Catch up on our webinar on incoming EU accessibility rules: What the EU Accessibility Act means for financial services
UK
Payments
- PSR to be abolished: The UK Government has announced plans to consolidate the Payment Systems Regulator into the Financial Conduct Authority. HM Treasury will consult on the details of this proposal in the summer and plans to legislate as soon as possible.
Read our blogpost: UK confirms closure of Payment Systems Regulator
- PSR findings from card scheme review: The PSR has released the final report from its market review into UK card scheme and processing fees. The review uncovered concerns about fee increases, competition and transparency. The PSR is preparing to consult on remedies that could address the issues it has identified. Proposed solutions could include mandatory financial reporting, better decision-making processes around pricing, and requirements for clearer communication of fees.
- FCA suggests relaxing £100 contactless limit: In an engagement paper the FCA seeks feedback on options to change the rules which restrict the value and number of contactless payments that can be made before requiring authentication. The deadline for feedback is 9 May 2025.
Consumer Duty
- FCA flags importance of culture for good consumer support: Following a multi-firm review of firms’ approaches to consumer support, the FCA has shared examples of good practice and areas for improvement. The review included retail payment services firms. According to the FCA, some firms were unable to demonstrate substantive steps taken to drive cultural change in line with the Consumer Duty. The FCA also suggests that firms monitor a broader range of outcomes about consumer support rather than relying on transactional metrics such as contact rates and wait times.
Read our blogpost: FCA review of customer support – culture, metrics and the removal of sludge
- FCA prompts firms to meet needs of vulnerable customers: The FCA has investigated how firms support customers in vulnerable circumstances. Its review found that most firms could not show how they had embedded the needs of vulnerable customers into their product and service design processes. The FCA also saw examples of firms not providing appropriate or accessible channels to vulnerable customers.
Read our blogpost: FCA guidance on the fair treatment of vulnerable customers – the power of the personal touch
- FCA plans to streamline regulation: Last year the FCA called for feedback on how it could simplify the regulatory framework using the outcomes-focused Consumer Duty. In its feedback statement the FCA sets out immediate next steps. This includes a plan to engage with firms to clarify how the Consumer Duty applies to firms in retail distribution chains. The FCA will publish an update in September.
Read our blogpost: The FCA is spring cleaning (in its Consumer Duty CfI feedback statement)
- FCA drops board champions: The FCA has confirmed that it no longer expects firms to have a Consumer Duty champion at board level.
Read our blogpost: No Board Champion? No Problem – the FCA drops its guidance on a board champion for the Consumer Duty
Digital assets
- Lessons to learn from crypto decision notice: The FCA has refused to register a cryptoasset exchange provider under the Money Laundering Regulations. Its decision notice sheds light on the FCA’s expectations for registration applications, in particular in relation to firms’ business-wide risk assessments.
Read our blogpost: FCA rejection of crypto firm application shows importance of effective risk assessments
General
- Regulators pledge to do more to help start-ups: In a policy paper the UK Government sets out actions that regulators will take to support innovation and economic growth. For example, the FCA plans to extend pre-application support to all wholesale payments and crypto firms. The Government also plans to review how the Financial Ombudsman Service operates.
Read our blogpost: More support for overseas firms, crypto and start-ups: FCA pledges to support growth under UK Action Plan
- FCA unveils new strategy: Launching its new five-year strategy, the FCA promises to focus on four priorities: (1) being a smarter regulator; (2) supporting sustained economic growth; (3) helping consumers navigate their financial lives; and (4) fighting financial crime. As well as prioritising the development of seamless account-to-account payments and making variable recurring payments a reality, the FCA says it will publish a roadmap for rolling out Open Finance and expects the first scheme to be in place by end-2027.
Read our blogpost: The FCA's strategy puts financial crime enforcement first
- BNPL given more freedom to advertise: Changes to the UK Code of Broadcast Advertising mean that buy-now pay-later products should no longer be restricted from advertising in broadcast media.
EU
General
- Preparing for new accessibility rules: The Accessibility Directive sets consistent standards across the EU for the provision of products and services to people with disabilities. Rules implemented under the Directive start to apply from 28 June 2025, subject to transitional measures. Requirements apply to consumer banking services, including e-money and payment services. They include ensuring that payment services are perceivable, operable, understandable and robust.
Read our note: How the EU Accessibility Directive impacts financial services
Open finance
- FIDA talks to start: Trilogue negotiations on the draft Financial Access Data regulation are set to start in April. The talks between the European Commission, Council and Parliament are intended to agree a compromise version of the legislation. Earlier this year there were reports suggesting that the regulation would be withdrawn.
Operational resilience
- Commission adopts DORA subcontracting rules: The Digital Operational Resilience Act specifies what financial entities must do when allowing their ICT third party service providers to subcontract ICT services which support their critical or important functions. The European Supervisory Authorities had suggested more detailed rules on subcontracting but these regulatory technical standards were rejected by the Commission. Following an opinion from the ESAs, the Commission has adopted revised subcontracting RTS. These should be made law by the summer.
- Nearly half of EU has not transposed DORA Directive: The Commission has written to Belgium, Bulgaria, Denmark, Greece, Spain, France, Latvia, Lithuania, Malta, Poland, Portugal, Romania and Slovenia for failing to fully transpose the DORA Directive (EU) 2022/2556. EU Member States should have transposed the Directive into national law by 17 January 2025, which is when the DORA Regulation (EU) 2022/2554 started to apply. The Commission’s infringement decision gives the 13 Member States concerned two months to complete their transposition.
AML
- EBA consults on AML rules: The European Banking Authority has proposed regulatory technical standards in response to the Commission’s 2024 call for advice on the EU’s new AML framework. The draft RTS include harmonised due diligence requirements and rules for supervisors to assess firms’ risk profile. The consultation closes on 6 June 2025 and the EBA plans to submit a response to the Commission on 31 October 2025.
Digital assets
- More MiCA rules made law: The following regulations under the Markets in Crypto-Assets Regulation have been published in the Official Journal of the EU and come into force on 13 April 2025: Commission Delegated Regulation (EU) 2025/415 on adjustment of own funds requirement and minimum features of stress-testing programmes of issuers of asset-referenced tokens (ARTs) or e-money tokens (EMTs); Commission Delegated Regulation (EU) 2025/418 on the minimum content of the remuneration policy of significant ART or EMT issuers; and Commission Delegated Regulation (EU) 2025/419 on the procedure for ART or EMT issuers to adjust the amount of its own funds. Commission Delegated Regulation (EU) 2025/421 on data necessary for classifying crypto-asset white papers applies from 23 December 2025.
- MiCA guidelines update: The ESAs have finalised guidelines on a standardised test for classifying cryptoassets under MiCA. The guidelines apply from 10 May 2025. Meanwhile, the European Securities and Markets Authority has published final guidelines on the conditions and criteria for the qualification of cryptoassets as financial instruments which apply from 18 May 2025. ESMA guidelines on the suitability requirements and format for the periodic statement for portfolio management activities under MiCA apply from 25 May 2025.
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