| Link(s): | FINAL Lobby Pack 2026 .docx[92] |
Context
The Prime Minister’s Office has published the background notes to the King’s Speech, delivered on 13th May 2025, which include some detail and background to a new Enhancing Financial Services Bill (see pages 34 to 36). Although the Bill itself is yet to be published, there is useful commentary online in relation to the main impacts of the Bill from law firms Herbert Smith Freehills Kramer and Norton Rose Fulbright LLP.
Key points to note
- The Bill is intended to deliver key aspects of the Leeds Reforms, modernise regulation of the financial services sector, and make consumer protections under the financial services redress scheme consistent and appropriate to the digital age.
- The Bill comments on reforming FOS, consolidating the Payment Systems Regulator (PSR) within the FCA, enabling the expansion of credit unions, updating the bank ring-fencing regime, and reforming the SM&CR by:
- removing the Certification regime from FSMA (i.e., removing it from legislation);
- reducing the number of senior management functions that require regulatory pre-approval; and
- streamlining the Conduct Rules.