Give feedback on draft legislation for a new regulatory framework for payment service providers.
What we are consulting on
We have released the full package of draft Tranche 1 legislation. It covers:
- definitions of regulated payment functions
- licensing obligations, including how certain providers must safeguard payment-related money
- exemptions and exclusions
- rules for unclaimed monies
- a new prudential framework
- a power to make rules for a mandatory and revised ePayments Code
- transitional arrangements
We have also released an early, partial draft of exemption and exclusion regulations.
Background
This release includes feedback from the Tranche 1a consultation. That consultation ran from 9 October to 6 November 2025. It covered core concepts and licensing obligations.
These form part of the payments licensing reform.
