Regulatory Insights: September 2025 – Balancing Growth, Innovation and Consumer Protection

Our strategic partner Pinsent Masons has released the September edition of its FS Regulatory Risk Trends update, highlighting the latest developments shaping the UK regulatory landscape.

This third edition of 2025 comes at a time when government and regulators are under pressure to balance economic growth, innovation and competitiveness with strong consumer protection and the integrity of the financial system.

FCA focus: innovation with safeguards

The FCA continues to implement its five-year strategy, with an emphasis on innovation and efficiency. This quarter’s insights point to several areas of interest:

• AI regulation and adoption: the FCA is engaging with the opportunities and risks around AI in financial services.
• Payments innovation: consultations on contactless payments and targeted support show a regulatory push for consumer benefit and wider adoption.
• Market infrastructure: the FCA has approved the first PISCES platform, a milestone for digital settlement systems.

Wider government initiatives

Alongside the FCA’s actions, HM Treasury is consulting on significant changes to the redress framework overseen by the FCA and the Financial Ombudsman Service (FOS). These proposals could have a major impact on how firms manage complaints and consumer redress.

Risks on the horizon

While innovation is encouraged, firms also face heightened scrutiny. Recent regulatory activity includes:

• Market reviews into retail insurance, digital customer journeys and premium finance.
• Ongoing exploration of the future of cryptoasset regulation.
• Criminal prosecutions linked to financial crime.
• Preparations for an industry-wide redress scheme following the Supreme Court motor finance case in August.

To discover the full update click here.