KPMG UK comments on Chancellor’s Mansion House speech

The Leeds Reforms represent a welcome continuation of the government’s ambition to modernise the UK’s financial services landscape. The focus on competitiveness, innovation, and smarter regulation is encouraging, and the five-pronged strategy offers a clear roadmap to reinvigorate the UK’s standing on the global stage. But the critical test will be in their execution and how quickly these proposals can translate into real, measurable benefits for firms, investors, and consumers.

On competitiveness and regulatory simplification:

The acceleration of authorisations, reform of the Senior Managers & Certification Regime, and the proposed changes to the redress system are welcome steps towards a more proportionate and responsive regulatory environment. These have long been areas of friction for firms. However, meaningful simplification must not compromise regulatory clarity or investor protection — particularly at a time when global standards are evolving.

On retail investment and capital markets:

The pivot to encouraging retail investment is an important shift. Promoting a stronger investment culture among UK savers is crucial to deepening our capital markets and unlocking domestic growth and helping individuals reach their financial goals. Measures such as targeted support alongside the industry-led campaign focused on savers in low-interest accounts reflect a maturing approach to consumer engagement. Trust and transparency will be vital to any sustained success in this area.

On insurance and risk transfer innovation:

The introduction of a UK captive insurance regime and the consultation on broadening access to insurance-linked securities mark significant progress in making the UK more competitive as an international insurance and risk transfer solution hub. These proposals align with the industry’s calls for modernising the UK's regulatory environment and could support more sophisticated risk management solutions not just for financial services institutions, but for businesses across the real economy.

Taken together, the Leeds Reforms form a coherent approach to financial services reform. The industry will be watching closely to see how quickly consultations become policy, and how effectively regulatory and market institutions can deliver against the government’s ambitions. If implemented well, they could boost confidence in the UK as the centre of financial services innovation, investment, and growth.