Freshfields FS Insights
Welcome to the April 2026 edition of the Freshfields FS Insights newsletter, which contains a selection of thought leadership related to the financial services industry published over the past month by Freshfields lawyers from around the world, as well as upcoming dates for your diary. If you would like more information regarding any of these developments, please get in touch with your usual Freshfields contact.
This month’s edition includes the following topics:
- Cryptoassets
- ESG and sustainability
- Prudential regulation
- Private capital
- Targeted support
- Complaints and redress
- Anti-money laundering
- Securitisation
- Dates for your diary
Cryptoassets
Full disclosure: the FCA's proposed crypto admissions & disclosures regime and MARC
The Financial Conduct Authority (FCA) published CP25/41 on 15 December 2025, providing a more fully formed picture of their proposed cryptoasset admissions & disclosures (A&D) regime and market abuse regime for cryptoassets (MARC), both of which will be established under the now finalised Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026. The consultation paper builds on the responses the FCA received to its December 2024 discussion paper (DP24/4) addressing the same subject matter. For a summary of key points, see our blog post.
Capital idea: the FCA's proposed prudential regime for cryptoasset firms
On 16 December 2025, the FCA published a consultation paper on its proposed prudential rules (CP25/42) – a key component of the UK’s future crypto regime. The FCA plans to introduce a multi-layered capital and liquidity framework designed to ensure that cryptoasset firms can absorb losses and wind down in an orderly manner. These rules reflect the feedback the FCA received on its earlier consultation (CP25/15). For a summary of key points, see our blog post.
Old rules, new tricks: the FCA's proposed approach for applying FCA Handbook rules to cryptoasset firms
On 23 January 2026, the FCA published a consultation paper (CP26/4) outlining its further proposals for the application of existing FCA Handbook requirements – including the Consumer Duty, complaints handling, conduct of business rules (COBS), the Senior Managers and Certification Regime (SM&CR) and safeguarding rules under the Client Asset Sourcebook (CASS) – to the new regulated cryptoasset activities. It builds on the FCA’s first consultation on its proposed rules and guidance for regulated cryptoasset firms. For an analysis of the FCA’s proposals, see our blog post.
UK cryptoasset regime: the full package
In the final post of our series covering recent UK cryptoasset developments, we collect links to each of the six posts published so far – covering the finalised Cryptoasset Regulations and the latest FCA consultation papers – alongside a timeline of the key dates market participants should have on their radar. Consider it your one-stop reference point.
OCC proposes framework for stablecoins: a new era for digital assets
On 25 February 2026, the Office of the Comptroller of the Currency (OCC) took an important step towards establishing a federal regulatory framework for payment stablecoin issuers by issuing a Notice of Proposed Rulemaking to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The OCC’s proposed rule would create a comprehensive supervisory regime for permitted payment stablecoin issuers (PPSIs) subject to OCC oversight and establish standards for payment stablecoin issuance, reserve management, redemption, custody, capital, and risk management. In this blog post, we provide an overview of the proposal and discuss some of its key features.
ESG and sustainability
ESG trends to watch in 2026 – a two-part podcast series
ESG in 2026 is already shaping up to be defined by regulatory and political divergence and renewed litigation and stakeholder scrutiny. In January 2026, we published a blog post in which we identified the ESG trends we expect will shape the global regulatory, litigation and corporate strategy landscape in the year ahead. Building on this analysis, we’ve also released a two part podcast series where our experts break down how these trends are unfolding in practice and what they mean for organisations navigating this environment. Part 1 focuses on ESG litigation risk in a fragmented regulatory world, while in Part 2 we consider how AI, climate transition planning, supply chains and environmental rules are evolving.
Sustainability reporting round-up: news from key markets
The last week of February 2026 saw a surge in important regulatory developments in the sustainability reporting and disclosure rules across key global markets. The Omnibus 1 Directive amending the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) was published in the EU Official Journal on 26 February, following its adoption by the European Parliament and the Council. The Omnibus 1 streamlining package also formalises a commitment to revise the European Sustainability Reporting Standards (ESRS), and progress has also been made on the narrower Non-European Sustainability Reporting Standards (NESRS). Meanwhile, the UK government published the final versions of the ISSB-based UK SRS S1 and UK SRS S2 reporting standards on 25 February, and the California Air Resources Board (CARB) voted on 26 February to finalise its regulations for the state’s landmark climate disclosure laws, SB 253 and SB 261. For more information, see our blog post.
The ‘E‘ of ESG: CMA’s new guidance sharpens expectations on environmental claims about supply chains
In a recent blog series, we highlighted that greenwashing is facing increasing scrutiny from regulators in the EU, US, and UK. Recent UK developments illustrate this focus: first, in January 2026, the UK Competition and Markets Authority (CMA) launched new practical guidance on supply chain liability in relation to environmental claims; and second, in February 2026, the UK Advertising Standards Authority (ASA) upheld complaints against two companies that distribute infant care products, for making misleading environmental claims. Taken together, these developments show that there continues to be a real focus on green claims, and highlight the growing litigation and enforcement risks for businesses making environmental claims about their products and business operations – including across their supply chains. For more information, see our blog post.
