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In March 2026, the Financial Conduct Authority (FCA) published its Regulatory Priorities report for the payments sector, replacing more than 40 previous portfolio letters. The report sets out the FCA's key areas of focus for firms authorised or registered under the Payment Services Regulations 2017 and the Electronic Money Regulations 2011. The FCA has identified four primary priorities for the payments sector. First, it will continue policy work on open banking, stablecoins, and modernising payments regulation to support innovation and competition. Second, it will engage with firms to ensure effective implementation of the Consumer Duty, with particular focus on international payment pricing transparency and treatment of vulnerable consumers. Third, it will protect financial system integrity by assessing firms' governance, systems and controls, and tackling financial crime including money laundering and authorised push payment fraud. Fourth, it will ensure customers' money remains safe through implementation of its new Safeguarding Supplementary Regime, which comes into force in May 2026. The FCA expects firms to assess their products, services and processes against applicable rules on an ongoing basis and address compliance gaps immediately. The report notes that electronic money institutions safeguarded approximately £26bn in 2024, up from £11bn in 2021, and payment institutions safeguarded an estimated £6bn per day in 2024. The FCA will continue assessing firms' governance and systems at the gateway for new authorisations and registrations, and will take robust supervisory and enforcement action against firms failing to meet standards. The report also outlines the FCA's work on open finance, with a roadmap to be published by end of March 2026, and its stablecoin policy development, including final policy statements expected in 2026.

On March 25, 2026, the Financial Conduct Authority (FCA) published its regulatory priorities report on Payments. This report will be published annually and replaces the portfolio letters the FCA used to issue. The report focuses on four priorities and sets out expectations of firms beneath each: Preparing for the future to support effective competition, innovation and growth. Prepare for the future: A policy work on open banking, stablecoins, and modernising payments regulation continues, firms should begin proactive preparation and invest where needed to ensure they are compliance-ready. Engage with the FCA: The FCA encourages firms to respond to policy papers and join events, to ensure that future regulation is fit for purpose and allows firms to innovate safely. Use the FCA’s innovation services: The FCA can help firms bring their ideas to market in a controlled and sustainable way. Prepare for authorisation: Firms intending to apply for authorisation or registration should prepare thoroughly and consider using the FCA’s pre-application support service. Prepare for the future: A policy work on open banking, stablecoins, and modernising payments regulation continues, firms should begin proactive preparation and invest where needed to ensure they are compliance-ready. Engage with the FCA: The FCA encourages firms to respond to policy papers and join events, to ensure that future regulation is fit for purpose and allows firms to innovate safely. Use the FCA’s innovation services: The FCA can help firms bring their ideas to market in a controlled and sustainable way. Prepare for authorisation: Firms intending to apply for authorisation or registration should prepare thoroughly and consider using the FCA’s pre-application support service. Ensuring firms implement the Consumer Duty effectively. Ensure ongoing compliance: Firms should assess their products, services, and processes against all relevant rules and guidance, including the Duty, on an ongoing basis, and address compliance gaps immediately. Read FCA’s good and poor practice publications: Firms should consider the following to improve their practices: (i) Implementing the Duty , (ii) International payment pricing transparency , (iii) Delivering good outcomes for consumers in vulnerable circumstances , (iv) Cryptoasset financial promotions and fiat-to-crypto on/off ramp service . Ensure ongoing compliance: Firms should assess their products, services, and processes against all relevant rules and guidance, including the Duty, on an ongoing basis, and address compliance gaps immediately. Read FCA’s good and poor practice publications: Firms should consider the following to improve their practices: (i) Implementing the Duty , (ii) International payment pricing transparency , (iii) Delivering good outcomes for consumers in vulnerable circumstances , (iv) Cryptoasset financial promotions and fiat-to-crypto on/off ramp service . Protecting financial system integrity. Have effective governance, capability, and systems and controls: Firms should have effective governance arrangements and systems and controls to identify, assess and mitigate risk. Prepare for the future: Firms should invest where needed, such as further embedding operational resilience and complying with the FCA’s new rules on Incident and Third-Party Reporting . Firms should also engage with the FCA on their work to modernise payments regulation. Have effective governance, capability, and systems and controls: Firms should have effective governance arrangements and systems and controls to identify, assess and mitigate risk. Prepare for the future: Firms should invest where needed, such as further embedding operational resilience and complying with the FCA’s new rules on Incident and Third-Party Reporting . Firms should also engage with the FCA on their work to modernise payments regulation. Keeping customers’ money safe. Have effective governance, capability, and systems and controls: Firms should have effective governance arrangements and systems and controls to identify, assess and mitigate risk. Prepare for the future: Firms should invest where needed and be ready to implement the FCA’s new safeguarding rules , which come into force in May. Have effective governance, capability, and systems and controls: Firms should have effective governance arrangements and systems and controls to identify, assess and mitigate risk. Prepare for the future: Firms should invest where needed and be ready to implement the FCA’s new safeguarding rules , which come into force in May. The report also highlights other areas of focus, such as stablecoins, artificial intelligence and open banking and finance.

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Financial Conduct Authority Publishes Regulatory Priorities for Payments Sector

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UK’s Financial Conduct Authority Publishes its Regulatory Priorities Report on Payments