Regulatory Updates January 2026

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 publishes consultation on remaining cryptoasset perimeter and broader regulatory reforms
• New UK public offers and trading regime (POATRs) comes into force
• FCA finalises simplified insurance rules
• FCA enforcement activity and evolving financial crime focus

FCA consults on cryptoasset regulatory perimeter and other reforms

 

The FCA published Consultation Paper 26/4, focusing on how the regulatory regime should apply to regulated cryptoasset activities and related frameworks. This consultation reflects the FCA’s continued efforts to clarify and modernise the regulatory perimeter as digital asset markets evolve and firms seek certainty about compliance obligations.

The proposals aim to bring additional parts of the crypto industry within established standards for conduct, reporting and market integrity. The consultation is part of a broader period of stakeholder engagement on crypto regulation running into 2026.

 

New public offers and admissions to trading regime (POATRs) comes into force

 

On 19 January, the FCA introduced the POATRs, bringing a reformed regime for public offerings of securities and admissions to trading. Under this new framework, issuers and advisors must comply with updated Prospectus Rules and related amendments to the FCA Handbook.

Key changes include:

• New prospectus sourcebook (PRM) and associated UK Listing Rule amendments;
• Adjustments to application and review processes for securities admissions;
• New mechanics for multilateral trading facility admissions.

Firms involved in public offerings and listings should ensure their documentation and submission practices align with the new regime.

 

FCA finalises simplified insurance rules

 

The FCA confirmed final rules to simplify insurance regulation, aimed at reducing unnecessary complexity and lowering compliance costs while preserving consumer protections.

These rules include:

• Removal of certain minimum training and competence requirements, enabling firms to tailor arrangements to their risk models;
• New flexibility regarding product review frequencies;
• Reduced notification and annual reporting obligations for certain employer liability insurance elements.

 

FCA enforcement and regulatory focus: financial crime and AML

Enforcement and supervisory activity continued to emphasise financial crime risk. Recent reporting indicates the FCA is reviewing AML systems across more than 250 asset managers as part of a broader initiative to strengthen controls and mitigate risk across the financial system.

This follows heightened scrutiny of firms’ AML frameworks and ongoing actions to uphold robust governance standards. Firms should remain vigilant in reviewing their controls, reporting capabilities and risk assessment practices in light of this supervisory emphasis.

 

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