Emma RadmoreThe Government has announced its intention to abolish the Payment Systems Regulator as part of its drive towards efficiency. It plans mainly to consolidate the PSR’s operations within the FCA. Rachel Reeves said “the regulatory system has become burdensome to the point of choking off innovation, investment and growth”.
There are no immediate changes to the PSR’s remit or planned work – and until legislation removes and transfers its powers, the FCA and PSR will work together to deliver a smooth transition.
The FCA said that the PSR has achieved much to make payments safer, more competitive and innovative so the time is now right for a more streamlined regulatory framework. The PSR said the move is a “pragmatic next step”.