Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to correspondence of 19 July 2023 to HM Treasury from the fintech industry, whether his Department plans to update to the 2018 Report entitled The impact of improved transparency of foreign money transfers for consumers and SMEs; if his Department will take steps to implement the mid-market exchange rate as a basis for all cross-border transfers made from financial institutions in the UK that require mark-ups over the mid-market rate to be clearly displayed; and if he will set out a timeline for the introduction of price transparency in cross-border transfers and FX rates.

The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers and enabling consumers to make informed choices.

There are a number of existing requirements both in payments legislation and in FCA rules in relation to providing information on fees and conversion rates. The Government invited views on information requirements through its recent Call for Evidence on the Payment Services Regulations 2017, which also sought views on the Cross Border Payments Regulation and its requirements in relation to currency conversion transparency.

The Government will take these views into consideration as it determines its approach to the UK’s future regulatory framework, as part of the Smarter Regulatory Framework (SRF) programme to repeal retained EU law in financial services, and replace it with legislation and rules designed for the UK. The Government will publish its response to the Call for Evidence in due course.