Money Covered: The Week That Was - 1 August 2025

Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.

The fourth episode of Season 4 of our podcast, Money Covered – The Month That Was – is now available.  In the latest episode the team discusses the intersection between Employment Practices Liability and Directors & Officers insurance is now available.

To listen to this and all previous episodes, please click here.

Headline Developments

ICAEW announces potential merger

The Institute of Chartered Accountants in England and Wales (ICAEW) and Chartered Institute of Public Finance and Accountancy (CIPFA) have agreed heads of terms to explore a potential merger. 

The proposed tie-up between the chartered accountancy bodies hopes to boost member benefits to strengthen the accountancy profession. The proposed merger won't come as a surprise to many, as both bodies signed a joint declaration in September 2024 committing to deeper strategic alignment. 

Under the proposed terms (which will require a lengthy approval process), CIPFA will join the ICAEW group but will remain independent - as well as retaining its brand and legal entity status. 

Commenting on the proposals, the Chief Executive of the ICAEW believes that this will: "bring greater opportunities to respond to the evolving needs of our members, the profession, business and society, and to strengthen the impact and trust of the accountancy profession in the UK and around the world".

To read the announcement, click here. 

Auditors

ICAEW call for the Government to prioritise audit reform

Following the recent Government announcement that the Audit Reform and Corporate Governance Bill (the Bill) will be delayed, the ICAEW are calling for the Government to prioritise the long-awaited Bill to support corporate transparency in the UK. 

The Bill, which is expected to be the biggest ever reform of UK audit services, is poised to change the regulatory landscape by introducing further scrutiny and accountability of company directors. This in turn, is then expected to inspire greater trust in UK companies by giving an accurate picture of corporate health, attracting long-term investment and sustained growth. 

The further delay, which pushes the Bill out of the current parliamentary session, is frustrating for practitioners who remain unclear on the Government's commitment to the professional and business services sector. 

To read more, please click here.

IFAs and Wealth Managers

Treasury and FCA give mixed signals on targeted support

Last month, the FCA announced that it intended to implement a new targeted support regime, which would sit between advice and guidance. This regime, which is intended to come into force in 2026, would permit firms with the relevant permission to provide certain targeted advice to consumers for free at the point of service.  

The FCA has confirmed that, at least in the initial phases of the targeted support scheme, only directly authorised firms will be able to obtain the required permissions.  In its most recent consultation paper, it confirmed it did not intend to allow appointed representatives (ARs) to take up the scheme as it saw risks in doing so.  

In a contradictory turn, the Treasury stated in a policy note published this month that it could look at allowing ARs to take up the targeted support scheme as well, and encouraged consultation on this.  The Treasury did however confirm that in order to implement this, a new statutory instrument modifying the Financial Services and Markets Act 2000 would be necessary.

To read the Treasury's policy paper, click here.  

Financial Institutions

FCA review of benchmark administrators’ data controls

The Financial Conduct Authority (FCA) has published the findings of its multi firm review into how benchmark administrators manage data quality and operational risk. The review, released on 28 July 2025, was based on a survey of 10 firms, covering a range of structures and products. The FCA also met with these firms to clarify its understanding and gather further detail.

The review considered 5 areas:

1. Supplier onboarding

2. Data quality oversight

3. Resilience and incident response

4. Governance and assurance

5. Emerging risk awareness

The FCA found that some firms had clear processes for tracing data, detecting errors and taking action, while others relied on less developed frameworks. It also observed that most firms had not embedded emerging risk management into their governance and controls, highlighting generative AI and other fast moving market changes as areas where firms should adapt.

The regulator expects benchmark administrators to review governance, strengthen supplier oversight, and ensure senior management engagement in operational and emerging risks. Further supervisory work is planned for late 2025 and 2026, with benchmark governance and data controls remaining a focus.

To read more, please click here.

Pensions

TPO sets out three-year strategy amid surge in complaints

The Pensions Ombudsman (TPO) has published a new three-year corporate strategy in response to a sharp rise in demand. In 2024/25, it closed a record 9,435 complaints, a 42% increase from the previous year, despite a 39% rise in new cases that far exceeded forecasts.

TPO attributes the improved throughput to its Operating Model Review, which introduced measures such as expedited determinations and lead case management.

The updated strategy focuses on two core goals: enhancing efficiency and accessibility while maintaining quality, and using TPO's insights to improve standards across the pensions sector. Plans include deploying AI for administrative processes and working with schemes to improve internal dispute resolution. TPO also aims to provide clearer guidance to the industry and help members manage complaints more effectively.

The ultimate objective is to reduce complaint volumes and deliver a more responsive service. The move aligns with broader efforts to strengthen pensions oversight and consumer outcomes.

To read more, please click here.

Relevant Case Law Updates

Reasonable Diligence - Arif v Sanger

The recent judgment considered whether a Claimant could overcome a limitation defence by relying on the Defendant's alleged fraudulent conduct pursuant to s.32 of the Limitation Act 1980 (the Act).

The underlying claim related to a joint venture into which the parties had entered, to invest in, purchase and develop land in London.

The claim form was issued more than six years post-completion. The Claimant therefore relied on s.32 of the Act, arguing that the Defendant's actions were fraudulent (s.32(1)(a)) and that there had been deliberate concealment (s.32(1)(b)). The Court clarified that s.32 expects enquiries to be made in circumstances where reasonable diligence requires further investigation of matters. If that would have led to discovery of fraud or concealment, limitation isn't postponed beyond this point.

This case is relevant to claims against directors where the actions being challenged were allegedly concealed from the claimant—whether that's the company itself or its shareholders. The Court's assessment of what amounts to "reasonable diligence" on behalf of the Claimant to identify the alleged concealment and/or fraud is likely to remain an area of dispute.

To read the full judgment please click here, and to read RPC's full coverage click here.

With thanks to this week's contributors: Heather Buttifant, Hattie Hill, Alison Thomas, Kerone Thomas,  Rebekah Bayliss, Nitin Mathias, and Joe Towse.