The Financial Services (Banking Reform) Act 2013 provides that some of the functions of the Competition and Markets Authority (CMA) under part 4 of the Enterprise Act 2002 will be functions exercised concurrently with the payment systems regulator, so far as those functions of the CMA relate to participation in payment systems.
The legislation also imposes a requirement on the CMA and the payment systems regulator to consult each other before exercising any of their concurrently exercisable competition functions, and prevents one exercising functions in relation to a matter if the other had already exercised those functions in relation to that matter. The CMA will be required to report on the exercise by the payment systems regulator of its concurrent competition powers.
Persons affected by certain decisions of the payment systems regulator will be able to appeal against the decision, and certain decisions will qualify as “CMA-appealable decisions”, to be appealed to the CMA.
This structure will deliver a focused regulator of payment systems that is able to co-ordinate effectively with other key bodies in this area.