In 2026, financial regulation and enforcement are shaped by shifting political priorities — more than at any other point in recent memory. Governments are asking regulators to drive growth, protect consumers and police digital harm at the same time.
For financial organizations this means navigating seemingly competing agendas, in an environment where deregulation in one area is often offset by an expanded remit and sharper enforcement in others, and in which policy direction and enforcement appetite can quickly change.
In the UK, the growth and competitiveness agenda increasingly shapes regulatory direction, even as expectations around conduct and market integrity tighten. Moves to reduce red tape and liberalize capital markets sit alongside a tougher stance on non-financial misconduct, consumer harm / consumer protection and AML.
In the US, a quieter Securities and Exchange Commission creates the appearance of calm conditions, but we expect enforcement in key areas to rebound in 2026. Securities firms, AI-related fraud and foreign actors accessing US capital markets are priority targets.
Beyond domestic politics, global geopolitical storms are also giving rise to investigations and enforcement activity. For example. the growth of Office of Financial Sanctions Implementation (OFSI) and proposed changes to its investigations and fines procedure signals a proactive approach to sanctions enforcement in the UK.
On the other side of the Atlantic, enforcement is a microcosm of broader geopolitical tension. The newly formed SEC Cross-Border Task Force is focused on identifying market manipulation and fraud by non-US companies and their advisors — specifically calling out China for scrutiny.
Non-EU banks will also feel Europe’s force in 2026. Implementation of CRD VI is set to fundamentally alter how these organizations operate in Europe, introducing new restrictions on cross-border services and a harmonized regime for third-country branches.
Plan for uncertainty
“When it comes to politics, financial regulation and enforcement in 2026, prepare for the unexpected. Build your scenario-planning capabilities to respond to policy change, pre-agree your engagement and challenge strategies, and anchor everything in a clear, defensible position that will hold up as enforcement priorities evolve.”
Polly James, Partner and Global Practice Co-Leader - Financial Services Disputes and Investigations
Stay ahead of shifting regulatory agendas
Proactively monitor UK and US regulatory developments as government driven& reforms accelerate. With UK growth oriented regulatory simplification due mid 2026, and evolving SEC and DOJ enforcement priorities, firms should ensure they have the horizon scanning capability to& anticipate and adapt to policy shifts.
CRD VI: Preparing for Changes in Cross-Border Lending in 2026
With only 12 months until CRD VI starts to reshape cross-border lending, non-EEA banks face a fundamental question: how—and whether—they can continue serving European clients. Many global banks are well advanced in planning, but smaller and mid-sized lenders may need to accelerate preparations. The good news: it’s not too late.
From incentives to implications - navigating Early Account Schemes in a multi-regulator world
EAS incentivises proactive cooperation by requiring firms to prepare and disclose a complete factual account of the alleged misconduct to regulators. Typically, this will be done before the regulator itself has conducted its own formal investigation. In return, participating firms may benefit from an expedited outcome and enhanced settlement discounts.
U.S. Securities Enforcement: Our predictions for 2026
Consistent with patterns from past administrations, we expect U.S. securities enforcement to accelerate modestly in 2026. The SEC and FINRA will likely focus increasingly on cases about foreign actors, artificial intelligence (AI), and other emerging technologies, alongside traditional areas of enforcement with an emphasis on addressing investor harm.
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