New Regulator To Come Into Operation Next Year

The new Payments System Regulator (PSR) has published details on how it intends to regulate the UK's payments industry when it begins its work next year.

The PSR, which was incorporated in April 2014 and will become fully operational in April 2015, is a subsidiary of the Financial Conduct Authority with a remit to regulate the £75 trillion payments industry.

Its three main objectives are to promote competition, promote innovation, and ensure payment systems are developed and operated in service-users' interests.

The measures it proposes to achieve this will include driving industry strategy and opening up the ownership, control and governance of payment systems, while raising standards of transparency.

A Payments Strategy Forum will also be created with the aim of increasing collaboration, innovation and representation of service-users.

"I want to see an industry that is responsive to, and focused on, the needs of those using payment services," said PSR managing director Hannah Nixon.

"This will be an industry that encourages and enables competition and innovation, [and] provides value for money, while maintaining reliability and security."

Expert Opinion

The release of these details is an important step towards outlining how the PSR will function in terms of ensuring this specific industry is properly regulated, ensuring the proper operation of the sector and protection where necessary for service users. <br/> <br/>"This sector is relied upon by a number of organisations and it is vital that this regulator meets all of its requirements. The PSR is intended to become fully operational on 1 April 2015 and the current consultation process will further define the proposed approach to regulation of the industry."