UK Finance has published its final report on the regulation of UK payments.
The UK enjoys a robust and successful regulatory and supervisory regime for payment services and payment systems. However, the degree of overlap between the three main regulators (the Bank of England, FCA and PSR) together with other public bodies can lead to inefficient stakeholder engagement and a wholly fragmented approach.
The report identified the following opportunities to improve engagement on key regulatory change and supervision initiatives:
- Regulatory initiatives and technological advancements must work together to better service consumers and the wider financial system. Proactive engagement between market participants and legislative and regulative stakeholders must be improved.
- Greater regulatory coordination of regulatory change, implementation requirements and timelines is needed to support a dynamic and varied body of payment service firms. Supervision should deliver certainty to market participants, with detailed and timely reviews to ensure effective regulatory interventions.
- UK’s approach to alignment with and divergence from EU regulation, should not risk access to markets or infrastructure, but rather it must support the sector’s competitiveness internationally.
Regulatory coordination, coherence and consistency was considered to be a key outcome for consumers, merchants and the financial system in general.
The report considered that these opportunities will create a future proof framework to support innovation and growth, whilst managing risk and delivering good consumer protection.