Following two rounds of consultation on the regulatory framework for payments service providers (PSPs) over the past year, it is understood that legislation will be introduced in at least two tranches. The first tranche is expected to focus on the overarching legislative framework for the licensing regime, including the definitions of payment functions and regulatory responsibilities. Other aspects of the PSP regulatory framework – including the industry standards setting framework – are expected to be covered in the second tranche.

The timing of the release of the exposure draft for the first tranche is currently uncertain due to competing legislative priorities and other items but we may see before the end of this calendar year.