Regulatory Updates June 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:

• Proposed cost cutting for fund managers
• Removal of further regulatory returns
• The FCA’s Supercharged AI Sandbox
• The launch of PISCES, a new type of private stock market

FCA proposes cutting costs for fund managers

The FCA has proposed changes to ease the regulatory burdens on fund managers by simplifying the Assessment of Value reporting requirements. Under the new rules, authorised fund managers would no longer need to publish detailed annual Assessment of Value reports and instead surmising the confirmed value-for-money outcomes and any actions taken. This decision, aligning with the Consumer Duty, aims to cut compliance costs and enhance the UK’s competitiveness in asset management. While firms are still required to conduct thorough internal evaluations, the FCA estimates this reform will deliver substantial cost and time savings for around 150 firms managing over 3,900 funds.

 

FCA removes further regulatory returns no longer needed

The FCA confirmed the removal of several duplicative and redundant regulatory returns. The changes include the withdrawal of the General Insurance Pricing Attestation, deeming this no longer necessary to monitor firms’ compliance, and the removal of the Retail Investment Adviser Complaints return to avoid duplication of returns for complaints reporting data. The requirement to submit nil returns for the notification disciplinary actions against non-SMF staff has been removed as this does not provide additional regulatory value. Finally, the frequency of reporting the Consumer Buy-To-Let Mortgage Aggregated Data will be moved from quarterly to an annual reporting cycle.

 

FCA allows firms to experiment with AI alongside NVIDIA

The FCA announced the launch of its ‘Supercharged Sandbox’, a significantly enhanced testing environment codeveloped with NVIDIA. This initiative aims to provide financial services firms with access to NVIDIA accelerated computing and AI Enterprise software, enhanced datasets, and technical expertise to assist in the experimentation with AI in a safe environment. This initiative builds upon the FCA’s pre-existing AI Lab framework, including AI Sprint, Input Zone, and AI Live Testing services aimed at supporting innovation within current regulatory standards. From October 2025, eligible firms can apply to the sandbox to test AI-driven concepts in areas such as fraud detection, customer support automation or market surveillance. Eligible and participating firms will receive regulatory support, technical infrastructure and access to NVIDIA tools. The initiative aligns with the FCA’s five-year strategy, prioritising innovation and emerging technologies, such as AI, to deliver better outcomes for consumers and markets.

 

The FCA to launch new type of private stock market in growth boost

The FCA will formally launched the Private Intermittent Securities and Capital Exchange System (PISCES) later in 2025, a new regulated private market facilitating more opportunities for investors to access growth companies, allowing secondary trading of these shares. Access to PISCES will be limited to institutional and high-net-worth investors with clear risk disclosures to support informed decision making. This framework is intended to assist innovation in capital formation while maintaining proportionate investor protections, including anti-market abuse rules and bespoke disclosure requirements. By introducing PISCES, the FCA aims to address the long-standing gaps in the UK capital markets ecosystem and enhance the UK’s appeal as a hub for scaling business and long-term capital formation.

 

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