City of London Urges UK Regulators to Prioritise Growth Over Red Tape
A major push for UK regulatory reform 2025 has been launched by the City of London Corporation, calling for a fundamental shift in how financial regulation is approached across government, industry, and the wider economy. In a new report published in partnership with leading law firm A&O Shearman, ten practical recommendations are laid out to help embed a growth-driven mindset at the heart of the UK’s financial services sector from day-to-day supervision to international trade and innovation.
The report, titled “Regulating for Growth: A Cultural Shift for a Competitive UK”, argues that the UK’s regulators must embrace a new mindset that prioritises growth alongside safety, and stop treating economic ambition and risk as mutually exclusive. It sets out ten specific recommendations aimed at making the UK’s regulatory environment more dynamic, internationally competitive, and attractive to investment.
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Published in collaboration with top legal firm A&O Shearman and a group of major industry players, the report builds on the 2023 Financial Services and Markets Act, which gave regulators a new statutory duty to promote growth and international competitiveness. However, the report says this duty is still being treated as an afterthought and that change is needed not just in policy, but in day-to-day operations.
A turning point for UK financial regulation?
Lord Mayor of London, Alastair King, said the report signals a pivotal moment:
“We must regulate for growth, not just risk. This report takes the debate on risk and growth from an abstract plane to practical recommendations that will help change mindset and ensure our regulatory system unabashedly prioritises growth.”
With his “Growth Unleashed” theme for the year, the Lord Mayor has put innovation and competitiveness front and centre. This new report, he said, is a clear challenge to regulators to be bolder.
Chris Hayward, Policy Chairman at the City of London Corporation, echoed this sentiment:
“We now have the opportunity, and the responsibility, to embed a new mindset across the regulatory system… This report is a call to action.”
10 practical reforms
The report is structured around three key themes: tone from the top, policy reform, and daily operations. Among the most notable proposals:
- Clearer leadership from HM Treasury on what “growth” should mean for regulators
- Faster approvals and licensing for new firms
- Greater use of innovation tools like regulatory sandboxes
- More predictable enforcement, especially from the Financial Ombudsman Service
- Easier international trade, by reducing cross-border regulatory friction
It also calls for reforms to the Senior Managers regime and the FCA’s approach to consumer protection—particularly in wholesale markets.
What’s at stake?
The report comes amid rising concerns that the UK is losing its edge to global rivals. In April, the House of Lords Financial Services Regulation Committee warned that the UK risks ceding ground to faster, more adaptable international financial centres unless it addresses its regulatory sluggishness.
James Roe, partner at A&O Shearman, described the report as a joint effort to offer practical solutions:
“Achieving this requires a coordinated effort between the Government, regulators, and the industry. This report provides a clear roadmap for how we can work together to make meaningful progress.”
The full report can be accessed via the City of London Corporation website:
Read the full report here
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