Quickly digest the latest financial services news: May 8, 2025.

Welcome to the most recent release of the Financial Services SpeedRead, offering a condensed overview to help you stay informed about crucial regulatory changes in the financial services sector over the past two weeks. Should you wish to delve deeper into any of the topics discussed in this edition, please do not hesitate to reach out.

EU Commission Welcomes Reports of Barrier to Financial Market Integration
The EU Commission, on 24 April 2025, unveiled a specialized channel on its webpage permitting all market participants, be it individuals or businesses, to report any hindrances to financial market integration within the EU Single Market. This initiative emerged following the Savings and Investments Union communication on 19 March 2025. The EU Commission outlined several issues that could be reported, such as market fragmentation, divergent supervisory practices, and burdensome reporting requirements. Feedback is to be conveyed to the EU Commission through the designated email address ([email protected]).

UK Government Publishes Draft Statutory Instrument to Enhance Customer Protection Against Debanking
To safeguard customers from debanking, the UK Government presented a draft statutory instrument on 28 April 2025 outlining new regulations pertaining to account closures. According to the proposed Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025, banks must furnish customers with a 90-day notice, an extension from the current two months, along with a comprehensible explanation prior to shutting down accounts. This extended notice period aims to offer customers more time to dispute decisions and identify alternative payment service providers if their account is terminated. Subject to Parliamentary approval, the new rules are projected to take effect on 28 April 2026.

FCA Seeks Input on Regulatory Capital Definition for FCA Investment Firms
The Financial Conduct Authority (FCA) issued a consultation paper (CP25/10) on 24 April 2024 addressing the definition of regulatory capital, also referred to as own funds, for FCA investment firms under MIFIDPRU 3. The FCA intends to eliminate references to the UK Capital Requirements Regulation from the definition. The FCA is not proposing any alterations to the required levels of regulatory capital or instructing firms to modify their capital arrangements. Instead, the objective is to simplify and consolidate the existing rules on regulatory capital for firms to better grasp and adhere to these requirements. Responses to the consultation must be submitted via the CP25/10 response form or email by 12 June 2025. Following the feedback received, the FCA aims to publish the final rules in a Policy Statement in H2 2025, with the new framework anticipated to become effective on 1 January 2026.

BoE Releases Consultation Paper on PRA’s Proposals Regarding MiFID Org Reg
On 23 April 2025, the Bank of England (BoE) issued a consultation paper (CP9/25) regarding the PRA’s plans to restate the MiFID Organisational Regulation (UK Commission Delegated Regulation (EU) 2017/565) into the PRA Rulebook, applicable to PRA-authorized firms. The proposals encompass general organizational requirements, outsourcing, record keeping, compliance, and internal audit, addressing relevant aspects of the MiFID Org Reg.