Linking fast payment systems across borders: governance and oversight – final report

This report - a key deliverable under the G20 cross-border payments programme - aims to inform owners and operators of fast payment systems (FPS) when they are developing the governance and risk management of their FPS interlinking arrangement as well as overseers when they are defining their oversight approach.

Adequate governance and oversight are crucial to help mitigate risks in payments, clearing and settlement and related arrangements. However, given the cross-border and multicurrency nature as well as the different design choices available to interlink FPS, governance and oversight were identified among the key challenges to establish interlinking arrangements. Therefore, the BIS Committee on Payments and Market Infrastructures (CPMI) developed a governance and oversight framework for such arrangements.

This report discusses the main decisions to be taken by operators in developing the governance approach for FPS interlinking arrangements. These decisions include questions of legal setup, ownership and operational structure, governing body type and stakeholder engagement. Also, the report sets out recommendations that overseers should consider when developing an oversight approach for the respective component FPS or a separate entity. The report benefited from insights from concrete interlinking projects and the responses received to the public consultation launched after the publication of the interim report last year.