Private equity is transforming financial advice. But is the risk to consumers increasing? An investigation published in The Times on 15 October highlights theconsolidation of Britain’s independent financial adviser (IFA) market and raises important questions about conflicts of interest and consumer protection. The scale of change is striking. · The number of advisers employed by private equity-backed firms almost doubled, from 4,157 to 7,706 between 2023 and March 2026.

Companies House: Significant increase in PSC data updates from 13 October Companies House has announced that it will begin loading new People with Significant Control (PSC) data from 13 October 2026. The exercise is expected to generate an increased volume of PSC Streaming API events over approximately 15–20 days. The update introduces additional links between PSC records and their associated notifications, helping to establish a foundation for improved visibility of company

The Insolvency Service and Companies House announced their first identity-verification convictions on 17 September, with three directors fined.For those of us gathering and analysing company information, this is another milestone in the register’s evolution. Companies House described its goal as creating a register that is “more reliable, more transparent and better equipped to support economic growth”.Identity verification should strengthen our ability to establish who is be

UK corporate reporting could be heading for significant change. Source: Mondaq, 14 September 2026, reporting on the UK Government’s new Modernising Corporate Reporting consultation, published on 7 September 2026. The Government has launched what is being described as a major review of the UK corporate reporting regime, covering almost every aspect of annual reports and accounts. Among the proposals being considered are: • simplifying reporting requirements for SMEs and group

FCA misconduct rules take effect today From 1 September 2026, the FCA’s Conduct Rules explicitly extend to serious workplace bullying, harassment and violence across around 37,000 additional regulated firms. Importantly, serious substantiated misconduct may also need to follow an individual through the regulatory reference process when they move between firms. For Watchdog, this highlights the growing importance of monitoring people as well as firms. Watchdog allows clients t

An interesting article from QA Financial today highlights a significant shift in financial services regulation; away from periodic, point-in-time checks and towards ongoing assurance. As the article puts it: “continuous validation, continuous monitoring, continuous resilience testing and continuous assurance.” The article is primarily about software testing and operational resilience, but the principle has much wider relevance. At Watchdog Services, we are developing software

Would you allow AI to help choose your insurance or make financial decisions on your behalf? The level of consumer appetite may already be greater than many expected. Following publication of the FCA’s Mills Review, the regulator’s head of insurance market analysis and policy has reportedly expressed surprise at consumers’ willingness to use AI in financial purchasing decisions. The Review found that one in five UK adults is already open to AI making financial decisions for t

AI could fundamentally reshape financial services by 2030; but the technology may be only part of the challenge. Our analysis of the FCA’s newly published Mills Review highlights the growing importance of governance, accountability and oversight as artificial intelligence becomes more embedded in retail financial services. The Review considers a future in which AI increasingly influences how firms operate, how consumers make financial decisions and how financial products are

FCA Mills Review, published 6 July 2026. The review follows the FCA’s January 2026 call for input into the long-term impact of AI on retail financial services, looking towards 2030 and beyond. The FCA describes the review as examining how AI may reshape “consumers, firms, markets and regulators”. For Watchdog, the relevance is clear. AI is not just an efficiency story. It is becoming a monitoring, accountability and consumer-risk issue. Customer journeys, complaint ha

The FCA’s direction of travel is clear: earlier intervention, stronger deterrence, and greater focus on individual accountability. In its recent consultation on penalty and decision-making policies, the FCA is proposing targeted changes including: • raising the minimum penalty for the most serious individual market abuse cases from £100,000 to £150,000 • making clear that penalties for wealthier individuals may be increased for deterrent effect • clarifying how deferred bonus

The FCA’s Chief Executive, Nikhil Rathi, has warned that AI is moving faster than the law. That matters because this is not a general technology debate. It is coming directly from the head of the UK financial regulator, in the context of how artificial intelligence may affect financial services, consumers, markets and financial crime. The immediate issue is whether regulation can keep pace with rapidly developing AI tools. But the wider point is just as important. Financial s

From April 2028, small companies and micro-entities will need to file profit and loss accounts with Companies House, although they will be able to opt out of having that P&L information published on the public register. The reform is intended to improve Companies House data, transparency and oversight, while addressing smaller firms’ concerns about commercial sensitivity. The change is part of wider Companies House reforms aimed at improving transparency, data quality and

The Financial Conduct Authority Chief Executive has published a speech this week titled “A reform-minded regulator”, setting out how it intends to adapt to a faster-moving market environment. The direction of travel is clear. The FCA is positioning itself to be more responsive, more flexible, and more aligned with UK growth while maintaining high standards. Key themes from the speech: Regulation must evolve alongside faster, more volatile markets A stronger focus on supportin

The FCA has just highlighted weaknesses in due diligence across firms in a recent supervisory review (via AML Intelligence). Not a data problem.An interpretation problem. Firms are still: Over-relying on automated tools Missing complex ownership structures Failing to challenge red flags Treating due diligence as a one-off check 👉 The FCA’s message is clear:Due diligence must be ongoing, connected, and judgement-led. That’s where most firms fall short. They have the data — bu

FCA launches long-term review into AI and retail financial services The FCA has announced a forward-looking review into how artificial intelligence could reshape retail financial services over the next decade. The review will examine how rapidly advancing AI capabilities may affect consumer behaviour, market dynamics, competition, and the way firms design, distribute and monitor financial products. Importantly, the FCA has been clear that there is no immediate change to regul

FCA launches review as non-human intelligence could surpass human reasoning The FCA has launched a major forward-looking review into the impact of advanced artificial intelligence on retail financial services, looking out to 2030 and beyond. Led by Executive Director Sheldon Mills, the review will examine emerging technologies such as agentic AI, neuromorphic computing and the possibility of non-human intelligence exceeding human reasoning capabilities. Prompted by concerns f

Summary — Regulatory Outlook for 2026 As we look ahead to 2026, the UK regulatory landscape is shaping up to be one of significant evolution and strategic change. The Financial Conduct Authority (FCA) is expected to continue focusing on consumer outcomes, leveraging existing frameworks like the Consumer Duty rather than introducing entirely new AI-specific rules — emphasising enforcement and good conduct over prescriptive regulation. Key themes advisers and firms should watch

The Financial Conduct Authority (FCA) has launched a pioneering “AI Live Testing” initiative — the first of its kind in the UK financial sector — giving select major firms a controlled environment to trial and refine responsible AI tools for real-world deployment. The goal: help firms navigate evaluation frameworks, ongoing monitoring, governance and risk management — enabling use cases such as debt-resolution, financial advice, customer engagement, complaints handling and

FCA Authorisations Update: 2025–26 Q2 – What You Need to Know The FCA has released its Q2 service-metric performance, showing a mixed picture across authorisations: 🔹 Most applications are still being processed within statutory deadlines, but some areas remain under pressure due to case complexity and increased scrutiny. 🔹 Higher-risk and more complex applications are taking longer, reflecting the FCA’s continued focus on robust assessments, operational resilience, fina

The FCA’s latest thematic review highlights major shortcomings in how UK firms assess financial-crime risk. Many Business-Wide Risk Assessments (BWRA) and Customer Risk Assessments (CRA) are still too generic, poorly evidenced, or disconnected from real-world controls. Key gaps identified include: • Risk assessments not tailored to the firm’s actual products, customers or exposure. • Weak links between BWRA findings and monitoring/testing. • Senior management focusing heav