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The FCA’s
08/05/26
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FCA Regulatory Priorities for Payments: What firms need to act on now
The FCA’s Regulatory Priorities: Payments report (March 2026) sets out a supervisory agenda for payment and e‑money firms under the Payment Services Regulations and Electronic Money Regulations. Replacing portfolio letters, the report is intended as a practical guide for boards and senior managers on where regulatory scrutiny will focus over the year ahead.
The FCA’s core themes for the payments sector
Across the report, four consistent themes emerge:
- Preparing for future regulation and innovation
The FCA continues to support innovation in areas such as open banking, variable recurring payments, stablecoins and digital payments, but stresses that growth must be underpinned by compliant governance and operational readiness. Firms are expected to invest early to remain aligned with regulatory change and engage actively with policy development and supervisory initiatives.
- Delivering the Consumer Duty in practice
While some payments firms aredemonstrating improved outcomes, the FCA highlights ongoing weaknesses in pricing transparency (particularly international payments), treatment of vulnerable customers and governance oversight. Firms are expected to assess products and services continuously against the Consumer Duty and address gaps without delay.
- Protecting financial system integrity
Financial crime prevention and operational resilience remain priority areas. The FCAexpects robust systems and controls, skilled oversight, and readiness for new Incident and Third‑Party Reporting requirements. Weak resilience or ineffective controls are framed as risks not just to firms, but to market confidence and competition.
- Keeping customers’ money safe
Safeguarding remains a centralsupervisory concern. With the Safeguarding Supplementary Regime coming into force, firms must demonstrate effective governance, resilient safeguarding arrangements and credible wind‑down planning. The FCA makes clearly outlines that weaknesses here will attract intervention.
What actions firms should prioritise now
For payments firms, the report points to several immediate actions:
- Re‑test governance, safeguarding and resilience frameworks against current FCA expectations
- Evidence ongoing Consumer Duty assessments and board‑level oversight
- Prepare for incident, third‑party and safeguarding rule changes before enforcement activity increases
- Ensure innovation initiatives are matched with compliant controls and clear accountability
How TCC can support your firm
TCC supports financial services firms by strengthening governance, operational resilience and regulatory evidence frameworks – helping firms demonstrate control, oversight and readiness under evolving FCA expectations. Our interim resourcing and experienced interim leadership help you drive transformation and maintain compliance during periods of change.
To discuss how your firm can respond to the FCA’s payments priorities with confidence, get in touch now.