FinTech Global FS Regulatory Round-up - w/e 18 September 2026

UK

FCA speech: Building a stronger UK investment culture

The FCA has published a speech delivered by Director of Consumer Investments, Lucy Castledine, at the 2026 Investor Summit. Ms Castledine outlined the regulator’s approach to building a stronger investment culture in the UK, identifying three ares of focus: supporting growth and innovation; improving access and simplifying communications; and tackling financial crime.

On financial crime, she reported on an international week of action against unlawful finfluencers in April, which involved 17 regulators and resulted in criminal prosecutions, 48 alerts against unauthorised firms, and 120 content removal requests to social media platforms. She also warned about the risks of unregulated mini-bonds and loan notes, and called on technology platforms to act against fraudulent content without waiting for new rules.

The speech further highlighted FCA research showing that almost half of young people who use AI for investment decisions mistakenly believe AI-generated financial information is regulated, and highlighted the FCA's AI Lab as a resource for firms wishing to develop and test AI-driven approaches in a live environment. [18 Sep 2026] #SocialMedia #AI

FCA reports outcome of review into access to finance for SMEs

The FCA has published the outcome of its review into whether its regulation limits access to finance for small and medium-sized enterprises (SMEs): Feedback Statement 26/2: Supporting SME access to finance (FS26/2). The FCA found no evidence that its regulation is a major barrier to accessing finance. Instead, many of the challenges identified relate to wider market, information and capability challenges. Further, challenges are often greatest for microbusinesses, which make up 95.5% of all SMEs and are less likely to use external finance. Low awareness of finance options, complex application processes, and difficulties accessing products suited when collateral is limited or assets are largely intangible were all highlighted as issues.

Among the FCA’s planned next steps are: helping unlock the benefits of open finance, including prioritising SME lending as a key use case; and exploring whether digital verification could alleviate duplication, while maintaining effective financial crime controls.  [17 Sep 2026]  #OpenFinance #DigitalVerification

FCA and partners continue crackdown on illegal crypto trading

The FCA has announced that, working with HM Revenue & Customs (HMRC) and the Metropolitan Police Service, it has carried out further operations to disrupt illegal peer-to-peer crypto trading across multiple London locations. Three premises were targeted, with cease and desist letters issued.

This operation follows action taken by FCA against illegal peer-to-peer crypto trading businesses in April. Evidence gathered during that operation is being used to support criminal investigations and other enforcement action. [17 Sep 2026]  #Crypto #DigitalAsset

FSRC launches inquiry into regulatory sandboxes

The Financial Services Regulation Committee (FSRC) of the House of Lords has launched an inquiry into regulatory sandboxes. The inquiry will examine how regulators and firms use regulatory sandboxes, and whether they drive innovation in the industry. In particular, the Committee will explore:

• whether regulatory sandboxes support innovation;
• their role in supporting the development of regulation;
• whether they represent value for money and public benefit; and
• the degree to which the selection of participating firms can influence the market.

Responses to the call for evidence are requested by 23 October 2026. [17 Sep 2026] #RegulatorySandbox

FCA publishes final guidance on when cryptoasset activities require authorisation

The FCA has published Policy Statement 26/18: Cryptoasset Perimeter Guidance (PS26/18), which contains the Perimeter Guidance (Regulated Cryptoasset Activities) Instrument 2026. The guidance aims to help firms understand the regulatory perimeter and when authorisation may be required. Part 1 of Annex B to the instrument comes into force on 16 September 2026, while the remainder of the instrument comes into force on 25 October 2027.

From 25 October 2027, the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 introduce new regulated activities for cryptoassets into the FCA’s perimeter. Those seeking to carry on these activities by way of business in the UK will need to apply for authorisation, unless there is a relevant exemption or they are able to use the savings or transitional run off provisions.

The application window for firms wanting to use the transitional arrangements opens on 30 September 2026 and closes on 28 February 2027.

