Committee publication · Correspondence · 2 June 2026
Correspondence from the Economic Secretary to the Treasury on Financial Services and Markets Bill: Lords introduction, dated 19 May 2026
From: Treasury Committee
Summary
The Economic Secretary to the Treasury outlines the Financial Services and Markets Bill introduced in the House of Lords on 19 May 2026. The Bill delivers key elements of the 2025 Leeds Reforms, modernising financial sector regulation to strengthen the UK as a global financial centre. It addresses consumer protections, regulatory consolidation, administrative burden reduction, credit union expansion, lending support, anti-money laundering oversight, and in-person banking access.
Key findings
- Bill modernises consumer protections and Financial Ombudsman Service to resolve disputes faster and with greater certainty in digital markets
- Consolidates regulatory framework by moving Payment Systems Regulator into Financial Conduct Authority, reducing overlapping regulators and improving accountability
- Reduces Senior Managers and Certification Regime burden by 50%, focusing on most senior figures to free firms for customer service and growth investment
- Expands credit union membership rules to serve more communities and double mutual and co-operative sector size
- Streamlines anti-money laundering supervision by consolidating 22 professional body supervisors under FCA oversight for lawyers, accountants, and trust/company service providers
Tone
SupportiveTopics
Key actors
Dame Meg Hillier MP, Rachel Blake MP, Economic Secretary to the Treasury, Lord Stockwood of Great Grimsby and Cleethorpes, Chancellor, Financial Conduct Authority, Financial Ombudsman Service, Home Office
Notable line
“The government sees vast potential in the sector, and that is why it has been identified as one of the eight growth-driving sectors in the government's modern Industrial Strategy …”
Key Quotes
“The Chancellor set out the Leeds Reforms in 2025, as part of the G overnment's vision to strengthen the UK's position as a leading global financial centre and ensure the financial …”
“By streamlining the regulatory architecture and consolidating the Payment Systems Regulator within the Financial Conduct Authority (FCA), firms will deal with fewer overlapping regulators, providing clearer accountability and faster decision-making.”
“… reducing the overall burden of the Senior Managers and Certification Regime – the framework that holds senior leaders in financial firms personally accountable – by 50 per cent”
“The FCA will assume responsibility for the supervision of lawyers, accountants and trust and company service providers, delivering stronger, more consistent oversight and improving confidence in the UK regime.”
Source · parliament.uk record ↗