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

Context

The FCA has opened an enforcement investigation into Consultation Claims Limited (CCL) following concerns about its conduct in the period April 2025 to December 2025 in relation to motor finance claims.  The FCA is investigating concerns that consumers may have been signed up during the period April 2025 to December 2025 without their consent, with some allegations that signatures have been forged.  This appears to be a case founded in transparency, culture, conduct, conflicts of interest and a potential lack of appropriate outcomes.

Key points to note and next actions

• The FCA is investigating the full customer journey, including how customers were contacted, what they were told during and after sign-up, and the information they were given about exit fees.
• The FCA has stated that announcing the investigation allows consumers who may have unknowingly been signed up or who may have been presented with documents purporting to be signed by them when they have not, to complain to CCL.
• CCL agreed a Voluntary Requirement (VREQ) with the FCA, effective from 8 December 2025 to 2 March 2026. As part of the VREQ, CCL temporarily stopped taking on new customers and wrote to all its customers offering them a chance to cancel their arrangements free of charge.
• After CCL had complied with the FCA’s requirements, including by taking action to prevent the practice of customers being sent contracts which may have included false signatures, the VREQ was removed and the FCA permitted CCL to resume taking on new customers.
• The FCA has not reached any conclusions as to what has happened or as to whether CCL has breached any relevant requirements.

Context

The FCA has published Handbook Notice 141 outlining, amongst other things, the FCA’s Policy Statement following feedback to one element of Consultation CP26/8 (FCA Quarterly Consultation no. 51).  The Consultation proposed some minor amendments, including to SYSC 1.5, SUP 16 Annex 38C and SUP 16 Annex 38D (consumer credit reporting).

Key points to note and next actions

• Following the publication, The FCA identified a mistake in the changes made to Senior Management Arrangements, Systems and Controls sourcebook (SYSC) 1.5.3R. Therefore, it consulted to make a correction.
• The FCA also identified areas in the Handbook where minor amendments to the rules or guidance would help support firms’ ability to meet the rules set out in SUP 16.
• The changes in SUP 16 will not impact policy scope; instead, they focus on clarifying the language of the existing rules to improve the experience of firms when completing the return.

Context

The FCA has published the minutes of its 23 April 2026 Board meeting.

Key points to note and next actions

• The update from the Chair included updates on the regulatory trade-offs between growth and operational resilience, including cyber risks; and the cross-cutting nature of AI and other digital technologies used in financial services, highlighting the need for collaboration and co-operation among multiple domestic and international authorities.
• The CEO provided updates on developments related to cyber security, highlighting a potentially significant advance in cyber vulnerability detection and exploitation, and on the motor finance redress scheme, including stakeholder response to its announcement.  He also provided an update on the Financial Services Bill.

Context

The ICO has published its response to the Government on safe AI-powered innovation.  In January 2026, the Technology Secretary and the Business Secretary jointly wrote to the Information Commissioner asking the ICO to build on the foundation of its previous growth commitments to government and publish a plan for enabling safe AI-powered innovation by the end of May 2026.

Key points to note and next actions

The response sets out the progress the ICO is making on its June 2025 AI and biometrics strategy, where the ICO is providing regulatory certainty and improving standards in AI, automated decision making (ADM), and biometric technology across the private and public sectors.  The response also sets out the ICO’s plans for the next 12 months.

The response includes details of the ICO’s workplan, which will commit to a series of actions:

• develop an AI & ADM statutory code of practice;
• listen to the public’s queries and concerns around the ever increasing personalisation of consumer-facing AI services;
• produce a green cross code-style “how to” guide;
• publish a transparency resource to support organisations, in particular SMEs and public bodies;
• publish guidance on how to ensure agentic systems comply with UK GDPR; and
• streamline and rebrand the ICO’s Innovation and Sandbox services.

Context

The ICO has secured successful outcomes at Proceeds of Crime Act (POCA) hearings, resulting in a total of £118,852.32 in confiscation orders being handed to Greater Manchester based former RAC employees Debbie Okparavero and Maliha Islam.  Both defendants had previously pleaded guilty to a conspiracy to commit offences under s1 of the Computer Misuse Act 1990 and the Data Protection Act 2018, for unlawfully copying and selling almost 30,000 lines of personal information.

Key points to note and next actions

The outcome of the POCA hearing shows that the ICO will use the full range of its enforcement powers to bring criminals to account and recoup money, calculated by the Court, which reflects the benefit gained from illegal activity.

