Implementation of NESO's enduring regulatory framework

Details of outcome

We have decided to implement our new regulatory framework for NESO from 1 April 2026. This includes introducing most of the changes we proposed to NESO’s licences and supporting documents.

After reviewing the feedback we received, we have made a number of edits to improve the clarity of these documents. These updates help explain the minimum standards we expect NESO to meet, and how we intend to use our regulatory tools in practice. We have also confirmed our preferred approach to introducing new requirements on performance-related pay for senior staff.

We will continue to review NESO’s regulatory framework over time. As we gain practical experience of regulating NESO, we may identify further improvements to ensure the framework remains effective in the future.

NESO Financial Handbook

NESO Licence Expectations Document

NESO Performance Arrangements Governance Document 

Read the full outcome

Original consultation

We are consulting on the detailed implementation of our August 2025 policy decision on NESO’s enduring regulatory framework. This includes our proposed modifications to NESO’s ESO licence and GSP licence and our changes to three key associated documents. 

We are interested in your views on all aspects of our proposals. We particularly welcome views our approach to:

• setting clearer minimum standards for NESO
• setting new requirements on performance-related pay for senior staff
• implementing the Independent Challenge Panel
• clarifying and improving NESO’s performance assessment process
• streamlining the processes for cost and financial reporting

We intend to make our decision in March 2026 and for the changes to come into effect from 1 April 2026.

Who should respond

We would like views from any interested stakeholders and members of the public.