Money Covered: The Week That Was – 25 September 2026

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

Headline development 

FCA study finds 59% of adults have not considered financial protection products 

On 21 September 2026, the Financial Conduct Authority (FCA) published its final report from the market study into the distribution of pure protection products to retail customers.

The report found that for consumers who actively hold pure protection products, the market generally delivers positive outcomes. However, the FCA has identified that a significant "protection gap" persists. Despite positive outcomes for existing policyholders, 58% of UK adults hold no protection products. 59% of those without cover have never even considered their protection needs. The FCA has noted that the causes of the protection gap include demands-side drivers, such as low awareness and misconceptions, and behavioural biases, as well as supply-side drivers such as perceived regulatory ambiguity and underwriting delays for non-standard lives. 

The FCA has structured an integrated programme of remedies running from Q4 2026 through to late 2027. This includes remedies on the demand-side, such as expanding dedicated protection content across the MoneyHelper platform, incorporating pure protection information directly into the Digital Property Information Protocol, and charging the Protection Distributors Group with establishing and leading a multi-year, market-wide consumer engagement and awareness campaign. 

The FCA also intends to introduce remedies on the supply-side, including encouraging firms to access the ongoing FCA Digital Sandbox and targeted Supercharged Sandbox cohorts to test AI-driven underwriting, alternative data sources, tackling medical evidence bottlenecks, and introducing solutions for precarious and variable income workers.

To read the FCA's report, please click here.

Accountants and auditors

Revised standards on use of external experts for auditors 

On 23 September 2026, the Financial Reporting Council (FRC) published revisions of two standards that govern how auditors and assurance practitioners use the work of external experts. The FRC's aim was to align the UK requirements with amendments issued by the International Auditing and Assurance Standards Board (IAASB). 

The revisions focus on a recurring pressure point in modern audits. Auditors often require input from external specialists to evaluate complex areas that sit outside mainstream accounting expertise. This can include valuation specialists, actuaries, tax experts, environmental or climate-related specialists, and other niche disciplines. If an external expert's work is to be used, the standards determine how far the auditor must go to satisfy themselves that the expert is suitably qualified and independent-minded, and that the work is fit for purpose. The FRC revisions change how UK auditors evaluate an external expert’s competence, capabilities and objectivity. The revisions also clarify the requirements for using an external expert’s work and reinforce the need for robust evaluation and documentation. 

There is a significant emphasis on documentation as, particularly in regulatory inspections, enforcement matters, and litigation, the quality of the file often becomes the proxy for the quality of the judgements made.

To read the FRC's report and consider the standards in more detail, please click here.

Regulatory developments for FCA regulated entities

FCA signals tougher expectations on support for vulnerable consumers in payments sector

The FCA’s review of a sample of payment firms found significant differences in how effectively firms identify and support consumers in vulnerable circumstances. Firms demonstrating good practice took proactive steps to encourage customers to disclose support needs, used customer data and interaction signals to identify potential vulnerability, and regularly tested the effectiveness of their identification processes. The FCA also highlighted the role of technology in helping firms identify and record vulnerability more consistently.

In terms of customer support and communications, stronger firms tailored their approach to individual needs by offering flexibility in communication channels, formats and timing. Effective firms ensured that support arrangements were embedded consistently across the organisation rather than depending on individual employees. They also tested and refined their support frameworks, trained intermediary staff, and designed communications that were clear, accessible and appropriate for vulnerable consumers, helping customers make informed decisions.

The FCA further emphasised the importance of robust governance, management information (MI) and oversight arrangements. Firms achieving good consumer outcomes defined what “good outcomes” looked like for customers with different needs, collected and analysed vulnerability-related MI, and regularly reported findings to senior management. Effective firms used customer feedback, complaints data, quality assurance reviews and other insights to drive continuous improvement. The FCA also stressed the need for firms to monitor intermediaries closely, using performance data and intervention where required. Firms are expected to review the report’s findings and improve their arrangements where necessary, with the FCA warning that it will continue to use its supervisory powers where firms fail to meet regulatory expectations.

To read more from the FCA, click here. 

With thanks to this week's contributors: Lauren Butler, Haiying Li, Daniel Parkin, Sourav Shinagare, Damien O'Malley and Dorian Nunzek.

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