The Financial Services Act 2012 (Relevant Functions in relation to Complaints Scheme) (Amendment) Order 2026

Published: Thu 2nd Jul 26

Amended the 2014 Order to update and clarify which regulatory functions of the FCA and PRA are eligible for investigation under the statutory Complaints Scheme.


This Order modifies the list of regulatory functions of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) that are subject to the statutory Complaints Scheme.

It mandates that certain functions under the Money Laundering Regulations 2017 and the Securitisation Regulations 2024 fall within the scope of independent investigation for maladministration, while specifically excluding legislative actions such as making technical standards and issuing general guidance.

The Order applies to the UK's financial regulators and ensures certain administrative duties are subject to oversight by the independent complaints commissioner.

Arguments For

  • The Order states it is made in consequence of a defect in S.I. 2014/1195 and serves to make necessary corrections to the definition of regulatory functions.

  • Proponents within the Treasury indicate the measure ensures the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are accountable for specific administrative actions by bringing them within the scope of the statutory Complaints Scheme.

  • The document asserts that the Order maintains consistency in the treatment of legislative functions by excluding technical standards and guidance-making from the scheme's scope, as these are typically considered legislative rather than administrative in nature.

  • The Treasury notes that a full impact assessment was not produced because the instrument is foreseen to have no significant impact on the private, voluntary, or community sectors.

Arguments Against

  • Legal commentators might note that the exclusion of certain guidance-making and policy statement functions from the Complaints Scheme limits the avenues for redress available to parties affected by such regulatory tools.

  • Affected entities may find the piecemeal nature of these amendments—which modify older Statutory Instruments and reference multiple regulatory regimes like the Money Laundering Regulations—adds complexity to determining which regulatory actions are subject to independent investigation.

  • Critics of the regulatory framework might argue that the distinction between administrative functions (covered) and legislative functions (excluded) remains subject to technical definitions that may be difficult for lay complainants to navigate.

  1. -(1) This Order may be cited as the Financial Services Act 2012 (Relevant Functions in relation to Complaints Scheme) (Amendment) Order 2026 and comes into force on 23rd July 2026. (2) This Order extends to England and Wales, Scotland and Northern Ireland.
  1. -(1) The Financial Services Act 2012 (Relevant Functions in relation to Complaints Scheme) Order 2014 is amended as follows. (2) In article 2 (relevant functions of the FCA)- (a) in paragraph (e), for 'functions under regulation 32 (guidance) of those Regulations' substitute 'function of giving guidance under paragraph 7 of Schedule 1 and its function of preparing and issuing a statement of policy under paragraph 14 of Schedule 1'; (b) after paragraph (h), insert- '(i) its functions under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, other than its function of making technical standards under regulation 20(6) and its function of giving guidance under regulation 48(1).'.
  1. For article 3 (relevant functions of the PRA) substitute- 'Relevant functions of the PRA 3. The following functions of the PRA are relevant functions for the purposes of section 85(2) of the Financial Services Act 2012- (a) its functions under the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017, other than its function of preparing and issuing a statement of policy under paragraph 14 of Schedule 1; (b) its functions under the Securitisation Regulations 2024.'.

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