Bank of England, FCA, PRA and PSR conduct 2021 review of Memorandum of Understanding for payment systems in the UK

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. During 2021, the Authorities carried out their sixth such review.

Senior representatives from the BoE, FCA, PRA and PSR have considered whether cooperation pursuant to the MoU is working. This process was informed by feedback from industry and regulatory practitioners from each organisation. Overall, we have concluded that the MoU is working well. The Authorities have also implemented a number of initiatives identified previously, such as the exchange of expertise, information and data. The Authorities have identified further opportunities to deepen cooperation and coordination, for example continuing effective cross-authority coordination on reforms to payments legislation and further enhancing the sharing of information and data; 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 in their engagement with industry.