Why we are publishing this document

The PSR has the power to impose financial penalties on firms who fail to comply with the rules and requirements it enforces. After consultation, we have updated and revised our penalty statement. This updated document will help firms understand how the PSR determines whether to impose a financial penalty and its amount and gives greater clarity about what to expect if the PSR identifies non-compliance.

What this document contains

In view of the feedback to our consultation in March, we have implemented the following changes:

  1. We have combined our three penalty statements into one.
  2. We have changed the way in which we consider the duration of a compliance failure and how we take account of revenue when calculating penalties.
  3. We have clarified what we mean by senior management.
  4. We have added further clarity to when we consider a compliance failure is deliberate or reckless.
  5. We have reinforced the principle that penalties should disincentivise compliance failures.

We are no longer proposing that awareness of a risk can be assessed on an objective basis, when considering whether a compliance failure is reckless. This is in line with the outcome of the recent  Seiler, Raitzin and Whitestone v FCA Upper Tribunal case, which looked at this particular issue.

Who should read this document

This document is relevant to the payments industry, particularly those firms subject to the regulations and obligations we enforce.

Supplementary Files

  • Revised Penalty Statement Compared Oct 2023

    Revised penalty statement (with comparisons)

    This document shows, through tracked changes, where the amendments have been made.

    pdf | 333.3 KB

  • RP23 1 Penalty Statement Response Paper Oct 2023

    Revised penalty statement - the PSR response to stakeholder submissions to our consultation

    This document summarises the stakeholder feedback to our consultation in March, and provides our response to the feedback.

    pdf | 185.7 KB

  • Responses To Penalties Consultation Redacted

    Stakeholder responses to our Penalties Consultation

    This document includes the non-confidential stakeholder submissions March 2023 consulation (CP23/2)

    pdf | 747.7 KB

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