FCA: Payment services and electronic money – our approach

HMT has published a policy statement setting out the final approach to CCA reform, alongside its response to the Phase 1 CCA reform consultation published in May 2025.  Annex A of the document sets out a detailed provisions table, which indicates which sections of CCA will be retained, amended or repealed.  It is also noted that the Government intends to review the regulatory regime for credit broking which sits within the RAO.  FCA intends to consult on the key elements of the consumer credit framework previously set out in legislation and emphasises that its approach will be underpinned by the Consumer Duty.

HMT reports that the Government will bring forward relevant changes to primary legislation through the upcoming Financial Services and Markets Bill which are intended to create a more agile and proportionate ring-fencing framework. It will also publish a consultation on the operation of the “New Growth Allowance” and other reforms to allow ringfenced banks to provide more products and services to businesses which will be delivered by secondary legislation after the Bill has been enacted and as soon as Parliamentary time allows.  PRA and FPC will review how ringfencing interacts with certain capital requirements, including how the Basel 3.1 output floor and the leverage ratio are applied to banks in the regime. PRA has announced that a consultation will be published this summer that will propose allowing firms more flexibility as to how they share operational resources across the ringfence. The Government will consult on legislation to enable surpluses in closed ringfenced bodies pension schemes to be shared with other schemes in a wider banking group, subject to certain conditions.

The regulators have set out their approach in key areas where firms want greater clarity, including prudential treatment, tokenised collateral and settlement instruments.  They have also opened a discussion on key principles for regulation and infrastructure that could facilitate the development of tokenisation in wholesale markets.  Responses to the call for input must be received by 3 July 2026. .  BoE is to launch a live synchronisation, targeted for 2028, in order to enable tokenised equivalents of already eligible assets to be used as collateral both at CCPs and in its own central bank operations.  PRA has published “Dear CEO” letters setting out updated guidance on the prudential treatment of tokenised asset exposures and on innovations in deposits, e-money and stablecoins.   Links to all of these may be found in the link.

BoE has published a consultation on extending RTGS and CHAPS settlement hours. The staged approach includes weekend and extended daily operating hours, subject to consultation and industry readiness. Responses are required by 10 August 2026.

PRA has published the results of its 2025 survey.  It notes that firms provided the most positive scores for the regulator’s articulation of regulatory objectives and expectations and for the effectiveness of their relationship with it.  PRA identified some themes from the survey and at follow-up meetings in which participants highlighted areas of interest.  These relate to transparency, improved co-ordination, proportionality and timelines.