Regulations

Story: FCA Absorbs PSR in Major Regulatory Shake-Up

By Evie Vavasseur

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The merger's happening. David Geale from the FCA dropped the news at London's MoneyLIVE Summit today, saying his agency will absorb the Payment Systems Regulator within months as…

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Geale, who runs payments and digital finance at the Financial Conduct Authority, said the consolidation will end years of regulatory ping-pong for firms dealing with both agencies.

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The FCA already started hiring PSR staff and building joint teams to handle the transition. A new payments horizon scanning unit combines people from both agencies, basically…

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Treasury officials completed their consultation on the merger recently. A detailed roadmap should drop by mid-year, spelling out exactly how the consolidation will work and who…

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The agency held workshops with industry players in early March, gathering feedback about potential problems with the merger.

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One thing that won't change is the PSR's existing work. Projects aimed at improving payment system resilience will continue under FCA oversight, according to officials briefed on…

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Digital finance oversight gets a boost too. Geale pointed out that rapid growth in digital payments requires robust regulatory frameworks that can adapt to new tech.

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Market watchers are paying attention. Financial analysts see this merger as potentially setting precedent for future regulatory strategies across the UK financial sector.

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The FCA plans a public forum on March 15 where industry reps can voice concerns and get clarity on merger impacts.

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Competition, access, and innovation remain core priorities under the new structure. The FCA sees these factors as critical drivers of market effectiveness and growth.

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No timeline exists yet for completing the legislative changes needed to finalize the consolidation.

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The PSR's governance structure stays in place temporarily as powers transfer over. Government consultation wrapped up recently, but officials haven't released results publicly.

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Geale didn't provide additional comments about specific challenges the merger might face. Preparations continue as both organizations work toward integration, with the FCA taking…

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Reached for comment, Treasury officials didn't respond to questions about potential delays or obstacles to the merger timeline.

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The PSR currently oversees roughly £100 trillion in annual payment transactions across the UK, making it a significant regulatory force despite its smaller staff of around 100…

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