The Bank of England, Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA), and Payment Systems Regulator (PSR) have revised their Memorandum of Understanding (MoU) concerning UK payments. This MoU outlines the framework for cooperation among these entities.
The Financial Services (Banking Reform) Act 2013 mandates an annual review of the MoU. Senior representatives from these authorities assessed the coordination and cooperation effectiveness under the MoU. They engaged with firms, trade associations, consumer groups, and members of the Vision Engagement Group to inform their review.
The updated MoU is seen as a step towards achieving the National Payments Vision (NPV), enhancing regulatory coordination. It aims to create a more efficient regulatory environment and manage the collective impact on regulated firms. The revision supports a resilient payments sector while promoting competition, innovation, and economic growth in the UK.
The review found improved cooperation since December 2024. Authorities shared expertise and coordinated policy initiatives like responses to the Competition and Markets Authority’s Strategic Market Status Investigations. They are also working on infrastructure updates for systems like Faster Payments.
Feedback indicated room for further cooperation improvement and clarity on roles. The revised MoU includes principles for regulatory cooperation across policy, supervision, authorizations, and strategy work. Regular engagement will share sector insights and coordinate supervisory work.
In March 2025, the government announced plans to consolidate PSR functions into FCA to streamline regulation. While no immediate changes will occur to PSR’s remit or work program, future revisions of the MoU will reflect this consolidation plan.
Information from this article can be found here.
