FCA became lead regulator on access to cash

The Financial Conduct Authority became the lead regulator on access to cash in 2023, according to the Payment Systems Regulator¹. The PSR, which had carried out research into cash access, use and acceptance, states the change on its consultation page for CP19/6¹.

The PSR's own work in this area dates back further. Its second call for views paper focused on what consumers' cash needs are, building on research into cash access, use and acceptance¹. That consultation closed on 6 September 2019¹.

The regulator commissioned BritainThinks to ask consumers and small businesses across the UK about their cash use and, for small businesses, acceptance¹. The PSR said it was particularly interested in how use of cash may evolve and how best to ensure a network of cash outlets that meets people's needs¹. It also sought to understand the role of alternatives to ATMs for accessing cash, such as the Post Office, bank branches and cashback, and the barriers to people using them¹.

The PSR described cash as remaining a central choice in how people pay. It said: "Making sure we all have a choice about how we pay for things is important. Cash remains, and will continue to remain, a central one of those choices."¹

The sources do not set out the specific rules the FCA applies as lead regulator, the date within 2023 on which the role transferred, or how the PSR's responsibilities changed. Those details have not been reported in the material available.

Why it matters for households

The identity of the lead regulator matters to anyone who relies on cash, including people who use it for budgeting, those in areas where bank branches and free-to-use cash machines have closed, and small businesses that accept notes and coins. From 2023, the Financial Conduct Authority rather than the PSR has led on access to cash, so questions about the cash network, banking hubs and deposit services sit with a different body than before.

The PSR's earlier research looked at the cash needs and preferences of consumers and businesses, and at alternatives to ATMs such as the Post Office, bank branches and cashback¹. That work informs the financial inclusion debate about who can still pay in and withdraw cash, and where.

What happens next

The PSR's CP19/6 consultation closed on 6 September 2019¹. The findings of its research into consumer and small-business cash use were published alongside the call for views paper, together with a full research report and appendices¹. No further steps are set out in the source.