The HM Treasury, as part of its ongoing efforts to shape and enhance the regulatory environment in the UK payments sector, has recently published its response to a consultation and call for evidence issued in July of 2022. Notably, the response reveals a number of proposed strategies designed to curb systemic risk and foster stability within the payments sector.
Central to the proposed changes is the recommendation to extend the scope of the Bank of England’s supervisory perimeter. This move would enable the Bank to undertake a more comprehensive assessment of systemic risk across the payments sector, allowing for an effective and timely response to potential threats to the financial system.
In addition to this, the report also proposes a reform to the Payment Systems Regulator’s system access framework. These modifications are part of the ongoing efforts to optimize the accessibility and efficiency of payments regulation in the UK.
Finally, the HM Treasury is also considering the application of the Senior Managers and Certification Regime to the payments sector. Such a move would potentially impose stricter governance and accountability requirements on professionals within the sector. Although the specifics of how this regime would be applied to payments are yet to be disclosed, this development seemingly signals a larger trend towards tighter regulatory control over the payments industry.
More details regarding the consultation response and the proposed regulatory changes can be found on the JD Supra website.