Our annual report and podcast explore crucial developments across a broad range of areas, including the Leeds Reforms, ESG, and AI. In the wake of a
Our annual report and podcast explore crucial developments across a broad range of areas, including the Leeds Reforms, ESG, and AI.
In the wake of a somewhat challenging year for the regulators, firms are navigating a landscape marked by significant regulatory recalibration. The FCA and the PRA faced almost unprecedented criticism from the government in 2025, urging them to align more closely with the government’s growth agenda. This pressure has resulted in a strategic shift, with the regulators focusing their efforts on streamlining existing regulations rather than launching new, large-scale initiatives. Meanwhile, ongoing work to repeal and restate assimilated law remains a prominent feature of the regulatory environment.
Key areas of change in 2026 relate to retail markets and prudential requirements. In recent years, these areas saw increasing levels of regulation, but they are now the focus of deregulatory efforts in the pursuit of growth.
Although the government’s ultimate aim is to reduce the burden on regulated firms in the longer term, regulatory change is not abating yet. As we move into the new year, financial services firms will need to keep ahead of the various alterations to the rulebook and adjust to the shift in supervisory approach. Firms will also need to navigate complex and challenging areas that are marked by uncertainty, such as ESG-related requirements and applying the existing regulatory framework to the use of AI.
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Disclaimer
This article is intended for general information purposes only and does not constitute legal advice. For advice specific to your situation, please contact our team at T & M Legis for a consultation with our Legal Experts.
