The PSR Seeks Input on Enhanced Supervisory Strategy to Strengthen Payment Systems
In a move aimed at fortifying the integrity and resilience of the payment systems landscape, the Payment Systems Regulator (PSR) has solicited feedback on its proposed supervisory strategy.
Established just last year, the Supervision and Compliance Monitoring division within the PSR has played a crucial role in reinforcing adherence to regulatory standards amid increasing competition, expanding options, and the persistent challenge of payment fraud.
At the core of the PSR’s proposal lies the cultivation of strong, ongoing relationships with the entities it oversees, including prominent payment system operators such as Pay.UK, Visa, and Mastercard. By embracing an evidence-based approach, the PSR aims to steer its supervisory efforts within the boundaries of its statutory mandate and the broader regulatory framework.
Moreover, the proposed strategy emphasizes the importance of flexibility, with the PSR envisioning the provision of a set of guiding principles tailored to meet the diverse objectives and needs of regulated entities. These principles, aligned with the PSR’s strategic priorities and statutory objectives, are poised to provide a framework for regulatory compliance while enhancing understanding of firms’ operational landscapes.
Furthermore, supervision is set to become a powerful tool for assessing the effectiveness of policy interventions and facilitating proactive monitoring within the PSR’s jurisdiction. Emphasizing collaboration, the PSR intends to engage with fellow regulatory authorities to prevent duplication and enhance regulatory efficiency across the payments ecosystem.
In the words of Oliver Hanmer, Head of Supervision and Compliance Monitoring at the PSR, “Effective supervision hinges on robust relationships between regulators and the regulated, with transparent and open channels of communication between us. These relationships enable us to enhance our understanding of the payments sector and ensure that our regulation is targeted and proportionate.”
The PSR’s proactive approach to supervisory oversight underscores its dedication to fostering a robust and resilient payments ecosystem, characterized by adherence to regulatory imperatives and proactive engagement with market participants.
Source: fintech.global
