Business: Regulation

The government is not aiming to deregulate, but to upgrade the UK regulatory system so that it does not unduly hold back economic growth.

The UK will remain a global leader in promoting high industry standards that deliver for businesses and consumers across the UK, but the Chancellor’s speech recognised that there is a need for a rebalancing of our system – retaining important protections whilst pushing for growth and investment.

The Leeds Reforms, announced alongside the Chancellor’s Mansion House speech on 15 July, included:

• The biggest package of reforms to the Financial Ombudsman Service since its inception, ending its present position as a quasi-regulator. The government is currently consulting on reforms to the legislative framework to return the FOS to its original purpose as a simple, impartial dispute resolution service.
• Plans to significantly streamline the Senior Managers and Certification Regime, to reduce the overall burden of the regime on firms by 50%.

• Asking the FCA to report back by the end of September on how it plans to address concerns about the application of the Consumer Duty for firms primarily engaged in wholesale activity.
• Undertaking a short review of the ringfencing regime, reporting by early 2026. The government intends to take forward meaningful reform of the regime to support growth, while maintaining the aspects of the regime that support financial stability and safeguard depositors.