Money Covered: The Week That Was – 6 March 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

Spring Statement 2026 – Key Takeaways

Chancellor Rachel Reeves delivered her Spring Statement on 3 March 2026. Whilst it contained relatively few new policy announcements, the Office for Budget Responsibility (OBR) used the update to revise a number of its economic forecasts.

The OBR now expects UK growth of 1.1% this year, down from the 1.4% forecast at the time of the Autumn Budget. The downgrade reflects signs of a softening labour market and weaker business activity.

Looking further ahead, the outlook is slightly stronger. The OBR expects growth to average around 1.6% a year from 2027, with forecasts of 1.6% in 2028 and 1.5% in both 2029 and 2030. Fiscal headroom is also expected to improve modestly, increasing from £21.7bn to £23.6bn by 2029–30 under the Government’s stability rule.

The OBR also highlighted geopolitical developments as a key risk to the outlook. In particular, conflict in the Middle East could affect global energy markets and place renewed pressure on inflation and growth.

On defence spending, the OBR said the Government’s commitment to spend 3.5% of GDP on defence would require national security expenditure to rise from 2.4% in 2025-26 to 3% by 2030-31. The OBR also estimated that the additional 1.1 percentage points of spending referenced for 2034-35 would cost close to £40bn in 2025-26 prices.

Changes to the inheritance tax (IHT) regime announced since the October 2024 Budget are also expected to have a notable impact. According to the OBR, these changes could account for around 14% of total IHT revenue by the end of the 2030–31 financial year. This includes bringing inherited pension pots within the scope of IHT from April 2027, alongside changes to agricultural and business property reliefs.

The OBR also expects unemployment to increase in the near term, reaching around 5.3% in 2026, before falling back to around 4.1% by 2030.

Market reaction to the Statement itself appeared fairly muted, with little movement from pre-Statement levels. Bond yields rose during the morning and equity markets fell, reflecting concerns that higher energy prices could feed through into inflation.

To read more, please click here.

Accountants

Office for Professional Body Anti-Money Laundering Supervision publishes report on AML

On 3 March 2026, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) published its review of the Professional Body Supervisors (PBSs) responsible for preventing financial crime in the legal and accountancy sectors (the "Review").

The Review found that professional services firms are more effective than they have ever been since 2018, and that of the 25 PBSs that OPBAS oversees, it found that PBSs generally demonstrate good levels of compliance.

However, concerns remain over OPBAS' ability when it comes to the use of enforcement as a deterrent against firms falling short of the expected standards. Concerns were also raised for some PBSs where their dual role as both a membership organisation and a supervisor can hinder effective action.

OPBAS also found that law firms were being fined up to six times more than accountancy firms for AML breaches.

Whilst the figures cover the 2023/24 period, they provide an interesting insight into how the professional services sector is regulated. With the FCA due to take the role as a single regulator for AML, this is likely to be one of the final reports published by OPBAS.

To read a copy of OPBAS' report, please click here.

Insolvency Practitioners

Insolvency Service publishes 2025 Individual Voluntary Arrangements statistics

The Insolvency Service has released its 2025 statistics on Individual Voluntary Arrangements (IVAs) outcomes and providers in England and Wales. 

The statistics show that 71,855 IVAs were registered in 2025, which represents a 7% increase from 2024. IVAs accounted for 57% of all individual insolvencies - showing a steady decline when compared to 62% in 2023 and 70% in 2022. At the same time as the decrease in IVAs, the volume of debt relief orders (DROs) has increased in proportion. This shows that individual insolvency management trends are shifting towards the short term, with DROs being in place for 12 months.

The failure rate of IVAs has also remained steady, with 1 in 17 (just over 6%) of the IVAs registered in 2024 failing within the first year of the IVA being in place. The failure of IVAs, meaning that the debtor has failed to keep to the terms imposed, is a difficult statistic to establish following the Covid-19 pandemic and the support measures in place at that time. However, overall, the IVA failure rate for agreements in place from 2021, appears to be increasing for one-, two- and three-year agreements. 

To read more, please click here.

Pensions

Pensions Regulator releases analysis of defined contribution market

On March 5 2026, the Pensions Regulator (TPR) released its analysis of the occupational defined contribution (DC) market. 

