Financial Services (Banking Reform) Bill 2013-14

UK Treasury Announces Policy on New Payment Systems Regulator

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On October 9, the UK Treasury (HM Treasury) published its response to feedback on its March 2013 consultation paper on opening up UK payments, announcing the details of the new Payment Systems Regulator.

In its March 2013 consultation, HM Treasury set out proposals for bringing payment systems under formal economic regulation and establishing a new competition-focused utility-style regulator for retail payment services.  In the response, HM Treasury sets out its policy decisions on the roles, responsibilities and powers of the new regulator, which will be established by the Financial Services (Banking Reform) Bill 2013-14. 

HM Treasury intends for the Regulator’s powers to come into force in late 2014, with the Payments System Regulator fully operational by spring 2015.  Response.

UK Parliament Banking Report Proposes Far-Reaching Reforms

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On June 19, the Parliamentary Commission on Banking Standards (PCBS) published a final report following its inquiry into professional standards and culture in the UK banking sector.  The report, titled “Changing banking for good,” recommends radical reforms designed to improve standards in the sector. 

The recommendations cover several areas including:

  • reforming bank governance;
  • replacing the existing approved persons regime;
  • reinforcing the powers of regulators; and
  • making individuals responsible for misconduct and poor financial performance.

The UK government will formally respond to the PCBS report in July and any implemented recommendations will likely be added to the Financial Services (Banking Reform) Bill 2013-14 currently going through parliament.  Final Report.