HM Treasury has introduced to Parliament a Financial Services and Markets Bill that would reshape UK financial services regulation by strengthening consumer protections, expanding access to credit unions and reducing regulatory overlap for firms. The legislation would also support lending and investment by updating the statutory framework for ring-fencing and, subject to an independent review, give the Government a power to protect access to face-to-face banking where communities rely on it. For consumers, the bill would modernise redress arrangements, require simpler terms and conditions, and reform the Financial Ombudsman Service to make dispute resolution faster and more certain. Credit union membership rules would be widened so more people and communities can access affordable finance. For firms, Payment Systems Regulator responsibilities would be absorbed by the Financial Conduct Authority, the administrative burden of the Senior Managers and Certification Regime would be reduced by 50 percent, and changes to the ring-fencing framework are intended to increase finance available to UK businesses, especially smaller firms.
HM Treasury2026-05-20
HM Treasury introduces bill to widen credit union access and move Payment Systems Regulator responsibilities to the Financial Conduct Authority
HM Treasury has introduced a Financial Services and Markets Bill to reshape UK financial services regulation by strengthening consumer protections, expanding access to credit unions and reducing regulatory overlap. The bill would modernise redress, simplify terms and conditions, reform the Financial Ombudsman Service, widen credit union membership, transfer Payment Systems Regulator responsibilities to the FCA and cut Senior Managers and Certification Regime administrative burdens by 50 percent. It would also update the ring-fencing framework to support lending and investment and, subject to review, give the Government power to protect face-to-face banking where communities rely on it.