In October 2025 the government decided that the Financial Conduct Authority will become the single anti money laundering supervisor for accountancy, legal, and trust and company service providers, taking over from the professional body supervisors and from HMRC for those sectors. Nothing changes yet: the reform needs new legislation, the FCA does not expect to start taking on supervision until late 2028, and the move is expected to be phased and complete around 2030. Until then firms stay with their current supervisor and keep following existing processes.
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What exactly has been decided?
HM Treasury published its response to the 2023 consultation on AML supervision on 21 October 2025. The consultation had tested four models: giving more powers to OPBAS (the Office for Professional Body Anti Money Laundering Supervision), consolidating the professional body supervisors into a smaller number, a Single Professional Services Supervisor, and a single AML supervisor for all sectors. The government chose the Single Professional Services Supervisor model and decided that the FCA should perform that role.
The response describes the current system as three public sector supervisors (the FCA, the Gambling Commission and HMRC) plus 22 private sector professional body supervisors covering the legal and accountancy sectors. The minister’s foreword says the fact that there are 23 different supervisors for professional services firms inevitably leads to inconsistencies in supervision and enforcement. HM Treasury also points to the most recent FATF peer assessment, which identified inconsistencies and weaknesses in the UK’s supervisory system, particularly in professional services.
The FCA was preferred over creating a new body because it already supervises financial firms under the Money Laundering Regulations and OPBAS already sits within it, giving it existing experience of professional body supervision.
Which firms will be affected?
The FCA estimates the change will affect around 60,000 businesses and sole practitioners, including about:
- 34,000 accountancy businesses currently supervised by professional bodies;
- 7,500 law businesses supervised by professional bodies;
- 18,000 accountancy businesses and trust or company service providers supervised by HMRC.
The FCA describes these figures as estimates that may change. Firms already supervised by the FCA under the Money Laundering Regulations are not affected. Practices supervised by HMRC are within scope, not just members of professional bodies. For how supervision works today, see AML supervision for accountants.
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When will the change happen?
The FCA’s reform page, first published in September 2026, sets out its planning assumptions:
| Period | Planned step |
|---|---|
| 2026 | FCA works with stakeholders on plans |
| 2027 | Following expected legislation, FCA completes its operating model review |
| Late 2028 | Phased transition begins and new supervision launches |
| 2030 | Remaining professional body supervisors move over to FCA supervision |
The legal changes are being made partly through the Financial Services and Markets Bill, which the FCA says is going through Parliament, and partly through secondary legislation including amendments to the Money Laundering Regulations. HM Treasury’s 2025 response stressed that the start date depends heavily on parliamentary time, so these dates are plans, not deadlines.
What powers will the FCA have?
HM Treasury’s June 2026 response to its consultation on duties, powers and accountability sets out the government’s final positions:
- Registration. The FCA will register professional services firms and keep a public register, and all supervisors will gain an explicit power to cancel the registration of a firm that no longer carries on regulated activity.
- Fit and proper testing. The regulation 58 fit and proper test, which looks at integrity, competence and compliance history as well as criminal convictions, will be extended to legal and accountancy service providers. To avoid repeated changes, they will not be brought within it before the transition. Today’s regulation 26 checks focus mainly on criminal convictions of beneficial owners, officers and managers.
- Supervisory tools. Existing risk based supervision duties will apply, and the FCA will gain powers to appoint a skilled person and to issue directions to firms, with statutory safeguards.
- Enforcement. After transition the FCA can use the existing MLR enforcement powers, including civil sanctions and criminal proceedings, with a more streamlined approach to lower level breaches still being explored. Decisions remain open to tribunal and judicial appeal.
- Legal privilege. The FCA confirms it will not be able to use information gathering powers to obtain legally privileged material.
What will it cost practices?
The FCA says initial set up funding will come from the Economic Crime Levy, after which the function will be paid for through fees charged to the supervised population, and that it will consult on fees before taking on the role. HM Treasury’s June 2026 response confirms the intention to fund the work on a full cost recovery basis and records respondents’ concern that firms could end up paying both FCA fees and professional body fees. The 2025 response noted that the 23 professional services supervisors currently charge different fee levels and structures, said the FCA would seek to simplify this, and acknowledged some familiarisation costs, for example from a new IT system.
What happens to professional bodies, OPBAS and the CCAB guidance?
Professional bodies keep their wider regulatory and representative roles, such as professional standards and conduct, but lose their AML supervisory function. The government will require the FCA and existing professional body supervisors to set up information sharing and cooperation arrangements. OPBAS will continue to oversee professional body supervisors during the transition and its function will then end.
Responsibility for issuing and approving AML guidance for professional services firms will move to the FCA. HM Treasury expects accountancy guidance to remain practitioner drafted, with the FCA approving it and HM Treasury keeping a veto, and it will continue to approve guidance until then. See the CCAB AML guidance for the current position.
What should a practice do now?
The FCA’s own message is that businesses do not need to take any action now, should continue to follow existing AML processes, and should speak to their current supervisor with questions. Two points from HM Treasury’s response make good preparation worthwhile anyway. First, the FCA is expected to make use of existing checks and approvals where appropriate to avoid duplication, so accurate current records travel well. Second, live supervisory case work held by HMRC or professional bodies may be taken forward by the FCA.
Illustration only. A three partner practice supervised by its professional body reviews its position in autumn 2026. It does not contact the FCA or change supervisor. It checks that its firm wide risk assessment, client risk ratings and training records are current, closes out actions from its last monitoring visit, and keeps evidence of approvals for its beneficial owners, officers and managers in one place. It also notes that, once regulation 58 applies, the test will look at competence and compliance history as well as convictions. See firm wide AML risk assessment and AML training.
What do firms commonly get wrong about the reform?
- Thinking they must register with the FCA now. Registration arrangements will come later; the FCA says it will provide updates as legislation and its transition plan develop.
- Assuming HMRC supervised firms are outside it. HMRC supervised accountancy businesses and trust or company service providers are part of the transfer.
- Assuming professional membership ends. Only the AML supervisory role moves; conduct regulation by the professional body continues.
- Relaxing compliance in the interim. Current supervisors remain fully responsible until transfer, and OPBAS continues to oversee them.
- Treating the dates as fixed. Both HM Treasury and the FCA tie the timetable to legislation.
Solar Protect runs fee protection schemes for accountancy and bookkeeping practices. See how our accountant schemes work or read fee protection schemes for accountants.
Related Accountapedia entries
- HMRC as AML supervisor for accountancy service providers
- OPBAS and professional body AML supervisors
- Choosing and registering with an AML supervisor
- What to expect from an AML supervisory review
- Who regulates bookkeepers
- E invoicing in the UK: what is planned
Related cover: Professional indemnity insurance for accountants and What professional indemnity insurance covers. For the whole practice, see insurance for accountants and fee protection schemes for your clients.
Sources
- GOV.UK: Reforming anti money laundering and counter terrorism financing superv
- GOV.UK: Reform of the anti money laundering and counter terrorism financing su
- FCA: Aml supervisory reform
- GOV.UK: Anti money laundering and counter terrorist financing supervision refo
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.