UK PSR consults on simplifying the regulatory framework for access to payment systems

The UK Payment Systems Regulator (PSR) has published a consultation paper on proposals to simplify the regulatory framework for access to payment systems. The PSR proposes to introduce a single access regime, while broadly maintaining existing access requirements. The proposals form part of the planned abolition of the PSR and aim to remove overlap and fragmentation across various regulatory requirements governing payment system access. The consultation assumes that HM Treasury will proceed with its plans to repeal the payment system access regime in the Payment Services Regulations 2017 (PSRs 2017) and that the PSR's functions, including its payment access powers, will be substantively transferred to the UK Financial Conduct Authority.

Specifically, the PSR proposes to:

• revise General Direction 2 (GD2), so that it becomes the primary regulatory measure to ensure access requirements are 'always on' and which will largely consolidate the requirements currently spread across the PSRs 2017 and GDs 2 and GD3, insofar as they apply to regulated payment systems. The revised GD2 would introduce a single test for direct and indirect access, while preserving the existing principles underpinning access. It would also extend the existing requirement to publish access requirements to all operators of payment systems designated under the Financial Services (Banking Reform) Act 2013
• revoke GD3 through the revised GD2, as GD3 would no longer be required once regulation 103 of the PSRs 2017 is revoked
• update the PSR's guidance on access requirements while maintaining its substance (subject to minor amendments).

The proposed revised GD2 and guidance are available on the PSR's webpage. The deadline for responses is 10 December. When determining next steps, the PSR will account for potential legislative changes, including under the Financial Services and Markets Bill and the potential revocation of regulations 103 and 104 of the PSRs 2017.

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