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Financial services regulatory update: FSCS budget; BoE AI roundtables; FCA Carillion fine and whistleblowing data; ECB climate penalty; ESRS revisions; FATF lists; FMSB AI in trading (16 February 2026)

Published on: 16 February 2026

Published by a LexisNexis Financial Services expert
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Financial services developments FSCS publishes budget update for 2026/27

The Financial Services Compensation Scheme (FSCS) has released a budget update, setting out management expenses of £108m for 2026/27. Within this, £97m covers core expenditure, a 6% drop from the prior year, alongside a further £11m to bolster the FSCS’s existing revolving credit facility (RCF), aimed at improving funding readiness and reinforcing trust in the UK financial services sector. With the extra RCF costs included, the FSCS’s total 2026/27 budget remains aligned with inflation. The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) are consulting on a 2026/27 Management Expenses Levy Limit of £113m, representing an inflation-only uplift of £4.4m on 2025/26. This also provides for an unlevied contingency reserve of £5m, unchanged from 2025/26. The most recent 2025/26 forecast stays at £108.6m, inclusive of an unlevied reserve of £5m, as set out in January 2025. The FSCS adds that it does not expect to invoice firms for the 2025/26 unlevied reserve under current plans only...

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