The Payment Systems Regulator (PSR) has published a letter it has sent to Paul Horlock, CEO of the New Payment System Operator (NPSO), setting out the PSR’s expectations of the NPSO’s initial priorities. The letter notes that during 2018, the NPSO will take over the operation of three key interbank retail payment systems – Bacs, Faster Payments and the new Image Clearing System for cheques. The NPSO is also responsible for designing and delivering several key strategic payments initiatives, which were developed by the Payments Strategy Forum and handed over to the NPSO in December 2017 for implementation.
Among other things, the letter also discusses the following:
- implementation work. The PSR recognises that the consolidation process is the NPSO’s initial priority. This process must be completed smoothly and without delay. However, alongside this, the NPSO must also think about its longer term target operating model and the development and delivery of the New Payment Architecture (NPA). The letter sets out the targets that the PSR considers must be met for the NPA to be successful; and
- PSR priorities in establishing the NPSO and the NPA. The PSR has identified six initial priorities for the PSR: (i) stakeholder engagement; (ii) strategy setting and decision making; (iii) competitive procurement of the NPA’s central infrastructure; (iv) development and management of NPA rules and standards; (v) clarifying the NPSO’s market catalyst role; and (vi) risk management.
In terms of next steps, PSR asks the NPSO to respond to each of the priorities set out in the annex to the letter, including the timeframes for the actions it plans to take to achieve the expected outcomes. While the PSR recognises this will require the NPSO to carefully consider how these steps fit into its overall programme of work for 2018, it hopes it will be in a position to provide a response no later than 30 March 2018. The PSR intends to publish the NPSO’s response on its website.
View PSR open letter to NPSO sets out expected initial priorities, 18 January 2018