David Morrey and Ben Farmer unpack the FCA’s new sector priority reports and what they really signal for financial services firms in 2026. From insurance and consumer investments to payments, appointed representatives and motor finance redress, we explore how the regulator is shifting away from fragmented Dear CEO letters towards a more consolidated, outcomes‑focused approach — and what that means in practice for boards and senior leaders.

They also examine where regulatory expectations are tightening, where simplification and growth are being actively encouraged, and how themes such as Consumer Duty, AI adoption, financial crime, disclosures and market resilience are converging across sectors. The discussion also covers upcoming consultations, enforcement trends — including the crackdown on unauthorised financial promotions — and why firms may need to rethink how they respond to regulatory change, rather than defaulting to business‑as‑usual compliance.

This month, David Morrey and Ben Farmer unpack another busy period in financial services regulation. They explore the FCA’s accelerating use of AI — from live testing to automated case queries — and what this rapid adoption means for firms navigating both innovation and risk.

The conversation also covers the regulators’ new scale‑up unit, the latest findings from the pure protection and premium finance market studies, and what these signals say about Consumer Duty in practice.

We then turn to crypto and stablecoins, examining the FCA and PRA’s latest consultations, the proposed perimeter for custodians and distributors, and the Consumer Duty expectations shaping this fast‑moving market.

Finally, they down the FCA’s long‑term mortgage rules roadmap, the newly finalised non-financial misconduct guidance, and the early use of in‑flight enforcement naming powers.

In this end-of-year episode, David Morrey and Ben Farmer take stock of the evolving regulatory landscape in financial services, exploring the impact of the UK’s “growthy regulator” agenda over the past twelve months.

Key themes include:

• Growth vs Deregulation: The hosts discuss whether regulatory changes have truly promoted growth or simply resulted in procedural tweaks. While some requirements have been simplified, fundamental deregulation remains limited, often requiring statutory changes
• Regulatory Output and Compliance: There’s been a shift from new rules to more thematic reviews and “good and poor practice” articles, which now carry significant weight for compliance teams. Firms are increasingly expected to monitor these outputs and assess their impact
• Supervisory Activity: Although the number of formal Skilled Person reviews has declined, supervisory visits, data requests, and regulatory interactions remain robust.
• Consumer Duty and Redress: The podcast highlights the ongoing importance of Consumer Duty as a tool for achieving regulatory objectives without introducing new rules. Major consumer redress issues, such as motor finance, continue to dominate headlines, while firm-specific redress remains active
• Encouraging Productive Investment: A notable trend is the regulatory push to encourage individuals to move savings into productive investments, with new consultations on targeted support aiming to make this process easier for both firms and consumers
• Looking Ahead: The hosts preview what might be expected in 2026, promising continued updates and recommending the Grant Thornton regulatory handbook for those seeking further guidance

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