Insights
Regulatory Updates June 2026
Our regulatory newsletter aims to provide insight into the changes and updates which may have an impact on firms. At Objectivus we are well positioned to provide context and support for firms working to understand such changes.
In this June issue we cover the FCA’s recently proposed climate rules that could save investment firms £20m, the newly tightened crypto regulation, several fines and punishments that have been handed out, as well as a reminder of the rule changes that come into effect soon.
FCA seeks input on Climate Rules
The Financial Conduct Authority (FCA) has recently announced proposals to change the reporting system required by the Task Force on Climate related Financial Disclosures (TCFD) into a more digestible format.
The FCA believes that a simplifying of these reports could have two key benefits. Firstly, a change in the format could help retail investors more easily understand the possible risks to their investments from climate change, such as the impact of floods, storms and extreme heat.
Secondly, a simplification could lead to savings of up to £20m for asset managers through a reduction in unnecessary costs.
The consultation on these proposed rule changes ends on the 13th July 2026 and the FCA is seeking the views of asset managers, asset owners, trade bodies and consumer groups.
FCA’s New Crypto Rules
In February of this year the FCA released rules that brought crypto assets under its remit for the first time. Subsequently, they have released their finalised regulatory framework that comes into effect in October 2027.
These rules have been based on previous financial standards where risks are comparable. Consequently, crypto firms such as trading platforms, stablecoin issuers, custodians and firms arranging staking must now be FCA regulated if they seek to operate in the UK.
While the rules do not come into effect until October next year, the FCA is encouraging firms to prepare early and make use of their pre-application support meetings that start this month. Firms can apply for authorisation between the 30thof September 2026 and 28th February 2027 so that they are ready for when the rules come into effect.
FCA Fines and Punishments
Early on in June, the FCA secured a confiscation order of £452,286.80 against Ponzi scheme orchestrator Daniel Pugh. Mr Pugh, who is currently serving a prison sentence of over 7 years for defrauding investors out of £1.3m, has been ordered to pay the confiscation order or will risk a default sentence of up to 4 years and 9 months.
On the 11th, the FCA fined Carlos Fuenmeyer, the CEO of BancTrust, £99,600 for his failings to disclose certain matters to them. In November 2019, he did not mention that the National Finance Unit of Venezuela had recently frozen his local currency bank accounts and from June 2019 until December 2021 he also failed to disclose that he had been sanctioned by the US Financial Industry Regulatory Authority, following an investigation they had started in 2017.
Towards the end of the month, Caecis UK was censured and will therefore make a £31.7m voluntary payment to the clients of WeathTek. The FCA’s 13 month investigation found that Caecis failed to spot that WealthTek was not permitted to hold client money, as well as lacking the authorisation to hold specific assets and thus failed in their requirements as WeathTek’s sub-custodian.
FCA Rule Changes Coming into Effect Soon
On the 15th of July, the FCA’s new rules on deferred payment credit (DPC) come into force. DPC is one of two types of ‘Buy Now Pay Later’ (BNPL), and while the other was already regulated, DPC is now being brought in under the FCA’s remit as well.
For clarity, DPC is an interest-free form of credit, with 12 or fewer repayments in a period of 12 months or less. Furthermore, for the rule change to apply, the lender and the supplier of the goods or services must be two different businesses.
In addition, on the 1st of September, the new FCA rules on non-financial misconduct take effect. These changes follow on from previous FCA rule changes over the past few years that focus on the importance of accountability for individuals in regulation matters.
The centre of these changes is bringing all SM&CR firms into the non-financial misconduct framework that previously only existed at banks. While this will not apply retrospectively; it makes misconduct including bullying and harassment a regulatory matter.
Please contact us at info@objectivus.com if you have any questions or require further clarity on any of the points raised.