Payment Systems Regulator—supervisory approach
Produced in partnership with Sidley Austin

The following Financial Services practice note produced in partnership with Sidley Austin provides comprehensive and up to date legal information covering:

  • Payment Systems Regulator—supervisory approach
  • Payments industry strategy and areas for collaboration
  • Ownership, governance and control of payment systems
  • Representation of the interests of service-users
  • Conflicts of interest
  • Transparency
  • Reserved matters
  • Direct access to payment systems
  • Access rule
  • Reporting rule
  • More...

Payment Systems Regulator—supervisory approach

The Payment Systems Regulator (PSR) consulted on its approach to supervising payment systems in a consultation paper (PSR CP14/1) in November 2014. Its policy proposals were divided into the following areas:

  1. industry strategy

  2. ownership, governance and control of payment systems

  3. direct access to payment systems

  4. indirect access to interbank systems

  5. interchange fees

  6. regulatory tools

The consultation closed on 12 January 2015. The PSR considered feedback from its consultation and published its policy statement (PSR PS 15/1) on 25 March 2015. The policy statement confirmed the PSR's regulatory approach and guiding principles and contained a set of policies, directions and guidance to clarify the PSR's supervision of the industry, as further detailed below.

Should these measures prove insufficient to advance the PSR’s objectives, it will consider further action, using its wide-ranging powers.

As a new regulator, the PSR said that it would continue to develop its regulatory approach. It expected, however, its approach to have the following characteristics:

  1. the PSR aims to develop and protect competitive markets, where preferable, and contribute to the creation of market conditions in which innovation thrives and service-users’ interests are protected. It will prioritise actions that will have a widespread positive impact across the market and will take the approach of incentivising good outcomes rather than controlling them

  2. the PSR will regulate only where it has clear evidence that it

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