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FCA appoints David Geale executive director, payments and digital finance
FCA appoints David Geale executive director, payments and digital finance

Finextra

time08-05-2025

  • Business
  • Finextra

FCA appoints David Geale executive director, payments and digital finance

The FCA has appointed David Geale as permanent executive director for payments and digital finance, and managing director of the Payment Systems Regulator (PSR). 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. In his role David will be responsible for helping to deliver the National Payments Vision and driving the FCA's work on open banking and digital finance. David will also play a key role in the work to consolidate the PSR into the FCA, as announced by the Government in March. He will also be responsible for supervising payments and cryptoasset firms under the recently announced regime. Aidene Walsh, chair of the PSR said: 'David has played a key role in fostering greater alignment and strengthening the relationship between the FCA and the PSR. This will be increasingly important as we move towards consolidation while at the same time continuing to deliver the important work that the PSR does, including on APP fraud and card processing fees.' Nikhil Rathi, Chief Executive of the FCA said: 'David brings a wealth of experience that will be vital as we deliver the National Payments Vision as well as unlocking the potential that open finance and open banking can bring.' David Geale said: 'I'm delighted to be taking on this new role at such an important and exciting time for both organisations, and the payments sector as a whole. I look forward to working with colleagues, consumer groups and the wider industry as we take the next steps in our work.' David was previously director of retail banking at the FCA. He has worked at the FCA and its predecessor, the FSA, for more than 20 years, carrying out a number of roles in policy and supervision. He was involved in leading and delivering policies such as the Retail Distribution Review and policy changes during the UK's exit from the European Union. More recently, David has led the FCA's work on developing a regime for cryptoassets as well as savings rates and reforming the mortgage market as set out in the FCA's letter to the Prime Minister on growth. David has been acting as the managing director of the PSR since June 2024. Following David's appointment, Emad Aladhal has been appointed permanent director of retail banking with Andrea Bowe becoming permanent director, specialist directorate. Both have been carrying out the roles on an interim basis. Background Details of the consolidation of the PSR can be found hereLink is external . Prior to being interim director of retail banking, Emad was director of the FCA's specialist directorate, which included financial crime, Office for Professional Body Anti-Money Laundering Supervision (OPBAS), financial resilience, client assets, resolution and insolvency, and technology, resilience and cyber. Emad previously co-led the FCA's strategy commitment on reducing and preventing financial crime, and is now part of the director team on helping consumers. Prior to re-joining the FCA in 2017, Emad was a compliance director at a top-tier investment bank, and has prior extensive experience as a regulatory consultant, where he has advised on various aspects of regulation, which included advising on the UK administration of a failed large investment bank during the last financial crisis. Andrea has spent the last 18 years at the FCA, including 14 years in FCA enforcement and advancing to influential positions, including chief of staff to Nikhil Rathi, Chief Executive. Andrea led Nikhil's transition into the FCA and subsequently co-led the FCA's ambitious transformation programme. During this time, she was also interim director of FCA communications. In her current role as director of the specialist directorate in supervision, policy and competition, she has responsibility for prudential policy, standards and supervision, cyber and operational resilience, client assets, resolution and insolvency and financial crime, fraud and OPBAS. She co-leads the FCA's current 5-year strategy commitment to fighting financial crime, contributing to the UK's national Economic Crime Plan and Fraud Strategy. She is chair of the International Organisation of Securities Commission's (E)MMoU Monitoring Group and Monitoring Steering Committee, responsible for monitoring the operation of, and compliance with, the (E)MMoU, including decision making on disputes and matters of non-compliance.

