UK To Get Payment System Regulator

The UK Treasury has published the results of its consulation on the future of the regulation of the UK payments system.

Highlights are:

A new Payment System Regulator with wide-ranging powers is to be created, under the auspices of the Financial Conduct Authority.The regulator will be required to foster innovation,competition and the interests of end users.It will have its own Managing Director and Board,distinct from the existing Board of the Financial Conduct Authority.The regulator will be fully-established by 2015.

There will be no direct licencing of payment system participants.Instead,they will be "designated" by the Treasury.It is expected that BACS,CHAPS,CHEQUE CLEARING, FASTER PAYMENTS,LINK and all CARD SCHEMES, INCLUDING MASTERCARD AND VISA will be designated.

The Payment System Regulator will have the power to intervene on access,pricing,competition issues and all contractual arrangements.It will also have the right to require participants in designated payment schemes to divest assets.

The Payments Council will become purely a trade-association, devoid of powers of self-regulation.

Very exciting times.Watch this space for news as it develops!

Thursday, 10th October 2013

Back to top ↑