Welcome to the May 2026 Edition of our Investment Firms Newsletter.
As May progresses, the regulatory landscape for investment firms continues to evolve rapidly, with regulators focusing on governance, financial crime controls, operational readiness and the supervision of emerging technologies and business models. Recent developments across the UK and internationally highlight increasing expectations around firms’ ability to demonstrate robust risk management, effective oversight and clear accountability frameworks. In the UK, the FCA has intensified its focus on financial crime systems and controls, publishing findings on customer due diligence, enhanced due diligence and ongoing monitoring arrangements. The regulator has also reinforced expectations around authorisations, governance and accountability through updates affecting asset managers, SMCR reform, market soundings and appointed representative oversight. Alongside this, firms are preparing for important regulatory changes, including the implementation of the new UK short selling regime in July 2026 and the evolving perimeter for cryptoasset activities. Regulators have also confirmed that existing governance, operational resilience and Consumer Duty obligations continue to apply to firms’ use of artificial intelligence technologies.
Internationally, the SEC, CFTC and FinCEN continue to reshape aspects of the US regulatory framework, including proposals to streamline Form PF reporting obligations and introduce a formal whistleblower incentive programme focused on AML and sanctions enforcement.
In this edition, we explore the key regulatory developments and supervisory themes affecting investment firms across the UK and internationally. If you would like to discuss how these developments may impact your business or regulatory strategy for the year ahead, our team would be pleased to support you.
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