Stay informed with free updates
Simply sign up to the UK financial regulation myFT Digest — delivered directly to your inbox.
The head of the UK payments regulator will step down after nearly five years, as the watchdog faces growing criticism over its proposals to force banks and companies to reimburse fraud victims.
Chris Hemsley, who was appointed managing director of the Payment Systems Regulator in 2019, will leave “imminently”, the body said on Friday. The regulator told the Financial Times that Hemsley had decided to leave his role and that an interim replacement would be appointed in due course.
The regulator’s statement came after the FT reported that Hemsley, who was previously head of policy and strategy, was expected to announce his departure in the coming weeks, according to two people familiar with the matter.
The watchdog was created in 2015 and is one of the only dedicated payments regulators globally. It has recently faced a backlash from the industry and the government over its plans to reimburse victims of fraud by up to £415,000 from October.
The Payments Association, a trade body, wrote to the government to warn that the changes could threaten the viability of smaller payment companies. City minister Bim Afolami subsequently hit out at the watchdog in an interview with the Financial Times, citing “significant problems” with the rules.
Trade body UK Finance has also criticised the proposals, saying they risk encouraging more “complicit fraud”, as fraudsters could be incentivised to pose as victims in order to illegitimately claim compensation money.
One person familiar with the matter said the exit of Hemsley, who is expected to take a new role as director at advisory firm Fingleton later this year, had not been prompted by interference from the Treasury.
Under Hemsley’s leadership, the regulator has led two reviews into Mastercard and Visa’s fee structure in the UK. Last year, it proposed reintroducing a cap on card fees imposed for online transactions between the UK and EU that had been scrapped after Brexit.
Earlier this month, the watchdog outlined plans to force the card duopoly to share more information about the fees they charge merchants in an attempt to foster transparency and increase competition.
Before joining the PSR, Hemsley was deputy director of Railway Markets and chief economist at the Office of Rail and Road. He has also led the Civil Aviation Authority’s work on competition and consumer protection. Hemsley sits on the PSR’s board as executive director.
PSR chair Aidene Walsh thanked Hemsley for his leadership at a time of “significant changes” for the industry and said he had “transformed the organisation, increasing its impact, and leaves it in a strong position”.
