On 4 February 2025, the Payment Systems Regulator (PSR) published a policy statement on its new compliance monitoring framework, setting out how it will monitor compliance and identify non-compliance.
Background
In a thought piece accompanying the policy statement, the PSR flags that it has been busy in recent years with several important new regulations coming into force, including the card acquiring market review remedies, the expansion of confirmation of payee and the authorised push payment (APP) reimbursement requirements. These developments have increased the need for the PSR to know whether firms are following the regulations and to manage any non-compliance.
Policy statement
The policy statement explains why and how the PSR monitors compliance with its payments regulations, including how the compliance monitoring team’s work is structured. It includes information on:
- The scope of the PSR’s monitoring work.
- Its approach to compliance monitoring.
- How, in practice, the PSR will monitor the parties that it regulates.
- How it will educate and engage with industry as part of its monitoring work.
The PSR notes that the content of the policy statement should not be a surprise to firms, as many of the concepts within it are guided by how the PSR already interacts with them.
Next steps
The PSR notes that it is planning changes to its Process and Procedures Guide, partly to update its enforcement processes and to offer more details on the process of its new compliance monitoring function.
It also plans to publish a document, similar to this policy statement, regarding its enforcement work. There will be opportunities to contribute to both later in 2025.