(3 min read)
The UK Government is modernising financial services regulation, prioritising "regulating for growth." Central to this is the Financial Services and Markets Bill 2026, announced in the King’s Speech, which aims to update sector regulation, support business lending, and enhance consumer protections. The Bill includes the long-awaited reform of the Consumer Credit Act (CCA), providing a legislative framework from HM Treasury’s final policy. The goal is to create a simpler, more flexible CCA regime aligned with the Financial Conduct Authority’s (FCA) principles-based approach. Firms must adapt customer journeys and documentation to meet new FCA requirements. This issue provides an update and analysis of the reform, examining its implications as CCA provisions transition into the FCA rulebook.
Regulatory Modernisation and the Consumer Credit Act Reform (CCA Reform)
The UK Government has been leading a significant initiative to modernise and simplify UK financial services regulation, prioritising "regulating for growth" instead of solely managing risk. The government's primary objective is to reduce administrative costs for businesses by 25% and position the UK as a leading destination for investment, finance, and enterprise.
One of the confirmed legislative developments, announced in the King’s Speech, is the Financial Services and Markets Bill 2026 which will deliver key parts of the Leeds Reforms, as set out by the Chancellor in 2025. The Bill, which was introduced in the House of Lords on 19 May 2026, will modernise financial sector regulation, support sector growth and business lending, update consumer protections for the digital age, and maintain high regulatory standards to reinforce the UK’s status as a leading global financial centre.
Amongst other significant reforms affecting the financial services sector, the Bill includes the long-awaited reform of the Consumer Credit Act (CCA). It includes the legislative framework for the delivery of the reform as set out in the HM Treasury’s final policy published the day before the Bill was introduced. The Government aims to modernise the CCA to create a simpler, more flexible regulatory framework that aligns with the principles-based approach of the Financial Conduct Authority (FCA).
In this issue we examine the specific reforms that are being introduced to streamline the regulatory requirements and reduce complexity of the CCA regime. Furthermore, we explore key FCA initiatives that are shaping the future of consumer credit regulation and share our insights into how the regulatory landscape is evolving and the implications for market participants from the anticipated transition of CCA provisions into the FCA rulebook.
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