A government consultation has culminated in proposals to reform the Provision of Services Regulations 2009 – presenting pertinent considerations for providers and compliance teams alike.
Contributors: Molly Hutchinson and Fiona Moss
On 5 March 2026, the government published its response to the 2023 consultation on proposed amendments to the Provision of Services Regulations 2009, with the resulting changes due to be implemented by October 2026.
The regulations provide a framework for how competent authorities operate authorisation schemes in respect of the mandatory licences or authorisations required for service provision. Reforms include:
- Extending the scope of the regulations to include non-UK service providers so that they benefit from the same transparent regime as UK organisations.
- Refining licence application processes.
- Imposing enhanced transparency requirements on competent authorities in relation to authorisation schemes.
How could the changes impact your business?
The changes are intended to ensure that authorisation processes for businesses are fairer, more transparent and easier to navigate. The inclusion within the regime of non-UK businesses who provide services within the UK should ensure better compliance with international trade commitments. Businesses will be able to apply all year round rather than during restricted windows only and competent authorities must provide updates throughout the application process as well as providing outcomes promptly. They will also be able to resubmit applications which must be considered properly and not simply rejected on the basis of a previous rejection. The application fee must relate only to the cost of processing the application and cannot include any other costs relating to the application (although competent authorities will be able to charge for other costs relating to the scheme once authorisation has been granted).
In-scope service providers should benefit from the 2026 reforms, which extend the scope of the regulations to all providers regardless of nationality or establishment. Overseas providers may still be required to maintain a UK address for service (where justified on public-interest grounds).
What steps should you take?
Providers should monitor any updated guidance ahead of the revised regulations (which are expected to take effect in October 2026). Compliance teams should check their licensing fee information to ensure the rights costs are included in the fee, and may wish to review application submission deadlines in line with the year-round submission changes.
Key takeaways
- Monitor any updated guidance ahead of implementation.
- Check your licensing fee information.
- Review application submission deadlines.
Please be advised that this is an update which we think may be of general interest to our wider client base. The insights are not intended to be exhaustive or targeted at specific sectors as such, and whilst we naturally take every care in putting our articles together, they should not be considered a substitute for obtaining proper legal advice on key issues which your business may face.