Money Covered: The Week That Was – 17 April 2026

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

The fifth episode of Season 4 of our podcast, Money Covered – The Month That Was, where the team looks at the Financial Conduct Authority's Vehicle Finance Redress Scheme Consultation, is now available.

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

Headline development 

ICAEW introduces "credible basis test" for tax planning activities in updated Code of Ethics

The ICAEW has updated its Code of Ethics to include new sections on tax planning and related services. 

The updated Code defines tax planning activities and services as follows:

• Tax planning activities - “advisory activities designed to assist an employing organisation in planning or structuring its affairs in a tax-efficient manner."
• Tax planning services - “advisory services designed to assist a client, whether an individual or an entity, in planning or structuring the client's affairs in a tax-efficient manner.”

It confirms the role is for practitioners “to use their expertise and experience to assist their employing organisations or client in achieving their tax planning goals and meeting their tax obligations.” The new provisions require professional accountants to do the following before advising on or recommending a tax planning arrangement:

• Familiarise themselves with relevant tax laws and regulations (including those that might be referred to as anti-avoidance rules, or that limit or prohibit certain tax planning arrangements).
• Advise the employing organisation or client to comply with relevant tax laws and regulations.
• Obtain an understanding of the proposed tax planning arrangement (including its purpose, facts and circumstances and ultimate beneficiaries).
• Apply the “credible basis test.”
• Stand back and consider the wider reputational, commercial and economic consequences of the proposed tax planning arrangement.

The "credible basis test" confirms a professional accountant can only advise on a tax planning arrangement if they have determined the arrangement has "a credible basis in laws and regulations." This includes a review of the circumstances/substance of the arrangement, the relevant tax legislation, relevant court decisions and tax authority (e.g. HMRC) rulings or guidance, and whether the proposed arrangement is an established practice that has not been challenged by the tax authorities. 

The Code encourages practitioners to consider consulting with legal counsel or experts (or tax authorities if applicable) to reassess the validity of the credible basis determination if they become aware of circumstances that impact the original determination. If it transpires that there is no credible basis, the practitioners should inform their superiors or the client, explain the basis of their conclusion, and potentially recommend an alternative arrangement. 
 
The updated Code comes into effect on 1 July 2026 – to access it please click here. 

Auditors

ICAEW issues publication after members received extension requests for going concern assessment periods

The ICAEW has issued guidance noting that ICAEW members have contacted the Audit and Assurance Facility, flagging that they have received extension requests for going concern assessment periods.

Pursuant to ISA (UK) 570, assessments of going concern must cover at least 12 months from the date that the financial statements are approved, however ICAEW members have reported increasingly common requests for assessment periods to be extended to 15 months. The ICAEW states that this is often down to regulators, trade bodies or other third parties looking for direct or indirect comfort regarding the financial resilience of the audited entity.

The ICAEW publication states that careful consideration to these requests is required, and notes that they can potentially result in the creation of a duty of care in circumstances where auditors are asked to report explicitly on an extended going concern assessment period in the statutory audit or other report.

The ICAEW goes on to state that agreeing extension requests would result in additional work, greater auditor challenge, increased costs and extra exposure to risk.

To read more, please click here.

Brokers (including insurance)

COVID BI claims move into final phase as limitation issues come into focus

As limitation deadlines approach, COVID-19 business interruption claims appear to be entering their final phase. The broad coverage issues which dominated the early stages of the litigation have largely been resolved, and the disputes now emerging are narrower, more technical and often turn on particular policy wording.

The Supreme Court’s FCA test case was the key turning point, establishing that many disease and prevention of access clauses could respond to COVID-19 losses. Later cases have also addressed issues such as aggregation and policy limits. As a result, many of the larger coverage questions have now been resolved. 

The issues still likely to generate disputes include:

• bespoke policy wording, particularly around prevention of access clauses.
• whether losses arising from later lockdowns can still be pursued in some cases.
• when time starts to run for limitation purposes if insurers only formally deny claims later.
• the treatment of furlough payments in business interruption calculations.
• the evidential burden on policyholders in proving the occurrence of disease.
• possible claims for late payment; and
• reinsurance disputes arising out of business interruption losses.

One issue still awaiting authoritative resolution is the treatment of furlough payments. In Bath Racecourse Co Ltd and others v Liberty Mutual Insurance Europe SE and others, policyholders are challenging whether insurers were entitled to deduct furlough support from successful claims. Depending on the outcome, that issue could have a material effect on recoveries.

Overall, the remaining disputes appear to be fewer in number and more technical in nature, with outcomes likely to depend on relatively small differences in wording and application.

Pensions

FCA targets alleged misuse of pension funds at Hartley Pensions

The FCA has announced plans to take action against Hartley Pensions Limited (Hartley), a former Self-Invested Personal Pension operator that entered administration in July 2022, and an individual involved at the firm. 

The FCA alleges that Hartley provided false and misleading information and improperly withdrew and invested substantial amounts of customers’ pension funds without their consent, to benefit an individual at the firm. The individual is alleged to have dishonestly used these pension funds and made false representations to obtain money for a company they owned, before misleading the FCA to conceal this misconduct. 

Warning Notices have been issued but do not represent the FCA’s final decisions. The recipients have the right to make representations to the Regulatory Decisions Committee. If final decisions are made, the FCA intends to publish its findings in due course.

To read more, please click here. 

Regulatory developments for FCA regulated entities

FCA consult on amending the guidance on permissions for regulated crypto asset activities

On 15 April 2026, the FCA published a consultation paper on its proposals to amend the existing Perimeter Guidance Manual (the Guidance) to clarify when permission is required to undertake regulated crypto asset activities. 

The proposed amendments on the Guidance include the eventual transition of firms operating under the Financial Services Markets Act 2000 (Crypto assets) Regulations 2026 and will help firms to determine whether a crypto asset activity is within the perimeter. The amended Guidance also aims to provide certainty on new regulated crypto asset activities, including stablecoins and specified investment crypto assets. It will also outline what permissions may be needed and if any exclusions operate and apply.  

The consultation closes on 3 June 2026. 

To read more, please click here. 

With thanks to this week's contributors: Heather Buttifant, James Parsons, Brendan Marrinan, Ben Simmonds, Alison Thomas and Kerone Thomas

If you have any queries please do get in contact with a member of the team, or your usual RPC contact.