The UK has revealed plans to abolish the Payment Systems Regulator (PSR) as part of its ongoing efforts to reduce red tape in the coming days.
The PSR, responsible for overseeing payment systems such as faster payments and Mastercard, will be merged into the Financial Conduct Authority (FCA), creating a single point of contact for firms.
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This follows feedback from businesses that the current regulatory framework, involving multiple regulators, is overly “complex” in terms of time, cost, and resources.
There will be no immediate changes to the PSR’s remit or ongoing work, with the regulator retaining its statutory powers until the necessary legislation is passed by the Parliament.
During the transition, the PSR and FCA will collaborate to ensure a seamless transfer of responsibilities and maintain a competitive market.
Prime Minister Keir Starmer said: “For too long, the previous Government hid behind regulators – deferring decisions and allowing regulations to bloat and block meaningful growth in this country. And it has been working people who pay the price of this stagnation.
“This is the latest step in our efforts to kickstart economic growth, which is the only way we can fundamentally drive-up living standards and get more money in people’s pockets.”
Chancellor Rachel Reeves said: “The regulatory system has become burdensome to the point of choking off innovation, investment and growth. We will free businesses from that stranglehold, delivering on our Plan for Change to kickstart economic growth and put more money into working people’s pockets.”
Meanwhile, PSR accepted the decision in a release stating: “We’re committed to working with government, the FCA and the Bank of England as decisions are taken on the transfer of regulatory responsibilities and, when they are, help ensure the process is smooth.”
The PSR was established following HM Treasury’s “Opening Up UK Payments” consultation in March 2013 and became operational on 1 April 2015.
