The June 2025 edition of Regulation Round Up provides a comprehensive overview of key regulatory developments affecting the UK and EU financial services landscape. Notable actions include a series of publications and consultations by the Financial Conduct Authority (FCA), the European Banking Authority (EBA), the Prudential Regulatory Authority (PRA), and the European Commission. The FCA’s initiatives spanned consumer investment advice, enhancements to its handbook, updates to UK Listing Rules, and an expanded focus on risk management within e-money and payment firms.
Sustainability and economic competitiveness remained central themes. The Department for Energy Security and Net Zero launched a consultation on climate-related transition plan requirements, while the Council of the European Union reached consensus on directives that streamline corporate sustainability due diligence and reporting requirements. The UK government’s release of the ten-year Modern Industrial Strategy 2025, aimed at boosting investment and future-focused industries within financial services, underlines the importance of long-term economic growth in regulatory contexts. Concurrently, both the FCA and PRA worked on defining their roles in facilitating the UK’s economic competitiveness, alongside revisions of their memorandum of understanding on payment system regulation with the Bank of England and Payment Systems Regulator.
Technological innovation and digital finance also featured prominently in June’s regulatory narrative. The EBA responded to evolving intersections between the revised Payment Services Directive (PSD2) and the Markets in Cryptoassets Regulation (MiCA), while the European Commission advanced technical standards to implement consolidated tape under MiFIR. The FCA published resources to assist investment firms in evidencing suitability of advice and, notably, detailed its collaboration with Nvidia to accelerate innovation in Artificial Intelligence within financial services. Additional actions included policy statements on intermittent securities markets (PISCES), ongoing quarterly consultations, policy changes to the FCA’s Enforcement Guide, updates to the UK Stewardship Code, and continued work on consumer protection in motor finance. These developments collectively illustrate a dynamic and multifaceted regulatory environment as UK and EU authorities address sustainability, technology, and post-Brexit market reforms.
