UK 2025 Regulatory Initiatives Grid published

The Financial Services Regulatory Initiatives Forum (the Forum) has published the Regulatory Initiatives Forum Grid (the Grid), with the UK Financial Conduct Authority (FCA) also updating its webpage. The previous Grid was due to be published in May 2024 but was postponed due to the General Election, meaning the Forum published only an interim update in October 2024.

The 2025 Grid sets out the regulatory pipeline for the next 24 months and reflects the reprioritisation that has taken place since the new government came into power. Notable initiatives include:

• motor finance commission review: the FCA intends to confirm, within six weeks of the Supreme Court's decision on past use of discretionary commission arrangements by motor finance firms, whether it will propose a redress scheme;
• liquidity risk management in funds: the FCA will consult on refined proposals regarding liquidity risk management in funds to implement FSB and IOSCO guidelines;
• Consumer Composite Investments (CCI) Regulation: the FCA published a second consultation paper on the new CCI regime on 16 April (see our update) and plans to issue a Policy Statement with final rules in late 2025;
• PISCES: HM Treasury plans to lay secondary legislation by May 2025, providing the legal framework for the PISCES sandbox;
• Prospectus Regime reform: the FCA is aiming to publish final rules and policy statements on the UK's revised prospectus regime in summer 2025, which will take effect in early 2026; review of Short Selling Regulation: the FCA plans to publish a consultation paper, draft rules and a draft statement of policy on the use of its emergency intervention powers in Q3 2025, with final rules to be published around H2 2026;
• crypto-asset regulation: draft legislation establishing a financial services regulatory regime for crypto-assets (including stablecoins) in the UK is expected to be published in Q1 2025, with legislation expected to be laid in H2 2025;
• regulation of Buy Now Pay Later (BNPL): HM Treasury plans to publish a consultation response and lay secondary legislation in Spring 2025, with BNPL products coming under FCA regulation in around mid-2026 (12 months after the legislation is made;
• ESG ratings regulation: HM Treasury intends to make secondary legislation in H1 2025 to bring ESG ratings providers within the regulatory perimeter; the FCA will then consult on proposals for the future regulatory regime.

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