New objectives and regulatory principles Chair of the Payment Systems Regulator as member of FCA Board
The PSR is a body corporate which was established by the FCA under Part 5 of the Financial Services (Banking Reform) Act 2013 (FSBRA 2013), to exercise regulatory functions in relation to payment systems. Under paragraph 2(2)(a) of Schedule 4 to FSBRA 2013, the FCA is responsible for appointing a member to chair the board of the PSR (the PSR Chair), with the approval of HM Treasury.
	The "governing body" of the FCA (the FCA Board) is formed in accordance with paragraph 2 of Schedule 1ZA to FSMA 2000. Under paragraph 2(2)(a), HM Treasury is responsible for appointing a chair to that board (the FCA Chair). Under paragraph 2(3), certain members of the FCA Board are non-executive members.
	Until 1 May 2022, the same individual was appointed to the offices of FCA Chair and PSR Chair. Therefore, the PSR Chair was effectively a member of the FCA Board. However, the PSR Chair is no longer the same person as the FCA Chair, and the PSR Chair is not currently listed as a member of the FCA Board in paragraph 2(2) of Schedule 1ZA to FSMA 2000.
	The Act adds the PSR Chair to that list, so that the PSR Chair will become a member of the FCA Board in their own right. It also amends paragraph 2(3) to specify that the PSR Chair is to be a non-executive member.
	The Act also ensures that the following provisions in Schedule 1ZA FSMA 2000 will be extended to apply to the PSR Chair as member of the FCA Board:
Paragraph 3(6), which provides that an employee of the PRA cannot be an "appointed member" of the FCA Board.
Paragraph 3(7), which allows the FCA to pay expenses to the Bank’s Deputy Governor for prudential regulation for service as a member of the FCA Board.
Paragraph 6, which prohibits the Bank’s Deputy Governor for prudential regulation from taking part in discussions about the exercise of the FCA’s powers in relation to particular persons.