The British payments watchdog is set to be abolished as part of a regulatory overhaul in Whitehall. Sky News reports that government officials are considering merging the Payment Systems Regulator (PSR) with the Financial Conduct Authority (FCA). A decision is expected soon, reflecting the government’s efforts to streamline regulators and boost economic growth.
The removal of Marcus Bokkerink as chairman of the Competition and Markets Authority (CMA) raised concerns about UK competitiveness. Doug Gurr, a former Amazon executive, replaced him. Additionally, changes in leadership at the Financial Ombudsman Service indicate a broader shake-up of regulatory bodies. Business Secretary Jonathan Reynolds hinted at the potential abolition of watchdogs to optimize regulatory efficiency.
The government’s push to reduce red tape and foster growth prompted discussions with major regulators like Ofcom, Ofgem, and Ofwat. The PSR, with around 160 employees, faces scrutiny for its regulatory practices, particularly in fraud reimbursement. Despite criticisms, the PSR’s role remains crucial in adapting to technological changes in the payments sector.
The potential merger of the PSR with the FCA is under consideration due to concerns about the former’s effectiveness. The Treasury declined to comment on this development, while the PSR did not respond to inquiries. This move aligns with the government’s aim to reassess the regulatory landscape and ensure a conducive environment for economic development.
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