The Payment Systems Regulator (a subsidiary of, but independent from, the Financial Conduct Authority) has updated its powers and procedures guidance, which it will follow when exercising its powers to make directions, impose requirements and take enforcement action.  The PSR’s powers apply primarily to regulated payment systems and their participants (operators, infrastructure providers and payment service providers) including Bacs, Cheque and credit, CHAPS, Faster Payments Scheme, LINK, Mastercard, Visa Europe, and Sterling Fnality Payment System. 

The PSR originally published the guidance in 2015. It updated it in 2020 and has now issued another revised version to reflect developments in its processes and structure. The new version has been in effect since 20 September and explains:

  • its role and ways of working.
  • the legal and regulatory framework under which the PSR operates.
  • its powers to take regulatory action under the Financial Services (Banking Reform) Act 2013, how it will decide what, if any, action to take, what processes and procedures it will follow, and how a party can appeal against regulatory action.
  • its powers to take enforcement action under the Financial Services (Banking Reform) Act 2013, where it considers that a potential compliance failure has occurred, how it will decide what, if any, enforcement action to take, what processes and procedures it will follow, and how a party can appeal against a decision to impose a penalty or publish details of any compliance failure. 
  • Its additional functions since 2015 under the Payment Card Interchange Fee Regulations 2015 (as amended), Payment Services Regulations 2017 (as amended) and Payment Accounts Regulations 2015 (as amended).

As well as its financial services regulatory role, the PSR is also a competition authority with powers under the Competition Act 1998 and Enterprise Act 2002, concurrent with those of the Competition and Markets Authority, the FCA and several other sector regulators. The guidance also sets out how it will work with other regulators.