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The ninth edition of the UK’s Regulatory Initiatives Grid, published in December 2025, sets out the country’s financial services regulatory agenda for the next two years.
The grid is intended to help the UK financial sector and stakeholders plan for regulatory changes that could have an operational impact. For example, it highlights regulators’ priorities, which include regulatory streamlining and consumer protection.
Payments firms and other financial institutions operating in the UK can find insights in the grid into what the regulators will be prioritising over the coming months, what consultations they should consider responding to and how the regulatory environment could change.
In this piece, Vixio examines what the regulators have outlined in the payments section of the latest regulatory grid, explains the likely impact of developments on financial institutions and suggests what the regulators’ stated priorities tell us about the direction of travel in the UK.
Timeline for 2026 (download here)
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Regulator and Initiative |
Why should you care? |
Rating, Deadlines & Resources |
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BoE Overnight safeguarding facilities in the Bank’s RTGS service for non-bank payment service providers (NBPSPs) The central bank is considering offering overnight safeguarding facilities to FCA-authorised NBPSPs – e-money institutions (EMIs) and payment institutions. Previously NBPSPs were limited to settlement accounts within the Real-Time Gross Settlement (RTGS) service. |
Since 2017, NBPSPs have been eligible to hold accounts to support payment system settlement, in the bank’s RTGS system. However, NBPSPs remain unable to open a reserves account or hold funds in RTGS overnight for safeguarding purposes. As such, NBPSPs must safeguard in an account with a commercial bank. The ability to safeguard with the Bank’s RTGS service overnight could help PSPs and EMIs:
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The bank expects to communicate its policy decision and any next steps for implementation in H1 2026. Relevant Resources |
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BoE Review of Real-Time Gross Settlement (RTGS) and CHAPS settlement hours After launching RTGS in April 2025, the Bank is exploring longer CHAPS settlement hours, aiming for near-round-the-clock operations by around 2030. A phased approach is planned. In July 2025 the Bank consulted on moving the CHAPS start time earlier to 01:30 from H2 2027, as well as on opening on certain bank holidays and extending the evening contingency window to 22:00. The BoE is reviewing responses and plans to issue a policy statement in early 2026. A separate consultation on the broader move to near-24x7 settlement will also be published in early 2026. |
PSPs that send or receive CHAPS payments will need to consider how their operational and staffing plans will be impacted by any change to CHAPS settlement hours. Should the BoE confirm its plans to run CHAPS on certain bank holidays, customer expectations may also change. PSPs will need clear customer communications on cut-offs and availability, and contractual terms and SLAs may need updating. |
The BoE plans to issue a policy statement on amending CHAPS hours in Q1 2026. A separate consultation on the broader move to near 24/7 settlement is expected to be issued in early 2026. The BoE will provide at least one year’s notice of implementation. Relevant Resources |
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BoE Central Counterparty (CCP) Resolution – the Bank’s power to direct a CCP to address impediments to resolvability In December 2024, the BoE published a Statement of Policy explaining how it expects to use its power, confirming it will assess individual CCPs’ resolvability and define the outcomes needed to support orderly resolution. The BoE plans to provide more detailed guidance on this approach in the first half of 2026. |
The BoE will be actively assessing whether individual CCPs can be resolved without disrupting the wider financial system. If a CCP has barriers to resolution, the BoE can now require changes. Firms that rely on CCPs may therefore face revised participation requirements or financial exposure, and may have to adjust their own resolution planning accordingly. |
Publication of further detail on the Bank’s proposed approach is due in H1 2026. Relevant Resources |
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FCA/PRA Regulatory requirements for new cryptoasset and stablecoin regime Certain cryptoasset activities will be brought within the FCA’s regulatory perimeter under the Regulated Activities Order, alongside new admissions, disclosure and market abuse regimes. The FCA’s cryptoasset roadmap outlines the timetable for publishing the rules and requirements needed to implement this new framework. The PRA’s consultation on its proposed prudential requirements for systemic stablecoins is also underway. |
Firms involved in issuing, trading or providing services around cryptoassets will need to assess whether they fall within scope and prepare for new regulatory obligations. They may need to upgrade their governance, controls and reporting frameworks. Firms planning to undertake regulated cryptoasset-related activities will require FCA authorisation and ongoing compliance with conduct, disclosure and market abuse rules. Any organisations currently or planning to utilise or issue systemic stablecoins will be subjected to PRA oversight and requirements once its rules have been finalised. |
The application period for authorisations under the new cryptoasset regime runs from September 30, 2026 to February 28, 2027. The FCA’s cryptoasset regime commences on October 25 2027. Relevant Resources |
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FCA Changes to safeguarding requirements for payments and e-money institutions In August 2025, the FCA introduced new rules to strengthen how payments and e-money firms safeguard client funds, creating a supplementary regime to improve compliance with existing requirements under the E-Money and Payment Services Regulations. Subject to legislative changes, the FCA also proposes a longer-term post-repeal regime that would replace the current safeguarding framework. The regulator will review feedback and assess the effectiveness of the supplementary regime before deciding whether to move forward with the post-repeal regime. |
In the near term, firms must comply with the new supplementary regime, which is designed to tighten safeguarding practices and improve consistency with existing rules. It requires enhancements to reconciliation processes, segregation arrangements, record-keeping, governance oversight and audit readiness. Firms will also need to consider how the potential post-repeal regime could fundamentally replace the current legal framework, resulting in a more prescriptive and FCA-led safeguarding model. They should therefore treat this as both an immediate compliance uplift exercise and a strategic regulatory change that could affect operating models, trust or safeguarding account structures, and senior management accountability. |
