Clause 178
Banking Bill
12:45 pm
Ian Pearson (Parliamentary Under-Secretary, Department for Business, Enterprise & Regulatory Reform; Dudley South, Labour)
As I explained earlier, the Bank of England clearly has the lead responsibility when it comes to the regulation of inter-bank payment systems. In the case of payment systems within recognised clearing houses and investment exchanges, which are regulated by the FSA, the Bank will again have responsibility for the regulation of the inter-bank payment systems. Certainly in all the consultations in this area, there was overwhelming recognition that there should be a single regulator when it comes to inter-bank payment systems. To avoid duplication between the responsibilities of the FSA in the regulation of recognised clearing houses and recognised investment exchanges and the role of the Bank in overseeing inter-bank payment systems, there will be a memorandum of understanding between the Bank and the FSA. It will ensure that there is effective co-ordination and minimum duplication of regulations.