FIN.

Category - Payment Services & Electronic Money

Pay.uk responds on VRP expansion

Pay.uk has responded to PSR’s proposal to expand variable recurring payments. In principle, it supports a multilateral agreement as the best way to deal with expansion, and says it has the appropriate expertise to...

BoE discussion papers on RTGS

BoE has released two discussion papers on RTGS (Real-Time Gross Settlement) service operating hours and access policies. BoE aims for these papers to be the basis for further research and dialogue with the private...

UK Finance responds on stablecoins

UK Finance has responded to the FCA and BoE discussion papers on regulating stablecoins. It is generally supportive of the broad proposal to build upon the existing regulatory/legislative regime for stablecoins used for...

FCA publishes blockchain research

FCA has published a research note entitled ‘Review of Maximal Extractable value (MEV) and Blockchain Oracles’ in collaboration with Futuresight Business Intelligence Ltd, the Financial Industry Regulatory...

PSR heralds priorities for 2024

Chris Helmsley has looked ahead to a busy year ahead for payments. He spoke on: implementation of the mandatory APP reimbursement rules which will be a real step-change in the way the industry approaches fraud...

FCA updates on retained EU laws

FCA has updated its website with details of the current state of play in relation to the repeal and replacement of retained EU laws in the financial services sector. Coming up in 2024 will be many changes and papers...

Open banking and VRP progress reports

The Joint Regulatory Oversight Committee has updated on progress in open banking. It is pleased with the significant progress made since its April report, and has summarised what has been happening across all its...

BoE publishes FMI supervision report

BoE has published its annual report on its supervision of FMIs. The report looks at what FMIs are, and BoE’s supervisory focuses over the past year. Its priorities for the future will include enhancing both...

FCA publishes regulatory initiatives grid

The FCA has published the Financial Services and Regulatory Initiatives Forum’s latest biannual Regulatory Initiatives Grid. This will allow the financial services industry and other stakeholders to understand and...

TWG publishes report on fund tokenisation

The Technology Working Group (TWG), which is the City Minister’s forum for examining the impact of technology on the UK’s investment and asset management sectors, has published its first report. TWG worked...

UK and Japan discuss cooperation

The 2nd Financial Regulatory Forum (FRF) and the 5th Financial Dialogue (FD) between Japan and the UK was held on 27 November 2023 and a joint statement summarised the key discussion points. Overall, both countries hope...

Treasury publishes Future of Payments Review

Treasury has published its Future of Payments Review, commissioned from Joe Garner, as part of the Autumn Statement package. The review asked: what are the most important consumer retail payment journeys both today and...

FCA publishes operating metrics

FCA’s latest authorisations metrics, for the quarter ending September 2023 shows overall improvement in meeting targets. 96.8% of all applications met statutory deadlines, and of the 16 metrics only 2 are red...

PSR consults on Direction review mechanism

PSR is consulting on the way in which it reviews its general directions and generally imposed requirements. FSMA 2023 has added new requirements for PSR to keep these under review and publish statements of policy about...

FCA speech: next steps for Consumer Duty

Nisha Arora (Director of Cross Cutting Policy and Strategy at the FCA) has delivered a speech on the Consumer Duty and the next steps for firms. The speech highlighted the following examples of good practice identified...

BoE speaks on money and payments

Jon Cunliffe (BoE Deputy Governor, Financial Stability) has given a speech on money and payments. Highlights include: G20 roadmap to improve cross-border payments Whilst improvements have been made since 2020, there is...

PSR publishes APP fraud data guide

PSR has published guidance for PSPs on the content of the data on APP fraud that PSPs are now required to provide. The guide also looks at the required format for the data and the timescales for its provision.

FCA publishes money mule prevention review

FCA has published the findings from its views of the adequacy of PSP systems and controls against money mule activity. As now seems to be standard, it found that some firms are using innovative solutions such as facial...

PSR publishes revised penalty statement

PSR has published its revised penalty statement.  The statement aims to clarify the penalties that are imposed and what to expect if PSR identifies non-compliance. PSR places ever-increasing requirements on an...

FCA publishes CRA undertaking

FCA has published an undertaking from Wirex Limited, in respect of unclear terms in the firm’s e-money contract, which FCA obtained using powers under the Consumer Rights Act. FCA was concerned about terms: that...

