Financial services regulatory and risk

Trade Sanctions Developments - OTSI Releases 2025-26 Annual Review

Published on 28 August 2026. By Thomas Jenkins, Of Counsel and Davina Given, Partner and Tim Potts, Of Counsel

On 27 August 2026, the Office of Trade Sanctions Implementation (OTSI), the agency responsible for the implementation and civil enforcement of trade sanctions in the UK, released its Annual Review for 2025-2026. Below, we explore the key issues and themes arising from that publication.

Generative AI EU Market Survey – key takeaways from EIOPA's report

Published on 27 February 2026. By Alastair Mitton, Partner and Kristin Smith, Associate

Not long after the publication of a UK Treasury Committee report into AI in financial services (see our previous update here), EIOPA (the European Supervisory Authority responsible for insurance sector oversight) has published the results of its survey into the use of generative AI (GenAI) which looks at outlook, use cases and risk management.

AI in financial services – regulators' response 'too slow' and impact on retail arrangements subject to new review

Published on 06 February 2026. By Alastair Mitton, Partner and Kristin Smith, Associate

In yet another busy month relating to AI in financial services, January saw the publication of a Treasury Committee report which is critical of the speed of financial regulators' response to AI related risks, as well as the launch of a new FCA review (the 'Mills Review') into the impact of AI in retail financial services.

Digital Operational Resilience Act (DORA) – the sequel

Published on 01 December 2025. By Alastair Mitton, Partner and Kristin Smith, Associate

One of the challenges regularly mentioned by international businesses operating in the UK, is the (often subtle) differences in the way in which similar risks are regulated across the EU and UK.

FOS' jurisdiction - a judicial review with wider consequences?

Published on 30 May 2025. By Rachael Healey, Partner

FOS rejected a complaint on jurisdiction grounds finding that it had been brought out of time. The complainants challenged FOS' decision to reject the complaint on time bar grounds, arguing that the respondent bank had waived its right to rely on time bar as it had failed to raise time bar in its Final Response Letter. The High Court found that the failure of the respondent bank to raise time bar in its Final Response Letter did not mean you could infer that the bank had waived any right to raise time bar, but it did mean the Final Response Letter was not DISP compliant.

FCA launches a market study into the pure protection market

Published on 28 March 2025. By Rachael Healey, Partner and Matthew Griffith, Partner and Jonathan Charwat, Partner

Having committed to reviewing the pure protection market in August 2024, the FCA has now launched its market study alongside updated terms of reference. The focus is on fair value and commissions which is notable given that by the time the FCA publishes its findings we are likely to have both the Supreme Court decision in the MotoNovo Finance case and the Court of Appeal's decision in a judicial review of a FOS decision in the motor vehicle finance sector and the operation of discretionary commission arrangements. The market study will also be the FCA's first deep dive into the distribution aspects of the Consumer Duty in relation to in-scope products.

The Consumer Duty – a theme running through 2024 and one to continue for 2025

Published on 31 December 2024. By Rachael Healey, Partner

The Consumer Duty has made a lot of headlines this year and as we enter 2025 its unlikely to change anytime soon. The FCA continues to publish its findings as part of its review of firms' compliance with the Consumer Duty and its most recent publication addresses the FCA's findings when reviewing firms' approaches to complaints and root cause analysis. This publication again highlights good practices for firms and areas for improvement.

Santa Claus and Section 32 of the Limitation Act – a lot in common?

Published on 24 December 2024. By Rachael Healey, Partner

Section 32 of the Limitation Act 1980 has seen some focus in recent years and next year we could see an even sharper focus given its potential importance in the area of undisclosed commission cases dependent on the outcome of the appeal to the Supreme Court. A recent case rejecting a claimant's amendments to their pleadings on grounds they were out of time and s.32 did not save them provides a useful reminder of some of the guiding principles – but to start with what can we learn from Santa Claus when it comes to s.32.

SIPP providers – What's next?

