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The Council of Ministers has approved the Draft Organic Law on Public Integrity, a wide ranging legislative initiative designed to prevent corruption—understood in a broad and comprehensive sense—and to strengthen the mechanisms for its detection, investigation, and sanctioning across both the public and private sectors.

On 27 January 2026 the Financial Conduct Authority (FCA) launched the Mills Review to examine the long-term impact of AI on financial services. Led by Sheldon Mills, this initiative invites industry feedback to help shape how AI might transform consumer experiences, market structures, and regulatory approaches in retail financial services. The call for input closes on 24 February, following which Mills will present recommendations to the FCA board in the summer, culminating in an external publication to foster informed debate.

On 4 February 2024, the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 were made, establishing a comprehensive regulatory framework for cryptoassets in the UK. Under this new regime, cryptoasset firms falling within scope will be subject to regulatory requirements, including, where relevant, authorisation by the FCA. The Cryptoassets Regulations define the categories of cryptoassets and activities subject to regulation, expand the scope of the financial promotions regime to align with the new regulated activities, and make provision for rules relating to market abuse and public offers. The new regime will take effect on 25 October 2027, with the authorisation gateway opening in September 2026. UK cryptoasset firms should review their current and planned activities to determine if they fall within the scope of the new regime, and those seeking authorisation should start engaging with the process now to ensure they are prepared to move quickly once the gateway opens.

On 9 February 2026, the European Commission adopted new measures under the Ecodesign for Sustainable Products Regulation (ESPR), covering two key areas: The available derogations for the ban on destroying unsold clothing, accessories, and footwear. The disclosure requirements on unsold consumer goods, which are already in force for large companies and will extend to medium sized companies in 2030.

The Employment Rights Act 2025 finally received Royal Assent and became law on 18 December 2025. It represents what the government has described as “the biggest upgrade of workers’ rights in a generation” and includes a raft of changes to the current industrial relations framework.
This article, published in International Employment Lawyer on 20 January 2026, covers a number of the key changes, some of which will apply from as early as February 2026.

The Employment Rights Bill was approved and finalised on 18 December 2025, after many rounds of parliamentary “ping pong”, becoming the Employment Rights Act (ERA) 2025. Its final form is substantively very similar to previous versions, with one important exception: the retention of a qualifying period for unfair dismissal rights (albeit reduced from two years to six months) and the removal of any cap on unfair dismissal compensation.
Although we now have a finalised ERA 2025, many key areas of detail are subject to consultations and further regulations. This article summarises the Act’s key provisions, the areas of outstanding detail, anticipated timelines (as set out in the government’s updated timeline on 4 February 2026), and what organisations could or should be doing now to prepare.

The Product Risk Radar is our online content hub for the latest important legal developments in product regulatory and liability risk affecting the UK and EU (including some specific content for Germany). Through our hub, we will post regular updates to help you navigate this increasingly challenging landscape.

Recent regulatory developments underscore the growing scrutiny of professional uses of generative AI. On 13 January 2026, the Spanish Data Protection Authority issued a formal notice warning of the legal and privacy risks involved in uploading, transforming or generating images of individuals through AI tools. At the same time, the European Commission has published the first draft of its voluntary Code of Practice on Transparency of AI-Generated Content.

On 16 December 2025, the House of Lords resolved the final point of dispute in the Employment Rights Bill – whether the cap on unfair dismissal should be removed – paving the way for Royal Assent before Christmas.
The Bill introduces sweeping employment law reforms, including new provisions on strikes and trade unions, enhanced protective awards for collective redundancies, and restrictions on fire-and-rehire practices. It also reduces the qualifying period for unfair dismissal claims to six months from January 2027, although the timing for removing the compensation cap remains uncertain.
Implementation will be phased through 2026 and 2027, supported by over 20 consultations and secondary legislation following Royal Assent.

The EU has finalized measures to simplify and delay the application of key sustainability regulations, providing businesses with greater clarity and planning certainty. The changes follow the Omnibus package introduced earlier in 2025 and include amendments to the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and related frameworks. The EU Parliament approved the amendments, and EFRAG released revised European Sustainability Reporting Standards (ESRS) to streamline reporting obligations. Updates to the EU Taxonomy, adopted in July 2025, will apply from January 2026, and targeted simplifications and delays to the EU Deforestation Regulation (EUDR) were also endorsed.