UK financial regulators have renewed their commitment to better coordination in the fast-evolving payments sector through an updated Memorandum of Understanding (MoU).
According to Finextra, The revised agreement sets out clearer responsibilities and introduces new principles for cooperation among the Bank of England, the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), and the Payment Systems Regulator (PSR).
The MoU is part of the broader push to implement the UK’s National Payments Vision (NPV), a roadmap aimed at fostering a secure, competitive, and innovative payments ecosystem. According to the review, collaboration between the regulators has improved since the last update in December 2024, including increased sharing of expertise and data, and joint responses to market developments such as the Competition and Markets Authority’s investigations into Big Tech and digital wallets.
A key outcome of the review was the recognition of the need for more transparency and clarity around regulatory roles. The authorities also acknowledged stakeholder feedback calling for a more integrated approach. As a result, the revised MoU now outlines individual responsibilities in key policy areas and embeds guiding principles for regulatory cooperation across policymaking, supervision, authorisation, and strategy.
Examples of the strengthened cooperation include joint publications, enhanced horizon scanning, and coordinated supervisory work. The review also referenced collaboration on upcoming infrastructure upgrades, including the Faster Payments System refresh.
The regulators noted that “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.”
The update comes ahead of the government’s planned consolidation of the PSR’s functions into the FCA, announced in March 2025. While the PSR’s current remit remains unchanged, the revision acknowledges the growing integration between the two bodies. The FCA’s executive director for payments and digital finance is already leading both organisations to support a more unified approach.
A further revision of the MoU is expected in future to reflect any formal structural changes, but in the meantime, the regulators aim to strengthen their alignment to support the UK’s dynamic payments landscape.
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