In new guidance published today, the PSR provides firms with greater transparency around how it will make decisions on whether to grant exemptions or extensions to a specific direction or requirement.
The PSR uses specific directions and requirements to require firms to make changes that improve payments for people and businesses across the UK.
Following feedback received to its consultation, the PSR has confirmed the key factors it proposed to use as a starting point when considering an exemption or extension request, remain the right ones.
The PSR has made some changes to provide additional clarity on its approach but maintains the bar for granting an exemption or extension is a high one. It is important that all firms are incentivised to comply with the regulator’s rules and all UK payment system users see greater benefits from policy interventions by the PSR being delivered as quickly as possible.
David Geale, the PSR’s Managing Director, said:
“We’ve confirmed our position that extensions and exemptions are likely only to be granted in exceptional circumstances. It’s important that our rules are not weakened by too many firms failing to take the right steps to comply within the set timeframe.
“However, we recognise that on occasion there may be good reasons to allow flexibility for individual firms. Each request will be looked at on a case-by-case basis, with a high degree of scrutiny.”
Notes to editors:
- This guidance only applies to specific directions and requirements. It does not apply to general directions, or generally applicable regulatory requirements. It also does not apply to exemptions or extensions when using our powers under concurrent competition law.
- More information about our regulatory framework can be found on our website. A list of our specific directions and requirements can also be found on our website.