The Financial Services and Markets Bill [HL] 2026-27 passed its second reading in the House of Lords on June 9, 2026. The bill will abolish the Payment Systems Regulator and consolidate its oversight functions into the Financial Conduct Authority.
The FCA will acquire all PSR powers under the Financial Services (Banking Reform) Act 2013, including designation of payment systems, access directions, and fee regulation. Existing PSR rules on APP fraud reimbursement under Specific Direction 20 will remain in force during the transition.
Committee-stage scrutiny is scheduled to begin on June 22. Full transition from the PSR to the FCA is expected in 2027 or beyond, contingent on Royal Assent.