UK government reportedly considering plans to scrap the Payment Systems Regulator
The UK government is reportedly mulling plans to scrap the Payment Systems Regulator (PSR) and merge its functions into the Financial Conduct Authority (FCA), according to a report by Sky News, citing sources with knowledge of the discussions.
UK government reportedly considering scrapping PSR
While no final details have been confirmed, the report states that ministers and officials are set to reach a preliminary decision within weeks.
The PSR has been fully operational since 1 April 2015 and is responsible for overseeing the UK’s payment systems. The body seeks to ensure sector accessibility, security and transparency for consumers and businesses, and reports directly to parliament.
In a statement sent to FinTech Futures, the PSR says: “It’s well known the government is auditing the role of regulators, and decisions on the regulatory structure are rightly for them and parliament.
“We are focused on working with the FCA and the Bank of England to deliver safe, competitive and innovative payment systems.”
The PSR recently merged the role of managing director, held by David Geale since June, with the newly created position of executive director of payments and digital finance at the FCA to boost collaboration between the two regulators.
While recently speaking to the House of Lords on 12 February, Geale addressed the question of the PSR’s future, stating: “The regulatory structure is, of course, a matter for the government and we will work with that. The PSR was set up in legislation as an economic regulator specifically for payment systems: plugging a gap that would otherwise exist between the role of the FCA and the Bank of England. The FCA does not regulate payment systems.”
The PSR and FCA also formerly laid out plans in January to establish an “independent central operator” to spur the growth of variable recurring payments (VRPs) in the UK specifically.
