The Financial Services and Markets Bill [HL] 2026-27 was introduced in the House of Lords on May 19, providing the legislative vehicle to dissolve the Payment Systems Regulator. The Bill inserts a new Part 8C into the Financial Services and Markets Act 2000, granting the FCA designation, access, and fee-setting powers equivalent to those the PSR currently holds under the Financial Services (Banking Reform) Act 2013. Second reading in the Lords is scheduled for June 8.
The Bill repeals the statutory duty that required the PSR to mandate APP fraud reimbursement. No equivalent obligation is imposed on the FCA under the new framework. Existing reimbursement rules under Specific Direction 20 remain in force, though the absence of a continuing statutory mandate leaves their long-term status dependent on FCA discretion. The legislation also redirects appeals of payment system regulatory decisions from the Competition Appeal Tribunal to the High Court.
David Geale has held the combined role of PSR Managing Director and FCA Executive Director for Payments and Digital Finance since May 2025, leading the integration. The PSR published its final Annual Plan in March with a GBP 26 million budget, listing FCA consolidation as a critical priority alongside completing card scheme fee remedies before handover. Full transition to FCA oversight is expected to extend into 2027 as the Bill progresses through both Houses of Parliament.