The Payment Systems Regulator (PSR) could be abolished as part of plans that could see the UK’s payments watchdog fold into the Financial Conduct Authority (FCA).

Sky News has reported that the Government is “actively considering” a decision to scrap the body and that a decision could be made “within weeks”.

The PSR is the economic regulator for the £81trn payment systems industry in the UK, and while it is a fully independent subsidiary of the FCA, it does share some operational services.

Reports that it could be scrapped follow the Chancellor, Rachel Reeves, last week indicating that she would tell cabinet ministers to conduct a “full audit” of the UK’s regulators – which total over 130 and include several watchdogs in the finance sector – to ensure they are working to boost growth.

The Financial Times reported that this would including looking into whether any UK regulators should be scrapped, and that Reeves had promised senior bankers that she wants to “cut red tape”.

---