£2billion red-tape bonfire boost for bankers

By the Editorial Team · Friday, October 23, 2026

UK financial regulators have proposed scrapping the certification regime and easing approval requirements for most executive roles to reduce compliance costs by up to £2 billion over ten years. This reform aims to lower administrative burdens while maintaining accountability for top executives, enabling banks to focus more on growth, innovation, and competitiveness.

Regulators overseeing the United Kingdom’s financial sector have unveiled plans to significantly reduce post-crisis banking regulations, projecting savings of up to £2 billion over the next decade. The proposed reforms aim to ease administrative burdens on firms while maintaining oversight of key senior executives.

The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) announced the measures during a recent event at Mansion House in London. Among the key changes is the abolition of the certification regime, under which approximately 139,000 financial services staff are required to undergo annual fitness and propriety assessments and appear on a public register. In addition, mandatory pre-approval requirements for executive appointments would be removed for all but the most senior roles, including chief executives, finance directors, and chairpersons.

Katharine Braddick, who assumed leadership of the PRA earlier this year and previously held senior roles at Barclays, stated that the reforms would preserve accountability for crucial positions while reducing cumbersome processes elsewhere. “These keep checks in place for the most important roles, meaning individuals are accountable for their actions, but reduce the administrative burden,” she said.

The PRA anticipates that the regulatory overhaul will enable firms to redirect resources toward enhancing customer and market outcomes, recruiting and retaining talent, fostering innovation, and driving investment, thereby supporting the United Kingdom’s economic growth and international competitiveness. Some of the proposed changes will require legislative approval before implementation.

The certification regime was originally established about a decade ago as part of a broader effort to reinforce accountability within financial services following the 2008-2009 global financial crisis, which exposed systemic risks linked to banking practices. Although restrictions such as bonus caps have been lifted in recent years—specifically the removal of a cap on executive bonuses in 2023—the sector continues to face scrutiny regarding its contribution to economic growth and regulatory compliance.

Labour party representatives have urged regulators to prioritize growth in their frameworks, while banks themselves are preparing for a possible £2 billion increase in taxation expected in an upcoming Budget intended to fund cost-of-living support measures.

The proposed easing of regulatory requirements reflects a shift in focus by UK authorities to balance prudent oversight with facilitating a more dynamic and competitive financial services environment.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.