PSR axed
PSR axed

Yahoo

time13-03-2025

  • Business
  • Yahoo

PSR axed

The Payment Systems Regulator (PSR) is to be abolished as the latest step in government efforts to reduce the burdens on business. If the UK government is to be believed, the move to merge the PSR into the FCA is the latest step in its drive to boost economic growth that puts more money in working people's pockets. The government will set out further steps to reduce red tape in the coming days. According to the government, merging the PSR into the Financial Conduct Authority will make it easier for firms as they will have just one port of call. Industry reaction is generally positive with some noted caveats. While streamlining regulatory frameworks is fundamentally positive and reduces unnecessary complexity, there's a significant risk in this transition that must be addressed. The specialised expertise within the PSR has been instrumental in driving targeted innovation in UK payment systems. Any dilution of this knowledge base could severely hamper our progress and potentially damage the UK's hard-earned reputation for payment excellence. The government's focus on economic growth is understandable, but we must ensure this regulatory consolidation preserves what we have already built. If we lose this critical knowledge during the transition to the FCA, we risk wasting time and resources while eroding the consumer and organisational trust that's been painstakingly built. The industry will be watching closely to see how this expertise is preserved and deployed in the new structure. The announcement to abolish the Payment Systems Regulator does not come as a surprise given recent news stories, but what is vital is what happens next. While there is understandable focus on consumer outcomes, innovation and investment in the payments system supports business growth and productivity. It's a vital utility that allows companies to move money around the economy more efficiently. Moving money more quickly can enable more sales as trust and transparency reduce credit risks. It can also enable small, but high growth potential companies grow with less of a drain on scarce liquidity and working capital. Importantly it can support innovation that can be exported to other countries too. It is therefore important that we continue to deliver on the National Payments Vision alongside the next phase of open banking will help to reduce the friction in the payments system. It would be a wasted opportunity if this was simply a rebranding exercise or even worse it led to consultations that slow down important progress that support companies and the wider objectives of growth. The closure of the PSR appears to be little more than a branding exercise. As a subsidiary of the FCA, sharing both office space and personnel, its functions are already deeply integrated. Beyond dropping a logo, it's unclear what, if anything, will materially change. Good consumer outcomes in the financial services sector depend on the effective regulation of payment services. Given this, it makes sense for a single agency to ensure that financial institutions adhere to the expectations set out in the FCA's Consumer Duty. It's official, the UK Government is scrapping the Payments Systems Regulator (PSR) and folding it into the Financial Conduct Authority (FCA). Others could follow, with the prime minister set to make a speech later this week. While it was previously reported the FCA was also seeking to ditch policy proposals and is committing to launch fewer 'large-scale' initiatives over the next five years, as it steps up efforts to support Britain's flagging economy. As we take a breath on this news, I believe there is a key point we must focus on: you can have effective regulation without bureaucracy and thereby, getting rid of bureaucracy shouldn't get rid of effective regulation. The PSR/FCA news in some sense is irrelevant – we must ensure that any initiatives are effective. While regulation is rarely popular and financial companies too often try to circumvent them, we have an example from living memory of what happens when the sector is unregulated - the 2008 financial crash happened, in large part, because of a lack of effective regulation. I'm confident this story will develop at pace over the next week and clearly be a major talking point in the PM's speech, as it's following a trend of, so-called 'purging' under the current Government – the chairman of the Competition and Markets Authority, Marcus Bokkerink , was removed last month amid concerns that it was hindering growth. Bokkerink was replaced by Doug Gurr, a former Amazon executive and both the chair and chief executive of the Financial Ombudsman Service have announced plans to step down. Ultimately, we need alignment from authorities to avoid superfluous red tape. That being said, the quantity and quality of payments regulation is increasing – DORA was introduced this year and PSD3 will soon be released to improve upon the already transformative Payment Services Directive. But we're seeing different headlines now. Today's announcement comes as no surprise, as the UK's National Payments Vision (NPV), unveiled in November 2024, foreshadowed the abolition of the PSR. This is a positive step forward, showing that the UK government is not just setting out a vision for payments but actively implementing it. Regulatory red tape has increased dramatically in recent years, making it harder for businesses like ours to navigate. We welcome this move to streamline oversight, as it will help reduce complexity and create a more efficient regulatory environment. The FCA and PSR haven't always been fully aligned, which has created challenges for the industry. Consolidating oversight under one regulator should improve coordination, providing clearer and more consistent regulation. We fully trust that the FCA can regulate this industry effectively – ensuring the integrity of financial infrastructure, fostering competition, and ultimately delivering the best outcomes for consumers. As a global payment processor and merchant acquirer, Ecommpay acknowledges the UK Government's commitment to streamlining regulation, simplifying the amount of regulators that companies have to manage, and fostering economic growth through its deregulatory agenda. We are overall supportive of the rationale behind consolidating regulatory oversight to reduce complexity and support the National Payments Vision. However, we believe that abolishing the Payment Systems Regulator (PSR) at a time when the efficacy and resilience of payment systems, as well fraud risk management, are under intense review and focus, may not be the most opportune course of action. The payments industry is evolving rapidly, and with increased scrutiny on payment services and electronic money providers, maintaining a robust and dedicated regulatory framework is critical to ensuring stability, innovation, and consumer protection in support of the National Payments Vision. While we support an improved