London’s financial hub is set to undergo a sweeping overhaul as the Treasury prepares a comprehensive bill for the upcoming King’s Speech. The package will reshape the regulatory landscape, merging the Payment Systems Regulator into the FCA and reforming the Financial Ombudsman Service. Executive bodies say the changes aim to cut costs and boost competitiveness for.

Drafting is underway, with officials briefing that the legislation will occupy a priority slot in the next parliamentary session. Critics warn the bill could become a platform for lobbyists, while bank leaders hope ring‑fencing rules will loosen. The move comes after the Treasury pledged to scrap the costly certification regime that tracks senior staff fitness.

The reforms target the Payment Systems Regulator’s removal and a streamlined Financial Ombudsman Service, aiming to cut annual audit costs and speed dispute resolution. Treasury officials say the bill will also introduce a provisional‑licence regime for early‑stage fintechs, giving them an 18‑month runway before full authorisation. Investors will watch the legislative outcome closely during the first quarter of the year.

Market analysts warn that a rushed bill could expose the City to regulatory uncertainty, while supporters argue it will restore confidence after last year’s high‑profile scandals. The legislation’s passage will hinge on parliamentary debate and the Treasury’s ability to balance reform with maintaining investor protections. The outcome will directly affect capital flows and the City’s global standing.