Litigation & Dispute Resolution

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. 

The UK regulatory landscape is evolving towards more subject-led enforcement models designed to accelerate investigations and deliver swifter outcomes. Early Account Schemes (EAS), implemented by the Prudential Regulation Authority (PRA) and now contemplated by the Office for Financial Sanctions Implementation (OFSI), allow firms to self-investigate and report misconduct in exchange for the opportunity of enhanced settlement discounts, quicker resolution, and greater visibility and control over the process. While an EAS scheme offers clear benefits, it also raises complex legal and strategic considerations – particularly for financial sector firms facing overlapping regulatory regimes, where a single issue may trigger scrutiny from multiple regulators. Navigating overlapping regulatory regimes requires careful consideration and planning. Choosing to cooperate through an EAS scheme may present additional challenges and risks, particularly where an alleged sanctions breach could expose the firm to potential criminal liability.

In July 2025, HM Treasury (“HMT”) published a consultation paper (the “HMT Consultation Paper”) outlining significant reforms to the Financial Ombudsman Service (“FOS”). At the same time, the Financial Conduct Authority (“FCA”) and FOS published a consultation paper (the “FCA/FOS Consultation Paper”) designed to be read alongside HMT’s proposals whilst setting out their own proposals for reform. BCLP responded to both consultations last year, and further developments are now expected in 2026, with the FCA confirming plans to issue a Policy Statement in the first half of the year.   From its origins as an informal financial services dispute resolution mechanism, the FOS has evolved into an entity that many now view as problematic. The Chancellor, in her 2025 Mansion House speech, described its reform as the biggest of all of the proposed reforms launched. According to HMT, industry stakeholders believe the current FOS has been “impacting investment in UK financial services and inhibiting innovation by firms”. Getting this reform right is therefore crucial to the Government’s growth agenda.   In this article, we consider some of the key aspects of the proposed changes and highlight some significant issues that must be considered before the proposals are implemented. 

The High Court’s decision in Ashley Hurst v Solicitors Regulation Authority [2026] EWHC 85 (Admin) marks a significant development for solicitors engaged in reputation management work. The case concerned disciplinary action taken by the Solicitors Regulation Authority (SRA) in relation to correspondence sent by Mr Hurst on behalf of former Chancellor Nadhim Zahawi during a dispute involving alleged defamation. The judgment contains useful guidance on the boundary between robust legal representation and conduct considered improper, particularly around the use of “without prejudice” and “confidential” labels.