Your guide to this week in regulation

Against the current backdrop of political turbulence, last week saw parliamentary protocol pushing forward in the form of the King’s Speech. This reiterated a commitment to regulatory reform in the pursuit of UK competitiveness on the global stage, including in relation to the Financial Ombudsman Service and the Senior Managers and Certification Regime.  

So this week, we lead with timely examples that demonstrate the ever-present balancing act of this bold endeavour, alongside the practical realities for firms not wanting to compromise on consumer protections; in this case in bereavement support and real-world lived pressures.  

Elsewhere this week, the Financial Conduct Authority (FCA) has elevated its scrutiny of the claims management sector; with a focus on practices around marketing, consent, fees and conflicts. 

Finally, we highlight latest developments in private markets ahead of anticipated reform here, as well as a recent speech from Sam Woods who hands over to his successor Katharine Braddick next month. 

FCA reviews bereavement support 

The FCA has launched a review of how consumer investment firms support bereaved customers, following evidence of poor experiences. Research cited by the FCA found that fewer than half of bereaved customers felt they received the support they needed.  

The review will cover platforms, advisers and wealth managers that advise, manage or administer investments. The FCA will assess the full customer journey, from notification of a death through to settlement or transfer of investments. Its focus includes communications, support for vulnerable customers, service standards and the treatment of fees on bereaved accounts.  

Key points for firms: 

• The FCA sees bereavement processes as a test of culture and trust
• The work follows earlier reviews in banking and insurance where poor practice was common and good practice was inconsistent
• This activity links directly to Consumer Duty expectations and the FCA’s Consumer Investments Regulatory Priorities

From May 2026, the FCA will contact selected firms, with findings due later this year. Firms should review bereavement journeys now, test communications and fee handling, and ensure outcomes for bereaved customers meet Consumer Duty standards. 

Read more on FCA review of whether investment firms are doing enough to support bereaved customers 

BoE outreach highlights lived pressures

The BoE has published “Your voice 2026”, summarising insights from its Citizens’ Panels, Community Forums and Youth Panels held between March 2025 and February 2026. The report draws on views from 605 members of the public and 101 charities across the UK, and shows how this intelligence feeds into policymaking.

Despite inflation easing, participants reported that the higher price level continues to strain households, with cost of living, housing affordability, insecure jobs and rising debt cutting across all discussions. Many felt official data did not reflect their lived experience, particularly for middle‑income earners and younger people. Concerns also emerged about financial resilience, youth unemployment, and the risks of reliance on digital payments, reinforcing the importance of access to cash.

For firms, the report underlines the disconnect that can exist between headline indicators and consumer experience, with implications for conduct, vulnerability and communications. The BoE stresses that these insights inform its monetary and financial stability decisions.

Read more of Your voice 2026: insights from the Bank of England’s outreach programmes

FCA steps up claims management review

The FCA has launched a market-wide review of claims management practices after concerns that some claims management companies and law firms are failing consumers. The review will examine the root causes of poor conduct, including aggressive marketing, misleading advertising, unfair exit fees and cases where consumers are signed up without informed consent.

Although motor finance claims have brought these issues into focus, the FCA has confirmed the review will also cover other areas such as housing disrepair. Working with the Solicitors Regulation Authority and other regulators, the FCA will test whether consumers receive fair value, whether fee structures and financial incentives drive conflicts of interest, and whether the end‑to‑end customer journey delivers good outcomes. It will also assess whether gaps or inconsistencies across regulatory regimes affect firm behaviour.

The FCA has been clear that it expects full and prompt cooperation and will take robust supervisory or enforcement action where needed. It may also recommend legislative change, including stronger compensation arrangements where firms cause harm. Firms active in claims management, lead generation or connected services should review their marketing, consent and fee practices now and be ready to engage when the FCA publishes further detail on the review by mid‑May.

Read more on FCA review of claims management practices

FCA sets out private market’s priorities

The FCA has set out how it plans to build confidence in the UK’s fast‑growing private markets, stressing strong firm controls, proportionate regulation and joined‑up oversight. Speaking at the Investment Association’s Private Markets Summit, deputy chief executive Sarah Pritchard said private markets now sit at the centre of the UK growth story and face closer scrutiny as they scale.

Key points for firms include:

• confidence depends on robust first‑line controls, particularly valuations, conflicts management and operational resilience
• conduct risk remains a priority alongside financial stability risk, with multi‑firm reviews on valuations and conflicts already under way
• upcoming reforms aim to tailor requirements more proportionately, easing burdens on smaller funds while holding larger firms to account for their impact, and
• regulators are working together, including through the Bank of England’s system‑wide scenario on private markets risk.

The FCA signalled clear expectations that firms embed recent review findings into day‑to‑day practice and design products honestly, reflecting liquidity and risk.

Read more on private markets priorities

Clinical supervision and bank resilience 

In a speech at Bayes Business School, Sam Woods, Deputy Governor for Prudential Regulation, set out how and why bank supervision goes beyond rule‑setting. He described supervision as a continuous, judgement‑based activity focused on the overall health of banks, not just compliance.

Woods argued that banks provide critical public infrastructure through deposits, which explains the intrusive nature of prudential supervision and the close engagement between supervisors and firms. He likened supervisors to doctors or public health officials, diagnosing emerging risks early and working with senior management to mitigate them before they become systemic.

Key points for firms include:

• supervisors rely heavily on firms’ governance, risk management and senior accountability to identify and manage risks
• supervisory judgement, not formulaic metrics, remains central, supported in the UK by the Senior Managers Regime, and
• independence of mind is essential to avoid regulatory capture.

Read more of Sam Woods’ Speech at the Henry Thornton Lecture