On 20 January 2020, the PSR consulted on varying specific direction 10 (SD10) on confirmation of payee. SD10 was given to the six largest banks in August 2019, requiring them to implement confirmation of payee from 31 March 2020. In the consultation they proposed:
- to introduce an additional basis for payment system providers to ask for an exemption from an obligation under the direction (the only current basis related to exceptional circumstances); and
- to exempt HSBC UK Bank Plc from the obligations of the direction in respect of accounts that form part of HSBC Group’s Private Banking brand.
They received 12 responses in total.
On 14 February 2020, the PSR set out it’s decision on varying SD10 which is to give SD10 the form set out in their original proposal but with one change. That is to make clear that they will also impose a new date for compliance with SD10 if they approve an exemption under the additional basis.
The varied SD10 (dated February 2020) has been published alongside the policy statement.