The government has canned the payments services regulator (PSR) to Reduce Red Tape as Part of Its Plan for changePSR Activities will be transitioned to the Financial Conduct Authority (FCA), which will provide “One port of call” to payments system systems rather having to deal with multiple regulators.
In November 2024, a speech given by chancellor of the exchequer rachel reeves at mansion house, london, made the move intestable, according to fintech Industry Expert and CEO At The FinanserChris skinner.
He said the decision was Announced “tacitly” In November, adding: “The issue was that psr was of a collision course with the fca, so it got confusing. Therefore, The National Payments Vision Determined That The FCA BLD TAKE PRECEDENT on Any Regulatory matters, which begged the question, 'Why would you need another regulator with no pole? “
In November, Following The Mansion House Meeting, Skinner Wrote about the UK's National Payments Vision: “… There are two regulators involved in payments: the fca and the psr. The consultation discovered that the two authorities often work separately and are uncoedinated. Decision: The FCA will lead anything that requires payments registered under their remit, where it collides with the psr. Basically, all new regulatory changes required in the payments space will be lead by the fca. “
The government said the announcing “does not result in any immediative changes to the psrs remit or ongoing program of work. The regulator will continue to have access to its statutory power, until legislation is passed by parliament to enact these changes. “
Prime Minister Keir Starmer said: “For too long, the previous government hid behind regulators – Deferring decisions and allowing regulations to bloat and block meaningful green.”
The government said the decision “Follows complaints from businesses that the regulatory environment was too complex, with payment system firms firms firms with thirty different regulators, costing themselves Money and Resource. ,
FCA CEO Nikhil Rathi said that the changed payments landscape means “Now is the right time to put in place a more streamlined regulatory framework. Doing so is a natural next step, following recent work to improve co-order and Clarity on Regulatory responsibilities ”, adding that he welcomes“ the deep expenses of psr collegues with the focus with ”.
The government said: “The entry regulatory landscape will continue to be reviewed and finished as part of a wider government effort to kickstart economic grown and make regulators work for the counte Block Progress. “
Skinner Added that the PSR's Role was created due to the large and diverse payments sector as a result of Fintech. “Regulations were moving to more granting and, with so many fintech payment services relief in the past decade, it demanded a specific body to oversee the industry.”
He outlined some of the market diversity: “Bear in Mind We We WERE Talking Prepaid Cards, Contactless Payment Services and Electronic Money Institutions. Now that market has matured, a dedicated regulator is no longer needed. “
Chancellor reeves said that “the regulatory system has become burdensome to the point of choking off innovation, investment and growth”, adding that that the government would “free busheses from that stranglehold”.