Enforcement

Payment Systems Regulator 

Penalty statements - PSR publishes Consultation Paper - 16 March 2023

The Payment Systems Regulator (PSR) has published a Consultation Paper on its proposed revised penalty statements. The PSR has the power to impose financial penalties on bodies that fail to comply with the obligations it enforces.

The PSR currently has three penalty statements that set out the principles it applies when determining penalties and exercising its associated powers of publication in respect of failures to comply with directions and requirements under the Financial Services (Banking Reform) Act 2013; the UK Interchange Fee Regulation; and the Payment Services Regulations 2017. Having reviewed these penalty statements and considered feedback from stakeholders, the PSR proposes to make the following changes:

• combine the three penalty statements into one;
• change the way in which the PSR considers the duration of a compliance failure and how it takes account of revenue when calculating penalties;
• clarify what is meant by ‘senior management’;
• add further clarity as to when the PSR considers a compliance failure is deliberate or reckless; and
• reinforce the principle that penalties should disincentivise compliance failures.

The PSR notes that the proposed changes should help those who may be subject to a PSR investigation further understand how it determines whether to impose a penalty and its amount.

The consultation closes on 27 April 2023. The PSR expects to publish a final penalty statement in Q3 2023.

PSR Consultation Paper: Proposed revised penalty statement

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