The FCA is hosting webinars to help firms understand its rules and prepare for authorisation. An introduction to the UK’s new crypto regulatory regime is available on demand. The next webinars will cover: applying the FCA handbook; getting authorised; and the prudential framework. [16 Sep 2026] #Crypto #DigitalAsset

BoE Speech on payment innovations, and what they mean for international money and power

The Bank of England (BoE) has published a speech by an external member of the Financial Policy Committee (FPC), Carolyn Wilkins, at Queen’s University, Belfast. In her speech, Ms Wilkins draws on historical experience of private money issuance to explore whether private digital money can operate safely at scale. She also considers what could happen if US dollar stablecoins become widely used, and what that could mean for the future of international monetary power.

She concludes that, yes, private digital money can work safely at scale, but only when redemption is credible, there is support to exchange at par and a way to deal with stress. If US dollar stablecoins scale, they could, ‘extend dollar settlement, deepen digital dollarisation and add to demand for US safe assets’; however, this greater scale creating links between stablecoins and the markets in which their reserves are held could see financial stability risks outside the jurisdictional confines of the US. Finally on international monetary power, Ms Wilkins observes that network effects can sustain a dominant currency for a period, but technology alone is not sufficient to secure dominance; monetary credibility, fiscal capacity, deep capital markets and the rule of law are all essential. [16 Sep 2026] #DigitalMoney #Stablecoins

Draft SI: The Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026

The Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026 has been published. This draft SI amends and adds to the regulatory regime for certain cryptoasset activities pursuant to powers conferred by the Financial Services and Markets Act 2000 (FSMA).

This draft SI is accompanied by a draft explanatory memorandum. [15 Sep 2026] #Crypto #DigitalAsset

FCA publishes feedback on tokenisation in wholesale markets, calls for input on tokenised gold

The FCA has published Feedback Statement 26/1: Tokenisation in wholesale markets (FS26/1) which addresses responses to the joint Call for Input on the future of tokenisation which it issued with the Bank of England (BoE). The regulators received 123 responses, and respondents supported their proposed approach. Most agreed that post-trade is the main opportunity, particularly improving how collateral moves between parties. The feedback will be used to develop a joint tokenisation roadmap later in 2026. The roadmap will set out target dates for work on wholesale tokenisation.

Alongside FS26/1, the FCA has published a Call for Input on tokenised gold; this was prompted by several respondents mentioning tokenised gold in their feedback. The regulator is seeking views on whether tokenising gold could improve how it is traded, transferred, pledged and held in UK markets. It is particularly interested in hearing about use cases in wholesale markets, areas which are challenging and the impact of perceived uncertainty around the collective investment scheme (CIS) and alternative investment fund (AIF) regulatory perimeter.

Responses to the Call for Input on tokenised gold are requested by 23 October 2026.

The FCA also plans to publish a consultation paper (CP) on the custody of relevant specified investment cryptoassets (RSICs) in the first half of 2027. [14 Sep 2026] #Tokenisation #Crypto #DigitalAssets

Europe

EBA publishes its final Guidelines on the management of third-party risk

The European Banking Authority (EBA) has published its Final report on Guidelines on the management of third-party risk regarding non-ICT services, which focus on third-party arrangements supporting critical or important functions (CIFs) the disruption of which would materially impair the performance of a financial entity. The Guidelines are intended to promote a holistic approach to third-party risk management across information and communication technology (ICT) and non-ICT services, and cover the full lifecycle of third-party arrangements, including risk assessment and due diligence, contracting, subcontracting, monitoring, documentation and exit strategies.

There is a two-year transitional period to support implementation. [18 Sep 2026] #OperationalResilience

ESAs: DORA Incident Reporting – Operational Instructions

The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) have published a operational instructions to support competent authorities in their supervisory engagement with financial entities regarding the reporting of information on the major ICT-related incidents under the Digital Operational Resilience Act (DORA).

