The UK is promoting retail investment reform with the intention of reducing regulation to boost the financial industry

UK Chancellor of the Exchequer Reeves announced that a series of measures will be introduced to promote personal investment, reduce regulatory burdens and boost the vitality of the financial services industry and the overall economy.

Reuters reported that according to a statement announced by Reeves on Tuesday (July 15), the reform plan includes encouraging depositors to invest their funds in the corporate stock market, easing the access conditions for bank mortgage loans, simplifying the regulatory approval process for small financial institutions, and lowering the capital requirements for some banks.

She said, "We need to double down on our global advantages to enable the UK to take the lead in international competition in the financial industry."

The new policy will be officially implemented in April 2026. At that time, the Financial Conduct Authority (FCA) will allow banks to proactively notify customers of specific investment opportunities, encouraging the public to shift their low-return demand deposits to equity investments with greater growth potential. Previously, banks will also launch advertising campaigns to enhance the public's interest and awareness of stock investment.

In addition, regulatory authorities will re-examine the risk warning mechanisms of various Financial products and promote arbitration Service institutions (Financial Ombudsman Service) to be closer to FCA rulings in consumer disputes and enhance consistency. At the same time, the FCA will also assess the applicability of its "Consumer Liability Rules" in disputes between enterprises.

The Ministry of Finance pointed out that the UK currently has the lowest proportion of retail investment among the Group of Seven (G7) countries, and boosting individual investment willingness has become an urgent task.

This reform also includes streamlining the "Senior Management and Certification System" (SMCR), which was established after the 2008 financial crisis to enhance accountability for the conduct of bank executives. The Ministry of Finance stated that the new mechanism will enhance the operational efficiency of the system while retaining the principle of accountability.

Recently, Reeves has joined hands with the Bank of England and the FCA to successively introduce a number of financial reform plans, including expanding mortgage accessibility, supporting the green finance transformation and reducing the compliance burden on banks, etc., to fully activate the vitality and competitiveness of the UK financial system.