STOP PRESS: In March 2025, the government announced its intention to consolidate the Payment Systems Regulator and its functions primarily into the Financial Conduct Authority. The move is intended to streamline the regulatory environment, reduce overlap, and allow businesses to focus on innovation and service delivery. It is not clear when the change will come into effect but HM Treasury has said in a letter that it intended to consult on the details of the proposal over the course of summer 2025. HM Treasury opened a public consultation on 8 September 2025 (which closed on 20 October 2025) setting out options for a streamlined payments regulatory architecture. This will see the FCA take on the PSR’s responsibilities, including for promoting competition and innovation in payment systems and the services provided by payment systems, as well as supporting the interests of consumers and businesses who make payments every day. Legislation will follow when Parliamentary time allows. In the interim, the PSR and FCA plan to collaborate closely. Scope of this Practice Note The Payment Accounts Directive

MLex: Banks and payments firms could see a UK move to further toughen defences against authorised push payment (APP) fraud, a senior regulator said, possibly including expanded 'confirmation of payee' functionality to include payment transaction data. Claire Simpson, the Payment Systems Regulator's (PSR) new policy chief, discussed the success of its new APP scam reimbursement regime, how it is keeping a close eye on incidences of fake cases of fraud, and the regulator's own future.

MLex: Until now, the UK's payments regulator has avoided the additional scrutiny that a competitiveness and growth remit brings with it. Following a letter from the finance minister to the Payment Systems Regulator (PSR) on 14 November 2024, that appears to have changed. In executing its functions, the PSR must now have regard to the government's growth and competitiveness strategy. That is likely to prove a flashpoint for the fintech sector, which has been irked by the PSR over its handling of fraud reimbursement rules.

MLex: The UK’s financial services regulators are finding themselves in the government’s firing line. Finance Minister Rachel Reeves has been clear that she expects a new approach from them in light of the government’s relentless pro-growth agenda. Payments regulation has been criticised as especially cumbersome and complex—eating up as much as 90% of firms’ budget allocated to improving their operations. However, the payments regulator has been slow to get on board. In a letter published on 28 January 2025, it repeated old promises around innovation and effectiveness that are unlikely to appease its critics.

Law360: The total value of pension annuities for consumers jumped by almost 50% to £5.2bn in 2023, a trade body said 16 February 2024, a rise fueled in part by rising interest rates.

Law36: UK pension schemes are most likely sufficiently hedged to withstand the current volatility in bond markets, pensions industry experts have claimed, amid growing concern over a global trade war.

Law360: Pension schemes have doubled their investment in private companies to £1.6bn in one year as part of their commitment to allocate a greater portion of their funds to investing in privately held companies, the Association of British Insurers (ABI) said on 16 October 2025.

Law360: The bulk annuities insurance sector in Britain has universally adopted net-zero targets for carbon emissions, but analysts warn that there is still more to do in terms of climate stewardship.

A coalition of UK pension schemes managing approximately £150bn in assets has launched the Governance for Growth Investor Campaign (GGIC), with Railpen publishing details of the initiative. The campaign, which represents 11 million members and with over £60bn invested in the UK, aims to promote the role of good corporate governance in supporting sustainable economic growth and delivering long-term value for savers. It supports the UK government’s Financial Services Growth and Competitiveness Strategy and welcomes the establishment of a Listings Taskforce to help businesses list and grow in the UK. The GGIC outlines four policy priorities: securing pension schemes a formal role in shaping capital markets and governance policy; bridging the divide between private and public markets; promoting UK governance standards internationally; and reinforcing shareholder rights.

Law360: The aggregate surplus of the UK's defined benefit pension sector remained at near-record levels of around £151bn (US$190.8bn) in March 2024, a consultancy has said.

Law360: The total surplus of UK pension schemes dipped by £2.8bn over the past month, the Pension Protection Fund (PPF) revealed on 13 February 2024, but experts say the changes are unlikely to dim appetite for insurance de-risking transactions.

Law360: Government proposals to use the surplus held in defined benefit (DB) pension schemes could unlock £340bn for investment in UK businesses or payments for members, according to PwC.