UK Government Abolishes Payment Systems Regulator, Transfers Duties to FCA Amid DEI Rules Backlash

UK Prime Minister Keir Starmer has instructed his Cabinet ministers to cease 'outsourcing' decisions to regulators and quangos, emphasizing that the government must take responsibility for its decisions. This directive comes as part of a broader effort to reform the state and stimulate economic growth by reducing regulatory burdens. In line with this policy, the UK government has announced the abolition of the Payment Systems Regulator (PSR), a move aimed at cutting 'unnecessary regulation'. The responsibilities of the PSR, which include overseeing payment systems like Faster Payments and major card schemes, will be transferred to the Financial Conduct Authority (FCA). This decision follows complaints from businesses about the complexity of the regulatory environment, which required them to engage with multiple regulators. Chancellor Rachel Reeves stated that the regulatory system has become burdensome, hindering innovation, investment, and growth. In addition to the PSR's abolition, the FCA and the Prudential Regulation Authority (PRA) have decided to abandon their proposed diversity and inclusion rules for financial firms amid a DEI backlash. This move is part of the government's push to reduce regulatory burdens and focus on economic growth. Since taking power, the Labour government has created 27 new quangos.