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FCA Investigation Signals Crackdown on Claims Management Firms

The FCA has opened an investigation into a claims management company over how it marketed and sold motor finance claims. The regulator is concerned about misleading compensation claims, pressure selling, and failure to tell consumers they could claim for free. The case signals tougher enforcement and greater scrutiny across the claims management sector.

Focus on enforcement, consumer protection and payments flexibility.

These FCA updates from 19 to 23 December 2025 highlight a strong regulatory focus on governance, consumer protection, and financial resilience. The FCA continues to take decisive action against firms that pose risks, while also adjusting rules to support innovation, such as increased flexibility on contactless payment limits. At the same time, warnings around unregulated investments and firm failures underline the importance of robust controls and clear consumer communications.

UK Crypto Regulatory Regime: A New Era for Digital Assets

On 16 December 2025, the FCA released three landmark consultation papers (CP25/40, CP25/41, and CP25/42) that define the future of the UK crypto market. Moving beyond simple AML registration, the new regime introduces rigorous standards for token admissions, market abuse, staking, and prudential capital requirements. With a final implementation date set for 25 October 2027, firms must now transition from "theoretical preparation" to "operational mapping" to meet the standards of traditional financial services.

FCA Consumer Duty: Focus on consumer protection, regulatory clarity, and market growth.

This week, the FCA has made significant strides in enhancing consumer protection, improving regulatory clarity, and fostering market growth. The final guidance on tackling non-financial misconduct reaffirms the FCA’s commitment to strengthening ethical standards in the financial services sector. Alongside this, the FCA has outlined plans to build the future mortgage market, with a strong emphasis on accessibility and sustainability. Key updates also include crypto regulation proposals, insurance work expansions, and a reform to the UK Benchmarks Regulation. Firms should review their compliance frameworks, risk strategies, and actively participate in consultations to align with these regulatory changes.

FCA Consumer Duty: What the Latest Co-Manufacturer Clarifications Mean for Your Compliance Framework

Nationwide £44.1m FCA Fine: The Control Failures, The 2025 Pattern and What to Do Now

On 12 December 2025, the FCA fined Nationwide Building Society £44,078,500 for inadequate anti-financial crime systems and controls between October 2016 and July 2021.

UK Provisional Licence Regime: A New Route for Early-Stage Financial Services Firms

In December 2025, HM Treasury published Creating a Provisional Licences Authorisation Regime. Policy Update 2025.

FCA updates : Regulatory simplification, financial crime controls, and the future of digital payments

This week the FCA moved to reduce regulatory burden while reinforcing market integrity. Late fee reductions and insurance rule simplification aim to ease compliance pressures. New tools and initiatives target financial crime, investment decision support, and long-term market growth. Stablecoin payments remain a clear priority for 2026. Firms should update processes, strengthen controls, and align strategies with the FCA’s investment and digital finance agenda.

FCA updates : ESG ratings, improved reporting processes and safer AI testing

This week the FCA pushed for clearer ESG ratings, improved reporting processes and safer AI testing. It advanced market transparency through the bond consolidated tape. Enforcement remained active with fraud charges and AML supervisory concerns. Governance risks continued with a firm liquidation. Firms should update controls, review data processes and prepare for upcoming complaint handling and market transparency changes.