G A U G I N G T H E M A R K E T
G A U G I N G T H E M A R K E T
The PSR has described this shift as a logical next step following efforts to align responsibilities with the FCA. Meanwhile, the FCA has acknowledged the need to refine payments oversight to match the pace of industry change and ensure a smooth transition.
What this means for payments firms
For payments businesses, particularly smaller firms, this change could remove some of the regulatory roadblocks that have made compliance disproportionately expensive. Many have struggled with inconsistent guidance and conflicting expectations from different regulators. If handled well, the shift to the FCA could reduce duplication and make compliance more straightforward, allowing firms to focus on service delivery and growth.
However, this consolidation raises questions about how the FCA will manage its expanded responsibilities. Payments regulation differs from wider financial services oversight, and there is a risk that payments-specific issues could receive less attention if absorbed into the FCA’ s broader remit. The industry must remain engaged to ensure this transition leads to meaningful regulatory improvements rather than just a reshuffling of oversight.
Regulation should evolve, not hinder
At Clear Junction, we work with financial institutions, payment providers and FinTechs that need reliable and compliant access to payment networks, offering correspondent accounts, virtual IBANs and payments infrastructure tailored for crossborder transactions. Regulation plays a major role in shaping how cross-border transactions flow, but too often, outdated regulatory structures have slowed down progress rather than enabling it.
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