UK Retail Finance Horizon Scanner - April 2026

In the latest edition of our UK Retail Finance Horizon Scanning report, we highlight recent industry updates and developments emerging in the following areas:

• Consumer credit: Attention remains on motor finance, with the FCA confirming the final redress scheme while also responding to a legal challenge that may affect compensation timelines. The regulator has also consulted on simplifying consumer credit financial promotion rules to better align with the Consumer Duty. Looking ahead, Buy Now Pay Later products will come within FCA regulation from July 2026, bringing new authorisation and compliance requirements for affected firms.
• Innovation and technology: The FCA has published its open finance roadmap, signalling continued growth in data‑enabled financial services, particularly in mortgages and SME lending. Innovation initiatives such as TechSprints, the Smart Data Accelerator and AI Live Testing continue to support responsible innovation, alongside expected legislative changes in 2026 that will expand the FCA’s rule‑setting powers in this area.
• Conduct and governance: Recent FCA guidance on inactive appointed representatives reinforces expectations around effective oversight, accurate reporting and prompt action where risks arise. Wider regulatory reform proposals also continue to emphasise strong governance, internal controls and senior accountability.
• Consumer Duty: The FCA’s review of Year 2 Consumer Duty board reports shows progress but highlights ongoing supervisory focus on outcome‑based evidence, distribution chain oversight and support for vulnerable customers. The Government’s new Financial Inclusion Strategy is also likely to influence future expectations around access and inclusive product design.
• Mortgages: Mortgage market reform remains a priority, with the FCA setting out plans to improve access, support innovation and deliver better outcomes for first‑time buyers, later‑life borrowers and vulnerable customers. Further targeted consultations are expected during 2026 as part of the Mortgage Rule Review.

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