Review and Call for Evidence
In January 2023, HM Treasury released its statutory review of the Payment Services Regulations 2017 (PSRs) along with a request for evidence on the broader payment services regulation, including the Electronic Money Regulations (EMRs). This is a significant event for payment services firms, with the potential to greatly impact how such firms are regulated and how businesses operate in this sector.
The review, being conducted by the FCA with the aim of ensuring that the payment services regulation framework is fit for purpose in today’s digital age. This includes assessing the current rules and regulations as well as identifying areas that need improvement to enhance the overall functioning and efficiency of the payment services market.
One of the key areas being reviewed is the regulatory framework for payment initiation services (PIS) and account information services (AIS). The FCA is considering whether firms providing these services should be subject to the same regulatory requirements as other payment services firms, and whether the current framework adequately protects consumers and promotes competition in the market.
Another area under review is the regulation of e-wallets and other digital payment services. The FCA is considering the risks posed by these services to consumers, as well as the potential benefits they offer, such as greater accessibility and convenience.
Insight from the team
“The impact of the Payment Services Regulations Review and Call for Evidence will be far-reaching, affecting both firms and consumers in the payment services sector. For firms, the review may result in changes to the regulatory framework, which could impact their operating models and compliance obligations. ” - Lorraine Mouat, Head of Payment Services
A secondary objective for the FCA is to better enable international competitiveness of the UK economy through alignment with international standards. As a result, the authorisation process for payments and e-money firms may be revised to recognise new entrants and promote such growth.
For consumers, the review could lead to greater protections and enhanced services, as well as greater competition in the market. This could result in lower costs and more innovative products and services being made available to consumers.
The review is an important step towards ensuring that the payment services regulatory framework is fit for purpose in today’s digital age, including crypto assets. The review will consider certain deficiencies where the regulatory framework could be improved to better meet the revised objectives for payments regulation, as the government repeals retained EU law and replaces it with a framework specifically tailored to the UK.
Stakeholders are encouraged to engage with the Call for Evidence accompanying this review and respond to it or identify other benefits for future policy change in this area. This consultation will remain open for 12 weeks, and close at 23:45 on Friday 7 April 2023.
How can we help you?
Thistle Initiatives has supported firms for over 10 years as a trusted compliance and regulatory advisor. In addition to providing assistance as and when needed, our team of specialists can serve as your right hand in a meeting and complying with the Payment Services Regulations. We understand the importance of staying up-to-date and compliant and we are dedicated to providing the guidance and support needed to do so.
Are you looking for help with Payment Services Regulations? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 0207 436 0630 or sending an email to info@thistleinitiatives.co.uk.