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The British payment guard will be abolished by Sir Keir Starmer as part of his urge to increase growth by abolishing or connecting some of the patchwork of about 130 regulators.
The Prime Minister said that his decision to abolish the regulator of payment systems and combine his business with the authority of financial behavior in reducing overlap and complexity in the British regulatory system and stop him as a block of innovation, investment and growth.
“For too long, the previous government hid behind a regulator – delaying decisions and allowing regulations to block and block significant growth in this country,” Starmer said on Tuesday.
But his choice of PSR, which has 160 employees and already shares older staff and an office with FCA, is a sign of the challenge that Starmer faced in a meaningful backward regulation.
Starmer told the ministers to revise all regulators to see which bodies can be set. “It wasn’t as easy as they thought,” said a senior government official.
The Prime Minister is not expected to appoint other victims of his regulatory presentation when he holds a “more agile state” speech later this week, according to officials.
The PSR, which has a budget of £ 28 million for a current financial year, should be connected to the FCA after the Government adopts primary legislation to make a change. The financial regulator of the UK will retain the powers of the payment agency after the merger, the government said.
Some officials suspect whether the interruption and prolonged procedure of the formal abolition of PSR will be paid when the FCA branch is already in force.
PSR is located in the same FCA headquarters in Stratford, East London. Since last year, Watters Watchdog has been led by David Geale, director of FCA. The government has also conveyed more responsibility for the payment of FCA in the last few months.
Charles Randell, a former FCA chairman, said that the merger of the regulator “could be a pleasant thing” for the Government “, but he added,” I don’t think that would bring a refund in the life of this parliament. “
“It is assumed that the organizational processing that could mean two years in which it is a little ends, but in the end people do the same thing while wearing different badges,” said Randell, who is now a higher advisor at the Slaughter and May law firm.
In recent years, they have complained about several decisions about PSR, while his critics point out that few other countries have a separate canvas.
Created in 2013 to encourage innovation and competition in the sector, PSR suffered a return reaction because of the way in which he introduced a mandatory return system last year.
The regulator suggested that banks must repay the victims of fraud up to £ 415,000. Hard lobbying eventually forced him to retreat, reducing the threshold to £ 85,000 in the eleventh hour.
Last week Visa and Revulut filed legal challenges Opposite PSR, claiming that he exceeded his powers by a proposed limit to international transactions fees.
James Daley, head of the Fair Finance Consumer Group, said PSR “was” widely criticized as a regulator “and” would not be such a jump “for most of his activities to fold in FCA.
John Glen, a city minister under the previous conservative government, said he sympathized with the desire to reduce the number of regulators, but warned “all changes bring a long lag of disorder, which is rarely useful.”
The Government of the UK has announced that PSR will continue to have access to its legal powers while the legislation is merged with the FCA.
Starmer wrote several regulators at the end of last year, asking them to propose pro-war measures. In January, the ministers threw out the Chairman of the Competition and Market Directorate after deciding that he was under -focused on growth.
The ministers are also advocating a change in the financial ombudsman service, which manages the consumer complaints to the sector and caught fire for too fast regulation. FOS CEO has recently given up and his chair is Because of the steps This summer.
Chancellor Rachel Reeves said that the abolition of the PSR is part of the wider urge to release the business from the “Stranger” regulatory system, which “became burdened to the point of rejection of innovation, investment and growth”.
Nikhil Rathi, Executive Director of FCA, said the combination of two regulators “is a natural next step after a recent work to improve coordination and clarity on regulatory responsibilities.”
PSR said, “The legislation will take time, but we should not wait to understand the benefits of an even more simplified regulatory approach.”
