HM Treasury published its consultation response in April 2026 confirming that the Payment Systems Regulator's functions will transfer to the Financial Conduct Authority. The decision follows an October 2025 consultation issued under the government's Regulatory Action Plan. Primary legislation is required to effect the transfer. PSR staff are already operating under the FCA's structure in a phased transition. The FCA's tenth Regulatory Initiatives Grid, published May 19, indicates a final decision on domestic card scheme fee remedies by June 2026 and cross-border interchange caps by Q4 2026.
The FCA's new safeguarding regime for payment and e-money institutions took effect on May 7 under policy statement PS25/12. The regime mandates monthly reporting of safeguarded funds to the FCA. Firms holding above GBP 100,000 in relevant funds must arrange annual independent safeguarding audits. All affected firms must maintain detailed resolution packs. The FCA introduced these requirements after finding that customers of failed payment firms recovered an average of 35 pence per pound.
On May 18, the Bank of England published a consultation paper on extending RTGS and CHAPS settlement hours toward near 24x7 operation. Phase 1, confirmed for September 2027, will extend the CHAPS opening from 06:00 to 01:30 on weekdays, creating a 16.5-hour settlement window. The consultation proposes two further approaches: Sunday and bank holiday settlement from 2029, or fully extended daily hours plus Sunday settlement from 2031. Responses are due by August 10, 2026.