1. It remains all about growth and streamlining the regulatory framework

The government is consulting on a number of targeted reforms to the regulatory framework, including regulators being given shorter deadlines to determine regulatory applications (e.g., new firm authorisations cut from 6 to 4 months) and the Bank of England and Prudential Regulation Authority (PRA) tailoring the capital framework to focus on growth by raising the asset threshold for MREL requirements and delaying elements of Basel 3.1.

2. There’s potential for some significant changes in certain areas

Bank ring-fencing will be reviewed by early-2026 to consider how ring-fenced banks can provide more services to business and share resources across the ring-fence.

The Financial Conduct Authority (FCA) will, by end-September, review how the Consumer Duty works for wholesale firms due to concerns it extends to firms who do not serve retail customers.

3. Capital markets and digitalisation are a focus

HM Treasury (HMT) has published a wholesale Financial Markets Digital Strategy, including where it sees the wholesale financial services sector driving forward the digitalisation of its wholesale financial markets.

HMT has also published the final report from the Digitalisation Taskforce, which sets out recommendations to modernise the UK shareholding framework. This includes plans to end the issuance of paper shares and require companies to replace paper share registers with digitised share registers by the end of 2027. An update on Digital Gilt Instrument (DIGIT) Pilot has also been published.

4. Big wins for the insurance sector

The government will proceed at pace to introduce a dedicated, competitive framework for captive insurance in the UK.  The FCA and the PRA are developing policy proposals and have confirmed they intend to consult on new rules in summer 2026, with a view to implementing the new framework in mid-2027.

HMT is consulting separately on the future role of Protected Cell Companies and how they can be established to facilitate captive insurance business.

5. Detailed plans to reform the Financial Services Ombudsman Scheme (FOS)

The government is consulting on a package of proposed policy reforms, which are likely to be welcomed by industry, to address concerns and “restore the FOS to its role as a simple, impartial dispute resolution service which can quickly and effectively deal with complaints against financial services firms – ensuring that it is no longer acting as a quasi-regulator.” The FCA will be able to quickly intervene on areas of mass redress.

6. SM&CR reforms unveiled

The government is consulting on legislative changes to reduce regulatory burdens imposed by the SM&CR, including removing the Certification Regime from legislation and increasing flexibility for the regulators to reduce the number of Senior Management Functions which require pre-approval.

In parallel, the FCA and the PRA are consulting on their first phase of reforms, which don’t require legislative changes, and expect to publish final rules in mid-2026.

7.  Invest in the UK

A new dedicated FS concierge service will be set up within the Office for Investment (OfI) between HMT,  the OfI, the PRA and City of London Corporation. This will provide a single front door to international firms, providing regulatory and wider business support. It will include secondees from the City of London and industry.

8. Building a retail investment culture is going be a significant opportunity

A major reform of the financial advice and guidance landscape will take place with targeted support for consumers being rolled out for the 2026 ISA season. An industry-led campaign will also promote the benefits of retail investment to consumers.

9. Skills and talent remain central to the industry

The Global Talent Visa will be simplified and improved to make it easier for exceptional talent to move to the UK.

The Financial Services Skills Commission (FSSC) will develop a sector-led compact to support specific actions to address skills gaps. It will also produce a report on AI skills needs, training and innovation.

10.  Sustainable finance remains a growth area, but government pulls back on green taxonomy

The government is not proceeding with a UK Green Taxonomy, with other policies seen as higher priority to accelerate transition and limit greenwashing.

Voluntary carbon and nature markets are seen as a good opportunity for the UK and the government will respond later this year to the April consultation on raising the integrity of the UK ecosystem.