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A&O Shearman supports City of London Corporation and leading industry partners on landmark report

A&O Shearman supports City of London Corporation and leading industry partners on landmark report
Published Date
Jul 3 2025
The City of London Corporation, in collaboration with leading industry partners and A&O Shearman, has today published a landmark report calling for a bold transformation in the UK’s regulatory culture to unlock economic growth and enhance international competitiveness. 

The report “Regulating for Growth: A Cultural Shift for a Competitive UK” outlines ten practical recommendations to ensure that regulators, government, and industry work together to embed a growth mindset across the UK’s financial services ecosystem.  Key recommendations include collaboration between HM Treasury and the regulators to promote growth and manage risk, reforming the Financial Ombudsman Service for greater predictability, applying consumer protection rules more proportionately, and reducing cross-border regulatory friction to support global trade. Operational changes are also urged: faster approvals, smarter use of regulatory sandboxes, and a more pragmatic Senior Managers’ Regime to attract and retain top talent.

It builds on the momentum of the Financial Services and Markets Act 2023, which introduced a secondary objective for regulators to promote the international competitiveness and growth of the UK economy. The report argues that this objective must be reflected not just in new rulemaking, but also in the approach regulators take to enforcing rules and supervising firms on a daily basis. The recommendations come at a critical time. Recently, the House of Lords Financial Services Regulation Committee warned the UK risks ceding ground to more dynamic global financial centres if it fails to align its regulatory culture with its economic ambitions.

We are pleased to have collaborated with leading industry partners to put forward a comprehensive set of measures that strengthen and expand upon the initiatives already in progress.

Our goal is to ensure that financial services regulation effectively supports the growth and competitiveness of the UK economy. 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.

Lord Mayor of London, Alastair King, said:

“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. 

“Guided by this year’s mayoral theme, Growth Unleashed, we are championing innovation and reigniting the City’s dormant animal spirits. The UK must embrace a more informed and responsible appetite for risk if we are to remain globally competitive.”

Chris Hayward, Policy Chairman of the City of London Corporation, added:

“The passing of the Financial Services and Markets Act 2023 was a watershed moment, and we now have the opportunity, and the responsibility, to embed a new mindset across the regulatory system. 

“This report is a call to action for regulators, government, and industry to go further and faster to reignite our appetite for responsible risk and support economic growth. We must work together to ensure our regulatory framework enables innovation, investment, and job creation across the UK.”

Read the full report here.

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