Welcome to Proskauer’s FinReg Monthly Update, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.
Key developments in July 2025 and 1 August 2025:
Motor Finance Commissions: The UK Supreme Court handed down its judgement in Hopcraft and another v Close Brothers Limited and two other cases, all
In a landmark decision in Johnson v FirstRand ([2025] UKSC 33), part of the broader Hopcraft appeals, the UK Supreme Court has ruled that car dealers who arrange finance do not owe fiduciary duties to their customers. This judgment significantly reshapes the legal landscape for motor finance claims and has immediate implications for both litigation
On 4 August 2025, the European Supervisory Authorities (“the ESAs”) published updated guidance on the application of the Sustainable Finance Disclosure Regulation (“SFDR”) by adding to their Q&A. Below, we break down the areas clarified in the advice and note, with interest, their use of the current European corporate sustainability reporting standards, despite them
On the 30 June 2025, the European Securities and Markets Authority (“ESMA”) published its final report on the 2023–2024 Common Supervisory Action (“CSA”) on the integration of sustainability risks and disclosures. This initiative, conducted in collaboration with the European Economic Area’s national competent authorities (“NCAs”), focused on assessing compliance
On 15 July 2025, HM Treasury published its response confirming it will no longer pursue a UK green taxonomy – a classification system to define which economic activities could be considered environmentally sustainable (the “UK Green Taxonomy”).
Instead, the UK government is focusing on existing and emerging policies such as the UK Sustainability
On 2 July 2025, the House of Lords Financial Services Regulation Committee launched an inquiry into the growth of private markets in the UK.
The inquiry will assess whether post‑2008 capital and liquidity requirements have constrained traditional bank lending, thereby shifting financial activity and risk toward private markets. Key areas of focus of the inquiry
On 4 July 2025, the European Commission adopted a regulation (the “Delegated Regulation”) aimed at streamlining the European Union’s Taxonomy Regulation (the “Taxonomy Regulation”). These reforms are intended to ease administrative burdens on EU companies and strengthen the EU’s global competitiveness, while maintaining the integrity of its core climate and environmental
Welcome to the Regulation Round Up, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.
Key developments in June 2025:
30 June
Investment Advice: The Financial Conduct Authority (“FCA”) published a consultation paper (CP25/17) on proposals for a new form of support for consumers’ pensions and retail investments
On 1 July 2025, the European Securities and Markets Authority (“ESMA”) published a thematic note on making clear, fair and not misleading sustainability-related claims, to address greenwashing risks (the “Thematic Note”).
In the Thematic Note, ESMA sets out that sustainability information is increasingly important in investor choice, and, due to its