GRC Report Staff

The Federal Reserve Board published independent research outlining an analytical framework for potentially incorporating tokenized deposits, tokenized money market funds, and GENIUS Act-compliant payment stablecoins into official U.S. monetary aggregates (M1/M2). While not policy, this signals the Fed's forward-looking posture on digital asset classification and foreshadows potential future data reporting requirements for banks, fund issuers, and stablecoin issuers.

The FCA has identified a clone firm fraudulently using the details of authorized firm Allenby Capital Limited to deceive consumers and investors. Compliance teams should note this as part of the ongoing trend of clone firm scams, which carry significant consumer protection and reputational risk implications for authorized firms and the broader financial services sector.

The Financial Conduct Authority has added FalconStocksMarkets to its Warning List, confirming the firm operates without UK authorization while potentially targeting UK consumers. Compliance teams should note this listing as part of ongoing due diligence screening and ensure customer-facing staff are aware of the heightened fraud risk associated with this entity.

The Federal Reserve's annual Cybersecurity and Financial System Resilience Report outlines its supervisory framework, internal security programs, and emerging threats including AI, quantum computing, and third-party risk. Compliance teams at Board-supervised institutions should note the continued emphasis on tailored, risk-based examinations, updated supervisory operating principles, and heightened scrutiny of third-party service providers and incident notification timelines.

The FCA's 53rd quarterly consultation paper proposes eight miscellaneous Handbook amendments spanning cryptoasset admission processes, complaints data reporting, Money Market Fund reporting, and consumer investment rules. While individually minor, these changes affect a broad cross-section of regulated firms and require review before the October 12, 2026 comment deadline.

The FCA's Economics Department has published a research note analyzing a decade of AIFMD regulatory reporting data, revealing that the UK Alternative Investment Fund market has grown to GBP £5.1 Trillion in NAV, with private credit as the fastest-growing segment. While not a binding rule, this analysis directly informs forthcoming FCA proposals to modernize the UK AIFM regime and introduce an integrated fund reporting framework, signaling where future reporting and supervisory focus will concentrate.

The FCA has publicly warned UK consumers that Bridge Marks Limited is conducting or promoting financial services without proper authorization. Firms dealing with UK clients that appear on this Warning List pose direct counterparty and reputational risk, and compliance teams should ensure this entity and its associated digital properties are screened against onboarding, transaction monitoring, and third-party risk systems.