Welcome to Proskauer’s FinReg Monthly Update, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.
Key developments in August 2025:
28 August
FCA Communications: The UK Financial Conduct Authority (“FCA”) published an update on its approach to simplifying supervisory communications, aiming to make its engagement with firms clearer and more proportionate.
20 August
Cryptoassets: Regulatory technical standards (“RTS”) (EU/2025/885) supplementing the Markets in Crypto-Assets Regulation (“MiCA”) on market abuse were published in the Official Journal of the European Union.
19 August
ESG: The Transition Finance Council launched a consultation on globally‑applicable entity-level transition finance guidelines.
14 August
ESG: The FCA sent a letter to banks on sustainability-linked loans, sharing insights from its engagement since the 2023 review.
11 August
Appointed Representatives: HM Treasury published a policy statement on the appointed representatives regime.
Cryptoassets: The Financial Markets Law Committee (“FMLC”) published its response to the FCA’s consultation on rules for stablecoin issuance and cryptoasset custody.
8 August
Motor Finance Commissions: The House of Lords Financial Services Regulation Committee published correspondence with the FCA regarding its intention to consult on a consumer redress scheme for motor finance.
Wholesale Banks: The FCA published a webpage setting out insights from its multi-firm reviews and other supervisory work involving wholesale banks.
7 August
FCA Enforcement: The FCA has published an updated version of its Enforcement Information Guide, which reflects changes in the Handbook to its updated Enforcement Guide and the Decision Procedure and Penalties manual.
Payments: The FCA issued a policy statement (PS25/12) on changes to the safeguarding regime for payments and e-money firms.
6 August
ESG: The FCA has published its findings and next steps following a multi-firm review into climate reporting by asset managers, life insurers and FCA-regulated pension providers.
4 August
ESG: The Joint Committee of the European Supervisory Authorities has published updated Q&As on the Sustainable Finance Disclosure Regulation (“SFDR”) and related RTS on content and presentation of information.
Motor Finance Commissions: The FCA has published a letter it has sent to claims management companies (“CMCs”) asking them to review their financial promotions relating to motor finance claims to ensure they comply with the consumer duty.
Motor Finance Commissions: The FCA announced its plans to consult on a compensation scheme for motor finance customers. Please refer to our dedicated article on this topic here.
1 August
Motor Finance Commissions: The UK Supreme Court handed down its judgement in Hopcraft and another v Close Brothers Limited and two other cases, all of which concerned the payment of commission by finance lenders to motor dealers. The Supreme Court reversed most of the Court of Appeal’s judgment on hidden motor finance commissions, significantly narrowing the circumstances in which consumers are entitled to redress. Please refer to our dedicated articles on this topic here and here.
FCA Handbook: The FCA has published Handbook Notice 132, which sets out changes to the FCA Handbook made by the FCA board.
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