• On 31 March, the FCA launched its new portal called “My FCA”. The portal is for registered and authorised firms and provides a single sign-on service to access RegData, Connect and the FCA’s Online Invoicing System. The portal also shows any RegData and Connect scheduled tasks in one place with a due date and status. The FCA has confirmed that it is not mandatory to sign in via My FCA following the launch and all systems may still be accessed in the usual way.

My FCA | FCA

FCA launches new portal making reporting easier | FCA

Regulation round-up - March 2025

• On 28 March 2025, the FCA published Handbook Notice 123. Amendments to the FCA Handbook included, amongst others, that the FCA is moving from a flat fee to a variable-rate fee for principal firms. The FCA has confirmed that this will not in itself result in a material change to the amount that principal firms are required to pay per appointed representative or introducer appointed representative that they are responsible for. 

Handbook Notice 128

• On 28 March 2025, the FCA’s chief executive, Nihkil Rathi, delivered a speech at the JP Morgan Pensions and Savings Symposium 2025. The speech focused on the advice gap and stated that, “It is no exaggeration to say that we want our Advice Guidance Boundary Review to trigger an advice revolution.” To address the gap, he discussed the FCA’s proposed new model called “Targeted Support” as well as pensions dash boards. Mr Rathi explained that the FCA will in partnership with the Treasury consult on the Targeted Support model, which will aim to fill the gap between generic factual guidance and regulated advice for pensions and investments. The speech also confirmed that the FCA is looking to test what it might look like in practice and that 12 firms have been given until next month to design, build and test the consumer facing element of a cash to equity Targeted Support journey.

On the right track: Connecting consumers, products and growth | FCA

• On 25 March 2025, the FCA published a feedback statement addressing immediate areas for action and further plans for reviewing FCA requirements following the introduction of the Consumer Duty and last July's call for input in which the FCA sought to review FCA requirements following the introduction of the Consumer Duty. The feedback statement sets out the FCA's programme of action to simplify its requirements of firms in connection with the Consumer Duty. It included, amongst others, confirmation that the FCA: (i) plans to consult on changes to the requirement for asset managers to report annually on their value assessments, (ii) will consult on updating requirements in the Client Assets Sourcebook in relation to amending record-keeping requirements for certain due diligence relationships and (iii) will engage with firms to consider how to provide more clarity on Consumer Duty expectations for firms in retail distribution chains. The FCA has confirmed that a further statement outlining the FCA's programme of work and progress will be published in September 2025.

FS25/2: Immediate areas for action and further plans for reviewing FCA requirements following introduction of the Consumer Duty

• On 25 March 2025, the FCA launched its new 5-year strategy. The FCA has stated that it will focus on four priorities: to be a smarter regulator; to support sustained economic growth; to help consumers navigate their financial lives; and to fight financial crime.

FCA launches 5-year strategy to support growth and improve lives | FCA 

Our strategy 2025 to 2030 

• On 18 March 2025, His Majesty’s Treasury published a draft statutory instrument (SI), and corresponding policy note, revoking the detailed firm-facing regulations contained within the Markets in Financial Instruments Directive Organisational Regulation (MiFID Org Reg) which will instead be placed into the FCA and PRA rulebooks. The policy note explains that the Government’s intention is to not change the substance of the existing requirements. Instead, the delegation of responsibility to UK regulators is to allow for more informed and swifter regulatory updates to reflect changing markets. The Treasury confirms its intention to commence the SI as well as the revocation of the MiFID Org Reg and other related legislation following publication of final FCA and PRA replacement rules in H2 2025, in line with the regulators’ replacement rules.

Markets in Financial Instruments Directive Organisational Regulation – Draft Statutory Instrument and Policy Note - GOV.UK

• On 17 March 2025, His Majesty’s Treasury published a policy paper, “New approach to ensure regulators and regulation support growth.” The paper sets out four key actions: 
  • Action 1 to tackle the complexity and burden of regulation; 
  • Action 2 to reduce uncertainty across the regulatory system; and 
  • Action 3 to challenge and shift excessive risk aversion in the system. 

Key proposals in connection to the financial services include: (i) reviewing the number of the FCA’s “have regards” to identify opportunities to rationalise them and ensure a focus on their priorities, (ii) the Economic Secretary conducting a review of the Financial Ombudsman Service to determine if it is delivering its role as intended; and (iii) a package of measures to enable the FCA to support early-stage innovative firms that are starting to conduct regulated activities.