and effective regulatory environment, we express concern that the Financial Conduct Authority (FCA) already operates under significant pressures. Absorbing the PSR's responsibilities into the FCA risks adding further complexity to an already demanding agenda, potentially disrupting the ongoing development and supervision of the UK payments ecosystem with a view to kickstart growth. We urge the Government, the FCA, the Bank of England and the PSR, to ensure that any transition results in a more harmonised and effective approach to regulating payment systems and services that will not erode trust in the UK payments ecosystem, and enhances the regulatory agenda without introducing further challenges to industry. A strong, dedicated focus on payment regulation remains essential to safeguarding industry growth, consumer trust, and the UK's position as a global leader in payments innovation. Ecommpay remains committed to working collaboratively with the Government, regulators, trade associations, and industry stakeholders to ensure that the UK payments landscape continues to thrive under a regulatory framework that balances oversight with innovation. All financial institutions will welcome the Government's ambitions to simplify the overly complex UK regulatory market. In the long term, this initiative makes sense and could even benefit consumers directly. The Financial Conduct Authority (FCA) is already widely recognised by consumers, unlike the PSR, so this merger could lead to increased consumer understanding of regulations and the outcomes they are entitled to. The challenge is the short term. As the Payment Systems Regulator (PSR) is wrapped into the FCA, we'll likely see a slowdown in relation to the latest PSR regulations. There is bound to be disruptions as the entities merge, and this is coming at a crucial time in the regulation lifecycle – particularly in relation to fraud. The PSR has played a crucial role in fraud regulation, and banks continue to lose hundreds and thousands of pounds to fraudulent transactions every year. As the fight to stop criminals continues, having a regulator that is slow to react to the market poses significant risks. All eyes will be on the FCA over the next few months, particularly to see how short term risks are managed. As responsibilities shift away from the PSR to the FCA, it is essential that fintech firms, which are improving efficiency, reducing costs, and expanding access to financial services, are given the right regulatory environment to thrive. A clear and forward-looking approach will help maintain the UK's position as a global leader in payments and ensure a competitive, dynamic market that benefits businesses and consumers alike. This latest announcement strikes a bold tone but as it stands it isn't really changing anything other than moving the PSR into the FCA. The industry has previously expressed a number of concerns around the PSR, so visually this comes across rather well. What's more, the consolidation of this regulation into the FCA - given its broader remit for financial services regulation - arguably makes sense. However, the proof will be in the pudding as to whether this really results in any substantive changes to the types and the approach of the regulation. The abolition of the PSR and the shift to the FCA represents a major regulatory shake-up for the UK payments sector. Regulatory consistency is essential to fostering innovation and cross-border growth. On the positive side, streamlining oversight could reduce operational friction and make compliance more predictable, which is particularly beneficial for fintech firms working across multiple jurisdictions. However, the PSR was a strong advocate for payments innovation and competition. The UK has long positioned itself as a fintech powerhouse. To retain this status, the transition must not come at the cost of progress in financial inclusion, next-gen payment technologies, and cross-border payment accessibility. The new government's mission to increase competitiveness by reducing red tape and bureaucracy needs drastic change. In terms of payments, the confusion to which regulator to focus on by banks has been evident since the introduction of the PSR and the shuffling of schemes and responsibility between authorities has created a clouded view of compliance to regulations. This change puts the focus purely on a single regulator and a single point of contact. As the landscape of financial services is evolving with the introduction of digital finance, regulatory evolution is needed to meet and govern the market's needs. The FCA's decision gives firms and investors greater certainty and predictability, which is good for the UK's international competitiveness and wider economic growth. It is hugely positive that the FCA has been willing to proactively and constructively engage with industry on this issue - especially given the significant impact the proposed changes would have had on the UK's status as a world-leading international financial centre. We look forward to continuing this positive engagement to support their commitment to the competitiveness of the UK's regulatory environment and the government's growth mission. If regulators adhered to the rules of the market, the PSR and FCA would have merged years ago. The PSR was beyond its 'use by' date, with its structure and governance designed for a different world. Today's world demands resourceful, agile, responsive regulators that are in tune with the market. A world in which regulators let entrepreneurs get on with what they do best: investing in new products and improved services that better serve the interests of consumers and companies everywhere. If they can do this – without carrying an unnecessary burden of compliance, reporting and consumer protection to the Nth degree – then they will grow, reinvest and grow more. We note the Financial Conduct Authority's (FCA) commitment to focusing on effective regulation and reducing large-scale initiatives. Should the PSR be absorbed by the FCA, it is imperative that any changes do not diminish the quality of regulatory oversight, especially in areas vital to innovation and investment. We believe effective regulation, that enables growth, can be achieved without unnecessary bureaucracy. We welcome this decision from the government to abolish the Payment Systems Regulator (PSR). The Prime Minister has said that the pervious government hid behind regulators. I want to go further and add: the previous government hid behind regulators issuing wrong regulations. The PSR very much sealed its own fate by continuing to ignore the industry's advice on APP fraud. Although it could be commended for its last-minute U-turn to lower the threshold. A long series of mistakes has triggered a complete rethink on the point of its existence. It's about time a bold decision was made. Go ahead, Keir! "PSR axed – industry reaction" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

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