Reform of the SM&CR—Proposals and next steps
Financial Services analysis: In her Mansion House speech on 15 July 2025, Chancellor Rachel Reeves re-affirmed the government’s commitment to reforming the UK’s regulatory framework for individual accountability (the Senior Managers & Certification Regime (SM&CR))as part of the broader Leeds Reforms aimed at enhancing the competitiveness of the UK financial services sector. At the same time, HM Treasury (HMT) published its consultation on proposed legislative changes to support these reforms, including the removal of the Certification Regime. In parallel, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) published Consultation Papers CP25/21 and CP18/25, respectively. The regulators outline a two-phase approach to amending their rules and guidance to align with the Government’s legislative proposals. This news analysis sets out the proposals for both Phases one and two, relevant stakeholder feedback and next steps.