March 17, 2022
UK Finance, The Payments Association, and Latham & Watkins have published UK Payments Regulation Review: Making sense of where to go now – a new report examining regulation of the UK’s payments industry and its impact on the financial sector, consumers, and businesses.
With the rapid digitalization of the UK economy, the comprehensive report explores how existing payments regulation has shaped the ability of sector participants to invest, grow, and deliver good outcomes for UK consumers and businesses, and how it may need to adapt to changing structures and demands of the market. In light of ongoing work reviewing how the UK’s financial services regulatory framework should adapt, the publication also examines the need for a coherent and consistent regulatory framework across banking and finance, to provide clarity where regulation overlaps; to ensure proportionality, appropriate cost-benefit analysis, and responsiveness are embedded at the heart of regulation; and to empower regulators to adapt to the fast-moving payments sector whilst enabling and supporting innovation and investment.
“We are proud to lend our firm’s legal expertise and deep fintech and payments experience to this report at such an important time for the sector,” said Brett Carr, fintech and payments associate in Latham’s London office. “The UK and EU payments markets have experienced a prolonged period of regulatory change punctuated by implementation challenges, the impacts of Brexit and Covid-19, and a shifting supervisory strategy of the regulators. With question marks remaining over the UK’s priorities for the regulation and development of the fintech sector, market participants will be anticipating how the regulatory environment is set to progress. This report presents a compelling case for greater cooperation between the industry, lawmakers, and regulators, and calls for an evolution in approach that both enables and supports innovation and investment.”
Download a copy of UK Payments Regulation Review: Making sense of where to go now.