UK To Abolish Payment Systems Regulator, Transfers Duties To FCA

The UK government is dissolving the Payment Systems Regulator (PSR) and transferring its responsibilities to the Financial Conduct Authority (FCA) to reduce regulatory oversight.

The PSR, an independent subsidiary of the FCA, will continue operating until legislation finalises its closure. Its work on payment fraud and open banking will be integrated into the FCA. The regulator had 148 staff and operating expenses of nearly 23 million pounds in the year through March 2024. The government argues that regulatory burdens have hindered economic growth. Chancellor Rachel Reeves has called for removing barriers to investment and innovation.

PSR leaders will provide testimony to the Treasury Committee as discussions on regulatory restructuring continue.