PSR consults on FPS reimbursement Direction

PSR is consulting, as promised, on a Specific Direction on FPS participants which will underpin the faster payments reimbursement rules and will require participants to follow the rules and reimburse APP scam victims in...

UK Finance respond to ban on cold calling

UK Finance has responded to HM Treasury’s proposals to ban cold calling in financial services and is supportive of the proposals. The measures aim to protect consumers, particularly elderly and vulnerable...

PSR publishes autumn newsletter

Unsurprisingly, the PSR’s Autumn 2023 newsletter focuses on the busy summer the regulator has had with not only the new APP fraud reimbursement rules, but also its market reviews into scheme fees and cross-border...

UK Finance updates FTR guidance

UK Finance has published a “how to” interpretative guide to the Funds Transfer Regulation. The FTR was one of the pieces of legislation onshored after Brexit, and UK Finance had previously produced guidance...

FCA publishes Q2 fin proms data

FCA has published its financial promotions data for Q2 2023, which showed that 1507 promotions were amended or withdrawn as a result of FCA intervention. As with the data for Q1, the majority of cases related to retail...

BoE speaks on RTGS renewal programme

Victoria Cleland, Executive Director for Banking, Payments and Innovation at BoE, has delivered a speech at the UK Finance Summer Network Event on the benefits of BoE’s multi-year programme to renew the RTGS...

FSM Bill gets Royal Assent

As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June.  Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...

FSM Bill completes Parliamentary process

The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made.  These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...

JROC publishes API pricing principles

The Joint Regulatory Oversight Committee for Open Banking has published a set of principles that banks and registered third parties should follow when agreeing a premium API commercial model. Premium APIs will allow...

BoE updates on CHAPS APP plans

The Deputy Governor of BoE has written to the Treasury sub-committee on Financial Regulation to update on progress on protection from APP fraud within the CHAPS system. The letter confirms the BoE’s intention to...

Lords passes FSM Bill

The FSM Bill has had its third reading in the Lords, and has been passed and returned to the Commons as amended in the Lords.   The Commons now needs to consider the Lords’ amendments, and, if all is agreed, the...

FSMB Lords Report stage day 2

Day 2 of the Report stage for the FSM Bill took place on 8 June. In the first session, the Lords debated clauses including those on: reporting requirements under the competitiveness and growth objective, a Government...

API enters Special Administration

FCA has announced that Monneo Ltd, an authorised payments institution, has entered special administration under the Payment and Electronic Money Institution Insolvency Regulations 2021.

PSR to change regulatory fees structure

Following its December 2022 consultation on whether its fee structure remains appropriate, PSR has published a policy statement setting out changes for 2023/24 onwards. The existing structure has been in place since...

PSR speaks on payments priorities

Kate Fitzgerald has spoken on the next evolution planned for UK payment systems. She focussed on open banking, which currently has over 7 million active users in the UK, and the next steps outlined by the JROC. She...

PSR publishes Annual Plan

PSR’s Annual Plan for 2023/24 sets an ambitious work programme, building on existing initiatives. One priority will be shaping the delivery of the New Payments Architecture. The PSR says it needs to evolve its...

PSR confirms APP scam data publication plans

PSR has confirmed  that it will direct 14 large UK PSPs to collect and provide  APP scam data to it which will cover 95% of transactions. The data will show: the proportion of APP scam victims who do not get reimbursed...

FSM Bill 9th Grand Committee session

The 9th Lords Grand Committee session on the FSM Bill took place on 21 March. Topics debated were: the proposal to limit the powers of PRA to prevent a matching adjustment being applied to a portfolio of high risk or...

PSR calls for views on LINK Direction review

PSR is carrying out its first annual review of its Specific Direction 12, designed to ensure that LINK has a broad geographic spread of free to use cash machines and meets service-user needs. It issued the direction...

FCA updates on operating service metrics

FCA has updated its operating service metrics to include performance from the periods October to December 2022 and January/February 2023. FCA notes that the latest metrics show 12 green, 5 amber and 2 red –...

FCA priorities for payments firms

The FCA has published a portfolio letter setting out its priorities for payments firms. The FCA raised concerns that many payments firms do not have sufficiently robust controls, and it considers this an increased risk...

