That’s the bold vision behind Chancellor Rachel Reeves’ Leeds Reforms; an ambitious set of policies aimed at revitalising financial services and sparking economic growth nationwide.
As part of the broader Mansion House agenda, the Leeds Reforms aim to attract investment, reduce regulatory friction, enhance digital infrastructure, and expand public access to financial markets. Here’s what they mean for fintech and the wider ecosystem.
Dematerialisation and capital markets
A standout development is the Government’s formal response to the newly published Digitisation Taskforce’s final report, which sets a clear path to phasing out paper share certificates in the UK.
Under the new framework, existing paper registers will be replaced by digital records by the end of 2027. This marks the first phase of a wider shift towards a fully intermediated digital system, which will maintain shareholder rights while improving transparency and efficiency.
Richard Fenner, Director of Government Relations at Euroclear UK & International, welcomed the announcement as a pivotal step toward modernising the UK’s capital markets infrastructure. He believes that the reforms will harness digital innovation to benefit issuers, investors, and intermediaries alike.
Widening access to investment
The Leeds Reforms also seek to expand retail investment opportunities and increase public engagement with capital markets.
A new consumer campaign will promote the long-term benefits of investing over holding cash savings. Banks will be encouraged to ‘nudge’ customers with large cash balances to consider investing, drawing parallels to the successful 1980s ‘Tell Sid’ campaign during British Gas’s privatisation.
ISA rules will also be updated to allow Long Term Asset Funds (LTAFs) to be held in Stocks and Shares ISAs. This opens the door for ordinary savers to access previously out-of-reach private market investments through tax-advantaged accounts.
Michael Aldridge, President and CRO at Accelex, said, “The government’s move to allow Long Term Asset Funds (LTAFs) to be held in Stocks and Shares ISAs is a market-first that will enable retail investors to tap into lucrative returns on offer in private markets through a tax-advantaged account. However, this is a double-edged sword. Private markets are notorious for their lack of transparency, with even seasoned institutional investors struggling to get the data and visibility they need to make smart decisions in the space. For retail investors considering investing in LTAFs, this lack of clarity could mean taking on risks without having a full picture of their investments.
“If the government wants to boost retail investment into private markets, it must take strong measures to improve clarity over private assets’ valuations and performance to ensure that retail investors can make informed decisions and have full visibility of where their hard-earned money is going.”
Supporting fintech growth and innovation
Another key initiative of the Leeds Reforms is the introduction of a single regulatory point of contact for fintechs and scaling firms. This aims to provide tailored guidance, clarify requirements, and speed up the authorisation process, one of the biggest hurdles for startups seeking to grow and list in the UK.
Laurent Descout, CEO of cross-border payments fintech Neo, said the change is a “welcome step forward.” He noted that “introducing a single point of contact will reduce friction and provide much-needed technical support.”
Laurent also emphasised the importance of talent: “London’s edge lies in its exceptional workforce. Expanding the TechFirst programme and boosting university funding will be vital to staying competitive.”
He added that clear regulation around stablecoins is essential and that well-defined rules will boost confidence in digital assets and pave the way for real-time payments to become the norm.
Janine Hirt, CEO, Innovate Finance described the Leeds Reforms as a “strong bundle of reforms,” particularly welcoming the focus on regulation. Janine said the measure address the “barriers identified by our fintech founders and our Unicorn Council and bring to life our proposals for bridging the ‘regulatory valley of death’.”
Hirt also highlighted the impact these reforms would have on the UK capital markets and how “enabling the use of blockchain and AI across our financial market infrastructure and testing of stablecoins in the digital securities sandbox” would allow for a “more competitive approach to stablecoin regulation by the UK regulators.”
Overall, the Leeds Reforms are ambitious, reflecting a commitment to making the UK a more attractive place to build, invest, and innovate.
However, the success of this vision depends on effective delivery. Collaboration between the government, regulators, and the private sector will be essential to bring forward the necessary legislation, meet timelines, and achieve real, lasting impact.
If implemented well, these reforms could reinforce the country’s position as a global leader in fintech and financial innovation, modernising capital markets, cutting red tape and broadening the benefits of investing to more people.
We were the first communications agency to focus on fintech.
We’ve been building fintech reputations for 20 years, steering start-ups through launch, growth, and onto corporate action while protecting and enhancing established infrastructures.
For intelligent, informed and connected fintech PR which delivers results and value, let us help build your reputation and tell your story.
