In the first update to its PPG since becoming operational in 2015, today’s publication sets out more fully how the PSR will use its powers under the Financial Services Banking Reform Act 2013 (FSBRA).
Since becoming operational, the scale and scope of the PSR’s work has increased, as has its use of associated powers under both FSBRA and the Interchange Fee Regulation 2015 (IFR). The updated PPG shows how the regulator is making sure its regulatory approach keeps pace with its expanded scope and the ongoing and continuous changes in payments.
The revised PPG explains more comprehensively the PSR’s role and current remit, as well as how the regulator works with concurrent regulators and authorities.
The regulator is also setting out more fully its procedures and processes used in relation to its direction, requirement and enforcement powers under FSBRA. For example, the revised guidance provides more detail about how the PSR decides whether to open an enforcement case, how it conducts an enforcement investigation and how its enforcement decisions committee makes decisions.
The PSR is updating the PPG to reflect its current processes, which have developed significantly since the guidance document was first published. This is as a result of the first-hand experience that it has since gained, of using its powers and carrying out its functions.
The revised guidance document also looks to the future, proposing how the regulator will tackle future challenges, including improvements to its procedures for settlement and disclosure in enforcement cases. This will give everyone greater clarity about how the regulator will use its powers and what that looks like in practice as well as making PSR procedures more effective.
Carole Begent, General Counsel and Head of Regulatory Compliance and Enforcement at the Payments Systems Regulator, said:
“In the four years since we became operational, we’ve seen significant changes, not only across the industry and with the introduction of new legislation, but also in how the PSR uses its powers.
“We want to encourage greater understanding of how we will use our powers, including when we receive information about potential non-compliance. We are keen to hear everyone’s views on the revised version.”
The consultation on both the Powers and Procedures Guidance and the IFR is open until 5pm on 17 October 2019.