UK Financial Regulation Sees Major Developments Amid Focus on Digital Assets

The UK's financial regulatory landscape saw significant developments in July 2026. The Financial Conduct Authority (FCA) published its findings on firms' approaches to monitoring outcomes under the Consumer Duty, highlighting areas for improvement.

Bank of England Governor Andrew Bailey emphasized the importance of well-designed regulation in supporting sustainable economic growth, specifically mentioning the opportunities and risks posed by AI. The Bank also announced plans to work with the Prudential Regulation Authority (PRA) on a package of reforms to UK bank capital requirements.

The Treasury published an update on its Financial Services Growth and Competitiveness Strategy, highlighting progress made in key areas such as digital assets and capital markets. A policy paper was also released outlining recommendations for advancing UK-US financial services collaboration, focusing on these same areas.