The analysis has revealed that more than 13 million members are in defined contribution schemes that offer drawdown and 86% of the largest schemes offer at least one retirement income option. Joey Patel, TPR's Director of Policy, has heralded this shift towards the inclusion of in-scheme retirement options as "just the start". 

However, the TPR's analysis has identified that the smaller end of the market is lagging behind with only 46% of small schemes offering any decumulation products. Significantly, the report identified that over two fifths of all schemes offer their members no decumulation products at all. 

The TPR has highlighted this issue; noting that "too many members in smaller schemes are left without support when they reach retirement. This is not good enough." 

To remedy this market gap, the TPR has urged that small schemes must either act or consolidate in order to promote savers' interests. 

To read more, please click here.

Regulatory developments for FCA regulated entities

Regulator begins accepting applications for permission to provide targeted support

On 2 March 2026, the Financial Conduct Authority (FCA) began to accept applications for permission for firms to provide targeted support. 

In a previous policy statement dated 11 December 2025, the FCA identified that consumers were getting insufficient advice on investment decisions, creating what the FCA termed as an "advice gap". 

The targeted support scheme is designed to address firms' reluctance to provide advice or guidance due to the ambiguous distinction between what constitutes investment advice (a regulated activity) and guidance (an unregulated activity). There were also concerns that the framework governing investment advice was particularly onerous and the operational burden of complying with obligations under this framework vastly outweighed any benefit gained by providing guidance to consumers. 

The targeted support scheme provides regulated firms with a four-step process that enables guidance to be provided to consumers without having to comply with the obligations under the FCA rules in COB9 and 9A. 

These four steps are: 

(i) Pre-define the circumstances in which targeted support will be provided. 

(ii) Pre-define the consumer group to be supported. 

(iii) Pre-define the guidance that will be provided to that consumer group; and 

(iv) deliver the pre-defined guidance to a consumer who falls within the scope of the pre-defined consumer group. 

For the full set of rules, please click here.  

Financial Conduct Authority releases second Regulatory Priorities Report

On 4 March 2026, the Financial Conduct Authority (FCA) published its Regulatory Priorities Report for the consumer investment sector. 

This report is the second of nine Regulatory Priorities reports that are designed to replace its portfolio letters. Each report sets out the FCA's areas of focus for that sector. 

In relation to the consumer investment sector, the FCA is prioritising building a strong investment culture, strengthening trust, securing good consumer outcomes and strengthening financial crime controls. 

To build a strong investment culture, the FCA is aiming to streamline its investment advice rules and guidance through its Advice Guidance Boundary Review. It is also planning to implement the Consumer Composite Investments (CCI) framework which will aim to support retail investors as they navigate their investment choices. The CCI framework will provide a sole framework, and is an attempt by the FCA to provide a more flexible and outcomes-focused approach to product disclosure compared to the previous regime under UCITS KIID and PRIIPs. 

To read more, please click here.  

Financial Conduct Authority finds good and poor practice by asset managers under greenwashing regime

On Friday, the Financial Conduct Authority (FCA) confirmed that it had found good and poor practice by asset managers using labels under the Sustainability Disclosure Requirements (SDR) regime, which came into force in July 2024. 

The regime seeks to help consumers navigate the market and combat greenwashing, but the regulator noted "it hasn’t always been clear whether or how firms meet the labelling requirements, or whether disclosures accurately reflect what the fund invests in."

Asset managers can select one of four labels for qualifying investment products under the regime: sustainability focus, sustainability improvers, sustainability impact, and sustainability mixed goals. The FCA noted that although firms have become more familiar with requirements, their sustainability objectives were not always clear and some funds held conflicting investments (having invested in companies that are inconsistent with the fund's sustainability objective). 

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

Guidance released on good and poor practice under the Sustainable Disclosure Requirements regime

Following on from the above, on 27 February 2026, the Financial Conduct Authority (FCA) released guidance on good practice and poor practice for firms wanting to apply a sustainability label under the Sustainable Disclosure Requirements (SDR) regime.

SDR labels were introduced to improve transparency and assist consumers with their investment decisions in the sustainable fund market. 

The FCA has stated that good disclosures are "clear, concise and easy to read and understand." Firms should consider the overall impression that a disclosure provides, including its visuals. 

Good disclosures should also disclose relevant information regarding the fund, and accurately reflect what the product invests in. In order to determine whether the requirements are compiled with, the FCA will require a model portfolio as part of its authorisations process. 

