Sixth Special Report - Scam reimbursement: pushing for a better solution: Payment Systems Regulator’s response to the Committee’s Thirteenth Report

This is the government's response, published 14 June 2023.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Payment Systems Regulator "acknowledge[s]" the Sub-Committee's concerns about Pay.UK and has amended its approach so that it will use both section 54 and section 55 powers, while saying the full arrangements are consistent with protections coming into full effect in 2024.

• On the Sub-Committee's recommendation to use section 54 directions, the PSR says it is "now proposing to issue a section 54 direction to all PSPs", alongside requiring Pay.UK to create detailed scheme rules under section 55.
• On the conflicts of interest concern, the PSR "acknowledge[s]" the concerns but considers Pay.UK the appropriate body "in the long-term" for scheme rules, while recognising that "at present" factors limit its ability to take on the full role.
• On timing, the PSR assumes the Financial Services and Markets Bill becomes law in this session, in which case it could impose the requirements "by the end of 2023", then consult on the full implementation timetable. It does not commit to the Sub-Committee's end-2023 implementation deadline, and says the steps are "consistent with" protections coming into full effect in 2024.
• The PSR says it is "happy to provide quarterly progress updates to the Sub-Committee".

Read the government's response ↗ Report an error