stable funding (RSF) factors are assigned to short term transactions – i.e. those with an effective residual maturity of less than six months – undertaken with financial customers. In the EU, the NSFR has been implemented through the CRR, which introduced a transitional period with lower RSF factors for short-term transactions undertaken with financial customers. For banks providing funding, short-term securities financing transactions (SFTs) undertaken with financial customers and backed by collateral in the form of Level 1 assets, including EU sovereign bonds, do not currently require any stable funding. All other short-term transactions undertaken with financial customers are subject to RSF factors of 5% or 10%. This transitional arrangement is currently set to expire on 28 June 2025. The amendment would render permanent the currently transitory treatment of short‑term SFTs with financial customers for the calculation of the NSFR. Next steps The draft Regulation will be submitted to the European Parliament and the Council. The changes will enter into force once the co-legislators have reached an agreement on the proposal and after publication in the EU Official Journal. The Commission calls on the co‑legislators to process the proposals without undue delay given that the current treatment will end on 28 June 2025.

On 31 March 2025, the following Delegated Regulations supplementing the Markets in Crypto-Assets Regulation (MiCA) were published in the Official Journal of the EU (OJ): Commission Delegated Regulation (EU) 2025/300 of 10 October 2024 supplementing MiCA with regard to regulatory technical standards (RTS) on information to be exchanged between competent authorities. Commission Delegated Regulation (EU) 2025/305 of 31 October 2024 supplementing MiCA with regard to RTS specifying the information to be included in an application for authorisation as a crypto-asset service provider 2025/413. Commission Delegated Regulation (EU) 2025/413 of 18 December 2024 supplementing MiCA with regard to RTS specifying the detailed content of information necessary to carry out the assessment of a proposed acquisition of a qualifying holding in an issuer of an asset-referenced token. Commission Delegated Regulation (EU) 2025/414 of 18 December 2024 supplementing MiCA with regard to RTS specifying the detailed content of information necessary to carry out the assessment of a proposed acquisition of a qualifying holding in a crypto-asset service provider. Commission Delegated Regulation (EU) 2025/422 of 17 December 2024 supplementing MiCA with regard to RTS specifying the content, methodologies and presentation of information in respect of sustainability indicators in relation to adverse impacts on the climate and other environment-related adverse impacts. Commission Implementing Regulation (EU) 2025/306 of 31 October 2024 laying down implementing technical standards for the application of MiCA with regard to standard forms, templates and procedures for the information to be included in the application for authorisation as a crypto-asset service provider.  The Delegated Regulations and the Implementing Regulation enter into force 20 days after publication in the OJ (20 April 2025).