Partners Guillaume Buell and Jamie E. Hanley and Associate Charles Wood discuss “4 Securities Trends for Pension Trustees to Watch in 2026” in a timely article published by Law360 UK.  The article highlights the key regulatory and litigation trends expected to shape the UK and E.U. securities landscape this year, including “enhanced market and regulatory scrutiny of artificial intelligence, cybersecurity risks, and other technology-related disclosures, alongside increased expectations that investors actively protect and assert their legal rights where appropriate.”

Addressing the outlook for collective redress in the UK and E.U., the authors note that 2025 saw a sustained increase in group litigation across multiple E.U. jurisdictions.  While securities and shareholder claims did not make up the lion’s share of these actions last year, “the underlying procedural frameworks will be increasingly relevant to investor disputes.”  Cases such as Merricks v. Mastercard, Bulk Mail Claim v. Royal Mail, and the UK Collective Action Against Google confirm the viability of large-scale collective actions and represent “a growing complementary avenue for recovery against companies that trade on European exchanges.”

Following Pension Minister Torsten Bell’s December 2025 announcement that statutory guidance clarifying the scope of trustees’ fiduciary duties is forthcoming, the authors further advise that “trustees will be expected to take a more active approach to fiduciary stewardship” beginning in 2026.  While the full extent of the guidance remains unclear, it is expected to clarify how trustees consider long-term and systemic risks and supports an expectation of more active stewardship, including a fiduciary duty to assert legal rights.  These expanded fiduciary obligations are expected to extend beyond trustees to asset managers, investment consultants, and issuers.  The far-reaching impacts will likely “act as a catalyst for increased regulatory enforcement and private litigation.”

The authors also highlight the importance of staying informed about development at the U.S. Securities and Exchange Commission, as UK pension schemes frequently have exposure to U.S. public equity and bond markets.  They note that “enforcement actions and disclosure standards applied in the U.S. will continue to have far-reaching financial implications” for beneficiaries in the UK and E.U.

Finally, the authors cite AI-washing and other technological risks as a key theme for 2026.  Considering the increase in AI-related disclosures and litigation in 2025, the forthcoming application of the European Union Artificial Intelligence Act, and “the explosive adoption of AI on a global scale,” they assert that AI risk “is expected to increase dramatically in 2026 across all markets.”  This climate indicates “a significantly sharpened and bespoke focus on AI at large” as well as intensified attention on other technological risks such as cybersecurity incident response and prevention, noting several high-profile incidents in the previous year.  

Looking ahead, Guillaume, Jamie, and Charles conclude that, in 2026, a more active approach to fiduciary stewardship along with “continued scrutiny of AI-related disclosures, sustained focus on cybersecurity and governance, and further maturing of collective redress mechanisms are all expected.” As a result, “investors must monitor their investment portfolios and determine when they may have exposure in the hundreds of securities claims filed each year.”