Financial Markets
1. FCA publishes press release on launch of UK bond consolidated tape
On 22 June 2026, the FCA published a press release announcing the launch of the UK's first bond consolidated tape, operated by ETS Connect UK. This new service will provide a single real-time source of bond market prices and trading activity and builds on changes to UK bond market transparency rules that came into force in December 2025. Key points from the press release include that:
- real-time reporting of corporate bond trades has risen from under 5% to over 75% since the new rules came into force, while the reporting of government bonds increased from 30% to approximately 80%;
- the consolidated tape launches with 98% market coverage of in-scope bond trading; and
- the FCA will supervise ETS Connect UK throughout its five-year contract to ensure data quality and reliability.
The FCA is also working to deliver a consolidated tape for equities. The launch forms part of a wider programme to improve transparency, data quality and access across UK markets and builds upon the delivery of the near-50 measures set out in January 2025 to drive growth.
2. EU Commission publishes delegated regulation on EU Follow-on and EU Growth issuance prospectus formats
On 15 June 2026, the EU Commission published Delegated Regulation (EU) 2026/773 amending Delegated Regulation (EU) 2019/980 as regards the reduced content and standardised format and sequence of the EU Follow-on prospectus and the EU Growth Issuance prospectus. The new regulation follows Regulation (EU) 2024/2809, which introduced these two short-form prospectuses to reduce costs and listing burdens for issuers accessing EU public capital markets.
Under the Delegated Regulation, the EU Follow-on Prospectus replaces the simplified prospectus regime for secondary issuances by companies already listed on a regulated market or a small and medium-sized enterprise growth market. The EU Growth issuance prospectus replaces the existing EU Growth prospectus regime, primarily targeting SMEs.
Both prospectuses are subject to lighter disclosure requirements than the regimes they replace. The EU Follow-on prospectus prescribes only a limited set of information items, focused primarily on the details of the offer or admission to trading and the terms and conditions of the securities, with risk factors required to be presented prominently. The EU Growth issuance prospectus adopts a comparable approach, likewise setting out only a limited range of information items concerning the details of the offer and the terms and conditions of the securities.
The regulation entered into force on 18 June 2026.
Banking and Prudential
3. PRA consults on adjustments to market risk internal model approach under Basel 3.1
On 19 June 2026, the PRA published a consultation on the internal model approach to market risk (IMA), the final piece of Basel 3.1 implementation in the UK.
Basel 3.1’s market risk rules (also known as the Fundamental Review of the Trading Book) set out how banks calculate the amount of capital they must hold against potential losses from trading activities. The PRA delayed implementing its IMA rules to allow time to consider the UK’s alignment to other major trading jurisdictions, in light of the PRA’s competitiveness and growth objective.
The following changes are proposed under the consultation:
- extending the one-year monitoring period for the profit and loss attribution test to three years, to provide time for the PRA to gather data to confirm the appropriate calibration of the test before it could apply to calculating capital;
- adjusting the PRA’s treatment of activity that has limited trading data, to include a more targeted approach to identifying risks that cannot be modelled;
- reducing barriers to transitioning to full IMA approval, by adjusting calculations for firms who use a mix of the internal models and standardised approaches; and
- introducing various operational simplifications and amendments to make the IMA more proportionate in operation.
The PRA intends to implement the adjustments on 1 January 2028. All other Basel 3.1 rules come into force in January 2027, as previously planned.
4. EBA publishes revised Guidelines on the supervisory review and evaluation process
On 26 June 2026, the EBA published its final revised guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing. The revision builds on the EBA's October 2025 Report on the efficiency of the regulatory and supervisory framework and consolidates the existing SREP and Information and Communication Technology (ICT) Risk Assessment Guidelines into a single framework aligned with CRR III/CRD VI (the revised Capital Requirements Regulation and Capital Requirements Directive).
The revised guidelines introduce the following key enhancements:
- a simplified and streamlined framework, with a 30% reduction in page count, bringing together all SREP-related guidance, including for ICT risk and third-country branches;
- an enhanced and forward-looking risk coverage supporting supervisory modernisation, with increased focus on emerging risk drivers, including ICT, environmental, social and governance (ESG) factors, and credit spread risk from non-trading activities;
- more risk-based and proportionate supervision, with supervisory assessment calibrated in scope, depth and intensity to institutions’ risk profiles;
- a clarified risk taxonomy and interaction between Pillar 1 and Pillar 2, including the introduction of non-exhaustive sub-categories for credit risk, market risk, operational risk and interest rate risks for banking book (known as IRRBB); and
- the integration of DORA, broader operational resilience and ESG factors within the SREP framework.
