On 27 January 2025, the Payment Systems Regulator (PSR) and the Bank of England (BoE) published letters to each other regarding the operation of CHAPS.

The regulators note that they agreed a set of principles (set out in an exchange of letters at the time) to ensure effective working with regard to CHAPS when the BoE became the operator of CHAPS in November 2017. The principles reflect the PSR’s ongoing regulation of payment service providers who are CHAPS participants. The latest letters exchanged by the PSR and BoE update those principles in light of the CHAPS reimbursement requirement and rules which became effective in Autumn 2024.

The PSR’s letter to the BoE, dated 15 January 2025, sets out areas that have been identified for ongoing cooperation and coordination in respect of CHAPS. It reflects how the PSR and BoE intend to continue to work together in respect of the CHAPS reimbursement requirement, including three steps to ensure cooperation and coordination in relation to the CHAPS reimbursement requirement:

  • Information sharing, including in relation to compliance data.
  • The BoE sharing any changes to the CHAPS reimbursement rules.
  • The PSR sharing any changes to Specific Direction 21 or Faster Payments arrangements that may impact the CHAPS reimbursement rules or policy.

In the BoE’s response to the PSR, dated 22 January 2025, it agrees with the updated principles set out in the PSR’s letter, noting its support for the three key steps set out in the PSR’s letter.