The Financial Services Compensation Scheme (FSCS) has released its November 2024 Outlook statement, forecasting a total levy of £394m for 2025/26, based on expected compensation costs of £367m. This increase is attributed to the reduction of surplus balances by £171m, despite compensation costs remaining relatively flat compared to 2024/25.

Law360: The Financial Services Compensation Scheme (FSCS) has said that it has put up £38m so that clients of a failed pension provider would not take a hit when transferring their long-term savings elsewhere.

Law360: A judge has ruled against investors seeking restitution for failed pension investments, finding that the Financial Services Compensation Scheme (FSCS) was entitled to reject their claims for allegedly lost returns because they were brought outside the applicable limitation period.

The Financial Services Compensation Scheme (FSCS) has announced that Basildon Credit Union Limited has ceased trading and been declared in default. The FSCS has intervened to protect the credit union's 498 members, with most members expected to receive compensation by cheque within seven working days. The total compensation is estimated to be around £344,000. Members without updated contact details may experience delays in receiving their cheques. Those who have not received compensation by 26 March 2025 are advised to contact the Joint Administrators at Quantuma Advisory Limited.

Arbitration analysis: The Supreme Court's refusal to grant certiorari in Russian Federation v Stabil LLC leaves the D.C. Circuit's approach to the Foreign Sovereign Immunities Act (FSIA) arbitration exception undisturbed without endorsing its reasoning or resolving the wider jurisdictional issues. The decision highlights the court's reluctance to review cases involving treaty-specific and fact-sensitive disputes in the absence of a clear and mature circuit conflict. For practitioners, the case underlines the importance of advancing comprehensive jurisdictional and treaty-interpretation arguments in investment treaty award enforcement proceedings while recognising that vehicle problems may significantly reduce the prospects of Supreme Court review. Produced in partnership with Akin Alcitepe of Rimon Law.

The Financial Services and Markets Act 2000.

Part XII of the Financial Services and Markets Act 2000 (FSMA 2000) requires controllers and proposed controllers to seek approval from the Financial Conduct Authority (FCA) or the Prudential Regulation authority (PRA) before acquiring or increasing control in a UK authorised firm, and to notify the relevant regulator when decreasing or ceasing control in a firm. In order to accommodate fund management activities, the FCA allows investment managers to pre-notify changes of control and may grant approval of such changes for up to a year. This Practice Note provides a summary of the controllers regime as it applies to fund managers. For further reading on the FSMA 2000 controllers regime, see Practice Notes: • FSMA 2000 controllers regime—key concepts • Obligations of controllers—acquiring and increasing control • Obligations of controllers—reducing or ceasing control • FSMA 2000 controllers regime—obligations for firms • Enforcement of the FSMA 2000 controllers regime What is an investment manager? The special accommodation applies to investment managers, which

The Financial Services Act 2012 (FSA 2012) set out a new framework for financial regulation in the UK, and transferred the powers of the Financial Services Authority (FSA) to the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), including responsibilities under the Financial Services and Markets Act 2000 (FSMA 2000) controllers regime. The relevant provisions came into force on 1 April 2013. This Practice Note provides an overview of the changes made by FSA 2012 to the controllers regime. For further reading on the FSMA 2000 controllers regime as amended by FSA 2012, see Practice Notes: • FSMA 2000 controllers regime—key concepts • Obligations of controllers—acquiring and increasing control • Obligations of controllers—reducing or ceasing control • FSMA 2000 controllers regime—obligations for firms • FSMA 2000 controllers regime—fund managers • Enforcement of the FSMA 2000 controllers regime For practical steps that controllers and proposed controllers need to consider when acquiring/increasing or disposing of/decreasing control, see Change in control process—checklist. The FSMA 2000 controllers regime The regime

Part XII of the Financial Services and Markets Act 2000 (FSMA 2000) requires controllers and proposed controllers to seek approval from the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) before acquiring or increasing control in a UK authorised firm, and to notify the relevant regulator when decreasing or ceasing control in a firm. The FCA and PRA also require UK authorised firms to notify them when a person reduces or ceases to have control in the firm. This Practice Note provides an introduction to the key concepts of the controllers regime, including the meanings of ‘controller’, ‘control’ and ‘control band’ and related terms. For practical steps that controllers and proposed controllers need to consider when acquiring/increasing or disposing/decreasing control, see Change in control process—checklist. For further reading on the FSMA 2000 controllers regime, see Practice Notes: • Obligations of controllers—acquiring and increasing control • Obligations of controllers—reducing or ceasing control • FSMA 2000 controllers regime—obligations for firms • FSMA 2000 controllers regime—fund managers • Enforcement of the FSMA 2000 controllers regime Key

Part XII of the Financial Services and Markets Act 2000 (FSMA 2000) requires controllers and proposed controllers to seek approval from the Financial Conduct Authority (FCA) or the Prudential Regulation authority (PRA) before acquiring or increasing control in a UK authorised firm, and to notify the relevant regulator when decreasing or ceasing control in a firm. The FCA and PRA also require UK authorised firms to notify them when a person acquires, increases or reduces control in the firm. This notification can be submitted by the firm itself or jointly with the controller or proposed controller. In addition, firms are required to monitor their controllers and to submit an annual report to the appropriate regulator, identifying all of their controllers. These rules are intended to ensure that the appropriate regulator receives the information that it needs to fulfil its responsibility to monitor and, in some cases, give prior approval to firms’ controllers. This Practice Note provides an overview of the obligations of authorised firms under the controllers regime, both when a change in control

Note: as of 19 January 2026, the Public Offers and Admissions to Trading Regulations 2024 (POATRs), SI 2024/105 came into force. They regulate public offers of securities and admissions of securities to trading in the UK as from 19 January 2026 and so are relevant where the prospectus/listing particulars were published on/after 19 January 2026. One aspect of this regulatory framework is the revoking of section 90 of the Financial Services and Markets Act 2000 (FSMA 2000) and its replacement with regulation 30 and Schedule 2, POATRs and the inclusion of specific provisions as regards the inclusion of ‘protected forward-looking statements’ (PFLS) in such prospectus/listing particulars. See New Analysis: UK listing and prospectus regime reform—potential impact on securities litigation. This Practice Note considers claims for compensation under the statutory provisions of FSMA 2000 (as amended) in respect of liability arising out of certain misleading information published by companies under: • FSMA 2000, s 90—liability for misleading statements or omissions of certain information in/from a prospectus or listing

This Practice Note explains the private rights of action (PROA) under the Financial Services and Markets Act 2000 (FSMA 2000) held by certain categories of person to sue authorised firms in circumstances in which they have suffered a loss. The relevant legislative provisions are found in FSMA 2000, ss 20, 71 and 138D FSMA 2000 and are supplemented by the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001, SI 2001/2256 (the Rights of Action Regulations). The following causes of action for damages against firms under the FSMA 2000 are addressed in this Practice Note: • a firm has breached FCA or PRA rules (FSMA 2000, s 138D) • a firm has acted outside the scope of its permission (FSMA 2000, s 20) • a firm has used a prohibited person to perform a controlled function or delegated performance of a controlled function without appropriate regulatory approval (FSMA 2000, s 71) Note, as a result of Brexit, a previous right of action against an incoming EEA firm