The FCA, PRA, BoE and PSR have signed a memorandum of understanding on cooperating and coordinating their functions in relation to UK payments.
Since the last review in December 2024, the regulators found that cooperation and coordination had strengthened. They have shared data on the impact of APP fraud reimbursement rules coordinated joint policy initiatives such as the FCA / PSR response to the CMA’s Strategic Market Status Investigations, following a call for input on Big Tech and Digital Wallets. They are also collaborating to deliver the National Payments Vision such as through refreshing the infrastructure of the Faster Payments System.
The updated MoU outlines each of the authorities’ roles, responsibilities and key policy areas. It also introduces principles for regulatory cooperation, in order to promote a more streamlined regulatory approach:
- Providing clarity of roles and responsibilities;
- Taking a holistic approach;
- Coordinating and cooperating in the exercise of relevant functions;
- Exchanging information; and
- Reviewing on an ongoing basis.
The revisions fulfil the obligations of the regulators under the Financial Services (Banking Reform) Act 2013, which requires them to review to MoU annually.