HM Treasury (HMT) has published a consultation on the payment systems it proposes to be designated for regulation by the new Payment Systems Regulator. The list of proposed systems includes:
- Faster Payments;
- Cheque and Credit;
- Northern Ireland Clearing;
- Visa; and
These proposals are based on the following designation criteria:
- HMT may only designate a payment system if it is satisfied that “any deficiencies in the design of the system, or any disruption of its operation, would be likely to have serious consequences for those who use, or are likely to use, the services provided by the system”; and
- HMT must have regard to the following four criteria for a “multi-dimensional assessment” of importance: (i) the number and value of the transactions that the system presently processes or is likely to process in the future; (ii) the nature of the transactions that the system presently processes or is likely to process in the future; (iii) whether those transactions or their equivalent could be handled by other payment systems; and (iv) the relationship between the system and other payment systems.
HMT notes that payment systems not designated at this stage will in time meet the criteria for designation and, likewise, payment systems currently designated may decline in importance and require de-designation.
The deadline for comments on the consultation is 11 November 2014.
View Designation of payment systems for regulation by the Payment Systems Regulator, 14 October 2014