REGtape UK | Summer 2025
Published on 27th June 2025
Developments in financial services regulation in the UK
Welcome to the summer edition of 2025, reflecting on developments and emerging themes in UK financial services with a focus on the retail banking, investments, wealth and fintech sectors.
In the second quarter, we have seen a continuing trend of promoting UK growth, while new regulatory initiatives aim to simplify and streamline regulatory processes.
This edition includes a look at "buy now, pay later" reform, a recap on the Supreme Court's hearing of the Johnson motor finance case and the proposed simplification of capital rules for investment firms.
We also discuss how the FCA plans to regulate cryptoassets, in what has been a busy time for the sector.
Wishing you all a fantastic summer, and we look forward to sharing the autumn edition of REGtape with you in October.
How to navigate the UK regulatory landscape in financial services M&A
The success of M&A transactions in the financial services sector can hinge on the evolving regulatory and compliance environment. These changes can affect valuations (both upwards and downwards), increase risk and costs, and cause uncertainty and potential delays to a transaction. All of which could call into question the attractiveness and feasibility of a deal.
Engaging experienced legal advisers with specialist expertise in the financial services sector is crucial to navigate regulatory and other complexities, smooth the process and increase the likelihood of a successful transaction and a seamless post-completion integration.
Crypto Insight
May saw a flurry of activity in the cryptoassets space. HM Treasury published draft legislation to bring cryptoassets inside the regulatory perimeter and indicated that it would hope to have final legislation in place by the end of the year. The Financial Conduct Authority has now published an extensive discussion paper and two consultation papers with more to follow in the near future.
AIFMD II Insight
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FCA consults on simplifying insurance rules
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'Buy now, pay later' reform to pave the way for major consumer credit overhaul in UK
HM Treasury (HMT) has published its long-awaited response to the consultation on "buy now, pay later" (BNPL) reform, together with final legislation and a consultation on reforming the consumer credit regime.
We look at the parallels between the two sets of proposals and ask whether BNPL is a blueprint for wider Consumer Credit Act reform.
Supreme Court hears submissions in UK motor finance test case
At the beginning of April, the UK Supreme Court heard the much-anticipated appeal in Johnson v FirstRand Bank Limited t/a MotoNovo Finance, following the previous Court of Appeal findings that have raised wide-ranging questions for UK credit brokers and lenders.
The issues before the Supreme Court go to the heart of the motor finance business model, where lenders pay motor dealers commission for introducing finance products to customers.
Judgment in the appeal is expected imminently. In the meantime, what is the current position and what were the arguments heard by the Supreme Court?
FCA proposes simplification of UK capital rules for investment firms
A consultation has begun regarding the definition of capital for investment firms, outlining plans to simplify and consolidate the rules on what qualifies as regulatory capital and to make these easier to understand.
The proposals are in line with the UK financial regulator's broader aims to make rules more accessible and proportionate, to avoid unnecessary complexity and to support the government's growth "mission".
Future of Financial Services podcast
Our monthly podcast series draws upon themes covered in our Future of Financial Services Week and explores emerging challenges and solutions in the rapidly changing world of finance.
Recent episodes include discussions on diversity and inclusion, artificial intelligence, the trend towards regulatory simplification, and more.
Osborne Clarke's financial services regulatory experts would be happy advise you further on any of the topics covered in this edition. For further information, please contact any of the experts mentioned.