New approach to ensure regulators and regulation support growth - GOV.UK

• On 11 March 2025, the FCA published a statement outlining its position on sustainability regulation and UK defence. The statement confirmed that the FCA’s rules, including those related to sustainability, do not prevent investment or finance for defence firms or require financial institutions to treat defence companies differently. 

Our position on sustainability regulations and UK defence | FCA

• On 11 March 2025, the FCA confirmed in a letter to the Treasury Select Committee that it has shelved its highly criticised proposals to publicise live enforcement investigations. The FCA does however still plan to issue a final policy statement by the end of June which will include the FCA’s final rules for greater transparency regarding its enforcement actions. The policy statement will set out the FCA new rules for: (i) reactively confirming investigations already in the public domain (for example, following market announcements or other disclosures made by firms themselves or sometimes announcements by a partner regulator); (ii) making public notifications which focus on the potentially unlawful activities of unregulated firms and regulated firms operating outside the regulatory perimeter; and (iii) publishing greater detail of issues under investigation on an anonymous basis (for example, via a regular bulletin such as “Enforcement Watch”). 

In the same letter, the FCA provided an update on its proposals regarding non-financial misconduct (NFM) and diversity and inclusion (D&I) following its previous consultation in 2023 (CP23/20: Diversity and inclusion in the financial sector – working together to drive change). On NFM, the FCA confirmed that it will set out its proposals by the end of June. The FCA explained that it was taking more time than initially intended to appropriately reflect the current changing legislative landscape.

The FCA also confirmed that it does not intend to publish new rules on D&I and will not proceed with its proposals regarding D&I data collection in accordance with the Treasury Select Committee’s recommendation. The FCA explained its changed stance in light of wanting to avoid duplication and unnecessary costs given its recognition of a very active policy and legislative agenda, including on employment rights, gender action plans and disability and ethnicity pay gap reporting.

Naming and shaming: FCA backtracking and residual uncertainty - Macfarlanes

Update on the FCA’s enforcement transparency proposals | FCA

Our letter to the Treasury Select Committee on the FCA's enforcement work and diversity & inclusion

• On 7 March 2025, the FCA published the findings of its review into firms’ approaches to the consumer support outcome of the Consumer Duty and set out areas of good practice as well as areas for improvement. The review was conducted in two stages: an initial quantitative survey in May 2024 which received 356 responses from retail financial services firms across multiple sectors; and a subsequent information gathering exercise covering a sample of 40 firms in September 2024. The FCA’s review focused on the support being provided to customers across four areas: meeting customers’ needs; access to support; culture, governance and accountability; and outcomes monitoring. 

Consumer Support Outcome: good practices and areas for improvement | FCA

• On 7 March 2025, the FCA published the findings of its review of firms’ treatment of customers in vulnerable circumstances and examples of good practice and areas for improvement. The FCA also evaluated its February 2021 guidance for firms on the fair treatment of vulnerable customers (FG 21/1) (the Guidance). The FCA confirmed that it was not revising the Guidance or introducing new requirements for firms on the understanding that stakeholders had made clear that the Guidance was still useful and important under the Consumer Duty.

Firms' treatment of customers in vulnerable circumstances – review | FCA

Delivering good outcomes for customers in vulnerable circumstances – good practice and areas for improvement | FCA

• On 5 March 2025, the FCA published the results of its review of private market valuation practices. The review is relevant to all firms that hold investments in private assets, including private equity, venture capital, private debt and infrastructure assets as well as UCITS funds when holding assets subject to Level 2-3 valuations. We have written about the review of the private market valuation practices below:

Private market valuation practices - Macfarlanes

Private market valuation practices | FCA

• On 5 March 2025, the European Commission issued a notice responding to various frequently asked questions (FAQs) on the Taxonomy Environmental Delegated Act ((EU) 2023/2486), the Taxonomy Climate Delegated Act ((EU) 2021/2139) and the Taxonomy Disclosures Delegated Act ((EU) 2021/2178). The notice included FAQs on, amongst other items, the objectives of climate change mitigation and climate change adaptation, as set out in Annexes I and II to the Taxonomy Climate Delegated Act. 

European Commission notice (C/2025/1373)