Mansion House speech supports Leeds Reforms

The Chancellor’s Mansion House speech, delivered in the evening of 15 July, highlighted many of the Leeds reforms, and set out the Chancellor’s key priorities. She highlighted:

• for capital raising, recent changes to the listing regime, delivering on PISCES and the FCA’s new Prospectus Rules;
• progressing the overhaul of the pensions system;
• trade deals with the US, EU and India, the Berne Financial Services Agreement and the first Economic and Financial Dialogue with China in 6 years;
• regulating for growth and not just for risk by:
  • rolling back regulation that has gone too far in seeking to eliminate risk;
  • delivering targeted changes in the areas where the UK already has particular strengths;
  • making changes to capital requirements to unlock more productive capital;
  • boosting retail investment;
  • reforming the FOS – including limiting the timeframe for claims to 10 years and welcoming the reduction in interest rate it applies before a decision;
  • setting new targets on authorisations and approvals for the PRA and FCA;
  • streamlining the SMCR to reduce burdens by 50%;
  • introducing a captive insurance framework;
  • future proofing the asset management regime, with new draft legislation due in early 2026;
  • focusing sustainable finance efforts on polices that matter most and working through the Transition Finance Council to capitalise on the net zero transition rather than pursuing a green taxonomy;
  • supporting the PRA and FCA’s scale up fintech unit;
  • driving forwards developments in blockchain technology;
  • a new concierge services from the Office for Investment that will provide a tailored service to companies considering setting up and expanding in the UK;
  • allowing banks to do more lending and release more capital by supporting the MREL threshold raising, and lower capital requirements for domestically focussed banks; and
  • committing to a meaningful reform of the ringfencing regime
• the FPC’s review of bank capital needed for financial stability, on which it will report back at the end of the year;
• the PRCA’s changes to the LTI limit on mortgage lending;
• ISA reform, starting with the inclusion of Long-Term Asset Funds in stocks and shares ISAs; and
• stopping the tradition of presenting investment in too negative a light by warning of risks without discussing benefits – and welcoming the Targeted Support and investment promotion initiatives.