The Institute of Chartered Accountants of Scotland (ICAS) has urged caution in delivering new regulatory reforms announced in the King’s Speech, warning that rules should not be framed as an impediment to economic growth.
The speech introduced two headline measures: the Enhancing Financial Services Bill (FS Bill) and the Regulating for Growth Bill.
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ICAS CEO Gail Boag said: “The King’s Speech announced measures to support British businesses, including reducing the burden of unnecessary regulation and improving the performance of regulators in encouraging economic growth.
“The UK’s regulatory system needs to be modernised to ensure it is clear, trusted and predictable, and backed by regulators that command confidence.
“Getting this reform right is essential to maintain the UK’s position as a global financial centre and support long‑term, sustainable economic growth.”
Deloitte has indicated that the FS Bill will bring a series of targeted changes.
It will include updates to the senior managers and certification regime and structural and operational changes to the Financial Ombudsman Service and the Payment Systems Regulator.
Businesses are not expected to see substantive effects until at least 2028 but will be drawn into consultations beforehand.
The FS Bill is also expected to progress reforms to the bank ring‑fencing regime, although specific proposals have yet to be published, with a government consultation still pending.
The Regulating for Growth Bill will build on the 2025 Regulation Action Plan and is intended to reshape regulation to better support growth and innovation.
It will introduce cross‑economy legal “sandboxing powers”, allowing limited, time‑bound relaxation of rules under close supervision so that companies can trial new products and technologies including AI.
The Bill will also introduce a statutory Growth Duty for major regulators, alongside a new ministerial power to set strategic direction.
Boag added: “We understand that the government needs to pursue growth but regulation should not be seen as the enemy of growth.
“Proportionate, purposeful and well-designed regulation helps give both investors and consumers confidence.”
