UK Finance has today published its Plan for Growth, which was submitted to government in early March.
The Plan brings together views from across the UK Finance membership and sets out reforms needed to help the financial services sector make an even stronger contribution to the Government’s growth agenda, while also delivering benefits for consumers, businesses and society.
UK Finance want to see the Government and regulators take clear steps to:
- Create a pro-growth operating environment
- Ensure our financial system is fit for the future
- Unlock financial services for consumers, businesses and society
UK Finance have set out specific reforms to help deliver these objectives, with a number of things they have called for already coming to fruition, including:
- The government announcing that the Payment Systems Regulator will be folded into the FCA to help simplify the UK’s regulatory architecture
- The FCA announcing that they will not proceed with their plans to name companies subject to enforcement action, but will instead retain the existing ‘exceptional circumstances test
- The FCA announcing that they will bring forward plans to simplify lending rules and benefit mortgage customers
- The PRA announcing plans to increase the retail deposits leverage ratio threshold, helping ensure the capital regime supports the growth and competitiveness of firms
- The government announcing it will review the role of the Financial Ombudsman Service to address concerns it can act as a quasi-regulator
In addition to these, the document includes a range of further proposals for government and regulators, which build on the Mansion House reform agenda laid out by the Chancellor in November 2024.
David Postings, Chief Executive of UK Finance, said: “Financial services are integral to our economy and to ensure the UK remains a world-leading hub, it needs a regulatory and tax framework that encourages innovation and investment.
“The current discussion about what more regulators could do to support growth and the very constructive way in which they have responded has created the space to consider further reforms.
“We need a careful but decisive move away from regulating for risk, and towards a more modern regulatory framework and internationally competitive environment.
“We have already seen the government and regulators announce action in line with our asks and I hope more of the ideas we have set out are taken forward to support growth and benefit consumers and businesses up and down the country.”
