The Bank for International Settlements’ (BIS) Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) have published a detailed review concluding that the United Kingdom maintains a robust and largely compliant framework for overseeing two critical categories of financial market infrastructures (FMIs).
The assessment, released on 16 April 2026, focuses on systemically important payment systems (PSs) as well as central securities depositories (CSDs) and securities settlement systems (SSSs).
It confirms that the UK’s legal, regulatory, and supervisory arrangements are fully consistent with the internationally agreed Principles for Financial Market Infrastructures (PFMI) in the case of payment systems, while showing broad consistency for CSDs and SSSs with only limited gaps remaining.
The Level 2 assessment report, formally titled “Implementation monitoring of PFMI: Level 2 assessment report for the United Kingdom – PSs and CSDs/SSSs,” evaluates the completeness and consistency of the UK’s oversight regime as it existed on 30 September 2023.
Any regulatory or legislative updates introduced after that cut-off date fall outside the scope of the analysis.
According to the research findings, the United Kingdom’s arrangements for systemically important payment systems fully satisfy all 24 PFMI principles.
These global standards, first issued by CPMI and IOSCO in 2012, set minimum requirements designed to promote the safety, efficiency, and resilience of FMIs that support the smooth functioning of financial markets.
For central securities depositories and securities settlement systems, the UK framework is also judged complete and consistent across the majority of principles.
However, the report identifies specific areas where implementation is only broadly consistent, partly consistent, or, in a few cases, not consistent with the PFMI.
Particular attention is drawn to certain aspects of risk management and governance arrangements, where authorities are encouraged to strengthen existing measures to achieve full alignment.
These recommendations are not presented as fundamental weaknesses but as opportunities to refine an already solid regulatory structure.
Importantly, the current review does not revisit the United Kingdom’s oversight of central counterparties (CCPs) or trade repositories.
Those categories were previously examined in a separate 2015 CPMI-IOSCO assessment that covered EU-based entities, reflecting the regulatory landscape prior to the UK’s departure from the European Union.
The publication of this report forms part of CPMI-IOSCO’s ongoing global monitoring program to ensure that jurisdictions implement the PFMI consistently.
FMIs such as payment systems and securities settlement platforms underpin everyday financial transactions, clearing, and settlement activities worth trillions of dollars daily.
By confirming high levels of compliance in the UK, the assessment reinforces London’s position as a leading international financial center while signaling a clear path for targeted improvements that could further bolster systemic resilience.
Overall, the CPMI-IOSCO review offers a positive verdict on the maturity of the UK’s FMI oversight regime.
It underscores the effectiveness of post-crisis reforms while providing practical guidance for continued alignment with the world’s highest regulatory benchmarks. Stakeholders in the UK financial sector are expected to review the detailed findings as authorities consider next steps to address the identified areas for refinement.