Published on 13 November 2024. By Rachael Healey, Partner and Thomas Spratley, Associate

Last week the FCA issued a Dear CEO letter to SIPP operators. The letter is one of many the FCA has sent as follow-ups on the consumer duty (including the most recent letters to lifetime mortgage providers) and is a must read for those in the SIPP sector. The letter highlights the FCA's focus areas of ensuring redress is paid (where the FCA does not consider sufficient progress has been made), "outlier firms" when it comes to holdings in non-standard assets, and implementation of the consumer duty, particularly around distribution strategies/identifying target markets.

Vehicle Finance claims drive forward with a key Court of Appeal Judgment – but what are the implications?

Published on 05 November 2024. By Rachael Healey, Partner and David Allinson, Partner and James Wickes, Partner and Damon Brash, Senior Associate

A Court of Appeal judgment exploring the payment of commissions in the vehicle finance industry has been handed down by the Court of Appeal, finding in favour of the claimants and ordering repayment of the commission plus interest to the claimants. This decision comes amid the backdrop of the hotly discussed FCA investigation into vehicle finance complaints involving discretionary commission arrangements ("DCA") and a number of complaints sat at FOS and before the County Courts. We explore the key takeaways from the judgment.

ClientEarth challenges claims made by BlackRock in its sustainable funds

Published on 28 October 2024. By James Wickes, Partner

Not only are regulators clamping down on greenwashing but, as previously highlighted, ClientEarth, a non-profit international environmental law organisation, also has this issue squarely in its sights.

Uncertainty around the mandatory reimbursement cap for APP frauds – a new headache for FI firms and their insurers?

Published on 09 September 2024. By Aimee Talbot, Senior Knowledge Lawyer and James Wickes, Partner

New regulations coming on 7 October 2024 will force payment firms to reimburse victims of authorised push payment (APP) fraud up to a set limit. On 4 September 2024, the Payment Systems Regulator (PSR) announced a consultation proposing to set this limit at £85,000, vastly reduced from the previously proposed £415,000 cap. This is a potential headache for insurers as the level of the cap will impact assessment of risk and apportionment of liability between sending and receiving payment firms – and the industry will only have 7 days to prepare.

Government Details Scope for 'Phase One' of Pensions Review

Published on 22 August 2024. By Thomas Spratley, Associate

The Government has published its 'terms of reference' for phase one of its wide-ranging review into the UK pensions industry. This development is relevant to those working in the pension industry (actuaries, lawyers, administrators and investment consultants) as well as pension scheme trustees and, with that, their PTL insurers.

Further welcome news from the FCA – this time on co-manufacturing

Published on 08 August 2024. By Jonathan Charwat, Partner and Lauren Murphy, Senior Associate

Following on from our earlier blog, our review of the FCA's 'Discussion Paper' (DP24/1) continues, this time considering the rules relating to co-manufacturers of insurance products.

Potential deregulation and a pragmatic approach to commercial insurance – welcome news from the FCA

Published on 01 August 2024. By Jonathan Charwat, Partner

The FCA has published a 'Discussion Paper' (DP24/1) seeking feedback on its rules on commercial insurance including in respect of the types of commercial customers in-scope, co-manufacturing of products and bespoke insurance products.

New Labour government – what is in store for the UK?

Published on 09 July 2024. By Rachael Healey, Partner

We have a new Labour Party government for the first time in 14 years. The new government has already made various announcements, with more set to follow in the coming days, and then we have the King’s Speech on 17 July, when the Labour Party will set out its opening legislative agenda – but what can we expect from the new government impacting services regulated by the Financial Conduct Authority, pensions and accountants?

What does a new Labour government mean for the management liability market?

Published on 05 July 2024. By Rachael Healey, Partner and Matthew Watson, Partner and Andrew Oberholzer, Partner and Zoe Melegari, Senior Associate

We have a new government and the first Labour government for 14 years. What does it mean for the management liability market? We look at what Labour has promised and with that the areas those in the market will want to consider across directors and officers, employment liability and pensions.

All change: What will a Labour government mean for financial services?

