Law 360 quotes Stewart Hey on the potential integration of the PSR into the FCA and the impact on APP fraud reimbursement

The UK government is reportedly mulling plans to scrap the Payment Systems Regulator (PSR) and merge its functions into the Financial Conduct Authority (FCA), according to a report by Sky News, citing sources with knowledge of the discussions.

While no final details have been confirmed, the report states that ministers and officials are set to reach a preliminary decision within weeks.

Stewart Hey, Partner in our Dispute Resolution team comments for Law 360 on the potential impact it may have on anti-fraud protections and what needs to be considered. 

The potential integration of the PSR into the FCA must be carefully evaluated to maintain if not enhance the anti-fraud protections currently in place.

"Given the prevalence of APP fraud and its significant impact on the public, it is essential that there is proper recourse to victims often faced with the daunting task of taking on large financial institutions to obtain lawful redress. Whilst the Government may be concerned with achieving value for the taxpayer, due care needs to be taken to ensure any rationalisation does not make the task even harder for victims to obtain such redress.

Read the full article in Law 360 here (subscription required).