The Bank of England (BoE), the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA) and the Payment Systems Regulator (PSR) have a Memorandum of Understanding (MoU) that sets out the high-level framework the Authorities use to cooperate with one another, in relation to payment systems in the UK. The Financial Services (Banking Reform Act) 2013 requires the Authorities to review this MoU annually. The Authorities committed that this review would include feedback from regulated entities, and that a summary of the review’s findings would be published. 2018 saw the third such review.
The BoE’s Deputy Governor for Financial Stability, the FCA Board, the PRA’s Deputy Governor for Prudential Regulation and the PSR Board have reviewed how the MoU is working. They have considered the views of industry and staff, concluding that cooperation and coordination under the MoU is working well. Building on the initiatives identified in the 2017 review and implemented over the last year, the Authorities have identified a number of areas to further deepen cooperation and coordination; these will be implemented over the coming year. In conducting this review, the Authorities emphasised their on-going commitment to working closely together on issues of common regulatory interest and avoiding duplication. The Authorities are also making minor changes to the MoU this year to reflect recent legislative changes or other structural changes, or in relation to those changes. The Authorities will also review the MoU over the next year to ensure it continues to appropriately reflect their respective roles and responsibilities once the United Kingdom has left the EU.