UK Government to Abolish Payment Systems Regulator in Regulatory Overhaul
The Payment Systems Regulator will merge into the Financial Conduct Authority to streamline operations and reduce regulatory burdens on businesses.
- Prime Minister Keir Starmer announced the decision to disband the Payment Systems Regulator (PSR) as part of efforts to boost economic growth and simplify regulations.
- The PSR's responsibilities will be transferred to the Financial Conduct Authority (FCA) following the passage of necessary legislation in Parliament.
- The government argues the move will reduce red tape, particularly benefiting smaller businesses that face disproportionate regulatory costs.
- The PSR and FCA are collaborating to ensure a smooth transition of duties, with no immediate redundancies expected among the PSR's 185 staff members.
- The PSR will retain its statutory powers until the legislative process is complete, with activities like fraud reimbursement programs continuing in the interim.