UK Payments Regulator to Shed 'Bolted On' EU Rules Through FCA Merger
The boss of Britain's payments watchdog has declared that consolidating the regulator with the City's main financial authority will enable the shedding of cumbersome European regulations that have been 'bolted on' to the UK system.
Regulatory Consolidation Offers Chance to Streamline
David Geale, who leads both the Payments System Regulator (PSR) and the payments division at the Financial Conduct Authority (FCA), told industry leaders that the alignment of the two bodies would create greater consistency in oversight. Speaking at City and Financial Global's Payments Regulation and Innovation Summit, Geale emphasised this represents an 'evolution rather than a revolution' in regulatory approach.
'There are bits of payments regulation that have been bolted on and carried across from European regulation,' Geale explained. 'Consolidation does offer us a chance to bring the broad expertise of PSR and the FCA even closer together and to streamline how we deliver.'
Industry Calls for Faster Progress on Payments Overhaul
The regulatory merger, announced by Chancellor Rachel Reeves last year as part of Treasury efforts to tear down 'red tape' and boost economic growth, comes amid mounting pressure for faster progress on payments reform. Labour's attempts to revitalise the industry have faced criticism over the past year for slow implementation and lack of meaningful change.
Natalie Lewis, head of payments at law firm Travers Smith and chair of the summit, acknowledged recent regulatory advancements but noted the sector remains 'waiting for the coin to drop' on substantive progress. 'We still seem to be waiting for something to happen,' she observed.
Payments Sector Seeks Clarity on Regulatory Roles
The Payments Association, serving as the industry's main representative body, has characterised current developments as more of a 'reshuffle than a reform.' The organisation highlighted ongoing ambiguity around the respective roles and responsibilities of the FCA and the Bank of England in payments oversight, calling for these to be 'clearly defined and communicated.'
Geale pointed to upcoming publications as key milestones in the reform process. The Payments Forward Plan is expected within the next couple of months, providing a roadmap for implementing the government's National Payments Vision. Additionally, the industry anticipates the Open Finance Roadmap scheduled for March 2026, which will outline data sharing expansion beyond banking into mortgages, pensions, and insurance products.
This regulatory consolidation represents a significant shift in how Britain governs its payments landscape post-Brexit, with industry stakeholders watching closely to see whether promised efficiencies and clarity materialise in practice.