Context

In a warning which might be relevant to firms arranging or providing event cancellation insurances, FOS has warned that festival refunds are not guaranteed and encourages festival goers to know their rights.  Many consumers may not understand their rights to getting their money back if things go wrong.

Key points to note and next actions

• Common misconceptions around ‘Section 75’ or ‘chargeback’ claims could impact festival goers’ refund chances this summer, should things go wrong.
• Each year, FOS receives thousands of complaints from people who have had their claims for money back rejected.
• In the last financial year, the Ombudsman received 8,500 complaints about Section 75 and chargeback. But some of these showed that cardholders did not understand the rules.
• A ‘chargeback’ lets consumers challenge and try to recover payments made using a debit or credit card, although it only applies in certain circumstances.
• To help festival goers understand when chargeback or Section 75 may apply this summer, FOS has outlined some common misconceptions and what to do instead.

Context

The ASA has announced that it has updated both its Non-broadcast Complaint Handling Procedures, and its Broadcast Complaint Handling Procedures.  These procedures are important documents that set out the procedural framework that we apply when dealing with complaints. 

Key points to note and next actions

• As part of its commitment to following good governance practices, the ASA has completed a comprehensive review of the procedures to rationalise them, bring them up to date and to modernise and simplify the language. It has also incorporated several procedural changes to how it handles complaints.
• The updated procedures took effect from Friday 29 May 2026.

Context

Ahead of the tournament, the ABI has shared five top tips to help people understand the key features of travel insurance and choose a policy that suits their needs.  Insurance firms should note the ABI’s suggestions and consider reminding their travel insurance=buying customers accordingly.

Key points to note and next actions

In 2024 alone, travel insurers paid out £35 million to help their customers visiting the USA and Canada cover the cost of medical bills, where medical care costs are significantly higher, and other unexpected losses.

1. “Buy before you fly”.Most policies won’t be valid if you buy them after you’ve started your trip, which means you won’t be able to make a claim should something go wrong overseas.  It’s always best to take out insurance as soon as you’ve booked a trip, as this will ensure you’re covered if you need to cancel. 
2. Declare any pre-existing medical conditions as doing so will help you get the right level of medical cover for your individual circumstances, giving you peace of mind that you’re protected abroad. The primary purpose of travel insurance is to cover the cost of what can be incredibly expensive emergency medical treatment overseas.
3. Make a ‘claim plan’. Keep your insurance policy and your provider’s contact details to hand in case anything goes wrong on your trip.  It can also help to share these with a trusted friend or family member travelling with you, as well as someone at home. Should you need to make a claim, contact your insurer as soon as possible. Many insurers will have a 24/7 phone number you can call for support. 
4. Follow FCDO travel advice.This advice is there for your safety, and travelling against it could invalidate your insurance. You can sign up to receive email alerts about changes to travel advice here, and the FCDO’s Travel Aware campaign page also has important guidance on a range of topics, including travel insurance. Information specific to the World Cup is also available on Gov.uk Travel Advice pages for the USA, Canada and Mexico. 
5. Celebrate responsibly. While it might be tempting to raise a glass after a big win, consume alcohol responsibly. Insurers will expect you to take ‘reasonable care’ on your trip, so if you’re injured whilst drinking excessively, you may not be able to claim for any emergency medical treatment you need or other costs incurred.

Context

Progress Together’s new campaign, Making the Invisible Visible aims to shine a light on the often unseen barriers that continue to influence career progression across the UK financial services sector.

Key points to note and next actions

• Through personal stories and reflections from the experiences of individuals, the campaign highlights why lived experience matters and why organisations must take a closer look at the behaviours, expectations and systems that shape who progresses, who is heard and who ultimately reaches senior leadership positions.
• Progress Together is encouraging firms, leaders and employees across financial services to share their own stories and experiences to help uncover the barriers that continue to affect career progression. By bringing these challenges into the open, the campaign seeks to drive meaningful change across the industry.
• The Making the Invisible Visible campaign launched at the House of Lords last week.
• At the launch, an LIIBA spokesperson explained that research consistently shows that socio-economic background remains the strongest predictor of who reaches senior leadership in UK financial services. Despite significant progress in many areas of diversity and inclusion, talent continues to be overlooked when individuals face barriers that are often hidden from view.