The instructions are provided on ‘best efforts’ basis by ESA staff and therefore they do not represent any legal interpretation, nor do they represent official stance of the ESAs themselves. These instructions have been agreed with the relevant competent authorities. They will be updated regularly, based on the experience of the ESAs and of the competent authorities. [16 Sep 2026] #DORA

EIOPA: Articles for Eurofi on AI

The European Insurance and Occupational Pensions Authority (EIOPA) has published several articles which were prepared for the September edition of the magazine, Eurofi, including, among others:

• AI, digital platforms and the future of insurance distribution: The article examines questions about when a digital platform or algorithm constitutes insurance distribution, whether personalised AI-generated recommendations amount to advice, and how responsibility for suitability and demands-and-needs assessments is allocated across insurers, technology providers and platforms. The emergence of agentic AI is noted, with concerns flag about potential ‘dark patterns’ in digital customer journeys that may steer consumers towards unsuitable products. While concluding that the EU's existing principles-based framework is broadly capable of accommodating innovation, the article notes that supervisory focus may need to shift from individual products to the entire customer journey to ensure consistent consumer protection.
• Scaling AI in finance: systemic risks, resilience and European sovereignty: Drawing on EIOPA's 2025 Generative AI market survey, which found that 65% of the 347 insurers surveyed across 25 EEA countries were already using generative AI, the article identifies key risks including amplified cyber and operational risks, increased reliance on external technology providers, and the potential for market concentration and interconnectedness. The article argues that the EU does not need a new broad layer of AI-specific financial regulation; rather, the priority is rigorous and coordinated implementation of DORA and the AI Act, alongside targeted supervisory action to address specific gaps, and supports the Cloud and AI Development Act (CADA) as a supply-side complement to strengthen European sovereignty. [16 Sep 2026] #AI #DORA #Cloud

ECB: Eurosystem invites e-commence and m-commerce merchants to take part in the digital euro pilot

The ECB has announced the launch of a call for expression of interest inviting e-commerce and mobile commerce (m-commerce) merchants operating in the euro area to take part in the digital euro pilot. The pilot will test the technical functionality, operational processes and overall user experience of the digital euro. It will use a beta version of the digital euro. This ‘beta digital euro’ will be functionally and technically close to the digital euro as foreseen in the draft legislation but will not have legal tender status.

Interested merchants are invited to submit an application by 27 October 2026. [15 Sep 2026] #DigitalEuro

Hong Kong

Hong Kong Chief Executive announces fifth Policy Address and first Five-Year Plan for economic and social development of Hong Kong

The Chief Executive, Mr John Lee, has announced his fifth Policy Address entitled ‘A Strategic Vision for a Bright New Era, Driving Reform and Boosting Development, Unleashing Opportunities and Enhancing Livelihood’ (see main document and supplement), which has been welcomed by a number of regulators and bodies including the SFC and the Insurance Authority. Areas in the address relevant to fintech are:

• Fintech innovation – This includes enhancing virtual-asset licensing regimes and formulating regulatory guidelines, facilitating the issuance and trading of tokenised products of gold and other suitable real-world assets on licensed platforms, promoting the trading of regulated stablecoins on licensed virtual-asset trading platforms and their use in the settlement of tokenised money market funds, implementing central bank digital currency settlement and 24/7 operations under EnsembleTX by around end of 2026, and progressing with various artificial intelligence initiatives; and
• New financial risks – This includes exploring the enhancement of the legal framework to bolster the detection and removal of fraudulent content, commencing the operation of the SFC digital-asset custody surveillance system within 2026, and activating the SFC CrypTech initiative's big data market surveillance and anti-money laundering surveillance components in 2027. [16 Sep 2026] #VirtualAssets #Tokenisation #Stablecoins #AI #CBDC #DigitalAssets

Singapore

MAS speech: Building the financial system of the future

The Monetary Authority of Singapore (MAS) has published a speech by its Managing Director Chia Der Jiun at the Global FinTech Fest 2026 in Mumbai. Mr Jiun shared perspectives on: the transformative impact of AI on the financial sector; the importance of robust AI governance and cyber resilience; efforts to broaden AI adoption across the industry; and opportunities to deepen Singapore-India partnership through digital payments connectivity and innovation partnerships. [11 Sep 2026] #AI

Thailand

SECT consults on digital asset supervision proposals

The SECT has published consultations on two sets of proposals affecting digital asset business operators. The first sets out proposed principles for supervising stablecoin transactions conducted through digital asset business operators, aimed at reducing the risk of digital assets being used for money laundering, cybercrime or to circumvent rules on international money transfers.

The second would amend net capital requirements for digital asset business operators to support local digital asset trading and customer asset custody, and revise the requirements for securities and derivatives business operators to broaden coverage and better reflect actual business risks.

