Talking Regulation: Payment Systems Regulator: Imperfect Timing?

Rumours last week that Chris Hemsley, the Managing Director of the Payment Systems Regulator (PSR) would be leaving his role, were confirmed yesterday with an official statement from the PSR saying Hemsley would be stepping down from 7th June. To say this has come as a shock, would be an understatement. Until last week, I think it is fair to say it is something that few in the Payments industry would have predicted.

2024 is the year of the PSR’s controversial reimbursement policy, due to take effect in October, which would see payment service providers (PSPs) required to share refunds of up to £415,000 to customers who have been victims of Authorised Push Payment (APP) Fraud. An unpopular policy with PSPs and many critics across the industry including, more recently, the government itself. It was suspected that debate around the policy would be picked up again post the July election, likely with a completely new government.

Is it that Hemsley has chosen to seek an early exit from these discussions? The lack of any meaningful notice period adds fuel to that speculation. After receiving his resignation, did the PSR want to focus on getting in a replacement as soon as possible, to steady the ship? Well, ‘Hey Presto’, the PSR has certainly moved swiftly to appoint the FCA’s David Geale as interim Managing Director. He has good firm-based knowledge and understanding of payments and, to me, seems a great choice. What do you think about the likely future of the reimbursement policy now?