The UK’s move to make the Financial Conduct Authority (FCA) the Single Professional Services Supervisor for anti-money laundering (AML) and counter-terrorist financing (CTF) now has a clear roadmap. For law firms, the later-than-expected dates may look like breathing space. Compliance specialists warn that treating them that way could be costly.
According to Argus Pro, the government first confirmed the FCA’s new role in October 2025. HM Treasury consulted on the regulator’s duties, powers and accountability in November and December 2025.
The Financial Services and Markets Bill, which moves AML and CTF supervision from the Solicitors Regulation Authority (SRA) to the FCA, was introduced to Parliament in May 2026. HM Treasury published its consultation response in June 2026.
About 60,000 businesses and practitioners across legal services, accountancy, and trust and company service providers fall within scope.
The consultation outcome points to a demanding regime. Firms will have to join a mandatory FCA register before carrying out AML-regulated activity. Beneficial owners, officers and managers will face fit and proper assessments that go beyond current SRA requirements.
Supervision will be risk-based and driven by data analytics, and firms will pay for it through cost-recovery registration fees. Guidance will still be drafted by the professions, with the FCA giving final approval.
Before taking over, the FCA must build its capability, with its operating model review expected to finish in 2027. That means recruiting staff who understand legal professional privilege, conveyancing risk and trust administration.
It must also design supervisory manuals for legal services and set up information-sharing with the SRA, OPBAS, HMRC and the National Crime Agency.
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