To read more, please click here.  

Regulator submits request for information from interest platforms

The Financial Conduct Authority (FCA) has raised a request for information on the interest platforms are holding relating to cash, along with information on transfers out and outsourcing to third parties. 

The request is the latest in a series of requests, the last of which saw the FCA request that advice firms provide information about their businesses and client propositions last summer. 

The FCA has not conducted a market study of advisor platforms since 2019. There is speculation that these requests may be the start of another inquiry into the industry. 

To read more, please click here.  

Financial Conduct Authority to ask some firms to take remedial actions regarding ongoing advice

The FCA confirmed, in its paper setting out Regulatory Priorities in Consumer Investments, published on 4 March 2026, that it will be asking a small number of firms to take remedial actions following the February 2025 review on ongoing advice.  The ongoing advice review sought feedback from 22 firms who provide ongoing advice services.  The review found that, whilst the vast majority of firms providing those services, at the very least, contacted clients who'd signed up for the services to offer to carry out a review of their ongoing suitability advice, less than 2% did not even attempt to conduct an ongoing advice review.  

The FCA confirmed in February 2025 that this would need to be 'put right', and it seems that they now intend to follow up on this.

To read the Regulatory Priorities: Consumer Investments paper, click here.

Financial Conduct Authority to update on MPS review later this year 

The Financial Conduct Authority (FCA) said it will provide an update later this year on its review of model portfolio service (MPS) providers.

The review, which looks at how firms are applying the Consumer Duty, was referenced in the regulator’s Regulatory Priorities for 2026, published on 4 March 2026.

In February last year, the FCA announced it would begin a multi-firm review of MPS providers to examine how firms are applying the Consumer Duty and whether customers are receiving good outcomes. Since that announcement, the regulator has said little publicly about the progress of the work.

In its priorities document, the FCA confirmed it will continue progressing the review of MPS firms to assess whether consumers are receiving good outcomes, with further updates expected later this year.

The regulator did not provide further detail on the scope of the review. However, it is understood that much of the work so far has involved engagement with firms to help ensure the review focuses on the right areas.

The Consumer Duty, introduced in July 2023, requires firms to demonstrate that they are delivering good outcomes for customers.

To read more, please click here.

Implementation period announced for motor finance compensation scheme

On 4 March 2026, the Financial Conduct Authority (FCA) announced that they will include an implementation period for the highly anticipated motor finance compensation scheme under s.404 of FSMA. 

The final rules are expected to be published in late March. The implementation period will then run for a minimum period of 3 months, but it may be extended up until 5 months for older agreements. 

The latest guidance from the FCA is that individuals who were not fully informed about the commission involved in their motor finance deal should complain now in order to get compensation sooner. Individuals who complain before the scheme starts will not be asked to opt out. Rather, within 3 months of the implementation period, their lender should tell them whether compensation is owed. 

To read more, please click here.  

Relevant case law development

Claim issued within limitation period considered time-barred

On 18 February 2026, the High Court granted summary judgment to Quality Part X Limited and Ravensale Limited (the Defendants) on the basis that the Claimants' negligence and nuisance claims were time-barred under section 2 of the Limitation Act 1980 (the "Act"). 

The Claimant had sought damages for possessions that had been destroyed by a fire that had originated in a commercial unit that was occupied by the First Defendant and owned by the Second Defendant. 

The key issue before the Court was whether the Claimants' solicitors had failed to issue proceedings within the six-year limitation period. They had sent claim forms by post to the Court within the limitation period. However, they had failed to comply with CPR Practice Direction 51O which mandated electronic filing for legally represented parties. 

It was held that the filing by post had failed to meet the test outlined in section 2 of the Act as the mandatory electronic filing requirement had been in place for over five years and the Claimant's solicitors should have been familiar with it. 

The Court rejected submissions that (i) the Claimant could rely on CPR Practice Direction 7A paragraph 6.1 on the basis that it did not apply where mandatory procedural requirements were not followed, and (ii) that CPR 3.10 could remedy the error. 

To read more, please click here.  

With thanks to this week's contributors: James Parsons, Alison Thomas, Daniel Goh, Heather Buttifant, Ben Simmonds, Kerone Thomas, Rebekah Bayliss

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