The UK Government is contemplating the dissolution of the Payments Systems Regulator (PSR) and its integration into the Financial Conduct Authority (FCA).
The PSR operates as an independent subsidiary of the FCA, although it utilizes some shared operational services. This proposed move aligns with the government’s growth agenda, aiming to streamline regulations and reduce red tape in the economy.
A decision regarding this initiative is anticipated to be made in principle within weeks. Sources informed Sky News that the government is actively evaluating the potential abolition of the PSR.
This proposal reflects a broader trend of reducing regulatory bodies under the current administration. Recently, the chairman of the Competition and Markets Authority, Marcus Bokkerink, was removed from his position due to concerns about its impact on growth, with Doug Gurr, a former Amazon executive, succeeding him. Additionally, both the chair and chief executive of the Financial Ombudsman Service have announced their plans to resign.