The House of Lords completed Report Stage of the Financial Services and Markets Bill across three sittings in July 2026. The government tabled concessionary amendments addressing regulatory accountability, cash access, and sustainability. An amendment requiring the FCA and PRA to report on fulfilling their new secondary objectives within two years was adopted.
An opposition amendment added financial inclusion to the FCA's consumer protection considerations. The Financial Ombudsman Service gained powers to charge claims management companies for processing vexatious complaints.
Clause 13 and Schedule 2 abolish the Payment Systems Regulator as a separate body. PSR regulatory functions transfer to the FCA under the reforms. Third Reading is expected before the Lords summer recess in late July 2026.