Daily · FSB AI Practices and UK Insolvencies · October 15, 2026

Key points

FSB finalises AI sound practices

The Financial Stability Board (FSB) published a final report on 15 October 2026 setting out 12 sound practices for the responsible adoption, use, and innovation of artificial intelligence by financial institutions. The publication concludes a public consultation that took place in June 2026.

Alongside the final practices, the FSB released a document summarising the responses received during the consultation period. These practices are designed to facilitate responsible AI governance within the financial sector.

Regulated financial institutions in the EU, UK, and Gulf regions should map their existing AI governance frameworks against these 12 practices to anticipate supervisory expectations. The finalisation of this report provides a concrete benchmark for compliance and risk teams assessing their AI strategies.

ePayments Systems enters administration

ePayments Systems Limited (EPS) entered special administration on 15 October 2026. Mark Boast and Allister Manson of Opus Restructuring LLP were appointed as joint special administrators.

EPS is authorised by the Financial Conduct Authority (FCA) to issue e-money under the Electronic Money Regulations 2011. The special administrators are responsible for managing customer claims against the firm and returning funds to customers where possible. The FCA stated it will engage with the administrators to seek the best outcome for customers.

Customers holding EPS e-money must direct their claims to the Opus administrators. Counterparties and payment providers relying on EPS infrastructure should assess operational continuity in light of this insolvency event.

ESMA reports on 2025 sanctions

ESMA published its third consolidated Sanctions Report on 15 October 2026, covering administrative sanctions and measures imposed across the European Economic Area (EEA) in 2025. National authorities across the EEA imposed more than 950 administrative sanctions and measures during the year.

The number of sanctions and measures remained stable compared with the previous two years. The aggregated value of administrative fines amounted to almost €82 million in 2025. The report highlights an increased use of settlements in enforcement actions.

Compliance and risk leads can benchmark their enforcement exposure against these EEA-wide trends and note the shift toward settlement mechanisms in regulatory proceedings.

SEC proposes cross-trade amendments

The U.S. Securities and Exchange Commission (SEC) proposed amendments to the rule under the Investment Company Act of 1940 that permits securities transactions between a registered investment company and certain affiliates, known as cross trades.

The proposed amendments are designed to expand the scope of eligible securities for cross trading, modernise the rule's conditions, and enhance investor protection. The SEC also proposed to require aggregated reporting of trading activity and cross trades in Form N-PORT and Form N-MFP.

Fund managers and compliance teams managing registered investment companies need to prepare for expanded cross-trade eligibility and new reporting obligations if these proposals are adopted.

ESMA updates transparency manual

ESMA updated its manual on transparency to provide further guidance on the identification of over-the-counter (OTC) derivatives subject to transparency requirements. The update enhances supervisory convergence on the application of the tick-size regime.

The manual clarifies how identifying reference data for OTC derivatives should be provided for transparency purposes, supporting greater consistency in data reported to and published through the consolidated tape. It includes published Q&As on the tick-size regime and recommendations on when trading venues and national competent authorities may intervene.

UK insolvencies and sanctions updates

Jarvis Investment Management Limited entered special administration on 14 October 2026, with Adam Stephens and Philip Hemming of S&W Partners LLP appointed as special administrators. Jarvis Investment (FRN 116413) is FCA authorised to provide wealth management services and had agreed to a voluntary requirement with the FCA in September 2022 restricting its activities.

The UK government extended the Global Human Rights and International Humanitarian Law Sanctions Regulations 2026 (S.I. 2026/1071) to all British overseas territories except Bermuda and Gibraltar, which implement sanctions under their own legislative arrangements. Additionally, OFAC published the names of one or more persons removed from the Specially Designated Nationals and Blocked Persons List (SDN List).

Our read

The FSB's finalisation of AI sound practices marks a significant step in formalising supervisory expectations for technology adoption in finance. Institutions should treat these 12 practices as a baseline for their AI governance frameworks, particularly given the concurrent focus on transparency and data reporting from ESMA. The insolvency of ePayments Systems Limited underscores the operational risks associated with e-money issuers, requiring immediate attention from counterparties and customers to manage continuity and claim processes. Meanwhile, the SEC's proposed amendments to cross-trading rules signal a trend toward greater transparency and modernisation in fund management, which may influence global standards for affiliate transactions.

This digest was produced automatically by a large-language-model system from the regulator publications and official sources listed below; it is AI-generated content and may contain inaccuracies. It is not legal advice — verify wording and deadlines against the original documents.

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