The PSR employs specific guidelines and mandates as instruments to compel companies to execute enhancements in payments for individuals and enterprises throughout the United Kingdom. Examples of these improvements are the Confirmation of Payee name verification service and authorized push payment (APP) fraud reimbursement protocols.

Nonetheless, the PSR acknowledges that there might be situations in which an exemption or extension would be suitable. The suggested guidelines give businesses precise instructions on when and how to interact with the PSR to resolve these issues and find a workable solution

The PSR is seeking feedback on its proposal to raise the threshold for granting an extension or exemption in order to encourage companies to follow the regulator's instructions and ensure that everyone using payment systems experiences better results as soon as possible. The consultation period is open until June 3, 2024.
 

"This proposed guidance aims to increase transparency for firms around the factors we look at when considering exemption or extension requests, and ultimately supports the delivery of our objectives," stated Oliver Hanmer, the PSR's head of supervision and compliance monitoring.

To be clear, we are not encouraging non-compliance by offering consultation on this guideline. We want as many individuals and businesses to gain from the action we take, which is why we propose a high threshold for exemptions and extensions.
 

"We will always begin with the expectation that all directed firms have completed the required actions to ensure compliance by the specified deadlines."

PSR recommendations
Additionally, the PSR clarified that it anticipates granting delays and exclusions under specific conditions. When evaluating a request for an extension or exemption, the PSR should examine the following four important elements, according to the guidance:
 

Whether providing an exemption or extension would have a negative effect on users of payment systems, compromise any legally-mandated goals of the PSR, or compromise the priorities outlined in the PSR's five-year strategy. The PSR would be hesitant to approve the request if doing so would compromise these goals.
The background from which the particular direction or demand originated, along with the fundamental policy objectives and the salient elements established by the particular direction or need.
The regulated firm's burden as well as any potential effects on other firms or consumers in general if the request is denied.
Regarding requests for extensions, the actions the regulated party has taken to guarantee that it will adhere to the regulations on time and that any risks to markets and/or service consumers have been minimized.