Reforms to the Payment Systems (Regulation) Act 1998 – Consultation Paper
On 7 July 2023, AFIA made a submission to the Government’s proposed updates to the Payment Systems (Regulation) Act 1998 (‘the PSRA’) . The Government proposed changes to ‘address new risks as the provision of payments evolves and increases in complexity’. The consultation proposed to:
expand the regulatory perimeter of the PSRA by updating existing definitions of ‘payments system’ and ‘participant’ to ensure that all entities that play a role in facilitating or enabling payments, including new entrants, are appropriately regulated;
introduce new Ministerial powers that can be exercised in the ‘national interest’ to ensure Government can respond to issues beyond the remit of independent regulators; and
considered options to expand regulatory tools to address new and emerging risks.
AFIA supported updating the PSRA in a manner which is targeted, scalable and proportionate. AFIA’s position regarding the regulation of payments is that it should support competition and innovation, balance financial stability and consumer protection, exist alongside self-regulation, and be efficient and effective.