The revised Guidelines will apply from 1 January 2027, repealing and replacing the existing SREP Guidelines (EBA/GL/2022/03) and the ICT risk assessment Guidelines (EBA/GL/2017/05).
Fund Management
5. FCA consults on proposed changes to listing rules for closed-ended investment funds
On 26 June 2026, the FCA published a consultation paper (CP26/21) on proposed changes to the UK Listing Rules (UKLR) for closed-ended investment funds, focused on managing conflicts of interest and protecting shareholders. The consultation follows the FCA's announcement in March 2026 of a targeted review of Chapter 11 of the UKLR. The FCA has sought to identify "targeted" adjustments that seek to ensure the UKLR remains robust across future scenarios, including to:
- extend protections that apply to arrangements with an existing investment manager to a scenario where a new manager is being appointed;
- recognise the association between a director and a substantial shareholder that proposed them for a board appointment; and
- recognise the conflict arising where a substantial shareholder is also an investment manager and votes on material changes to investment policies.
The consultation closes on 14 August 2026. The FCA aims to finalise rules before the end of the year.
Senior Managers and Governance
No recent updates.
Financial Crime
6. Changes to Decision Procedure and Penalties Manual
On 15 June 2026, the FCA published its consultation paper titled 'Decision Procedure and Penalties Manual updates' (CP26/19). The Decision Procedure and Penalties Manual (DEPP) is the FCA's own policy, setting out the procedures it follows when deciding to take enforcement action and the process by which it determines and calculates the financial penalties it imposes. The key thresholds relating to the DEPP were last updated by the FCA.
Key proposals outlined by the FCA in the consultation include:
- raising the minimum disciplinary penalty for serious market abuse by individuals from £100,000 to £150,000 to account for inflation;
- making clear that the FCA may increase penalties for a "deterrent effect", having regard to factors like an individual's income and assets;
- raising serious financial hardship income and capital thresholds to reflect living costs; and
- extending the penalty framework to cover cryptoasset market abuse under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026.
The consultation closes on 10 August 2026. Following this, the FCA will review the responses received and determine whether to proceed with the proposed amendments to the DEPP.
7. FATF launches consultation on guidance to increase payment transparency
On 24 June 2026, the Financial Action Task Force (FATF) launched a public consultation on its Recommendation 16 draft guidance to support the implementation of strengthened FATF standards on payment transparency.
The revisions to FATF's Recommendation 16, agreed in June 2025, are intended to keep pace with changes in the payment landscape. They aim to strengthen the safety and security of international payments by increasing transparency around cross-border transactions and requiring tools to protect against fraud and error.
The consultation invites feedback on whether the guidance provides sufficient clarity on the following issues:
- detecting and preventing misdirected payments, including by leveraging three options for alignment check measures;
- implementation that supports financial inclusion, including in lower-capacity jurisdictions;
- how Recommendation 16 applies to newer payment methods, such as digital wallets and mobile money; and
- implementing Recommendation 16 and meeting data protection and privacy requirements together.
The consultation closes on 21 August 2026.
Retail Services
8. FCA publishes good practice guidance on engaging and enabling retail shareholders to vote
On 26 June 2026, the FCA published a good and poor practice guide entitled "Engaging and enabling retail shareholders to vote". The guide, primarily aimed at investment platforms, stockbrokers and trading apps, sets out how such intermediaries can support retail shareholder engagement and reduce barriers to voting.
Key suggestions include:
- firms should consider adopting opt-out information services as the default, rather than requiring customers to opt in to receive voting information;
- firms should proactively communicate with retail shareholders where a vote could significantly affect their financial objectives; and
- online voting portals generally provide the simplest experience for customers and firms should not charge unreasonable fees to vote.
Additionally, the Dematerialisation Market Action Task Force (DEMAT) will consider recommendations on facilitating investors to exercise shareholder rights when the UK moves to a fully intermediated system.
The FCA encourages firms to improve their arrangements and to engage with DEMAT to help shape future proposals.
