UK Government sets out three-year regulatory roadmap for the payments sector
Building on the strategic direction established by the government's National Payments Vision, the Payments Forward Plan sets out a sequenced plan of payments-related initiatives and brings together ongoing and upcoming work across retail payments, wholesale payments and certain aspects of digital assets. The plan provides timelines for initiatives including:
- Consolidating the Payments Systems Regulator (PSR) into the Financial Conduct Authority (FCA).
- Reviewing key pieces of legislation including the Payment Services Regulations and the E-Money Regulations.
- A government consultation on assimilated payments law, and its approach to Open Banking and stablecoin payments.
- The independent assessment of proposals for setting up a standards setting body for open banking.
- Continued work on a potential Digital Pound, with a blueprint and decision expected from HM Treasury and the Bank of England this year.
- A Competition and Markets Authority (CMA) consultation on potential interventions in relation to digital wallets
- An independent of evaluation of the APP scams reimbursement requirement and fraud performance reporting; an industry and operator decision on the approach to delivering a claims management system is expected in H1 2026.
- A Statutory Instrument to improve the effectiveness of the Money Laundering Regulations is expected in Q1 2026
- A government consultation on the design of a new national digital ID scheme
- FCA engagement with the payments sector to help firms prepare for changes to the safeguarding requirements for payments and e-money firms
- FCA multi-firm work in relation to payments firms' treatment of vulnerable customers under the Consumer Duty
- The publication of the FCA Payments 'Market Focus' report for the non-bank payments sector is expected to be published in March 2026.
- An OECD report on enhancing transparency in retail cross-border payments and remittances is expected in Q3 2026.
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