UK to Dissolve Payment Systems Regulator, Fold Responsibilities into FCA

Prime Minister Keir Starmer announces move to streamline financial regulation and boost economic growth, drawing mixed reactions from industry leaders.

The UK government will abolish the Payment Systems Regulator (PSR) and merge its responsibilities into the Financial Conduct Authority (FCA) to simplify regulatory processes.
Prime Minister Keir Starmer and Chancellor Rachel Reeves argue the move will cut red tape, foster innovation, and support economic growth as part of the government's 'Plan for Change.'
Industry leaders have expressed concerns about potential gaps in payment security, fraud prevention, and the prioritization of payment innovation under the FCA's broader mandate.
The PSR's abolition follows criticism over its handling of issues like authorized push payment fraud and interchange fee caps, as well as complaints about regulatory complexity from businesses.
The transition will require legislative approval, with the PSR retaining its statutory powers in the interim and no immediate staff redundancies planned.