As the financial services landscape continues to evolve, regulatory compliance remains a moving target. From Consumer Duty to the Debt Respite Scheme, firms have had to adapt quickly. Now, a new challenge (and opportunity) emerges: the Financial Conduct Authority's (FCA) Product Sales Data (PSD) regulation. This isn’t just another compliance update, it could redefine how firms manage both risk and opportunity.
Starting in Q3 2025, firms with over £20 million in outstanding balances or new advances will be required to submit detailed PSD reports, with the first submissions due as early as October.
In this blog, I’ll explore what the new PSD regulation entails, the risks of non-compliance, and how firms can strategically prepare.
Why does the PSD regulation matter?
The FCA has long used Product Sales Data to monitor market trends, but now it’s raising the bar; the new regulation formalises and expands these requirements, demanding more granular, frequent, and standardised reporting.
Why? To enhance transparency, improve consumer outcomes, and enable faster regulatory intervention. For firms, this means one thing: adapt or fall behind.
What are the risks of falling behind?
Operational strain
Firms unprepared for the new data formats and submission timelines may face significant operational disruption. This isn’t just a technical issue, it’s a business risk. Manual workarounds and legacy systems will struggle to meet the new standards.
Regulatory exposure
Failure to comply could result in enforcement action, reputational damage, and increased scrutiny. The FCA has made it clear: data quality and timeliness are non-negotiable.
Technology gaps
Many firms still rely on fragmented or outdated systems that lack the agility to adapt to new regulatory demands. Without investment in data infrastructure, compliance becomes a costly and reactive exercise.
How can you turn pressure into potential?
Fun fact: we have our own British Drift Championship driver at Arum Global, so when it comes to steering through regulatory change, we know how to handle the corners. (Allow me to continue this car analogy to illustrate my next point!)
Think of your data infrastructure like a car. If it’s outdated, no matter how skilled the driver (your compliance team) is, you won’t win the race. PSD demands a high-performance engine: fast, agile, and built for the road ahead. Here’s what I recommend:
Modernise data architecture
Now is the time to assess whether your current systems can support the new PSD requirements. Cloud-native platforms, real-time data pipelines, and API-driven architectures will be key enablers.
Automate reporting workflows
AI and machine learning can streamline data validation, anomaly detection, and report generation - reducing manual effort and improving accuracy.
Partner with experts
Navigating regulatory change is complex. Engaging with specialists who understand both the technical and regulatory landscape can accelerate your readiness and reduce risk.
Final thoughts
Q3 2025 is even closer than you think, and the PSD regulation is more than a compliance hurdle, it’s a catalyst for transformation. By taking a proactive, strategic approach, firms can not only meet regulatory expectations but also unlock new value from their data.
How Arum Global can help
We’ve supported clients through every major regulatory shift in the last decade. Our Regulatory Readiness Framework helps organisations assess their current state, define a roadmap, and implement sustainable solutions, whether that means upgrading legacy systems, integrating AI, or deploying managed services.
Take a look at our helpful resources below or contact us directly to discuss your needs.
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About the author
Hasib Ahmed
Principal Consultant - APAC
Hasib is a specialist in collections and recoveries with over 15 years of experience across various sectors, including retail, banking, and telecommunications. He has worked with clients in the UK and internationally, playing a key role in multimillion-pound transformation projects, including the implementation of telephony platforms and collections systems. His expertise spans the full software development lifecycle, data certification, system migration, process improvement, system design, training, and testing.