Caroline Wagstaff (pictured), CEO of the London Market Group (LMG), has welcomed the government's plan to introduce an Enhancing Financial Services Bill (Bill), framing it as a chance to hardwire greater accountability into UK regulation.
“The LMG has long been clear that what gets measured gets done, so it is encouraging to see the Enhancing Financial Services Bill in today’s King’s Speech, and that a number of our priorities on regulatory accountability may be taken forward,” she said.
Wagstaff argued that the legislation should support “a more proportionate approach to wholesale financial services”, adding that the Bill provides an opportunity to introduce clearer timelines for approvals, stronger performance KPIs and longer‑term regulatory strategies. She said these steps would “sharpen regulatory focus and delivery”.
She linked the proposals to the regulators’ secondary “growth and competitiveness” objective, introduced through recent reforms to the Financial Services and Markets Act, under which the PRA and FCA must consider how their actions affect the UK’s international standing and medium‑ to long‑term growth.
“We have seen good progress since the Growth and Competitiveness Objective was introduced and these measures would help build on that momentum. We look forward to working with HM Treasury, the PRA and FCA as the detail of the Bill emerges,” Wagstaff said.
The announcement comes against a broader backdrop of government moves to “modernise” financial services regulation and underpin the sector’s contribution to the UK economy. Ministers have signalled that the Enhancing Financial Services Bill will sit alongside wider efforts to implement the so‑called Leeds Reforms and to make regulators more accountable for how quickly and effectively they deliver on their objectives.
In practice, London Market firms will be watching closely to see whether the Bill delivers enforceable service standards for the regulators, particularly around senior manager approvals, new product sign‑off and cross‑border business plans.
Delays in these areas are a long‑running concern for specialty carriers and brokers competing with hubs such as Bermuda, Singapore and EU financial centres.
Wagstaff’s emphasis on proportionality for wholesale markets reflects those concerns.
Clearer KPIs and timelines for the PRA and FCA could reduce friction for complex, multi‑jurisdictional London Market business, while greater transparency on how the competitiveness objective is applied may give firms more certainty over regulatory risk when allocating capital.
However, much will depend on how far the Bill moves from high‑level statements of intent to detailed requirements.
Without clear metrics and public reporting on regulatory performance, the industry’s call for a genuinely proportionate and growth‑supportive regime may remain more aspirational than transformational in day‑to‑day supervision.
