Welcome to the UKGI weekly regulation update service for Aviva ABC brokers

Context

The FCA has published the final version of its streamlined and updated Enforcement Guide and has confirmed its approach to enforcement transparency.  The Policy Statement includes a Mapping Guide showing where content in the previous Guide can now be found in the new Guide or on the FCA’s website.  The whole of the new Guide is also included in the Policy Statement.

Key points to note and next actions

The updated Enforcement Guide

• The updated Guide will be a more user-friendly document that benefits firms and consumers.
• The FCA has made other changes to the Enforcement Guide to streamline the content and reduce duplication, reducing it by over 250 pages.
• The FCA has also confirmed that it will continue to consult on future changes to the Enforcement Guide.
• The new Enforcement Guide came into force on 3 June.

Enforcement transparency changes

The FCA has retained the ‘exceptional circumstances’ test for announcing investigations into regulated and listed firms. In addition, it has identified three situations where there was broad support for increased transparency, which are set out in Chapter 4 of the Policy Statement:

• Where the FCA is investigating suspected unauthorised financial services, or a suspected offence relating to unregulated activity, and an announcement will warn consumers or investors or help the investigation.
• Where the fact of the investigation has been made public by the subject, an affiliated company or a regulatory body, government or public body.
• Anonymised announcements, not naming or identifying the subject of the investigation, where it would be helpful to educate people on the types of misconduct we are investigating.

These changes will only apply to investigations launched on or after 3 June 2025.

Given the specific legal considerations on sharing information about individuals, the FCA will not generally announce when it has opened an investigation into a named individual

In relation to other proposals and changes, the FCA includes information in relation to accepting reports on a limited waiver basis, the attendance of legal advisers at compelled interviews, reports on its investigations, the commencement of civil and criminal proceedings, scoping meetings, private warnings, and various proposals for amendment to the content of the guide.

Context

Nikhil Rathi, FCA Chief Executive, and John Edwards, the UK Information Commissioner, have published identical blogs (on the FCA website and on the ICO website) to discuss how the two organisations will work together to help firms use AI responsibly, while protecting consumers and fostering innovation.  To help innovation succeed, the two organisations want to underpin innovation with confidence to try new ideas, trust, and a joined-up regulatory approach even where it is challenging to provide clarity in a fast-changing environment.  The FCA and ICO are working closely together to support firms navigating data protection and financial regulation in a way that helps them innovate confidently.

Key points to note and next actions

The blog considers the issues of:

• regulation as a bridge, not a barrier;
• listening to the financial services sector;
• support in putting regulatory principles into practice;
• liability and the supply chain;
• awareness of support; and
• looking ahead

Context

The OFSI has released a new video series, ‘Financial Sanctions: The Basics’. This series provides high level, accessible guidance on OFSI’s processes and how to comply with financial sanctions obligations

Key points to note and next actions

The video series covers a variety of topics:

• Introduction to OFSI and Financial Sanctions – provides detail on the work carried out at OFSI and how financial sanctions work more generally.
• OFSI Guidance – provides an insight into the range of guidance that OFSI produces to help individuals and companies comply with UK financial sanctions.
• Consolidated List – gives an overview of the consolidated list (detailing which individuals are designated under UK sanctions) and how OFSI and FCDO come together when there are new designations, and what firms should do once an individual has been designated.
• Reporting to OFSI – covers what to do if you suspect a financial sanctions breach and explains how to report to OFSI quickly and effectively.
• General Licences – introduces general licenses, with an overview of who might use one and how they work.
• Specific Licences – explains what a specific licence is and how to apply for one.

Context

The ABI, in response to a Department for Environment, Food & Rural Affairs (DEFRA) announcement about a Consultation and Call for Evidence about reforming the Government’s approach to flood and coastal erosion funding, is urging Government to commit to substantial and long-term investment in important infrastructure within its upcoming Spending Review and 10 Year Infrastructure Strategy.

Key points to note and next actions

• Welcoming the statements issued to the House of Commons and the House of Lords, the ABI has said that adapting and building resilience to the changing climate is essential, noting that flooding is becoming more frequent and extreme.
• Government wants to ensure funding for flood defences is distributed more effectively across the country – including for rural and coastal communities.
• The Consultation is proposing to stop using the current outdated funding formula entirely and replace it with a simple two-step process.
• The new approach for flood resilience investment will be launched in time for the start of our new flood investment programme in April 2026.
• The Call for Evidence includes two wider areas to consider finding alternative sources of funding for flood and coastal erosion projects, and to explore opportunities for English devolution to support flood resilience, including how to deliver more local choice in flood risk management decisions.