Regulatory Updates May 2025

Our regulatory newsletter aims to provide insight into the previous month’s changes and updates which may have an impact on your firm. At Objectivus, we are well positioned to provide context and support for firms working to understand such changes.

 

In this issue we cover:

• Consumer credit date reports to be replaced
• Enhanced access to investment research
• Changes to the UK-China financial relationship
• Stripping back the insurance rulebook
• Streamlined complaints data reporting

 

Consumer Credit Data Reports to be Replaced

As part of its agenda to be a smarter regulator, the FCA has introduced a new consumer credit regulatory return, replacing two existing reports and aiming to streamline data collection across credit broking, debt counselling and related activities. The revisions follow strong industry opinions. The new return removes 28% of proposed questions and tailoring data requests to firm business models, becoming more proportionate. The move aims to better support oversight whilst easing regulatory burden.

 

Enhanced Access to Investment Research

As part of its pro-growth agenda, the FCA has finalised new rules giving pooled investment funds greater flexibility to pay for research and trading services through joint payment options—bringing the UK in line with global norms.

These changes are aimed at improving access to high-quality investment research, enhance market efficiency, and boost competition—particularly for smaller fund managers. The rules are designed to support better outcomes for investors while maintaining strong standards of consumer protection.

 

Changes to the UK-China Financial Relationship

A recent speech delivered by Ashley Alder, FCA chair, shows that the regulator is focused on strengthening its financial relationship with China through collaboration in areas like green finance, wealth management, and regulatory alignment.

Shifts in demographic and evolving market needs have resulted in shared challenges and opportunities with the need for deeper co-operation, according to the speech. Key initiatives will include revitalising Stock Connect, exploring Wealth Connect, and aligning sustainability standards. A proposed Memorandum of Understanding aims to enhance data-sharing. Despite geopolitical uncertainty, the FCA remains hopeful that China will be willing to commit to openness and cooperation.

 

Stripping Back the Insurance Rulebook

The FCA has proposed a major simplification of its insurance rulebook, aiming to cut outdated and duplicated regulations. The reforms could lower costs and widen access to insurance, while keeping protections for smaller firms. Key proposals include easing conduct rules for large commercial clients, removing mandatory 12-month value reviews, reducing reporting and training requirements, and allowing one lead insurer to oversee compliance.

The FCA is also seeking feedback on limiting some rules to UK customers. This move supports the regulator’s broader push to reduce red tape, boost competitiveness, and improve consumer outcomes. Consultation is open until 2 July 2025.

 

Streamlined Complaints Data Reporting

The FCA plans to simplify complaints data reporting for 10,000 firms by consolidating five returns into one:

• DISP 1 Annex 1R
• CCR – Complaints
• FPR – Complaints
• PS – Complaints
• CMC – Complaints

 

This aims to reduce the regulatory burden and receive more concentrated, higher quality data. This should allow the regulator to detect and address consumer harm more quickly.

The proposals also include standardising the frequency of data requests to make reporting schedules more predictable. This should aid firms in planning and help the FCA to allocate resources more efficiently. Executive Director Sarah Pritchard said the changes reflect the FCA’s commitment to smarter regulation and will enhance its ability to identify and respond to emerging risks.

 

Please reach out to info@objectivus.com if you have any questions or require further clarity on any of the points raised.