The Government has
today published a consultation on the future regulation and
governance of the payments industry, Mark Hoban, Financial
Secretary to the Treasury, has announced. The payments industry,
which sets strategy on important payment mechanisms including the
future of cheques, is central to the functioning of the economy,
yet the Government does not feel it has always responded
effectively to the needs of consumers.
The consultation - which forms part of a package of measures
announced today that will increase competition and consumer
protection in the banking sector - proposes reforms that will
protect those who rely on more traditional payment mechanisms by
ensuring that consumer concerns are taken into account.
The Government’s preferred option is the creation of a new body -
the Payments Strategy Board - to monitor and make recommendations
to the payments industry. It would be run by a mixture of senior
industry and non-industry representatives, including from consumer
organisations. This board would ensure that competition concerns
and consumer views would be fully considered as part of the
decision making process.
Mr Hoban said:
“We need a payments system that responds to
the needs of customers and is not just run for the banks. Today’s
package of measures is another step by the Government to make sure
that the financial sector provides an effective and competitive
service to the real economy.”
Notes for Editors
1. Today’s consultation comes as part of a package of measures to
increase competition and further help to protect consumers,
including the sale of Lloyds branches to the Co-operative Bank and
additional powers for the Office of Fair Trading to protect
consumers in the consumer credit market.
2. The consultation, which proposes three options for reform of
the payments services industry, closes on 10 October 2012. The
full consultation paper can be found here: http://www.hm-treasury.gov.uk/consult_setting_strategy_uk_payments.htm
3. It follows the publication in June 2012 of the Government’s
White Paper, which details how the Government will implement the
recommendations of the Independent Commission on Banking (ICB).
The White Paper can be found here: http://www.hm-treasury.gov.uk/fin_stability_regreform_icb.htm
4. On 16 June 2010, the Chancellor of the Exchequer and the
Secretary of State for Business announced the creation of the ICB,
to be chaired by Sir John Vickers. The Commission was asked to
consider structural and related non-structural reforms to the UK
banking sector to promote financial stability and competition, and
to make recommendations to the Government by the end of September 2011.
Non-media enquiries should be addressed to the Treasury
Correspondence and Enquiry Unit on
020 7270 5000 or by e-mail
to public.enquiries@hm-treasury.gov.uk
This Press Release and other Treasury publications are available
on the HM Treasury website
hm-treasury.gov.uk For the latest
information from HM Treasury you can subscribe to our RSS feeds or
email service.
Media enquiries should be addressed to the
Treasury Press Office on 020 7270 5238.
Contacts:
HM Treasury Press Release
GlideBouncebacks@HMTreasury.gsi.gov.uk