UK bill would fold Payment Systems Regulator into FCA

The UK government has introduced the Financial Services and Markets Bill in Parliament to transfer the Payment Systems Regulator into the Financial Conduct Authority and to update rules on consumer credit, consumer complaints, cryptocurrencies and payment services.

Under the bill, responsibility for payment systems would move from the independent Payment Systems Regulator to the FCA. Ministers say the consolidation will reduce overlap between regulators and simplify requirements for firms that provide payment and related services.

The legislation also proposes changes to how consumer credit is supervised and how consumer complaints are handled. It would set out new powers and requirements for oversight of cryptocurrency activity and for regulation of payment services. The final scope of those powers will be determined by the bill text and by any amendments made during parliamentary scrutiny.

If Parliament approves the legislation, the FCA would take on rule-making and supervisory duties for an expanded set of activities. The regulator would be responsible for conduct and consumer protection across payments, complaints handling and consumer-facing credit rules.

The bill must pass several stages of debate and review in both the House of Commons and the House of Lords. MPs and peers can propose amendments and seek changes to the scope of regulatory powers, accountability arrangements and safeguards for competition.

Rachel Blake, economic secretary to the Treasury, described the bill as intended to cut red tape for businesses and increase protections for consumers as part of the government’s plan to build a stronger and fairer economy.

Lawmakers and industry groups are expected to examine how consolidation affects competition, the balance of regulatory powers, and protections in fast-changing areas such as digital payments and cryptocurrencies. The government says the changes are designed to help firms redirect resources from overlapping compliance work to growth and customer service.