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UK
Handbook notice 137: on 30 January 2026, the FCA issued Handbook Notice 137 setting out changes to the COLL sourcebook of the FCA Handbook. The FCA has extended the transitional period for the changes to the COLL concentration rule that covers UCITS' investment limits in other collective investment schemes. The transitional period will now expire on 31 January 2027, rather than 30 January 2026.
Enforcement Watch 1: on 28 January 2026, the FCA issued its first edition of Enforcement Watch - a newsletter covering insights and themes from its recent enforcement work. More information can be found in our article.
AI review: on 27 January 2026, the FCA launched a review into the implications of advanced AI on consumers, retail financial markets and regulators. The FCA is seeking views on 4 interrelated themes:
- how AI could evolve in the future, including the development of more autonomous and agentic systems;
- how these developments could affect markets and firms, including changes to competition and market structure and UK competitiveness;
- the impact on consumers and influence on financial markets through new expectations; and
- how financial regulators may need to evolveto continue ensuring that retail financial markets work well.
The deadline for firms to respond is 24 February 2026.
Review into the long-term impact of AI on retail financial services (The Mills Review) | FCA
Mills Review to consider how AI will reshape retail financial services | FCA
T+1 settlement: on 26 January 2026, the FCA updated its webpage on progress to T+1 to reflect actions firms should be taking in 2026 to change their systems and processes, including:
- changes and testing for operational systems and processes;
- agreements with third-party providers; and
- counterparty arrangements.
Growth agenda: on 21 January 2026, the FCA published its letter to the House of Commons Treasury Committee which provided information following an oral evidence session on 16 December 2025 focusing on growth. The letter addresses questions concerning progress on implementation of the Leeds reforms as well as identifying areas where the FCAneeds legislative change to support its objectives.
Letter to the House of Commons Treasury Committee
Complex exchange traded products (ETPs): on 12 January 2026, the FCA issued key findings with good practice and areas for improvement for firms distributing complex ETPs to retail consumers on an execution-only basis. The FCA's findings are based on its review of a sample of platform and wealth management firms offering complex ETPs.The FCA looked at how distributors met Consumer Duty expectations relating to products and services; price and value; consumer understanding and outcomes monitoring and customer support.
Complex exchange traded products – good practice and areas for improvement | FCA
EU
EU consultation on venture/growth capital: on 15 January 2026, the European Commission issued a consultation to gather feedback on the obstacles faced by EU venture and growth capital fund managers and possible policy measures to address them. The consultation considers the regimes under the European Venture Capital Funds Regulation, the Alternative Investment Funds Directive and national legislation applicable to small size alternative investment fund managers (AIFMs) and mid-sized AIFMs.
European Commission consultation on the EU venture and growth capital funds reform
Clear, fair & not misleading sustainability-related claims: on 14 January 2026 the European Securities and Markets Authority (ESMA) issued a thematic note on sustainability related claims, focusing on ESG strategies. The thematic note contains four principles to ensure that all claims are clear, fair, and not misleading and thereby avoid the risk of greenwashing. The principles do not create new disclosure requirements but aim to remind market participants about their responsibility to make claims only to the extent that they are clear, fair and not misleading.
ESMA - Thematic notes on clear, fair and not misleading sustainability-related claims
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