The UK’s long awaited Payment Systems Regulator (PSR) will be fully operational on 1 April 2015.
The PSR is an independent body which will promote innovation and competition in payment systems. Further details about payment systems in the UK and the PSR were revealed by David Bailey, Director at the Bank of England (the Bank), in a speech given at the Westminster Business Forum on 25 February 2015.1
Bailey’s speech highlighted 4 key criteria for financial stability against which the Bank will assess change in the payments industry.
- Minimise settlement risk.
- Enhance the robustness and resilience of UK payment systems.
- Ensure continuity of payment systems even when banks are in resolution.
- Supervision based on CPMI and IOSCO international standards.
These criteria also form the basis of the Bank’s response to the PSR’s first consultation which will be released.
Before the PSR is fully operational, the PSR, Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority will enter into an MOU to govern their ongoing operations and ensure cooperation and coordination across the UK’s regulators.