The UK Financial Services and Markets Bill completed its fourth Grand Committee sitting in the House of Lords on July 1. Two final sessions are scheduled for the week of July 6-9, concluding Grand Committee scrutiny. Clause 13 and Schedule 2 abolish the Payment Systems Regulator and transfer its functions to the Financial Conduct Authority.
The FCA will receive new payment systems objectives covering competition, innovation, and service-user interests. It will also inherit PSR-equivalent powers including rulemaking, fee regulation with maximum fee caps, and access directions.
The Bill was introduced in the House of Lords on May 19, 2026. Royal Assent is not expected before late 2026.