PSR publishes revised penalty statement

PSR has published its revised penalty statement.  The statement aims to clarify the penalties that are imposed and what to expect if PSR identifies non-compliance.

PSR places ever-increasing requirements on an increasing number of firms to implement measures to protect businesses and customers,  including on APP fraud mandatory reimbursement and Confirmation of Payee name checking service.

The following changes will be applied to PSR’s penalty statements:

  • To combine its three penalty statements into one;
  • To change the way in which it considers the duration of a compliance failure and how it takes account of revenue when calculating penalties;
  • To clarify what it means by senior management;
  • To add further clarity when it considers a compliance failure is deliberate or reckless;
  • To reinforce the principle that penalties should disincentivise compliance failures.

PSR had originally proposed that awareness of risk could be assessed on an objective basis in the context of considering whether a compliance failure is reckless, but is no longer doing so, following a Tribunal case that considered the issue.


Vida Fatemi