May 13, 2026, 14:11 GMT | Insight
The UK government has announced plans for legislation to consolidate the regulatory framework for financial services so firms deal with fewer overlapping watchdogs, have clearer accountability, and benefit from faster decisions. The bill, which aims to reduce red tape and support growth, would also remove the number of staff covered by the regulatory regime for senior managers.
The UK government has announced plans for legislation to consolidate the regulatory framework for financial services so firms deal with fewer overlapping watchdogs, have clearer accountability, and benefit from faster decisions.
The Enhancing Financial Services Bill, published on Wednesday as part of the government's legislative plans for the coming parliamentary session, (see
here) would bring the Payment Systems Regulator within the
Financial Conduct Authority, or FCA. The government has not set out a timetable for the bill, much of which experts said had already been flagged.
The planned legislation would aim to ensure the administrative burden on financial firms was proportionate without compromising consumer, market, and prudential protections, the government said. It would include reforms to the
Financial Ombudsman Service to help people resolve disputes more quickly and with greater certainty, it said.
The legislation would reduce the overall regulatory burden of the Senior Managers and Certification Regime, which is designed to keep senior managers in check. Under the changes, half of those covered by the regime would be removed, leaving just the top executives accountable to the rules.
The bill would also enable credit unions to expand and support lending and investment by updating the framework for the regime which requires major banks to separate their UK retail banking services from investment banking activities.
“We want Britain to be more competitive globally, and to harness the UK’s global leadership in financial services, so it is better able to support UK businesses and consumers,” the government said.
Jonathan Herbst, partner at law firm
Norton Rose, said that much of the bill had been signposted.
“Overall, the direction of travel looks settled. The focus is on easing friction in the system rather than wholesale deregulation, and that approach is unlikely to change materially,” he said.
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Financial Services
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Banking & Finance
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United Kingdom, Europe, Northern Europe