The Memorandum of Understanding (MoU) provides an opportunity to strengthen coordination between the Bank of England (the Bank), FCA, Prudential Regulation Authority (PRA), and Payment Systems Regulator (PSR).
The Bank, the FCA, the PRA, and the PSR (the Authorities) have an MoU which sets out the high-level framework that we use to cooperate with one another in relation to payments in the UK. The Financial Services (Banking Reform) Act 2013 requires the Authorities to review the MoU annually.
Senior representatives from the Authorities have reviewed the effectiveness and efficiency of our coordination and cooperation under the MoU and how the MoU is working. We engaged with a wide range of firms, trade associations and consumer groups, as well as members of the Vision Engagement GroupLink is external to inform our review. The revised MoU is an important step in delivering the National Payments Vision (NPV)Link is external, particularly in helping enhance coordination across regulators.
As set out in the NPV, the revision of the MoU provides an opportunity to strengthen coordination between the Authorities. This helps us deliver a more efficient and effective regulatory environment, as well as manage our collective impact on regulated firms.
Our update to the MoU directly supports the development of a resilient, safe, well-operating payments sector, while also promoting competition, innovation, and economic growth in the UK. It also reflects the growing collaboration between the FCA and PSR ahead of the planned consolidation, reinforcing our shared commitment to a joined-up regulatory approach.
Outcome of the review
We found that cooperation and coordination has strengthened since our previous review in December 2024. We have shared expertise and information such as data on the impact of the Authorised Push Payment fraud reimbursement rules on the sector. We also coordinated joint policy initiatives such as the 2025 FCA/PSR response (PDF) to the Competition and Markets Authority’s (CMA) Strategic Market Status Investigations following our Call for Information (PDF)Link is external and Feedback Statement (PDF) on Big Tech and Digital Wallets. We are also working together to deliver the NPV through work such as the refresh of infrastructure for the Faster Payments System and beyond.
We recognise that there is scope to further strengthen our cooperation and provide greater clarity on our roles and responsibilities. These were key themes highlighted in sector feedback.
We will continue to work closely together to support the sector and the delivery of our objectives and the NPV.
Revision of the MoU
Following our review, we have published a revised MoU and have outlined each of our roles and responsibilities, and key policy areas relevant to our work. This will aid the sector’s understanding of the regulatory landscape.
We have also introduced principles for regulatory cooperation to the MoU to guide our ways of working across areas like policy, supervision, authorisations, and strategy work. This should promote a more streamlined regulatory approach that manages our collective impact on regulated firms and others using payment systems. Examples of how we will do this include:
Engaging regularly to share insights on the sector, including horizon scanning.
Delivering joint policy initiatives (eg publications and calls for information).
Coordinating supervisory work.
The PSR
In March 2025, the Government announced its intention to consolidate the functions of the PSR primarily into the FCA. This will help streamline the regulatory environment and improve coordination and clarity on regulatory responsibilities.
The Government has been clear that there will be no immediate changes to the PSR's remit or ongoing work programme. Therefore, our revision of the MoU reflects the PSR's current responsibilities. We will further revise the MoU at an appropriate time. In the meantime, the FCA and PSR are working together, with the FCA's executive director for payments and digital finance also leading the PSR.