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The ninth edition of the UK’s Regulatory Initiatives Grid, published in December 2025, sets out the country’s financial services regulatory agenda for the next two years.
The grid is intended to help the UK financial sector and stakeholders plan for regulatory changes that could have an operational impact. For example, it highlights regulators’ priorities, which include regulatory streamlining and consumer protection.
Financial institutions operating in the UK can find insights in the grid into what the regulators will be prioritising over the coming months, what consultations they should consider responding to and how the regulatory environment could change.
In this piece, Vixio examines what the regulators have outlined in the investment sections of the latest regulatory grid, explains the likely impact of developments on financial institutions and suggests what the regulators’ stated priorities tell us about the direction of travel in the UK.
Timeline for 2026 (download here)
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Regulator and Initiative |
Why should you care? |
Rating, Deadlines & Resources |
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FCA Fund tokenisation The FCA is proposing new guidance and rule changes to support the blueprint tokenisation model. This would streamline the dealing process and reduce the regulatory requirements, through direct to fund, while facilitating the move to fund tokenisation. |
In the consultation launched on October 14, 2025, the FCA viewed tokenisation as a way to make fund management more efficient, as it gives firms operating or distributing the fund the same record of information, reducing the costs of reconciling and sharing data. Specifically, the FCA proposes introducing:
In the FCA’s view, the proposals would give firms greater clarity and confidence to adopt tokenisation in fund management to improve operational efficiency. Firms should monitor developments and consider whether the tokenised model could create a more efficient operating model for their purposes. |
The FCA expects a key milestone to arrive in Q1 2026 and Q2 2026. Relevant resources
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FCA Review of data collection for asset managers and funds The FCA is aiming to transform its regulatory data model for asset managers and funds to collect accurate and comparable data. Specifically, the FCA will be designing new, proportional and streamlined regulatory returns. |
The transforming of the data collection model will enable data-led supervision, driving innovation and fostering confidence. The FCA plans to achieve this by designing new, proportional streamlined regulatory returns that address data gaps, incorporate international standards and regulatory practice, and provide a consistent firm experience for submission. As part of Phase 1, the FCA will engage with the industry to gather views and feedback on building a better data model for the sector. Firms should assess international data collection standards against their existing reporting requirements. Upon finalisation, failure to align with these evolving standards could expose firms to increased supervisory scrutiny or even regulatory sanctions. Organisations should consider early engagement with the consultation process to shape the future of data collection. |
Formal engagement is planned for Q1 2026.
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FCA Expanding consumer access to investments The FCA is committed to rebalancing risk and supporting investment, innovation and growth in the real economy. It is reviewing the retail investment sector to consider existing barriers to investment. The regulator is also aiming to assess the regulatory tools it has to mitigate risks and support growth. |
The FCA aims to engage stakeholders to consider the barriers and risks associated with certain products and services. In particular, it will be seeking comments on the risks to retail consumers across distribution methods and products and services where regulation may be misaligned with consumer risks. In doing so, the regulator intends to encourage more retail investment through better informed risk taking. In particular, the FCA is aiming to:
Firms should consider how the FCA’s work may affect the design, distribution and governance of their investment products. If the FCA succeeds in stimulating greater retail investment, firms that proactively align their product governance, distribution models and consumer communications may be well placed to capitalise on the resulting growth in demand. Thus, early engagement in the consultation process will help firms stay ahead of potential changes. |
Following on from the discussion paper published on December 8, 2025, formal engagement is planned for Q1 2026. Relevant resources |
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FCA Simplifying and consolidating the FCA’s investment advice rules The FCA will be consulting on simplifying and consolidating its investment advice rules and guidance to reduce unnecessary complexity and to clarify its regulatory expectations under the consumer duty. |
If the FCA succeeds in simplifying and consolidating its investment advice rules and guidance, firms should find greater clarity in regulatory expectations. The FCA is also seeking to encourage more retail investment in the sector. Part of the aim of this initiative is to deliver the commitments contained within the Advice Guidance Boundary Review to create a clearer distinction between simplified and holistic advice and to review the FCA’s rules relating to the provision of ongoing advice services to make sure they are appropriate and relevant in future. Should the FCA achieve its simplification and investment objectives, the resulting clarity may create commercial opportunities, particularly in the provision of simplified advice models. Firms that review their operating models, technology, adviser training and client segmentation strategies at an early stage may be better placed to take advantage of any increase in retail demand. |
The FCA will be publishing its consultation paper in Q1 2026. It plans to publish its policy statement in Q4 2026. Relevant resources |
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FCA/HMT The Packaged Retail and Insurance-Based Investment Products (PRIIPs) Regulation/ UCITS disclosure regulation/ Consumer Composite Investments (CCI) regime The FCA will be repealing and replacing the assimilated PRIIPs regulation and UCITS disclosure regulation with a new UK retail disclosures regime, the Consumer Composite Investments (CCIs) regime, that is tailored to UK markets and fosters informed retail investor participation in those markets. |
The FCA is aiming to simplify existing requirements, make product information more transparent and engage and better enable digital communications. Its goal is to help consumers understand the investment products they are buying, while giving firms greater flexibility to innovate and better support their customers. Under the new rules, which the FCA expects to have a significant impact, firms will gain greater freedom in designing product summaries, alongside increased flexibility to create engaging consumer journeys that clearly highlight key information. Firms should reassess their existing product disclosures to ensure clarity in their publications. Given the expedited timeframe until the transition period begins, firms should prioritise this change. |
The CCI regime’s transitional period begins on April 6, 2026. On this date, manufacturers will be able to choose between producing a product summary or following the disclosure requirements that currently apply to them. The rules become fully applicable on June 8, 2027. Relevant resources |
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FCA Review of client categorisation rules and rationalisation of conflict of interests rules The FCA is consulting on proposals for reforming the existing client categorisation rules for designated investment business and to rationalise the conflict of interest rules under SYSC 10 to reduce inherent complexity. |
The consultation paper, published on December 8, 2025, reviewed the existing client categorisation rules to reset how firms distinguish between retail and professional clients. With this consultation, the FCA aims to allow firms to confidently operate with professional clients who do not need retail protections. The proposals seek to strengthen confidence in the system and allow firms to innovate and offer a more diverse range of products. In particular, the FCA proposes to:
Should the proposals be finalised, firms will find greater flexibility in the regime. Organisations should begin reviewing their client categorisation procedures ahead of future developments. First movers will gain a competitive advantage, positioning themselves as the preferred partners for the UK’s most sophisticated investors. |
The consultation ended on February 2, 2026. A formal engagement is planned in Q1 2026. Following on from this, a key milestone is expected in Q2 2026. Relevant resources |