Published on 05 July 2024. By Rachael Healey, Partner and David Allinson, Partner and George Smith, Partner and Matthew Watson, Partner and Andrew Oberholzer, Partner and Heather Buttifant, Associate

Options v FOS [2024] – Court of Appeal dismisses Options' judicial review

Published on 20 May 2024. By Rachael Healey, Partner and James Parsons, Senior Associate

The Court of Appeal has today dismissed Options UK Personal Pensions' judicial review (JR) of a Financial Ombudsman Service (FOS) decision. Options challenged a FOS decision upholding a complaint on the basis of inadequate due diligence on an unregulated introducer and unregulated investment. Broadly, Options argued that (1) FOS failed to explain its departure from the law, (2) made an error of law and/or (3) reached an irrational decision. The Court of Appeal decision is of relevance to any FCA regulated entity subject to the jurisdiction of FOS given its impact on FOS decision making.

The Pensions Regulator's Corporate Plan – takeaways for those involved with pension trustees, pension administrators and actuaries

Published on 08 May 2024. By Rachael Healey, Partner and Andrew Oberholzer, Partner

The Pensions Regulator (TPR) published its corporate plan for 2024-2027 last week. The corporate plan sets out the challenges to the pensions landscape and TPR's priorities for the next three years. The corporate plan notes TPR's objectives – to protect savers' money, enhance the pension system and innovate in savers' interests. It is against these objectives and a changing pensions landscape that TPR looks at its focus for the next three years – and what it says will be interesting for professional indemnity insurers and pension trustee liability insurers alike.

Recouping overpayments - The Pensions Ombudsman v CMG Pension Trustees Limited and CGI IT UK Limited – the implications of needing a County Court order

Published on 17 January 2024. By Rachael Healey, Partner and Dorian Nunzek, Associate

In November last year the Court of Appeal dismissed the Pensions Ombudsman's (Ombudsman) appeal of the 2022 High Court decision in CMG Pension Trustees Ltd v CGI IT UK Ltd [2022]. The Court of Appeal's decision upheld the High Court's decision that the Ombudsman is not a "competent court" to recoup overpayments under section 91(6) of the Pensions Act 1995.

Vehicle finance could drive redress scheme

Published on 15 January 2024. By David Allinson, Partner

We're barely into 2024 and it looks like vehicle finance arrangements could drive forward the next miss-selling saga. The volume of complaints in this area has prompted the FCA to suspend and extend certain time limits and an industry wide redress scheme could be on the horizon.

A tale of a SIPP administrator, a complainant's fraudulently intercepted email account and a missing £20,000

Published on 12 December 2023. By Rachael Healey, Partner and Ben Simmonds, Associate

The Pension Ombudsman Service (POS) recently upheld a complaint and in doing so, found a SIPP administrator (the Administrator) at fault for the release of £20,000 from Mr N's (the Complainant's) SIPP to a fraudster. The determination is a helpful reminder of the responsibilities of professionals when it comes to payment transfer requests and verifying the recipient of payments, with the POS finding that given the "red flags" in the case, contact should have been made directly with the Complainant to verify the payment request or additional checks undertaken. The determination highlights the dangers of processing transfer requests via email and that in some circumstances further checks may be needed if a request looks "fishy".

New 'polluter pays' proposals from the FCA - are these toxic?

Published on 30 November 2023. By David Allinson, Partner and Kerone Thomas, Associate

The FCA has released a consultation paper (CP 23/24), proposing new measures for personal investment firms (PIFs) to set aside capital for potential redress liabilities at an early stage. These changes aim to address consumer harm caused and reduce the burden on the Financial Services Compensation Scheme (FSCS).

Cracking Down on High-Risk Investments: FCA considers industry performance

Published on 11 October 2023. By Dorian Nunzek, Associate

After introducing stricter rules for the promotion of Restricted Mass Market Investments (RMMIs) in February 2023, the FCA continues to monitor the performance of firms, is conducting a multi-firm review and has outlined good and poor practices in the industry.