HM Treasury has made a technical but telling change for the North’s finance scene. A new statutory instrument amending the Financial Services and Markets Act 2000 (Exemption) Order 2001 puts the British Business Bank and several group companies on the list of bodies exempt from the Act’s ‘general prohibition’. The Order was made on 24 February, laid on 25 February, and is scheduled to take effect on 27 March 2026, according to the text on legislation.gov.uk.

Why this matters here is simple: the British Business Bank’s headquarters are in Steel City House on West Street, Sheffield. This keeps decision‑making and delivery jobs in the North, not just the capital, and underlines that a national finance institution is rooted in our patch. The Bank itself lists Sheffield as HQ and confirms which parts of the group are and aren’t authorised by financial regulators. (british-business-bank.co.uk)

The change captures a string of subsidiaries that Northern founders will recognise from day‑to‑day dealings: British Business Investments, British Patient Capital, British Business Finance and British Business Financial Services among them. Nations and Regions Investments Limited (the vehicle behind today’s regional funds) is also set out in the Order and, like the parent, is registered at Steel City House in Sheffield. (british-business-bank.co.uk)

One other name will turn heads: National Housing Bank Limited. This is a UK company incorporated on 17 November 2025 with a registered office at The Lumen on St James’ Boulevard in Newcastle upon Tyne. Companies House records it under SIC 64191 (Banks). It is not related to India’s National Housing Bank, despite the shared name. (find-and-update.company-information.service.gov.uk)

For readers not steeped in the rulebook, FSMA’s ‘general prohibition’ in section 19 stops firms from carrying on UK regulated activities without being authorised or exempt. By adding named public‑purpose bodies to the exemption list, ministers allow them to operate specified finance schemes without running every activity through the normal authorisation gateway. (en.wikipedia.org)

On the ground, the timing aligns with how the Bank already works across the North. The Northern Powerhouse Investment Fund II launched in March 2024 with £660m to deploy, stretching across the whole North of England. That expansion folded the North East fully into the mix and set standard ticket sizes from £25k to £2m for loans and up to £5m for equity. (british-business-bank.co.uk)

Delivery has ramped up. By October 2025, NPIF II had completed more than 315 deals, investing £115m directly alongside £68m of private co‑investment to take total delivery past £180m. Earlier updates flagged 200+ investments and £80m in its first year. These are the schemes Northern founders meet in real life, not in press releases. (british-business-bank.co.uk)

The Bank’s regional team says the Nations and Regions Investment Funds are built to have “a demonstrable presence across their regions”, plugging into local accountants, fund managers and lenders rather than funnelling everything through London. That approach has been visible at Sheffield roadshows and across Yorkshire, where interest has been strong since launch. (british-business-bank.co.uk)

Today’s legal tweak won’t turn the Bank into a high‑street lender. The corporate structure makes clear most group companies are not authorised as deposit‑taking banks. Instead, the exemption smooths the path for guarantee, debt and equity programmes to be run quickly and consistently from Sheffield and through partner managers across the North. (british-business-bank.co.uk)

What to watch between now and 27 March: guidance from the British Business Bank on any operational changes for fund managers; clarity from government on the remit of the UK‑registered National Housing Bank in Newcastle; and how this all feeds into the next phase of capital for Northern manufacturers, tech firms and housing supply chains. In short: less faff, more finance-delivered from the North, for the North.