UK Slated for Payments System Overhaul
Mar. 6, 2014
A proposed overhaul of the UK payments system will result in a new regulator slated to begin oversight a year from next month. The country’s Financial Conduct Authority (FCA) said the new structure will be implemented with an eye on increased competition and transparency in the electronic payment networks operating in the UK.
“This sector is critical to the economy so it must reflect the needs of people and firms and enjoy their confidence,” said Martin Wheatley, CEO of the FCA, which reports to the UK’s Treasury Department, but is funded by industry. “We need to know if the sector is as open as it should be to new entrants into the market and whether consumers are getting the best possible deal.”
The FCA said it will work closely with the new regulator, and is already looking at a number of ways to promote competition in retail banking and reduce barriers to entry, including a market study into cash-savings and mobile banking.
The FCA is seeking input from stakeholders throughout the UK. Any comments on the proposed new regulatory scheme should be sent to firstname.lastname@example.org by 15 April 2014.