Rapid changes in the payments industry have prompted
UK regulators to reassess their collaboration. The Bank of England, Financial Conduct Authority, Prudential Regulation Authority,
and Payment Systems Regulator reviewed their Memorandum of Understanding (MoU) for payment
systems.
According to a statement by the FCA, the regulators
identified opportunities to strengthen cooperation and align with the
government’s National Payments Vision. Under the Financial Services Banking Reform Act 2013, the four authorities review their MoU annually. This agreement outlines
how they collaborate on oversight, regulation, and innovation in payment
systems.
Gaps and Opportunities
“Over the past year, we have taken steps to
improve the sharing of expertise and data between our institutions,” the
regulators said. “We recognize that there is scope for further improvement
in our cooperation, and we have committed to revise the MoU by Q2 of 2025 in
line with the Government’s National Payments Vision.”
Bank of England, FCA, PRA and PSR conduct 2024 review of Memorandum of Understanding for payment systems in the UK https://t.co/k8p47hUopV
— Jared Kirui (@kirui_jare12843) December 20, 2024
The 2024 review highlighted improvements in data
sharing and expertise exchange. However, senior representatives acknowledged
the need for further alignment, committing to an updated MoU by the second
quarter of 2025. The UK Government’s National Payments Vision,
published in November 2024, sets a forward-looking agenda for modernizing
payment systems.
The Vision emphasizes innovation, resilience, and
inclusivity in payments, guiding regulatory priorities. A joint remit letter
issued to the FCA and PSR underscores the necessity for cohesive oversight as
the sector evolves. National Payments The rapid pace of technological
change and increasing complexity in the payments sector highlight the
importance of regulatory collaboration.
Enhancing Payment Systems
Recently, the FCA
disclosed plans to streamline information provided to investors. The regulator
aims to enhance clarity, boost confidence, and encourage market participation.
Currently, investors reportedly access standardized
documents under EU-era rules. These documents reportedly often lack clarity and
do not address important information, potentially blocking investment or
leading to inadequate decision-making.
Besides that, the FCA recently announced that it is
seeking feedback on its plans to enhance transparency in the UK’s
cryptocurrency markets. The proposal focuses on admissions, disclosures, and
proper market regulations to boost the integrity of crypto markets.
This article was written by Jared Kirui at www.financemagnates.com.
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