Regulatory Updates August 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 warns of surge in impersonation scams
• FCA approves LSE as first PISCES Operator
• FCA reduces reporting burden for 36,000 firms
• Amendments to UK EMIR Trade Repository Reporting
• Multi-firm review of algorithmic trading controls
• FCA fines Sigma Broking Limited for transaction reporting failures
• UK Government publishes updated guidance on money laundering exemptions
• FCA provides retail access to crypto exchange traded notes
• FCA updates payments and e-money safeguarding regime

 

FCA warns of surge in impersonation scams

The FCA received 4,465 reports of fake FCA scams in the first half of 2025, with 480 individuals falling victim by sending money to fraudsters. Two-thirds of these reports came from people aged 56 or above. Consumers are being advised not to share personal information, such as bank account details, PINs, or passwords, in response to unsolicited calls, emails or texts claiming to be from the FCA.

This highlights the ongoing importance of customer education and robust internal procedures to detect and prevent fraud. Maintaining clear client communications, staff awareness training and escalation processes will help mitigate risks and protect both customers and firms from potential financial crime.

 

FCA approves LSE as first PISCES Operator

The FCA has approved the London Stock Exchange (LSE) as the first operator of the PISCES (Platform for Innovation in Securities Clearing and Settlement) initiative. PISCES is designed to enhance transparency, reduce operational friction and support innovation across capital markets. By improving the efficiency of clearing and settlement processes, the platform is expected to create opportunities for firms to expand their product offerings and adopt more streamlined operations.

Firms should consider how early engagement with PISCES can provide operational advantages, improve reporting efficiency and allow participation in shaping best practices as the platform evolves. Adapting internal processes to leverage the platform’s capabilities could also support better compliance and risk management.

 

 

FCA reduces reporting burden for 36,000 firms

On 28th August 2025, the FCA announced changes under the Senior Managers and Certification Regime (SMCR) to reduce the administrative burden on thousands of regulated firms. Firms are no longer required to submit nil REP008 returns if there have been no disciplinary actions against certification staff or non-senior managers. This change affects approximately 36,000 organisations, representing 95% of those regulated by the FCA.

REP008 returns are still required if disciplinary action occurs, and firms must continue to maintain strong governance frameworks to monitor staff conduct. While the removal of nil returns reduces repetitive reporting, firms should ensure that genuine disciplinary cases are escalated and reported accurately. The update allows resources to be redirected to higher-value compliance activities while maintaining oversight and accountability.

 

Amendments to UK EMIR Trade Repository Reporting

The Bank of England published amendments to the UK EMIR Trade Repository reporting requirements, aimed at clarifying data submission rules, improving reporting quality and reducing unnecessary administrative work for firms. These changes ensure that trade reporting remains accurate, consistent and compliant with regulatory expectations.

Compliance teams should review internal systems and procedures to ensure they reflect the updated reporting obligations. Timely adaptation will help prevent errors, ensure regulatory compliance and maintain transparency across trade reporting processes, a critical element of market oversight.

 

Multi-firm review of algorithmic trading controls

The FCA published its high-level observations following a multi-firm review of algorithmic trading controls across investment banks, brokers and proprietary trading firms. The review highlighted good practices and areas requiring improvement, particularly in governance, testing, risk management and post-trade surveillance. While many firms demonstrated robust frameworks, others lacked adequate documentation, oversight and scenario testing to ensure algorithms operated safely under stressed conditions.

For firms engaged in algorithmic trading, the FCA’s findings highlight the need for strong governance frameworks and comprehensive testing processes. Senior managers should review their responsibilities under SMCR, ensuring that controls are well documented and adaptable to evolving market conditions.

 

 

FCA fines Sigma Broking Limited for transaction reporting failures

The FCA announced a fine against Sigma Broking Limited for longstanding failures in transaction reporting obligations under MiFID II and EMIR. The regulator found that between 2017 and 2020, Sigma submitted inaccurate reports for millions of transactions and failed to establish effective systems and controls to ensure compliance.

This case reinforces the FCA’s continued focus on data quality and accurate reporting. Firms should take this as a reminder to review their transaction reporting frameworks, governance arrangements and testing mechanisms to avoid similar enforcement actions.

 

UK Government publishes updated guidance on money laundering exemptions

The UK Government has released updated guidance on the exemptions to money laundering reporting obligations, particularly relating to Defence Against Money Laundering (DAML) provisions introduced by the Economic Crime and Corporate Transparency Act. The guidance clarifies when firms may be exempt from reporting suspicious activity, including specific conditions designed to streamline reporting without weakening financial crime controls.

For compliance teams, this updated guidance provides important clarity on balancing legal obligations with operational efficiency. Firms should review their internal anti-money laundering (AML) procedures and ensure staff are trained on when exemptions apply and how decisions should be documented.

 

FCA provides retail access to crypto exchanged traded notes

The FCA confirmed that retail investors will now have access to exchange traded notes (ETNs) referencing crypto assets. Previously restricted to professional investors, this decision reflects growing interest in regulated access to crypto markets, while maintaining investor protection standards. Retail investors will be able to gain exposure to crypto markets through ETNs listed on recognised exchanges, with safeguards in place around transparency and disclosure.

This development creates new opportunities for retail participation in the crypto market, but firms should be prepared for increased customer interest and ensure they have clear communication strategies in place to explain both the risks and regulatory protections associated with these products.

 

FCA updates payments and e-money safeguarding regime

The FCA published Policy Statement PS25/12, setting out significant changes to the safeguarding regime for payment and e-money institutions. Key updates include stricter reconciliation requirements, clearer rules on the use of safeguarding accounts and enhanced expectations for governance and oversight. The changes aim to strengthen consumer protection considering past insolvencies in the payments sector, where weaknesses in safeguarding led to consumer harm.

Payment and e-money firms should carefully review the updated policy and update their safeguarding procedures accordingly. Senior managers should expect heightened regulatory scrutiny in this area, making proactive compliance essential.

 

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