Regulatory Updates December 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:

• FCA simplifies complaints reporting process
• FCA consults on reducing late fees for regulatory returns
• Regulators Forum publishes Regulatory Initiatives Grid to support innovation and stability
• FCA fines Nationwide £44m for failings in financial crime controls

 

FCA simplifies complaints reporting process

The FCA confirmed plans to streamline the way firms report complaints data to the regulator. Under the new approach, five existing complaints returns will be replaced with a single consolidated return, reducing duplication and simplifying reporting obligations for firms. The revised framework is intended to improve data quality and enhance the FCA’s ability to monitor consumer outcomes across the sector. Firms will also be required to capture complaints involving customers in vulnerable circumstances, supporting closer regulatory oversight of how such cases are handled. Fixed six month reporting periods will apply, alongside updated guidance to promote consistency in submissions.

 

FCA consults on reducing late fees for regulatory returns

During December, the FCA launched a consultation on proposals to reduce late fees associated with the submission of regulatory returns. The consultation seeks views on adjusting the current fee structure to ensure penalties are proportionate and do not place undue burden on firms where delays are administrative rather than systemic. The FCA is also exploring alternative approaches that continue to incentivise timely and accurate reporting while easing unnecessary regulatory cost. If implemented, the proposals could reduce friction for firms without compromising supervisory data quality.

 

Regulator’s Forum publishes Regulatory Initiatives Grid to support innovation and stability

The Regulators Forum published an updated Regulatory Initiatives Grid designed to improve transparency around forthcoming regulatory activity and support both innovation and market stability. The Grid sets out a coordinated, forward-looking view of major policy initiatives and implementation milestones across UK regulators, providing firms with greater clarity on regulatory sequencing and timing. By consolidating initiatives across authorities, the Forum aims to help firms plan more effectively, allocate resources efficiently and engage earlier with regulatory change.

 

FCA fines Nationwide £44m for failings in financial crime controls

On 23 December, the FCA imposed a £44 million fine on Nationwide Building Society for significant weaknesses in its financial crime systems and controls. The FCA found that deficiencies in anti-money laundering frameworks exposed the firm to an increased risk of financial crime and fell materially below regulatory expectations. The enforcement action reinforces the FCA’s continued focus on financial crime prevention and highlights the importance of robust governance, oversight and investment in AML controls across all types of regulated firms.

 

Please contact us at info@objectivus.com if you have any questions or require further clarity on any of the points raised.