Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will give overall responsibility to the Financial Conduct Authority (FCA) for maintaining a well-functioning cash system; and what discussions his Department has had with the FCA on that matter.

The Government’s consultation on proposals for protecting access to cash for the long term will be open until 23 September 2021. Following the consultation, the Government will set out next steps for delivering on its commitment for legislating to protect access to cash.

The consultation is available at: https://www.gov.uk/government/consultations/access-to-cash-consultation.

As detailed in its consultation, the Government proposes that the Financial Conduct Authority (FCA) becomes the lead regulator for oversight of the retail cash system, including having responsibility for monitoring and enforcing new legislative cash access requirements. In adopting this approach, the Government intends that the Payment Systems Regulator (PSR) and Bank of England continue with their existing functions with regards to cash; coordinated actions by the FCA and PSR on cash as part of the COVID-19 response have shown that joint working between the regulators, at both strategic and operational levels, is working effectively.

The Government has, and continues to be, closely engaged with the FCA, PSR, Bank of England, and industry in developing its cash access proposals, including through the Joint Authorities Cash Strategy Group, which provides a forum for the public bodies to formally co-ordinate respective approaches to access to cash. The Group is chaired by HM Treasury and attended by the Bank of England, PSR, and FCA.