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ARTICLE · 25 MAY 2026

The King’s Speech: SMCR Reform Moves Forward

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

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Updating the UK’s individual accountability regime has been timetabled for the new Parliamentary session.

United KingdomFinance and Banking
Hywel Jenkins
Hywel Jenkins
Ian Thomas
Ian Thomas
Chris Hurn
Chris Hurn
Cat Dankos
Cat Dankos
Catriona de Jongh
Catriona de Jongh
Terence Milner
Terence Milner
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The context

Reform to the Senior Managers and Certification Regime (SMCR) was announced under Chancellor Rachel Reeves’ Leeds Reforms package, with the aim of reducing the regulatory burden associated with the regime by 50%. Phase 2 of the reforms, which requires legislative change, has been allocated time in the new Parliamentary session and will be taken forward in the Financial Services and Markets Bill, which had its first reading in the House of Lords on 19 May. 

Prior to the announcement of the Bill, consultation exercises had been conducted by HM Treasury, the Financial Conduct Authority (FCA CP25/21, followed by PS26/6) and the Prudential Regulation Authority (PRA CP18/25, followed by PS12/26).

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