HM Treasury published its consultation response on April 21, 2026, confirming it will proceed with abolishing the Payment Systems Regulator. All regulatory functions currently held by the PSR will transfer to the Financial Conduct Authority. The decision follows a public consultation on streamlining the UK's approach to payment systems regulation.
The FCA will receive powers broadly equivalent in scope and substance to the PSR's current authority. These include responsibility for promoting competition, innovation, and service-user interests in designated payment systems. An oversight and accountability framework mirroring the PSR's existing structure will apply to the FCA from the point of transfer.
Primary legislation is required to dissolve the PSR board. HM Treasury stated it will bring forward the necessary bill as soon as parliamentary time allows. The government's February 2026 Payments Forward Plan indicated a target of end-2026 for the legislation. The consolidation affects regulatory oversight of Faster Payments, Bacs, CHAPS, and all other payment systems currently designated under the Financial Services (Banking Reform) Act 2013. The PSR's ongoing work programmes, including the cross-border interchange fee market review and the APP fraud reimbursement regime, will continue under FCA stewardship.