HM Treasury published its formal consultation response on 21 April 2026, confirming the abolition of the Payment Systems Regulator. All PSR functions will transfer to the Financial Conduct Authority. This includes oversight of the Faster Payments system, BACS, and CHAPS.
The accompanying payments modernisation package integrates e-money and payment services regulation into a single framework. Stablecoins used for payments will be regulated under a new issuance regime. The Treasury is exploring how payment regulation should adapt to AI-agent-initiated transactions.
The FCA will receive new statutory powers for Open Banking regulation. Chris Woolard has been appointed as the government's Wholesale Markets Digital Champion. Enabling legislation is expected in a future parliamentary session.