Documents to download

Approximate read time: 61 minutes

The bill aims to support growth and investment and modernise the regulation of financial services. It would make reforms to several areas of financial regulation, including:

  • reforms to the Financial Ombudsman Service, with the aim to align its decisions more closely with Financial Conduct Authority (FCA) rules and to prevent it acting as a quasi-regulator
  • abolishing the Payment Systems Regulator and transferring its functions to the FCA.
  • introducing a ‘provisional licences’ authorisation scheme, and making reforms to the UK’s bank ring-fencing regime.

Many of the provisions follow consultations conducted by the government and reflect different government strategy documents including its ‘Financial services growth and competitiveness strategy’ and ‘Regulation action plan’. The bill would also reform what it sees as a complex, inflexible and disproportionate consumer credit regime. Other reforms include to bank ring-fencing and senior manager rules. The bill contains a number of provisions that would create delegated powers, for example in relation to the independent review into in-person banking access.

Following publication of the bill, political reaction has so far been limited. However, other comment since the bill’s publication suggests that changes including those proposed to the Financial Ombudsman Service, consumer credit regulation and the access to banking services review will be of interest to stakeholders.

Photo by Tadas Petrokas on Unsplash

Related Links

Documents to download

Related posts

  • Steel Industry (Nationalisation) Bill: HL Bill 22 of 2026–27

    The Steel Industry (Nationalisation) Bill is a government bill that would provide powers to nationalise a company involved in steel manufacturing where it is in the public interest. It completed its House of Commons stages on 9 June 2026 and is scheduled for second reading in the House of Lords on 16 June 2026. The government has explained the bill is being fast-tracked as it believes it is necessary to safeguard the future of the UK steel industry. It says this is important for the UK economy, national security and critical infrastructure.

    Steel Industry (Nationalisation) Bill: HL Bill 22 of 2026–27

  • Welfare reforms and youth unemployment

    Concerns have been raised about levels of welfare spending in the UK and increasing numbers of young people not in education, employment or training. This briefing sets out statistics, government policy and commentary on welfare and youth employment. This includes the government’s youth guarantee, its ‘Get Britain working’ policies and the interim report by Alan Milburn on young people and work.

    Welfare reforms and youth unemployment

  • Commercial Payments Bill [HL]: HL Bill 4 of 2026–27

    The Commercial Payments Bill seeks to tackle late payments to small businesses, estimated to affect 44% of invoices. It would impose minimum payment periods for invoices, prohibit the use of retentions in construction contracts and provide the small business commissioner with greater powers. The bill was introduced in the House of Lords on 19 May 2026 and is due to receive its second reading on 9 June 2026.

    Commercial Payments Bill [HL]: HL Bill 4 of 2026–27