Insights ¦ Regulatory Initiatives Grid April 2025

Published by: Financial Services Regulatory Initiatives Forum.

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Key Take Aways

1. The April 2025 edition of the Regulatory Initiatives Grid reflects a significant reprioritisation following the change in UK government and delays in initial planned policies.

2. The Grid emphasises increased regulatory coordination, with a marked rise in joint initiatives involving two or more regulators, enhancing operational resilience and sectoral stability.

3. Key initiatives include the long-term framework for Open Banking, cloud computing guidance, and digital securities sandbox, all aimed at supporting innovation and competition.

4. The delay of Basel 3.1 implementation to 2027 by the PRA impacts prudential capital plans and the delivery timetable of related projects such as Strong and Simple.

5. Data collection and reporting reforms are central, with ongoing projects to develop portals, decommission duplicate templates, and launch integrated reporting platforms like MyFCA.

6. The sustainability and ESG pillars are prominent, with forthcoming regulation on ESG ratings, extended disclosure requirements, and the endorsement of UK-specific sustainability standards.

7. Investment and pension sectors are moving towards enhanced transparency, with measures including the assessment of value for money, pension dashboards, and targeted reforms in DB and DC schemes.

8. Payments sector reforms focus on the real-time settlement enhancements, new cryptoasset regulations, and anti-fraud measures, underpinning a safer, more efficient ecosystem.

9. The review of market structure and transparency, including reforms to prospectus regimes and market conduct, aims to foster fairness and competition in wholesale markets.

10. Sector-specific initiatives include the review of mortgage rules, consumer credit regulation, and the development of superfund regimes to manage systemic risks.

11. Many planned policies have been postponed or integrated into broader reform programmes, with some initiatives being moved to the completed/stopped annex.

12. Stakeholder engagement continues to be integral, with feedback channels via online surveys, consultations, and collaborative working to refine policy and reduce operational burdens.

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Key Statistics

• The Grid lists 90 initiatives that have been completed or stopped since the last publication.

• 19 initiatives originated from the repeal and replacement activities under the Financial Services and Markets Act 2023.

• The delay of Basel 3.1 implementation results in a postponement of key prudential reforms until at least January 2027.

• The work on the digital securities sandbox has involved multiple firms progressing from Gate 1 to Gate 2.

• A comprehensive review of the credit information market features a phased approach, with consultation and initial recommendations set for Q2 2025.

• The Open Banking long-term framework aims to establish regulatory foundations by the end of 2027.

• The FCA’s final rules for the consumer classification and labels regime for investment products were laid in November 2024.

• Governance codes and sustainability disclosures now have updated standards with mandatory reporting in 2026.

• The Payments sector is implementing near-24/7 RTGS by around 2027, with phased opening of CHAPS earlier from 2027.

• The UK’s high-risk third country list is regularly updated to align with FATF standards.

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Key Discussion Points

• The impact of government transition on regulatory priorities and the resulting reprioritisation of initiatives.

• The strengthening of regulatory coordination through increased joint initiatives, improving operational resilience and strategic oversight.

• The significance of delays, such as Basel 3.1, and their implications on prudential regulation and sector competitiveness.

• The strategic shift towards data collection reform, automation, and digital portals to ease compliance burdens and improve regulator insights.

• The prominence of ESG and sustainability regulation, with ongoing efforts to develop standards, disclosures, and environmental risk frameworks.

• The movement towards more modernised, proportionate prudential and conduct frameworks, including for small and domestic firms.

• The ongoing development of innovative fintech environments such as the Open Banking long-term regime, cryptoasset regulation, and digital securities sandbox.

• The focus on consumer protection through redress reform, anti-fraud measures, and transparency enhancements, especially within payments and insurance sectors.

• The sectoral reviews of mortgage, insurance, and pensions regulation aimed at balancing consumer outcomes with financial stability.

• The potential operational impact of initiatives, with a clear prioritisation on operational readiness for upcoming regulatory changes.

• The influence of international standards and FATF alignment on UK regulatory frameworks.

• The coordinated approach to reforming market infrastructure, ensuring a globally competitive but resilient UK financial services sector.

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Document Description

This article provides a comprehensive overview of the UK financial regulatory landscape as of April 2025, captured through the latest edition of the Regulatory Initiatives Grid. It outlines the planned and ongoing initiatives across sectors including banking, payments, insurance, investment management, pensions, and wholesale markets. The document highlights the strategic shift in regulatory priorities following government changes, delays in key reforms like Basel 3.1, and the increased focus on innovation, data infrastructure, and sustainability. Designed for senior executives, it offers insights into regulatory timelines, their operational impact, and stakeholder engagement channels, supporting strategic planning and risk management in an evolving environment.