Daily · FCA Quantum Group and Consumer Protections · November 5, 2026

Key points

FCA Restricts Ethica Resolve Over Disguised Remuneration

The Financial Conduct Authority (FCA) has secured restrictions on Ethica Resolve Limited, an authorised firm that services and collects debt. These measures follow demands made by Ethica for the repayment of loans provided through disguised remuneration schemes. Ethica is acting on behalf of West 28th Street Limited, which purchased these loans from a third party but is not authorised or regulated by the FCA.

Under the new restrictions, Ethica will write to affected consumers explaining that they do not have an enforceable obligation to make payment at this stage. The firm will suspend further payment demands while regulatory and legal issues are resolved and will not seek default judgments against individuals who have not responded to legal claims. Additional protections are being implemented to identify vulnerable consumers.

These schemes historically paid contractors, consultants, and agency workers through loans rather than salaries. While some borrowers dispute liability and the enforceability of the debts, it has not yet been determined by a court whether these debts can be legally enforced. The FCA advises affected individuals not to ignore formal court documents and to seek independent legal or debt advice.

FCA Launches Quantum Experimentation Group

The FCA announced the establishment of the Quantum Experimentation Group, described as the first regulator-led quantum computing experimentation group globally. The initiative will bring together financial services firms, quantum technology providers, and national research laboratories to explore how quantum machine learning can detect money laundering and fraud.

The group is scheduled to launch in the first quarter of 2027. Participants will utilise an FCA synthetic dataset—artificially generated data—to overcome barriers related to access to suitable testing data. Jessica Rusu, the FCA's chief data, information and intelligence officer, stated that early experimentation is essential to understanding the technology's potential in financial services.

Firms interested in participating can register their interest by 31 December 2026. The group aims to help the FCA understand the opportunities, limitations, and regulatory implications of quantum technology in tackling financial crime.

EBA Publishes Revised Internal Governance Guidelines

The European Banking Authority (EBA) published revised Guidelines on internal governance for banks. The document was released via an e-mail alert dated 5 November 2026. These guidelines are intended to update expectations for bank governance within the EU, requiring institutions to assess whether their current internal arrangements align with the new standards.

Monetary Policy Speeches from SNB and ECB

Martin Schlegel, Governor of the Swiss National Bank (SNB), delivered a speech titled "Transmission and conduct of monetary policy in Switzerland" on 5 November 2026. He outlined how SNB policy rate increases are estimated to raise both the 10-year interest rate and the exchange rate, while lowering inflation and output one year later. Schlegel noted that since 2021, the SNB has used a combination of rate hikes and foreign-currency sales to manage inflationary pressure.

On the same day, ECB Executive Board member Isabel Schnabel delivered a speech titled "Navigating stormy waters: reflections on monetary policy." Additionally, ECB Executive Board member Piero Cipollone gave a speech titled "Shaping the future of money." The document does not provide further details on the specific content of the ECB speeches.

US Rule Filings and UK Data Regulations

In the United States, FINRA filed a proposed rule change to adopt Rule 1240.03, establishing an interim program for regulatory element continuing education for senior leaders. This filing was granted immediate effectiveness. Separately, NYSE Texas, Inc. filed a proposed rule change with the SEC to adopt New Rule 8a for the listing of acquisition companies, also granted immediate effectiveness.

In the UK, the Data (Use and Access) Act 2025 (Commencement No. 10) Regulations 2026 were made, bringing sections 61 to 65 of the Act into force on 9 November 2026. These are the 10th commencement regulations under the 2025 Act.

Our read

The FCA's dual focus on consumer protection and technological innovation signals a regulator balancing immediate risk mitigation with long-term capability building. The restrictions on Ethica Resolve provide temporary relief for borrowers but leave the ultimate enforceability of disguised remuneration debts to the courts, creating ongoing legal uncertainty. For technology leaders, the Quantum Experimentation Group offers a rare opportunity to shape regulatory expectations around quantum machine learning before standards are set. Meanwhile, the EBA's revised governance guidelines require EU banks to immediately review their internal structures for compliance.

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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