Article

The FCA's December 2025 Regulatory Initiatives Grid outlines six strategic themes for mutual lenders, moving from 124 initiatives. Key themes include a stronger focus on demonstrating outcomes rather than just processes, evolving expectations around financial crime and fraud, and the critical importance of operational resilience in compliance functions.

Additionally, firms face heightened expectations for third-party and outsourcing oversight, requiring clearer management information. Lastly, there is an increasing need for automation to enhance compliance efficiency without increasing headcount. These trends emphasize the necessity for mutual lenders to develop adaptable and resilient AML capabilities.