UK Regulators Review Payments System Oversight For Future Improvements
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The fast changes in the payments sector have led UK regulators to review their teamwork. The Bank of England, Prudential Regulation Authority, Financial Conduct Authority (FCA), and Payment Systems Regulator revised their Memorandum of Understanding (MoU) for payment systems.
According to the FCA, the regulators saw that there were opportunities to work better together and follow the UK Government’s plan for payments. The agreement is checked every year under a law from 2013 and explains how the regulators work together to oversee, control, and improve payment systems.
Regulators Plan To Update The MoU By Mid-2025 For More Alignment
The regulators stated that over the last year, they have taken measures to improve how knowledge and data are shared between the organizations. They added that there is room for more improvements and promised to update the agreement by the second quarter of 2025 to match the Government’s plan.
The review for 2024 showed that there were improvements in sharing data and knowledge, but senior representatives agreed that there is a need to work even closer together. The Government’s National Payments Vision was published in November 2024. It talks about making payments safer, more open, and better for everyone.
The Vision also focuses on new ideas, making payments strong and fair, and giving everyone a chance to use them.
Recently, the FCA shared plans to make it easier for people to understand the information given to investors. The regulator wants to make things clearer, build trust, and get more people to join in. Investors currently use standardized documents from EU rules that aren’t always clear and miss important details. This can stop people from investing or make them make bad choices.
FCA Seeks Feedback To Improve Understanding Of Cryptocurrency Markets
The financial watchdog asked for opinions on how to make cryptocurrency markets clearer. The regulator is looking at how companies join the market, share information, and stop bad actions. The goal is to make crypto markets fairer and help people make better choices with their money.
The FCA’s Discussion Paper DP24/4 shares ideas for businesses to follow better rules and protect people. It also says that crypto trading companies should share info to stop scams and bad actions. This could help stop cheating and encourage good behavior.
The UK regulator also wants to create rules to protect customers when payments or e-money companies close down. The number of payment firms has gone up, but the FCA says many still don’t do a good job of keeping customer money safe.
Currently, if payments or e-money companies go out of business, customers’ money isn’t safeguarded by the Financial Services Compensation Scheme. The companies must try to keep the money safe, but if they fail, customers could lose money or have to wait a long time to get it back.