BoE updates webpage on ISO 20022

The BoE has updated its webpage delivering information on ISO 20022: the new messaging standard for CHAPS and RTGS. It outlines its migration and policy approach timelines, and stakeholder requirements. On 19 June 2023...

FSM Bill Committee day 8

On 13 March 2023, the House of Lords Grand Committee continued its line by line examination of the FSM Bill, which took place during the eighth day of committee stage. The amendments that were discussed covered clauses...

FCA publishes its Perimeter Report 2023

The FCA has published its latest annual Perimeter Report. It highlights some of the challenges faced within the current financial services regulatory perimeter and signposts desired future action the FCA would like to...

Regulators update Regulatory Initiatives Grid

The Financial Services Regulatory Initiatives Forum has published the sixth edition of the Regulatory Initiatives Grid. The edition was due last November, but has been held back to allow the regulators to consider how...

PSR speaks on tackling APP fraud

Chris Hemsley has spoken of PSR’s role in regulating all UK payment systems and the importance of collaboration in tackling fraud.  His speech focussed on APP fraud, noting the significant problem it poses and...

FCA publishes more Consumer Duty letters

FCA has published three more letters in its series of letters to firms on preparation for the Consumer Duty. The latest set relate to: debt advice firms; debt purchasers, debt collectors and debt administrators; and...

Court requires FOS to review decision

The High Court has taken the relatively rare step of ordering FOS to review a decision. The complainant, Mr Moniak, had been a customer of Barclays. Following an inheritance in 2010, a total of £500,000 was paid into...

PSR publishes 2022 review

PSR has looked back on its major work and developments during 2022. Chris Hemsley noted that post-pandemic, there was a lot of significant discussion with consumer groups, businesses and payment firms.  PSR’s 5...

PSR consults on reporting of APP scams

PSR has issued a consultation on guidance to help PSPs to provide the right data when reporting APP scams to the regulator.  The first collection is coming soon, with firms’ submissions due in May, with the first...

BoE speaks on digital pound

Sir Jon Cunliffe has spoken on the digital pound, as the BoE and Treasury launched their consultation. He noted that, while no firm decision can be taken on implementing the digital pound, the taskforce is now moving to...

FCA confirms Aidene Walsh as PSR chair

FCA has confirmed that Aidene Walsh, who has been interim Chair of the PSR since April 2022 will now take the appointment for a three year term.  As PSR chair, she will also sit on the FCA Board.

FSM Bill Grand Committee stage starts

The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January.  There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February.  195...

Treasury calls for evidence on PSRs

Treasury is required to review the PSRs 2017 and is launching its review alongside a Call for Evidence on the evolution of UK payments regulation. Key points to note are: the consultation in 2022 on payments regulation...

PSR consults on fees

The PSR is consulting on whether its regulatory fee structure, which has been in place since 2018/19 is still appropriate. It plans to retain the current regime, but change the way in which fees are allocated, with a...

Treasury publishes FS law Brexit strategy

Treasury has published a Policy Paper setting out how it intends to deal with retained EU law in the financial regulatory sector. The Policy Paper says that the FSMA model, with the operationally dependent regulators...

PSR updates on APP scam data

The PSR has published an update on its plan to publish data on how banks and building societies are responding to APP scams. PSR will require the 14 largest PSPs in the UK to provide 6 monthly data on APP scam...

FSM Bill – Lords dates announced

The FSM Bill as amended after its passage through the Commons has now had its first (routine) reading in the Lords.  The Lords’ second reading has been set for 10 January 2023.

PSR updates on CoP progress

The PSR has written to the Chair of the Treasury Select Committee to update her on the progress of CoP Phase 2 implementation. As a reminder, the aim of Phase 2 is to extend CoP to include PSPs who do not use the widely...

SCA amendments to apply from 25 July 2023

Commission Delegated Regulation (EU) 2022/2360, which amends the regulatory technical standards (RTS) for strong customer authentication under PSD2, has been published in the OJEU. As a reminder, the amendments to the...

PSR fines for interchange fee breach

The PSR has fined Barclays £8.4m for failing to provide retailers with full information about the costs of its card services. The Interchange Fee Regulation requires banks to provide retailers with transaction...

LSB and PSR sign MoU

The LSB and PSR have signed and published a memorandum of understanding. setting out how the bodies will co-operate and communicate. The accompanying press release note who LSB champions the CRM Code and wants to work...