Miscellaneous Liability of payment service providers for fraudulent transactions The Financial Services (Banking Reform) Act 2013
FSBRA 2013 specifically Part 5, as supplemented by Schedule 4, established the PSR, and specifies the entities it regulates (namely designated payment systems and their participants), provides for the PSR’s objectives and powers in relation to those regulated entities, and how those powers are to be exercised.
	Under section 43 of FSBRA 2013, HM Treasury may by order designate a payment system and its participants for regulation by the PSR, provided certain criteria (in section 44 of that Act) are met.
	The PSR’s objectives, in summary, include: to promote effective competition in the markets for payment systems and services - between operators, payment service providers (PSPs) and infrastructure providers (the "competition objective"; section 50 of FSBRA 2013); to promote the development of and innovation in payment systems, in particular the infrastructure used to operate those systems (the "innovation objective"; section 51 of FSBRA 2013) and to ensure that payment systems are operated and developed in a way that considers and promotes the interests of all the businesses and consumers that use them (the "service-user objective"; section 52 of FSBRA 2013).
	In order to achieve these objectives, the PSR may give direction to regulated participants (section 54 of FSBRA 2013), and/or require payment system rule changes (section 55 of FSBRA 2013).