Feedback on the first consultation is requested by 25 September 2026; responses to the second are due by 11 October 2026. [11 Sep 2026] #DigitalAssets

India

SEBI proposes measures to strengthen business continuity plan and disaster recovery of MIIs

The Securities and Exchange Board of India (SEBI) has published a consultation on proposed changes to strengthen the business continuity planning and disaster recovery framework for market infrastructure institutions (MIIs). The proposals focus on three areas: reducing the time needed to conduct mock disaster recovery drills; improving operational resilience at MIIs’ primary sites; and strengthening data recovery for stock exchanges. Responses are requested by 5 October 2026. [15 Sep 2026] #OperationalResilience

RBI consults on KYC amendment directions to tackle money mule accounts and cyber-enabled fraud

The Reserve Bank of India (RBI) has published a consultation on draft amendment directions to its know your customer (KYC) rules aimed at tackling money mule activity and cyber-enabled financial fraud. The draft directions follow an August 2026 Supreme Court order, which directed the RBI to adopt and circulate a standard operating procedure prescribing the steps banks must take when placing temporary debit holds on amounts or accounts linked to money mule activity and fraud. Comments are requested by 2 October 2026. [11 Sep 2026] #Cyber

RBI speech: Trusted innovation – shaping the future of finance

The RBI has published a speech by its Deputy Governor Shirish Chandra Murmu at the Global FinTech Fest 2026 in Mumbai. The Deputy Governor emphasised that trust will be the key to the success of the next phase of financial innovation. While highlighting the growth of India's digital finance ecosystem, he stressed the need for enhanced operational resilience, cyber security and fraud prevention, including through initiatives such as the RBI's Digital Payments Intelligence Platform.

Mr Murmu also reiterated that regulated firms remain accountable for AI-driven and fintech-enabled services, signalled further focus on AI governance and model risk management, and urged financial institutions to begin preparing for future quantum-computing risks. [11 Sep 2026] #OperationalResilience #CyberSecurity #Payments #AI #Quantum

SEBI proposes extending IT and cyber security framework to MII subsidiaries

SEBI has published for consultation proposals to extend the IT and cyber security framework, including the Cybersecurity and Cyber Resilience Framework, to subsidiaries of MIIs. In-scope subsidiaries would be subject to the same obligations as the parent MII, covering cyber security, system audits, incident reporting, business continuity planning, disaster recovery, and technology governance. Responses are requested by 2 October 2026. [11 Sep 2026] #CyberSecurity #CyberResilience

US

SEC issues "Innovation Exemption" to enable trading of tokenised NMS stock

The SEC has issued an order granting temporary, conditional exemptive relief to Tokenised Securities Venues (TSVs) from the definition of "exchange" under the Securities Exchange Act of 1934 to trade tokenized National Market System (NMS) stock through permissioned automated market maker (AMM) liquidity pools.

The order also grants a conditional exemption from the definition of "dealer" to liquidity providers that supply tokenised NMS stock using proprietary capital in those AMM liquidity pools.

The exemptions are set to expire five years after publication in the Federal Register. The SEC is soliciting comments on possible modifications to the exemptive relief and also on next steps.

A factsheet accompanies the release. [Sep 17, 2026] #Tokenisation

FDIC, FRB, NCUA, and OCC consult on proposed third-party risk management guidance; issue statement on community bank core service provider engagement

The Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (FRB), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC) have requested comment on proposed guidance to assist financial institutions in managing risks associated with third-party relationships. The proposed guidance draws on the agencies' supervisory experience and is intended to help banks and credit unions align and tailor their third-party risk management practices to the specific risks of individual relationships, using a principles-based, non-binding approach. When finalised, the agencies plan to rescind existing third-party risk management guidance and replace it with the new unified guidance.

Comments on the proposed guidance are requested within 60 days of publication in the Federal Register.

Separately, the agencies issued a statement on community banks' engagement with core service providers, setting out factors the agencies will consider in supervisory and enforcement decisions relating to those providers. The FRB additionally consulted on a proposed third-party risk management guide specifically for community banks it supervises.  [Sep 11, 2026] #OperationalResilience