The Payment Systems Regulator (PSR) has opened a consultation 'A new regulatory framework for payment systems in the UK' with responses due by Monday 12 January 2015.
The consultation paper sets out the PSR’s proposed approach to regulation, covering the high-level behavioural principles to which participants in regulated payment systems are expected to adhere, as well as a range of policy proposals. The PSR has also published a suite of draft processes and guidance, including penalties guidance.
Key proposals include:
- the establishment of an industry strategy-setting forum
- requirements as to the governance arrangements of payment systems
- measures to promote fairer and more open access to payment systems.
In addition, the regulator has announced that it will launch two market reviews under its regulatory powers in April 2015, one into indirect access and one into the ownership and competitiveness of infrastructure provision to UK payment systems.
What this means for you
Our competition expert's full article on the consultation is available here.
The paper introduces a number of new compliance obligations and requires other steps to be taken, such as the creation of a Code of Conduct. If implemented, the proposals will place an additional regulatory burden on the payment systems themselves as well as their participants, some of which will need to be complied with by 1 April 2014. The sector will therefore need to review the paper carefully and consider what, if any, steps may need to be taken during the coming months.