Financial services developments Financial and trade sanctions: FCA publishes findings from review of firms’ systems and controls The Financial Conduct Authority (FCA) has released the results of a review examining financial services firms’ arrangements and safeguards for both financial and trade sanctions. The publication sets out illustrations of effective and poor practice, plus areas needing enhancement, designed to support compliance with sanctions law. According to the FCA, firms have advanced in stopping sanctions breaches, yet material shortcomings still persist. Alongside the findings, the FCA has entered into an MoU with the Office of Trade Sanctions Implementation (OTSI), defining how the two bodies will co-operate and routinely share intelligence. Since February 2022, the FCA reports it has proactively evaluated the sanctions frameworks and controls of more than 150 firms spanning a broad range of financial services sectors. This covered controls connected to financial...

In this issue: UK, EU and international regulators and bodies Authorisation, approval and supervision Prudential requirements Financial crime and sanctions Consumer protection Complaints, compensation and claims management Investigations, enforcement and discipline Regulation of capital markets Regulation of derivatives Sustainable finance and ESG Banks and mutuals Investment funds and asset management EU MiFID II Islamic finance Consumer credit, mortgage and home finance Regulation of insurance Payment services and systems Fintech and cryptoassets Regulation of AI in FS Dates for your diary New and updated content Financial Services Enforcement Database Daily and weekly news alerts LexTalk®Financial Services: a Lexis®Nexis community UK, EU and international regulators and bodies BCBS and IOSCO outline progress updates. The Basel Committee on Banking Supervision and the...

Financial services developments FCA urges financial promotion approvers to apply the Consumer Duty from the start of the process The Financial Conduct Authority (FCA) has released the findings of its review into financial promotion approvers, stating that these firms need to do more to safeguard consumers. The best performers wove the Consumer Duty in from the outset of their workflows, enabling them to ensure every signed-off promotion was accurate, easy to understand and directed at the correct audience. By contrast, the FCA identified cases where firms cleared adverts carrying unproven claims, or let retail investors access promotions meant for professional clients. In some instances, approvers leaned on third‑party templates rather than conducting thorough checks themselves. The review examined ten authorised firms that sign off financial promotions for businesses not authorised by the FCA, with a focus on those approving promotions for Buy Now Pay Later,...

Financial services developments ESMA consults on revised guidelines for allocations and confirmations under T+1 The European Securities and Markets Authority (ESMA) has launched a consultation on refreshed guidelines for standardised procedures and messaging protocols. This exercise forms part of ESMA’s efforts to help market participants get ready for the shift to a T+1 settlement cycle. Stakeholder feedback is requested by 7 July 2026. ESMA will review the submissions and aims to issue a final report, together with the updated guidelines, by October 2026. The revisions seek to accelerate, clarify and harmonise post-trade communications right across the EU. They mirror the amendments outlined in ESMA’s Final Report on Amendments to the RTS on Settlement Discipline and assist firms in complying with tighter timelines following the move to T+1. Key changes include the...