The UK Government introduced Payment services legislation in 2017 to implement the second European Payment Services Directive (PSD2). The Legislation will come into force in the UK in January 2018. Under this legislation credit institutions will be required to provide payment service providers (PSPs) with access to payment accounts on a proportionate, objective and non-discriminatory basis, and report instances where access has been denied to the UK Financial Conduct Authority (FCA). 

In 2017 the UK Government introduced new Money Laundering Regulations; issued guidance on money service business (MSB) and Banking supervision; embarked on greater MSB supervision; conducted research; and, provided Technical assistance. 

The Government is working with regulators, including the FCA, Payment Systems Regulator (PSR) and Bank of England to create a more competitive financial services system. This includes: PSR’s work on broadening indirect access to payment systems; legislation to allow direct access to payment systems for non-bank payment service providers (PSPs); and FCA sandbox and Project Innovate initiatives to encourage innovative new firms (e.g. digital) to enter the market.