New safeguarding rules come into effect on May 7, 2026. The Financial Reporting Council (FRC) will consult on the safeguarding assurance standard it is developing in H2 2026. Publication of the final assurance standard is expected in H1 2027. Relevant Resources |
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PSR Market review of card scheme and processing fees In March 2025, the PSR’s market review found weak competition between Mastercard and Visa led to rising fees and uncertainty for businesses about card acceptance costs. In April 2025, the regulator consulted on four potential remedies. It has decided to implement two of those remedies: the information, transparency and complexity remedy and the pricing governance remedy. The PSR is now consulting on the detailed form of the directions we are proposing to make. It also expects to consult on the draft direction for a third remedy, regulatory financial reporting, by March 31, 2026. |
The PSR’s remedies matter to firms because they will shape how Mastercard and Visa operate and interact with their clients. The information, transparency and complexity remedy requires the card schemes to provide more information on fees so merchants can better understand the fees they are charged and ultimately reduce costs. The pricing governance remedy compels card schemes to evidence pricing decisions, which is expected to place downward pressure on prices. |
The information and Pricing Remedy consultation closes in February 2026. The consultation on regulatory financial reporting is due to be issued by March 31, 2026. A final decision on the remedies is expected in May/June 2026. Relevant Resources |
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PSR Authorised push payment (APP) scam prevention The PSR continues to work with stakeholders to embed the APPR rules and has commissioned an independent evaluation of its APP fraud policies, launched in Q3 of 2025. |
All firms currently subject to APPR regulations should monitor further changes to the reporting standard and the operationalisation of the policy once the findings of the independent review are shared. This will likely mean changes to internal operations and the reporting process. Firms have been struggling with the complexity of reporting requirements under Reporting Standard A, and have pushed back heavily against a move to Reporting Standard B. As a consequence, their feedback into the independent review will likely focus on changes to existing reporting requirements. We can expect the PSR to subsequently consult on proposed changes, so participation will be crucial to ensure firms make the most out of streamlining reporting requirements and reducing their operational burden. |
Relevant Resources |
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PSR Market review of cross-border interchange fees A market review to understand the rationale for the five-fold increase in the cross-border interchange fees (that affects certain card transactions between the UK and the EEA, where the cardholder is not present) since Brexit. The final report identifying competition concerns has been published, and the PSR is now developing remedies. |
The PSR’s review of the five-fold increase in cross-border interchange fees matters to the card schemes as it is likely to introduce new remedies affecting pricing (such as the proposed price cap), governance, and reporting. Consumers and businesses are likely to be the key beneficiaries of any future remedy. This activity feeds into the broader government scrutiny of the dominance of US card companies – the UK has been exploring alternatives to card networks in a bid to weaken their existing influence. |
Relevant Resources |
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HMT/BoE Digital pound The government confirmed in the National Payments Vision (NPV) that the digital pound is still in the design phase and that, if implemented, primary legislation would ensure users’ privacy and control. However, no final decision has been made. |
The development of a digital pound matters to financial services and payments firms because it could change the UK’s payment infrastructure. Firms may need to adapt systems and products to integrate with a central bank-backed digital currency, while ensuring compliance and protecting customer data. Early planning can help firms stay competitive and take advantage of new opportunities in a potentially transformed payments landscape. However, momentum on the project has been muted in comparison with its counterpart, the digital euro, which European policymakers have been actively advocating for as a means to achieving both payments sovereignty and cost savings for merchants and consumers. |
Relevant Resources |
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FCA/HMT Contactless payment limits The FCA has introduced amendments to its handbook confirming:
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With the elimination of the contactless limit, firms are likely to see much less friction in the consumer payment journey. Additionally, the flexibility of a new risk-based exemption will allow PSPs and banks greater flexibility in applying SCA, encouraging investment in real time fraud monitoring and potentially AI-based analyting rather than relying on “blunt” tools such as limits. |
Relevant Resources |
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FCA/HMT/PSR A Streamlined Approach to Payment Systems Regulation In March 2025, the government announced that it will consolidate the PSR primarily within the FCA. In September 2025, HM Treasury published a consultation setting out proposals for integrating the functions of the PSR within the FCA. The proposed consolidation seeks to deliver a more streamlined regulatory environment. |
Firms should keep a lookout for changes that arise from the consolidation of the PSR into the FCA. The reorganisation will likely have a downstream impact, affecting areas such as supervisory fees and requiring changes to the lead regulator across areas such as fraud. |
Relevant Resources |
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FCA/HMT/BoE/PSR National Payments Vision (NPV) Implementation/Modernising payments assimilated law The government and regulators will take forward work to future-proof the legislative framework for the regulation of payment services and e-money, which promotes innovation in the UK payments sector. Implementation of the key deliverables of the NPV was announced in November 2024, and will continue to progress, with more details to be issued in the Payments Forward Plan. |
Following the publication of the strategy, the Payments Forward Plan will set out a sequenced plan of initiatives across the payments ecosystem. These will include initiatives in both retail and wholesale payments, and the role of digital assets. The roadmap will outline key areas of infrastructure development, regulatory remits and development priorities that firms should consider in product development and ongoing compliance.
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Relevant Resources |
