Welcome to our Financial Services Sector update, providing you with a summary of the key regulatory developments and emerging business risks relevant for all financial institutions, including banks, building societies, investment and wealth managers and insurance and payments providers.

Our Financial Services team work with a broad range of financial services firms giving us extensive perspective on the issues facing the sector and what they mean for your business. The insights provided are aggregated across our in-house research, client base and the Regulators and professional bodies, to help inform your oversight and assurance activities over your firm’s priority risks and wider business activities.

In our latest update covering Q1 2026, we explore:

All Financial Services

1. Regulatory initiatives
2. FCA findings: Financial crime risk assessment processes and control
3. Are Financial Services firms poised to realise success from AI?
4. R&D tax: Overseas cost exclusion – implications and opportunities
5. Data protection update for Financial Services
6. Navigating the non-financial-misconduct changes
7. IFRS 18: Presentation and disclosure in financial statements
8. Navigating a Skilled Persons Appointment.

Banking and Building Societies

1. FCA priorities for Banks in 2026
2. FCA priorities for Mortgages in 2026
3. Motor Finance Redress – what do Internal Audit teams need to think about?
4. SS5/25 explained: new PRA climate risk expectations for Banks.

Insurance

1. PRA priorities for Insurers in 2026
2. FCA priorities for Insurers in 2026
3. SS5/25 explained: new PRA climate risk expectations for insurers
4. Insurance regulation in an age of uncertainty.

Wealth and Asset Management

1. Key risks and control priorities for 2026
2. UK Stewardship Code 2026
3. MIFIDPRU returns: FCA review of data quality
4. FCA review: consolidation in financial advice and wealth management
5. Upcoming changes to the MIFIR transaction reporting regime.

Payments and E-money

1. PS25/19: A fundamental reset of complaints reporting
2. What the FCA Regulatory Grid means for payments and e-money firms
3. EMI 2.0: The budget shake up fintechs can’t afford to miss
4. Navigating FCA authorisation pathways for payments and e-money firms.

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We hope this pack provides value to you and your colleagues; please do share with us any feedback you may have for future editions.

You can find more information about how we can support your Financial Services firm here. If you have any questions, please do not hesitate to contact the team or your usual BDO contact if you have any concerns or questions relating to anything highlighted in our updates.