The UK's Financial Conduct Authority (FCA) has simplified its approach to payments supervision, issuing a single comprehensive Regulatory Priorities: Payments report on March 30, 2026, that replaces more than 40 individual portfolio letters sent to firms. This consolidates regulatory priorities into a focused framework aimed at instilling trust and confidence, which are essential for growth and competition in the UK's payments landscape.
The new report marks a departure from fragmented oversight, streamlining communication for payment service providers (PSPs), banks, and fintechs navigating a complex regulatory environment. By distilling diverse priorities—ranging from consumer protection to safeguarding customer funds—into one document, the FCA seeks to reduce compliance burdens while sharpening expectations.
FCA PRIORITIES FOR PAYMENTS SECTOR
The report outlines key priorities for firms authorised or registered under the Payment Services Regulations 2017 and the Electronic Money Regulations 2011. These include ensuring firms implement the Consumer Duty effectively, with a focus on international payment pricing transparency and how firms treat consumers in vulnerable circumstances. Total customer complaints submitted to the Financial Ombudsman Service against payments firms fell 9% from 2024 to 2025.
Another priority is protecting financial system integrity. Firms are expected to have effective governance, capability, and systems and controls to combat financial crime and operational resilience. The FCA will fight financial crime, including money laundering and authorised push payment (APP) fraud, cooperating with industry, other regulators, and law enforcement. It will also enhance its operational resilience framework, publishing a policy statement with the Bank of England and Prudential Regulation Authority on incident and third-party reporting rules.
KEEPING CUSTOMERS’ MONEY SAFE
Keeping customers’ money safe is a core priority for authorised payment institutions (except those solely providing payment initiation services or account information services), authorised electronic money institutions, small electronic money institutions, and small payment institutions. Firms must continue to assess governance, oversight, and systems and controls relating to financial resilience and safeguarding.
The FCA has published a policy statement on changes to the safeguarding regime to address weaknesses in firms’ practices and shared examples to raise standards. Firms should implement the new Safeguarding Supplementary Regime by the time the rules come into force. The FCA will take action against firms that consistently fail to meet standards.
OPEN FINANCE AND INNOVATION
The FCA is committed to building on the success of Open Banking to launch open finance, with an open finance roadmap to be published by the end of March 2026. The report positions these efforts centrally, urging firms to support innovation while maintaining proportionate standards.
The regulator expects ongoing compliance with the Consumer Duty and will reinforce expectations by engaging with firms, identifying gaps, and taking action where necessary. This includes areas like international money remittance and cross-border payments transparency.
IMPLICATIONS FOR FIRMS AND MARKET
For the payments sector, the single report reduces administrative noise from the previous 40 portfolio letters, which often overlapped on issues like financial crime and operational resilience. It demands deeper engagement with unified priorities such as Consumer Duty compliance, financial crime prevention, and safeguarding.
Fintechs and challengers stand to benefit from clearer pathways on innovation, including open finance developments. The FCA's focus on APP fraud and financial crime aligns with broader efforts to reduce harm through data sharing and enforcement.
The streamlined report reflects a maturing UK payments ecosystem. By prioritising trust via consumer protection mandates, safeguarding rules, and system integrity, the FCA supports growth and competition. Firms aligning with these priorities can build confidence in the market.
The overhaul provides a blueprint for firms to meet proportionate standards. Payments firms must ensure effective implementation of governance, combat fraud, and enhance resilience—provided execution matches these supervisory expectations in this evolving landscape.