UK Government Considers Closing Payment Systems Regulator
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The United Kingdom government is considering closing the Payment Systems Regulator (PSR). The PSR is responsible for keeping payment services fair and secure. If the regulator is shut down, its duties may move to the Financial Conduct Authority (FCA). The government said this review is part of a plan to improve the system and support businesses.
The PSR has been in place for ten years now to oversee payments, including bank cards and online transfers. It helps ensure that payments are processed fairly and smoothly. The regulator said it reports to the government about issues in payment services. Many businesses follow its rules to ensure safe transactions.
Some UK Government Officials Supports Reducing The Number Of Regulators
Some government officials believe that reducing the number of regulators could help businesses operate more easily. They said that merging the PSR with the FCA could remove extra rules and improve the payment system. A final decision is expected soon, according to the update.
Not everyone agrees with this plan. Willem Wellinghoff, a leader at Ecommpay, said the PSR and FCA have different roles. He noted that the FCA already handles many responsibilities, and adding more could create difficulties. He stated that having a separate regulator for payments is necessary.
The PSR has been working with the FCA and the Bank of England to improve payment systems. Recently, a leadership role at the PSR was combined with a similar position at the FCA to strengthen cooperation. Experts said this is a step toward better coordination between the two groups.
In January, Business Secretary Jonathan Reynolds announced that the government was reviewing all regulators. He said officials are checking to see the regulators that are essential to the government and the people and those that are slightly not. He added that too many regulators could slow down businesses, so the government is considering changes.
PSR Spokesperson Highlights The Regulator’s Goal To Protect Uk’s Payment System
A spokesperson from the PSR said the regulator is aware of the government’s review. He noted that the government and parliament will decide on any regulatory changes. He added that the PSR remains focused on keeping the UK’s payment system safe and competitive.
The government’s review covers around 130 regulators across different industries. Officials said they want to ensure these regulators support businesses and do not slow them down. Many in the financial sector are watching closely to see how these decisions will affect payments and financial services in the UK.
Some industry experts believe the PSR should not be shut down. They said that instead of removing it, the government could expand its responsibilities. They believe this could allow businesses to operate smoothly while encouraging new ideas in the payment sector.