Digital Finance and Fintech
9. ESMA publishes public statement on wind-down of unauthorised crypto-asset service providers as MiCA transitional period ends
On 23 June 2026, ESMA published a public statement setting out expectations for unauthorised crypto-asset service providers (CASPs) to wind down their EU activities in an orderly manner whilst protecting investors, as the transitional period under MiCA ends on 1 July 2026.
As part of this wind-down, CASPs are expected to:
- immediately stop onboarding new EU clients;
- cease marketing activities and solicitation of EU clients;
- limit services to those actions necessary to sell, transfer or relocate assets and close out positions; and
- communicate clearly, promptly and repeatedly with clients about wind-down plans, timelines and asset safeguarding measures.
ESMA and national competent authorities (NCAs) will coordinate to continue to monitor whether unauthorised CASPs wind down without delay. NCAs may, where necessary, take coordinated action against unauthorised CASPs after the transitional period.
10. BoE publishes policy statement and draft rules on regulating systemic stablecoins
On 22 June 2026, the BoE published a policy statement and draft Code of Practice for systemic stablecoin issuers. The policy statement follows the BoE's November 2025 consultation on a proposed regulatory regime for sterling-denominated systemic stablecoins. The BoE has made targeted revisions to the proposals consulted on, including increasing the maximum share of backing assets which issuers can hold in interest-bearing assets from 60% to 70% and introducing a temporary issuance guardrail for each systemic stablecoin, initially set at £40 billion (instead of the temporary holding limits initially consulted on).
Subject to feedback by 22 September 2026, the BoE intends to finalise the Code of Practice by the end of 2026, with regulated stablecoins expected to operate in the UK from 2027.
11. FCA publishes guidance on how the cryptoassets gateway will operate
On 18 June 2026, the FCA published its updated guidance on how the gateway for firms seeking to undertake the new cryptoasset regulated activities will operate. This guidance forms part of the FCA's broader programme to bring cryptoasset activities within the regulatory perimeter of FSMA 2000. The guidance sets out that:
- the application period is expected to open on 30 September 2026 and close on 28 February 2027;
- there will be no automatic conversion from registration under the Money Laundering Regulations and firms must secure FSMA authorisation;
- firms that apply during the application period but are not determined before commencement may continue to provide cryptoasset services under a "saving provision";
- firms that apply outside the application period will enter a transitional provision restricting them to pre-existing contracts only; and
- firms that do not apply must run off their UK cryptoasset business before commencement or risk breaching the general prohibition (under s.19 FSMA).
Pre-application meetings are available from July 2026 via the FCA's pre-application support service.
Payments
12. Retail Payments Infrastructure Board launches consultation on next generation UK payments infrastructure
On 25 June 2026, the Retail Payments Infrastructure Board, a senior industry advisory board chaired by the Bank of England, published a consultation on the future design of the UK's next-generation retail payments infrastructure. The consultation forms part of broader efforts to modernise the UK's payments landscape in support of the National Payments Vision. Key points addressed in the consultation include:
- the new infrastructure will enable new payment methods, including account-to-account payments at the point of sale and enhanced cross-border payments;
- Pay.UK will continue to operate the UK's existing retail interbank payment systems as the new infrastructure is developed; and
- feedback will inform the high-level design and shape of the next phase of work by a new industry-led delivery company.
The deadline for responses is 11 September 2026.
ESG
No recent updates.
Other
13. FCA publishes its Areas of Research Interest webpage
On 17 June 2026, the FCA published its Areas of Research Interest webpage, setting out priority research areas to shape how the FCA delivers strategic outcomes and supports good results for consumers, markets and growth. The document is aligned with the FCA's 2025-2030 strategy and sits alongside similar publications from HMT, the PRA and the BoE. The document organises research priorities across the four themes of:
- Growth: including how regulation affects financial sector productivity and the UK's international competitiveness, building on the FCA's secondary growth objective under FSMA 2023;
- Wholesale markets: by examining market microstructure, resilience during stress events and market integrity;
- Helping consumers: by focusing on financial resilience, trust, and the relationship between consumer protection and support for growth; and
- Regulation: by exploring the costs and benefits of different regulatory approaches and how innovation interacts with regulatory requirements.
The FCA expects to revisit the document as markets evolve and welcomes engagement from a broad range of sectors including academics, industry analysts and researchers.
