The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

As the simplification agenda is likely to impact broad areas of the industry, firms must adopt a strategic approach. The immediate challenge is shifting mindsets — recognising that simplification is not the same as deregulation. Streamlined regulatory requirements can be just as robust, with fewer duplications and more efficient processes. However, supervisory scrutiny will remain, and the need for clearly evidenced compliance will not diminish. 

Firms will be keen to ensure that simplification does not drive undue cost of change. Streamlining and adapting compliance activities can be burdensome and carry additional short-term costs. Therefore, it’s essential to look across the broader spectrum of work to identify potential synergies. Centralising regulatory change in this way can help firms optimise their resources and improve the bottom line. 

The role of Consumer Duty 

When implementing regulatory change, it’s also important to consider Consumer Duty. Introduced two years ago, it’s become more than a regulatory framework and is increasingly forming the backbone of the FCA’s regulatory approach. That’s giving the FCA more freedom to strip back detail in some consumer protection related guidance across disparate regulations, knowing that these elements are set out at a principle level within Consumer Duty. 

Greater standardisation across the sector is undoubtedly a good thing. But the FCA’s reliance on Consumer Duty means that firms are under increased pressure to make sure their implementation and value judgements are justifiable. While the fundamentals are in place, many firms aren’t there just yet. For many, there’s still significant behavioural and cultural work needed to support the far-reaching requirements of Consumer Duty. 

These elements will take time but firms that recognise Consumer Duty’s role in the simplification agenda will be better positioned to meet those challenges now and in the future. 

Effective use of tools 

Good use of technology can also support regulatory simplification by automating workflows to manage costs and boost efficiency. These approaches will vary according to available resources but can range from data analytics techniques to machine learning to artificial intelligence applications. 

Looking further ahead, automation can make firms more responsive to regulatory change in the long-term. Firms can also leverage these tools to improve controls, identify emerging customer trends, evidence good outcomes and to promote growth. 

Proactive horizon scanning 

To implement the above, firms need to proactively horizon scan to stay on top of the simplification agenda. This is particularly challenging, with so many small and incremental changes across multiple regulatory approaches. But monitoring regulatory output and engaging with the sector will help firms stay compliant and meet their strategic goals.  

To keep up to date with emerging trends download Grant Thornton’s UK Regulatory Handbook 2025.