This week, regulators are pursuing an alternative approach to their supervisory communications under the broader simplification agenda. As part of its strategic aim to be smarter and more efficient, the Financial Conduct Authority (FCA) is streamlining its supervisory publications to make its priorities clearer. Meanwhile, pre-2022 multi-firm and thematic reviews are being relegated (but not removed) to the back catalogue.
Taking a similar tact, our second item highlights the FCA’s latest moves to reduce and remove superfluous regulatory returns for 95% of all authorised firms.
Elsewhere this week, firms are warned about the heightened risk of fake FCA scams, and we also highlight latest developments in workplace savings schemes, as well as proposals for fairer Financial Ombudsman Service (FOS) fees as part of its broader transformation programme.
The FCA has announced changes to simplify how it communicates supervisory priorities on its website in a bid to make it easier for firms to find up-to-date communications.
As part of its Consumer Duty review, the FCA will label multi-firm and thematic reviews published before 2022 as “historical". These documents will remain accessible but clearly marked to help firms distinguish current guidance.
To further improve clarity, the FCA soon start to publish a small number of market reports will replace traditional Dear CEO and portfolio letters with a limited number of them. These reports will offer targeted insights based on supervisory findings and will be tailored to different types of firms.
This initiative is intended to support the FCA’s commitment to smarter regulation by making its expectations easier to understand and helping firms focus on delivering good outcomes for consumers. Whilst only time will tell if this approach does indeed make the FCA publications easier to navigate, the FCA has also committed to keep reviewing its approach to historical materials to ensure relevance and transparency.
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The FCA’s strategy to become a smarter, more proportionate regulator continues to be implemented across the financial services sector as the FCA has now removed the need for Firms to submit a nil return for REP008. This report notifies the regulator where disciplinary action has been taken against an individual. The updated approach will apply to all firms with a reporting period on or after 31st August 2025.
The removal of this reporting requirement is part of the Transforming Data Collection programme, following an assessment that nil returns offer limited supervisory value, and comes hot on the heels of the removal of three other returns in April this year and the FCA launching “My FCA”, a new portal to combine the functions of FCA Connect, Online Invoicing System and Reg Data in one place.
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The FCA has issued a stark warning after receiving nearly 5,000 reports of fake FCA scams in the first half of 2025. Fraudsters are impersonating the regulator to steal money and sensitive information, with 480 victims already duped into transferring funds.
Common tactics include claims of recovered crypto assets, fake loan recovery offers, and threats of County Court Judgements. A particularly insidious trend, known as “pig butchering”, involves scammers building trust, often romantically, before launching long-term investment frauds, followed by impersonation of the FCA to “recover” lost funds.
Steve Smart, FCA’s joint executive director of enforcement, emphasised: “We will never ask you to transfer money or share sensitive banking details.” Whilst these incidents impacted the FCA, this is a reminder to financial services firms to be alert to impersonation risks and ensure clients are aware of these types of scams.
Read more on scams in last six months
The FCA has issued new guidance to help employers and savings providers offer workplace savings schemes with greater confidence. Recent data shows one in ten UK adults have no savings, and a fifth have less than £1,000 set aside so these schemes could empower employees to save directly from their salary, helping build financial resilience through regular contributions.
Despite their benefits, only 7% of UK employers currently offer such schemes. The FCA attributes this low uptake to perceived regulatory barriers, including concerns around breaching National Minimum Wage rules and financial promotion requirements.
To address this, the FCA has clarified how employers and providers can comply with existing legislation, including data protection, customer due diligence, and the Consumer Duty. The guidance also outlines the difference between opt-in and opt-out models.
This initiative forms part of a broader strategy to promote financial inclusion and support consumers in managing life’s financial challenges.
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The FOS is consulting on a new case fee structure that could reduce costs for financial firms resolving complaints early. Currently, firms pay a flat £650 per case, regardless of complexity or timing. The proposed model introduces tiered fees based on when a case is resolved, aiming to better reflect investigative effort and encourage early settlement.
Further options under review include outcome-based fees—where firms found at fault pay more—and converting the free case allowance into a monetary value for consistency. A shift to quarterly advance payments is also proposed to improve cash flow predictability.
These changes form part of FOS’s broader transformation programme and align with concurrent consultations by HM Treasury and the FCA to modernise the redress system.
For those wishing to respond, the consultation closes on 8 October 2025.
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