Market Watch 85. On 29 April 2026, the Financial Conduct Authority (FCA) published Market Watch 85. In this edition of Market Watch the FCA discusses how the Economic Crime and Corporate Transparency Act 2023 can help firms share customer information to fight economic crime.

Coadjute joins FCA AI Live Testing Sandbox to advance AML compliance for conveyancers. London, 21st April 2026 Coadjute, the governance, risk management and compliance platform backed by Lloyds Banking Group, NatWest and Nationwide, today announced that it has been accepted into the Financial Conduct Authority's (FCA) AI Live Testing Sandbox - marking a major milestone in the use of artificial intelligence to strengthen anti-money laundering (AML) compliance across the property sector. The announcement comes at a pivotal moment for conveyancers and legal professionals. In October 2025, the UK Government confirmed that the FCA will become the single professional services supervisor for AML, replacing the Solicitors Regulation Authority (SRA) in this role. This transition signals a fundamental shift in regulatory approach - from guidance-led oversight to a more consistent, enforcement-driven regime. A new regulatory reality for conveyancers Under the new framework, firms can expect significantly increased scrutiny, with a stronger emphasis on proving that AML policies are effective in practice, not simply documented. Industry experts anticipate more frequent "skilled person" reviews, greater enforcement activity, and rising compliance costs. There will also be increased focus on core risk areas such as Source of Funds and Source of Wealth, with regulators expecting firms to demonstrate a clear, evidence-based understanding of client risk-rather than relying on basic document collection alone. While the SRA is expected to retain AML responsibilities through 2026, the transition period introduces additional complexity, including the risk of overlapping investigations from both regulators. Conveyancing firms are therefore being urged to act now: strengthening internal controls, improving data quality and record-keeping, and ensuring senior management accountability for compliance outcomes. Coadjute leading the way with AI-driven compliance Coadjute's inclusion in the FCA's AI Live Testing Sandbox places it at the forefront of regulatory innovation. The sandbox enables firms to test cutting-edge AI solutions in a controlled environment, working directly with the regulator to shape the future of compliant, technology-driven financial services. Building on its "AI-native" platform, designed from the ground up to embed artificial intelligence into AML workflows, Coadjute is uniquely positioned to help conveyancers meet the demands of this new regulatory landscape. Its platform combines advanced automation, a unique risk engine optimised for the property market, and human compliance expertise to deliver a fully managed AML service. This includes identity verification, source-of-funds and source-of-wealth analysis, enhanced due diligence, and audit-ready reporting, all designed to stand up to increased regulatory scrutiny. Recent innovations, such as its digital human assistant "Clara," demonstrate how AI can improve both compliance outcomes and client experience, guiding buyers and sellers through AML processes while ensuring completeness and accuracy. Working with the industry to set new standards Coadjute's credibility is underpinned by its backing from the UK's three largest mortgage lenders - Lloyds Banking Group, NatWest and Nationwide - and its prior collaboration with the Bank of England. Through the FCA sandbox, the company will continue working closely with regulators and industry stakeholders to help define best practices for AI-driven AML compliance. For conveyancers, the message is clear: the regulatory bar is rising, and firms must be able to demonstrate that their AML processes - particularly in high-risk areas - are robust, consistent and effective in practice. Jessica Rusu, chief data, information and intelligence officer at the FCA, said: "Its new AI Live Testing service helps firms who are ready to use AI in live markets... Always Finance is helping to make sure that AI is developed and deployed safely and responsibly in UK financial markets. "We want financial firms and their customers to benefit from AI, so we're providing a safe space to test how they plan to use it." John Reynolds, Co-founder and COO of Coadjute, said:"Conveyancers are entering a new era of AML regulation - one that demands demonstrable effectiveness, not just good intentions. Its acceptance into the FCA's AI Live Testing Sandbox is a significant step forward, not just for Coadjute, but for the entire industry. "We are working hand-in-hand with regulators and major industry participants to define how AI can be used responsibly to raise standards, reduce risk and make compliance more robust and more efficient. Our focus is simple: to give conveyancers the tools they need to meet - and maybe even exceed - the expectations of the FCA."

MPs demand FCA inquiry over hidden credit liabilities claims. MPs are calling for a judge-led inquiry into the Financial Conduct Authority's handling of alleged hidden credit liabilities. They claim the regulator failed to properly investigate what they describe as a major financial scandal affecting UK businesses. The issue will be debated in Westminster Hall today (14 April), led by chair of the All-Party Parliamentary Group on Investment Fraud and Fairer Financial Services, John McDonnell. The APPG is urging the government to establish a fully independent statutory inquiry into both the alleged hidden credit liabilities scandal and the FCA's role in overseeing the matter. According to the APPG, thousands of SMEs may have been sold complex derivative products alongside loans, with the products allegedly carrying undisclosed liabilities that affected firms' credit positions and financial stability. The group said it has gathered evidence from victims, specialist advisers and whistleblowing service BankConfidential, which it claims shows many SMEs seeking straightforward loans were instead sold products such as interest rate swaps presented as protection against rate rises. It alleges these products concealed significant undisclosed credit line liabilities booked against customers' assets from the outset. Derivatives and capital markets lawyer Lorraine Morris told the APPG: "These instruments were deliberately engineered to transfer significant, undisclosed, and uncapped risk directly onto the customer. "The mechanism was the concealed creation of a credit-line liability, booked against the customer's assets from day one. This contingent obligation was not a notional figure; it was a hard liability that directly impacted the customer's credit grade." The APPG claims the issue contributed to viable businesses being pushed into distress and transferred into bank restructuring units. McDonnell said: "This debate is about justice, long overdue justice, for thousands of business owners and their families who were systematically defrauded." He added: "Behind every case file are human beings. People who lost their business, their home, their health, or their life. Parliament cannot allow this to continue. We need an independent inquiry now." Ian Byrne said the scandal followed "a deeply familiar and troubling pattern" seen in other national injustices, including the Hillsborough and Post Office scandals. David Chadwick added that the alleged use of hidden credit liabilities and mis-selling of financial products had caused "significant harm". Prem Sikka said: "How can we have trust and confidence in our regulatory framework when the FCA consistently sides with the banks, not the citizens that the regulator has been tasked by Parliament to protect?" Responding to the claims, an FCA spokesperson said: "Money Marketing recognise that many small businesses suffered following the financial crisis and there have been a number of reviews into how loans were sold. "The IRHP redress scheme, set up over a decade ago, led to fast, fair redress of over £2.2bn for 14,000 small businesses. "Money Marketing carefully reviewed the specific concerns raised with Money Marketing about Ulster Bank's past SME loan practices, which were a different type of product. "We are satisfied that these loans fall outside our regulations, and we found no evidence warranting further action. However, we welcome that £1.8m was paid to 26 impacted Northern Irish businesses in this case." The FCA said the products sold by Ulster Bank were distinct from the interest rate hedging products covered under the 2012 IRHP redress scheme and fall outside its regulatory remit. It added that it had investigated concerns raised about Ulster Bank's fixed-rate loan products and found no evidence warranting further supervisory action. However, the regulator said it is considering whether similar allegations made against another retail banking group involve materially new information or evidence.