Business ethics news: FCA restricts six lenders over AML controls, EU makes Coca-Cola, Nestlé and Danone change bottle claims, KKR accused of misleading merger regulators (24 October 2026)
The FCA placed restrictions on six unregulated lenders after finding weaknesses in their anti-money laundering controls, and published a review finding that conflicts management at private market firms varies considerably. In Brussels, three of the largest bottled drinks companies agreed to rewrite recycling claims, and KKR received a Statement of Objections over information it gave during a 2024 merger review.
Also this week: the European Commission opened Digital Services Act proceedings against Booking.com over fake listings and phishing, and the FCA banned and fined a former chief executive who fronted a firm for a disqualified director.
The FCA has restricted six unregulated lenders after finding weak anti-money laundering controls
On 23 October the FCA said it had placed restrictions on six "Annex 1" firms, unregulated lenders that must register with it for supervision under the Money Laundering Regulations but are not otherwise authorised. The concerns surfaced while it was assessing their applications. The restrictions were imposed at each firm's request and limit their ability to take on new customers or do new business with existing ones, including extending existing credit.
The firms named are Kingscrown Finance Ltd (restricted 21 April, with further restrictions on 25 September requiring an orderly wind-down of its loan book), MOMSB Ltd and Momentus Capital Ltd (7 October), Grosvenor Funding Ltd and Grosvenor Funding (North West) Ltd (9 October) and Abbital Ltd (15 October). Five of the six must commission an independent review of their anti-money laundering framework or systems.
The FCA is also assessing responses to an information request sent to around 900 registered Annex 1 firms. It reminded regulated firms that dealing with an Annex 1 firm requires their own due diligence, including direct confirmation of registration status and independent checks: "Registration under the Money Laundering Regulations is not a substitute."
Source: FCA, 23 October 2026.
Coca-Cola, Nestlé and Danone will change recycling claims on plastic bottles sold in the EU
After a dialogue with the European Commission and the Consumer Protection Cooperation (CPC) network, led by the Swedish Consumer Agency and the Hungarian Competition Authority, the three companies committed to rewrite their bottle labels. The Commission announced the commitments on 22 October.
- "I am a bottle made from 100% recycled plastic" becomes "This bottle is 100% recycled. Excluding cap and label".
- "Recycle me again" becomes "Recycle me", so buyers are not led to think the bottle was already recycled and will become another bottle.
- The overall impression of labels and marketing must not suggest inherent environmental benefits of plastic bottles, for example by pairing them with other green claims or symbols, and digital campaigns must follow the same commitments.
Coca-Cola and Nestlé concluded their dialogues in June 2025 and February 2026 and have already made some changes. National consumer authorities will monitor implementation and may take enforcement action, and the Commission may approach bottling industry associations so the same standard applies across the market. The case began with a BEUC alert in November 2023.
The FCA found conflicts of interest management at private market firms varies considerably
An FCA review of private equity, private credit and real estate firms, published on 23 October, found good practice including strong governance, effective oversight and independent challenge, but also recurring weaknesses in cross-fund transfers and multi-party transactions, gifts and entertainment, and information barriers. Some firms were failing to identify conflicts adequately or keep their controls up to date as they grew.
"We found good practice across the sector, but standards varied considerably," said Michelle Beck, the FCA's director of wholesale buy-side. Separately, the FCA said it is examining governance and conflicts concerns about private credit used to fund consumer litigation claims.
Source: FCA, 23 October 2026.
The European Commission says KKR gave incorrect or misleading information in a merger review
On 19 October the Commission sent KKR a Statement of Objections setting out its preliminary view that the firm, "at least negligently", supplied incorrect or misleading information during the 2024 review of its acquisition of NetCo, Telecom Italia's fixed-line network business. The Commission cleared that deal unconditionally on 30 May 2024, relying on KKR's explanation that FiberCop's long-term wholesale access agreements could only be changed by mutual agreement.
Third-party operators later complained that FiberCop unilaterally raised the prices they pay, and the Commission opened a formal investigation on 24 July 2025. Under the EU Merger Regulation it can fine a company up to 1% of aggregate worldwide turnover for incorrect or misleading information, and can revoke a clearance decision based on such information. KKR can now reply and request an oral hearing; the outcome is not prejudged.
Booking.com faces Digital Services Act proceedings over fake listings, phishing and unlabelled paid rankings
The Commission opened formal proceedings on 21 October to examine whether Booking.com has properly assessed and mitigated the risk of fraudulent and non-compliant listings, and of phishing scams that exploit reservation and guest data shared with accommodation providers and its messaging service. It will also look at whether listings boosted by a higher commission are clearly labelled as advertisements. If proven, the failures would breach Articles 34, 35 and 26(1) of the DSA.
A former chief executive has been banned and fined nearly £270,000 for fronting a firm for a disqualified director
The FCA said on 21 October it had banned Jeffrey Dawkins, former chief executive of Vector Wealth Ltd, who in 2019 sold the firm to a director disqualified for 12 years and then told the FCA he was still in charge while the buyer ran it and used its authorised status to sell mini-bonds. Investors are expected to lose about £4 million. Former senior manager Kadir Kanizi was banned from senior management roles; his £80,096 fine was cut to £20,000 on hardship grounds.
Source: FCA, 21 October 2026.
What this means for compliance and governance teams
If your firm lends to, banks or partners with unregulated lenders, check the FCA register directly and run your own checks; the FCA has said in terms that registration is not a substitute for due diligence. Private market managers should test their conflicts registers against the weak spots the FCA listed: cross-fund transfers, multi-party deals, gifts and entertainment, and information barriers.
For anyone selling into the EU, the bottle commitments show the level of precision consumer authorities now expect from a recycled-content claim: say what is excluded and do not imply a closed loop you cannot prove. And the KKR case is a reminder that answers given to a regulator during a review can be revisited years later, with fines of up to 1% of worldwide turnover at stake.