The PSR has called for views on its envisioned supervisory strategy, marking a step in bolstering the integrity and resilience of the payment systems landscape.
Established last year, the Supervision and Compliance Monitoring division within the PSR has been instrumental in reinforcing compliance with regulatory requirements, amidst a backdrop of escalating competition, burgeoning choice, and the persistent challenge of payment fraud.
Central to the PSR’s proposal is the cultivation of robust, ongoing relationships with the entities it oversees, including prominent payment system operators such as Pay.UK, Visa, and Mastercard. By adopting an evidence-based approach, the PSR aims to navigate its supervisory endeavours within the contours of its statutory mandate and the overarching regulatory framework.
Moreover, the proposed strategy underscores the imperative of flexibility, with the PSR envisaging the provision of a set of guiding principles tailored to accommodate the diverse aims and exigencies of regulated entities. These principles, aligned with the PSR’s strategic priorities and statutory objectives, are poised to furnish a framework for regulatory compliance while facilitating a nuanced understanding of firms’ operational landscapes.
Furthermore, supervision is poised to emerge as a potent instrument for evaluating the efficacy of policy interventions and facilitating proactive horizon scanning within the PSR’s remit. Emphasising collaboration, the PSR intends to engage with fellow regulatory authorities to forestall redundancy and enhance regulatory efficiency across the payments ecosystem.
In the words of Oliver Hanmer, Head of Supervision and Compliance Monitoring at the PSR, “Supervision done well comes from effective relationships between the regulator and the regulated, with a clear and open channel of communication between us. These relationships help us to improve our understanding of the payments sector and ensure that our regulation is targeted and proportionate.”
The PSR’s proactive stance towards supervisory oversight underscores its commitment to fostering a robust and resilient payments ecosystem, characterised by adherence to regulatory imperatives and proactive engagement with market participants.
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