Other Regulatory Bodies - Payment Systems Regulator

Question 1

Briefly explain what The Payment Systems Regulator (PSR) is

Answer 1

1. Regulator for the payment systems industry in the UK.
2. Established in April 2015
3. Is a subsidiary of the FCA
4. Adopts a utility-style approach. Regulates systems designated by HM treasury.
5. Payment systems embedded in securities trading systems, clearing houses/ CPPs are excluded from PSR regulation and, so is the BoE (as a payment provider)
6. The BoE is responsible for supervising financial market infrastructures (FMIs - help money/ investments to move around safely) as part of its remit to ensure financial stability.

Question 2

The PSR regulate systems designated by the HM Treasury.

What are the systems?

Answer 2

1. BACS.
2. C&Cs (cheque & credit)
3. CHAPS.
4. Faster Payments Service (FPS)
5. LINK.
6. Mastercard
7. Visa Europe

Question 3

What are the two statutory objectives of the PSR?

Answer 3

1. Ensure payment systems are operated and developed in a way that considers and promotes the interests of all the businesses and consumers using them.
2. Promote effective competition in the market for payment systems and services - includes operators of the system, participants and infrastructure providers.
3. Promote development of and innovation in payment systems, in particular the infrastructure used to operate the systems.