UK Finance response to Payment Systems Regulator consultation on approach to supervision

UK Finance welcomes the direct engagement that the Payment Systems Regulator (PSR) has taken in advance of this consultation, through coordinated stakeholder roundtables with different cohorts of the payments industry.

We look forward to continuing to engage with the PSR as it evolves its approach to supervision.

We broadly support the build out of the PSR’s compliance and supervisory functions, to ensure the excellent progress that has been made in many areas over the last eight years is sustained. We believe that building out a compliance and supervision arm can help the PSR better understand payments markets, the Payment System Operators (PSOs) and their participants, and therefore address any potential harms on a more informed basis. However, we have some concerns about the proposed approach to supervision, which we set out in more detail below. We also suggest areas where we believe there is scope for more clarity.