The UK government has introduced the Financial Services and Markets Bill to Parliament, a sweeping piece of legislation designed to modernise sector regulation, strengthen consumer protections and improve access to finance for businesses of all sizes.
The bill proposes a significant restructuring of the regulatory landscape, most notably absorbing the Payment Systems Regulator’s responsibilities into the Financial Conduct Authority. The move is intended to reduce the number of overlapping bodies firms must deal with, streamline decision-making and allow companies to scale more quickly. Alongside this, the bill would cut the administrative burden of the Senior Managers and Certification Regime — the framework that holds senior leaders in financial firms personally accountable — by 50%. The government says this will allow firms to redirect resources toward growth and customer service rather than compliance overhead.
On the lending and investment side, the legislation proposes updates to the statutory framework that underpins the ring-fencing regime, which currently requires major banks to keep their UK retail banking operations separate from investment banking activities. The government argues the reforms will release more capital for UK businesses, particularly smaller firms that have historically struggled to access finance.
Consumer protection features prominently in the bill. Proposed changes would modernise redress arrangements, require that terms and conditions be written in plain language, and reform the Financial Ombudsman Service to enable faster dispute resolution. Separately, the government intends to widen membership eligibility for credit unions, a move it says will broaden access to affordable finance and support its ambition to double the size of the mutual and co-operative sector.
The bill also includes provisions — subject to an independent review — giving the government the power to safeguard access to in-person banking services in communities that depend on them, with a particular emphasis on rural areas and older populations who are less likely to use digital banking.
Economic Secretary to the Treasury Rachel Blake said, “Our financial services sector is world-leading, creating jobs, boosting growth and firing up our economy in Leeds, Manchester, Edinburgh and London. This Bill will unlock even more growth in the sector, making red tape less burdensome to business and boosting protections for consumers – part of our plan to build a stronger and fairer economy.
Copyright © 2026 FinTech Global
