Money Covered: The Week That Was – 5 December 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, where the team looks at Employment Practices Liability insurance and its relationship to Directors & Officers insurance, is now available.

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

Headline development

FCA confirms plans to streamline complaints process for firms

The FCA has published Policy Statement PS25/19, outlining significant changes to the complaints reporting process for regulated firms. The initiative aims to reduce administrative burdens and improve clarity across the sector.

Key changes include clearer guidance, a more user-friendly reporting interface and streamlined data submission requirements to eliminate duplication and unnecessary complexities.  In addition, five separate complaint returns will also be replaced by a single consolidated return. The FCA will also introduce a fixed 6-month reporting period for all firms to ensure consumers benefit from high-quality, actionable complaints data.

Sarah Pritchard, FCA deputy chief executive, commented: "These improvements are a significant step forward in ensuring transparency and consistency across the sector. By streamlining returns and introducing clearer guidance, we’re making it easier for firms to provide high-quality complaints data while strengthening our ability to protect consumers, particularly those who are most vulnerable."

To view the Policy Statement, please click here.

Pensions

TPR sets out its priorities for modernising pensions regulations

The Pensions Regulator (TPR) has published a speech by its Chief Executive, Nausicaa Delfas, outlining TPR’s vision for reform and its priorities for implementing the Pension Schemes Bill. TPR has stated that it is a pivotal moment for pensions, warning that 14.6 million people are under-saving and risk inadequate retirement income without systemic change. Delfas identifies three priorities: (1) improving governance; (2) delivering value for money; and (3) ensuring savers are well-informed about retirement choices.

In respect of governance, TPR says that trusteeship must evolve as schemes consolidate into larger funds, with higher governance standards. This includes trustees taking responsibility for improvements in data quality and technology adoption. TPR expects to launch a joint consultation with the FCA and DWP early next year on introducing a framework that ensures defined contribution pensions receive value for money. TPR has also warned that most savers risk losing value when accessing their pension pots, as only one in five currently have a plan for how to access their funds. 

TPR wants trustees to consider the design, cost, and overall value of decumulation solutions from now so that they are ready for when duties come into force. Delfas also stated that TPR is working to reduce the regulatory burden, including by cutting the volume of evidence documents required from master trusts by around half and reviewing regulatory capital reserving requirements to ensure they are proportionate.
 
To read more, please click here.

Trustees urged to 'step up' in fight against pension fraud 

TPR has called on trustees to take action to beat pension fraud as the "first line of defence", following analysis from Action Fraud which has revealed that savers over 55 are at a higher risk of being scammed. 

TPR wants more trustees to sign up for its 'Pledge to Combat Pensions Scams' campaign, and for those that have signed up to go one step further and self-certify they are turning their commitment into action. Following the launch of the Pledge five years ago in partnership with the Money and Pensions Service (MaPS), over 650 schemes and organisations have signed up, with more than 31.5m memberships now protected. 

To read more, please click here. 

FOS developments

FOS spends £900k on abandoned AI tool

The FOS' annual report and accounts for the 2024/2025 year show that £3.5m was spent on the watchdog's data strategy, which included "designing and building new data warehouses and providing core foundations for the development and strengthening of [the FOS'] artificial intelligence and reporting strategies”. However, the accounts also show a write off of £900k due to an "impairment of our document identification Al solution due to a change in the technical solution”. It is understood that FOS has decided to use an off-the-shelf AI product, and is moving away from a large technology programme.

The FOS has said: "We are delivering a once in a generation reform programme to modernise our service and make it fit for today’s economy. The continuous delivery of changes and improvements is a key priority, and we are delivering at pace. We are harnessing the power of available technologies – including AI – to deliver efficiencies and transform our operations, allowing us to become a more agile organisation and focus our judgment where it matters most.”

To read more, please click here.

FOS sets out strategic priorities for a fairer and improved service 

The FOS has unveiled its strategic priorities for the coming year, signalling a renewed focus on reform and enhanced service delivery. In its latest announcement, FOS emphasises its commitment to modernising operations, with a particular drive to streamline case-handling processes and deliver swifter, more consistent decisions. This modernisation effort is underpinned by investment in new technology and a review of internal procedures, aiming to make the service more efficient and accessible.

Central to the FOS’ plans is a pledge to improve the experience for both consumers and financial businesses. The organisation is placing greater emphasis on clear communication and transparency, ensuring that its processes are easier to navigate and that parties involved in disputes are kept well informed throughout. FOS also highlights the importance of collaboration, engaging with industry bodies and consumer groups to ensure its approach remains relevant and responsive to the evolving financial landscape.

Looking ahead, the FOS' objectives for the next year include adapting to new types of complaints and responding to changing consumer needs. The service reiterates its core commitment to impartiality and fairness, striving to deliver balanced outcomes for all parties. These reforms and forward-looking plans reflect the FOS’ goal to drive positive change within the financial dispute resolution sector, reinforcing its role as a trusted resource for both consumers and businesses

To read more, please click here.

Regulatory developments for FCA regulated entities

FCA brings forward lifting of the pause on motor finance complaints to 31 May 2026 and issues 'Dear CEO' letter

On Wednesday the FCA confirmed it will be lifting the pause on the handling of motor finance complaints on 31 May 2026 (rather than 31 July). The regulator has confirmed this timeframe allows it to finalise the compensation scheme and give firms a reasonable period to prepare, while the early lifting of the stay "reflects its commitment to ensuring consumers receive fair and timely outcomes".

The FCA paused its handling of some motor finance complaints in January 2024 in order to prevent inconsistent outcomes for consumers while it assessed whether there had been adequate disclosure of commissions between motor finance lenders and brokers. The FCA notes that legal clarity from the Supreme Court and High Court allowed it to proceed with a compensation scheme for customers who were treated unfairly. 

Moreover, in a "Dear CEO" letter sent on 3 December, the regulator reminded firms that they should be progressing complaints and be ready to start issuing final responses if they are not covered by any scheme.  It will publish the final compensation scheme rules in February or March 2026. It has confirmed that it will consider how the rules interact with the end of the complaint handling pause, to avoid firms having to send final responses that would otherwise be dealt with in the scheme. 

To read more, please click here. 

Emerging risks

Crypto governance needs private law frameworks, says master of the rolls

The Master of the Rolls, Sir Geoffrey Vos, has emphasised the essential role of private law in governing crypto assets and decentralised finance (DeFi). He argued that private law which comprises of contract, property, and trust law provide the necessary legal frameworks for resolving disputes and clarifying rights within the rapidly evolving crypto sector. Sir Geoffrey highlighted that, while regulatory measures are important, they cannot fully address the complexities of ownership, transfer, and enforcement of rights in digital assets.

He explained that private law offers certainty and predictability, which are crucial for market confidence and the protection of participants in crypto transactions. The Master of the Rolls also noted that the courts are well-placed to adapt existing legal principles to new technologies, helping to fill gaps left by regulation and ensuring fair outcomes. In his view, effective crypto governance depends on a robust private law foundation, enabling innovation while safeguarding legal rights and obligations.

To read more, please click here. 

With thanks to this week's contributors: Daniel Parkin, Dorian Nunzek, Ben Simmonds, James Parsons, and Lauren Butler