On 18 September 2024, the Payment Systems Regulator (PSR) published a consultation paper, CP24/12, on a draft statement of policy on its cost benefit analysis (CBA) framework.

The Financial Services and Markets Act 2023 introduced additional CBA accountability requirements for the PSR, including a requirement to publish a statement of policy on its use of CBAs. The draft statement of policy being consulted on in CP24/12 builds on and replaces a draft CBA framework published by the PSR in February.

The PSR’s draft statement sets out its approach to CBA, which it considers to be part of its robust consideration of economic evidence and an important component of delivering outcomes-focused policy. The PSR uses CBAs to help it consider whether regulatory action is likely to result in an overall positive impact.

The deadline for comments on CP24/12 is 3 November 2024. The PSR will then consider and respond to comments received, with the aim of publishing its final statement of policy around the end of 2024.