Prudential regulation
Basel III endgame, take two: 8 key takeaways from the federal banking agencies’ capital re-proposals
After nearly three years of controversy, the long-awaited US implementation of Basel III endgame is getting a do-over. On 19 March 2026, the Federal Reserve Board (FRB), the OCC and the Federal Deposit Insurance Corporation (FDIC) issued three proposals that, taken together, would comprehensively overhaul the existing US bank capital framework and, at long last, implement the Basel Committee on Banking Supervision’s 2017 revisions to the Basel III capital framework (the so-called Basel III “endgame”). In this blog post, we outline initial key takeaways and overarching themes from the proposals.
Private capital
Private capital courts mom and pop: managing the risks of retailization in private capital
The retailization of private capital — the investment by so-called “retail investors” in private capital strategies — is transforming the asset management industry. The primary US vehicles for retail investment in private capital – interval funds, tender offer funds and business development companies (BDCs) – had total assets of over $400m as of year-end 2024, and are expected to more than double by 2029. Retail capital offers meaningful potential rewards to private capital managers, including increased capital for investment, greater diversification of capital sources and access to potentially permanent or longer-term capital. With those rewards, however, come risks that require careful management. This article discusses the drivers of retailization, the relevant regulatory frameworks for retail private capital vehicles, and the regulatory and litigation risks that private fund managers and sponsors face when entering the retail space — along with practical measures to mitigate those risks.
Targeted support
FCA finalises targeted support rules: applications now open
On 2 March 2026, the FCA confirmed the finalisation of its rules on targeted support, marking an important milestone in developing a more robust and supportive framework for firms providing financial support to consumers. Filling the gap between generic guidance and individualised advice, the new regime will enable firms with permission to provide targeted support to deliver suggestions to their retail clients that are designed for groups of consumers with common characteristics. Firms considering providing targeted support should review the full details of the new framework, begin developing their consumer segment strategies, and make use of the available FCA support where needed to ensure readiness ahead of go-live. For more information, see our blog post.
Complaints and redress
FCA/FOS reforms: consultation response and publication of new consultation paper
On 16 March 2026, HM Treasury (HMT) published its consultation response confirming the Government's final policy position on reforms to the Financial Ombudsman Service (FOS). On the same date, the FCA and the FOS published a further joint consultation paper and policy statement (CP26/9), finalising certain changes to FCA rules and guidance and consulting on further FOS proposals. The FCA has also published finalised guidance on identifying and rectifying harm to consumers. Together, these publications confirm significant changes to the UK consumer redress system. The reforms and further proposals have practical consequences for complaint handling, FOS engagement and regulatory risk. For more information, see our blog post.
Anti-money laundering
Unveiling AMLA’s blueprint: a snapshot of the 2026-2028 work programme and key regulatory instruments
The new EU Anti-Money Laundering Authority (AMLA) is one of the cornerstones of the EU AML Package. On 4 February 2026, AMLA published its first multi-year plan, called a “Single Programming Document” (SPD), which gives an overview of AMLA’s strategic objectives and scheduled activities across three core deliverables. Shortly thereafter, AMLA launched three public consultations on draft regulatory technical standards (RTS). Three further public consultations, on RTS and implementing technical standards (ITS), have already closed. This blog post delves into AMLA’s ambitious agenda by highlighting selected take-aways from the SPD and gives an overview of the key RTS and ITS developments.
Securitisation
Breaking the mould: changes to the UK securitisation framework under consultation
Following the transfer of the UK securitisation rules into the Prudential Regulation Authority (PRA) and FCA rulebooks in November 2024, the FCA and PRA launched consultations on further changes to their respective rulebooks. While the November 2024 reforms focused on the format of the rules (essentially integrating EU rules into the FCA and PRA rulebooks with a few slight modifications), this consultation is fundamentally different, as it presents proposals which seek to significantly modify the substance of the existing rules. The proposed changes signal a clear and intentional departure from the EU regime, and, if enacted, will introduce deliberate divergence between EU and UK securitisation frameworks.
Dates for your diary
TheCityUK International Conference 2026
Freshfields is proud once again to sponsor TheCityUK International Conference, which will be taking place this year on 23 April at Convene, 200 Aldersgate, London, EC1A 4HD. The conference will bring together senior leaders from across the financial and related professional services industry, policymakers and regulators to focus on how the UK can assert itself as a world-leading, international financial centre in a new age of global competition.
The agenda for this year’s conference features an exciting array of keynote speakers as well as panel sessions with expert participants including Freshfields partners Nabeel Yousef from our Washington, D.C. office, who will discuss competition among the economic superpowers, and Dr Janina Heinz from our Frankfurt office, who will explore how the UK can collaborate with other leading international financial centres.
For more information and to register, please click here.
Webinar: CSRD now settled after Omnibus 1 – practical readiness tips
Please join us on Tuesday 21 April, when Juliane Hilf, Vanessa Jakovich, Léa Bareil and our EU government guest speaker Giulia Bottazzi, Legal Officer at DG FISMA, will provide practical guidance on what the final EU Corporate Sustainability Reporting Directive (CSRD) requirements mean for upcoming reporting cycles, following the Omnibus 1 Directive. We will focus in particular on the changes to CSRD applicability thresholds, exemptions, simplification of reporting obligations and updated Member State transposition timelines. We will also provide an overview on the state of play of revisions to the European (and Non-European) Sustainability Reporting Standards (ESRS and NESRS).
To register, please click here.