Action on finfluencers and on crypto exchange notes, a Supercharged Sandbox for AI, and the appointment of a new deputy chief executive are among the developments featured in our latest roundup.
Enforcement
The FCA has said it has joined forces with other regulators from around the world “to protect social media users from illegal financial promotions by rogue finfluencers.”
The UK regulator partnered with agencies from Australia, Canada, Hong Kong, Italy and the United Arab Emirates to carry out what it has called a “week of action” that started on June 2, 2025.
A press release from the FCA says that in the UK the agency was able to:
- make three arrests with the support of the City of London Police (the National Lead Force for fraud);
- authorize criminal proceedings against three individuals;
- invite four finfluencers for interview;
- send seven cease and desist letters; and
- issue 50 warning alerts.
Regulation
The FCA has said it is proposing to lift the ban on offering crypto exchange traded notes (cETNs) to retail investors.
“It would mean cETNs could be sold to individual consumers, rather than just professional investors, in the UK, if they’re traded on an FCA-approved investment exchange (a recognised investment exchange or RIE),” a press release added.
Consumers will still be able to get information on the risk involved in making any investment, as financial promotion rules will still apply to the sale of cETNs, the regulator has said.
As part of its efforts to reduce regulatory burden on businesses, the FCA has said it plans to “simplify reporting requirements for funds’ assessments of value.”
The move comes after the regulator received feedback “that the current assessment of value reporting requirements were onerous, provided little investor benefit and overlapped with the Consumer Duty.”
In total, 149 firms who manage a total of more than 3,900 funds could benefit from the proposed changes to the reporting requirements, the FCA has said.
And in a separate but similar step, the FCA has proposed “to remove unnecessary data reporting, that will benefit nearly all firms, helping to reduce burden and unlock economic growth.”
According to a press release, the main proposals put forward by the regulator include:
- decommissioning REP022 (General Insurance Pricing Attestation) and retail investment advisers (RIA) Complaints;
- reducing the frequency of reporting for REP009 (Consumer Buy-To-Let Mortgage Aggregated Data); and
- removing the requirement to submit nil returns for REP008 (Notification of Disciplinary Action relating to conduct rules staff – other than SMF managers).
In another major development last week, the FCA announced the launch of “a Supercharged Sandbox to help firms experiment safely with AI to support innovation.”
Our GRIP article covers this development in more detail.
Elsewhere, the FCA has announced the launch of a new type of private stock market later in 2025.
The announcement comes after the FCA announced the final rules for its Private Intermittent Securities and Capital Exchange System (PISCES).
Simon Walls, executive director of markets at the FCA has said, “The new platforms will give investors greater access and confidence to invest in exciting new companies, while early backers and employees can sell up and invest again.”
Speeches and media
Sarah Pritchard, executive director for supervision, policy and competition and executive director for international, delivered a speech at the Quoted Companies Alliance Annual Conference, London on June 5, 2025.
Key highlights included:
- It’s vital our markets work for companies that need the capital that fuels growth.
- The FCA has made changes to ensure they do, and more are on their way.
- And it is changing the way it does business – making it easier to engage with it, providing more support, particularly for the innovative, and cutting requirements where it makes sense.
And speaking of Sarah Pritchard, she has been appointed deputy chief executive of the FCA.
According to a press release: “The new role has been created to reflect the FCA’s expanding remit, with the integration of the Payment Systems Regulator, regulation of stablecoin and crypto firms as well as Buy-Now-Pay-Later activities.”
Jessica Rusu, FCA chief data, information and intelligence officer, delivered a speech at London Tech Week 2025 on June 9, 2025. Highlights included:
- The FCA has set out a bold five-year strategy to deepen trust, rebalance risk, support growth and improve lives.
- In January, it launched the FCA’s AI Lab to deepen its understanding of the risks and opportunities AI presents to consumers and markets. The AI Lab features four zones: the AI Sprint, the AI Input Zone, an AI Spotlight, and the Supercharged Sandbox.
- The FCA will be bringing Nvidia tooling and resources to users of the Supercharged Sandbox – accelerating AI innovation and development.
And finally, Simon Walls, executive director of markets, delivered a speech at the Global Management Summit 2025, Guildhall London on June 10, 2025. Highlights included:
- The UK has a long and distinguished history in effective risk management. We want to build on our position as a leading global financial centre to become the most constructive, competitive and compelling place in the world to invest.
- The FCA is using its regulatory powers to actively support productivity and growth – including through overhauling the listings regime, making changes to prospectus rules, and introducing a new type of trading venue for private shares: Private Intermittent Securities and Capital Exchange System (PISCES).
- Measures to support growth may come with some risks. It’s important we continue to discuss these openly – building consensus that allows us to make informed decisions and move forward confidently.
- The FCA will not step back from assertive supervision that protects market integrity. This is a vital component of the trust that investors demand and growth requires.
