HM Treasury has published a policy paper outlining how the government and PSR intend to improve the reimbursement of APP scam victims. The government intends to legislate in the Financial Services and Markets Bill to...
Category - Payment Services & Electronic Money
Lucy HadrillPSR updates on competition in pre-paid cards sector
The PSR has publishes the non-confidential version of its decision following its investigation into two cartels in the pre-paid cards market. In January it confirmed its fines totalling around £33m on Mastercard...
Emma RadmoreMEPs vote on draft crypto legislation
MEPs from ECON and the Committee on Civil Liberties have voted to adopt their position on draft crypto legislation which forms part of the EU’s wider package of measures aimed at strengthening AML/CFT rules in the...
PSR publishes its annual plan and budget for 2022/23
PSR has published its 2022/23 annual plan and budget. PSR stated that the payments landscape is evolving and there are issues that need to be addressed. These include the prevalence of APP fraud, risks to effective...
Harshil PatelCMA makes recommendations for the future oversight of Open Banking
The CMA launched a public consultation on the future oversight of Open Banking in March 2021, and has now published the responses to that consultation. CMA’s recommendations are that the future entity should: have...
CMA publishes Annual Plan for 2022/23
The CMA has published its Annual Plan which explains how it will protect consumers, promote competition and help support the economy in the year ahead. It aims to encourage innovation, productivity, and sustainable...
FIN. TeamTreasury and FCA discuss regulatory perimeter
The government has published a summary of the 15 December 2021 meeting between John Glen and Nikhil Rathi in which they discussed FCA’s Perimeter Report (published 21 October 2021). The meeting focussed the topics...
Final Report on UK Payments Regulation Review
UK Finance has published its final report on the regulation of UK payments. The UK enjoys a robust and successful regulatory and supervisory regime for payment services and payment systems. However, the degree of...
Emma RadmoreFMLC letter to Treasury: Financial Promotions Rules for Cryptoassets
The Financial Markets Law Committee (FMLC) has issued a letter to Treasury following the Treasury’s response to its 2020 Consultation on cryptoasset promotions. The letter highlights that the FMLC has identified...
New rules on cryptocurrencies in the EU
MEPs have agreed on draft rules on supervision, consumer protection and environmental sustainability of crypto-assets, including cryptocurrencies such as bitcoins. For those issuing and trading crypto-assets, the new...
CAT determines the ‘domicile date’
CAT has published its Judgment giving further guidance on the ‘domicile date’, which is the date specified in a CPO. The domicile date operates to determine the persons who fall within the class definition...
Government launches consultation on online advertising
The government has launched its Online Advertising Programme consultation which will review the regulatory framework of paid-for online advertising in a bid to improve transparency and accountability and tackle harmful...
Court of Appeal judgment on emoney safeguarding
The judgment in relation to the treatment of certain funds held by Ipagoo, a failed EMI, has been handed down. The joint administrators of the firm had applied for directions as to whether certain funds were held on...
PSR issues new Specific Direction 12 to LINK
The PSR has given Specific Direction 12 (SD12) to Link Scheme Holdings Ltd (LINK) allowing them to maintain the broad geographic spread of the UK’s free-to-use (FTU) cash machine network. The new Direction follows...
FCA updates on SCA expectations
FCA has updated its webpage on SCA to explain the changes to the SCA-RTS in respect of the new exemption that means customers will not need to reauthenticate when accessing account information through a TPP, if ASPSPs...
FCA fines Barclays over collapsed payment firm oversight
FCA has fined Barclays £783,800 for oversight failings in its relationship with Premier FX, a payments firm which is in liquidation. Barclays was Premier’s sole UK banker. FCA found that Barclays failed to make...
EBA publishes final Guidelines on limited network exclusion
The European Banking Authority (EBA) has published its final Guidelines on the limited network exclusion under the Payment Service Directive (PSD2). The Guidelines clarify how competent authorities should assess whether...
Emma BondECON publishes draft legislation on transfer of funds and cryptoassets
The European Parliament (ECON) has published draft legislation on the proposal for a regulation on information accompanying transfers of funds and certain cryptoassets. The draft sets out the suggested amendments to the...
BoE, FCA, PRA and PSR conduct review of MoU for UK payment systems
The Bank of England, FCA, PRA and PSR are required, by the Financial Services (Banking Reform Act) 2013 to conduct an annual review of their Memorandum of Understanding (MoU) setting out the framework for their...
PSR publishes response to CoP consultation
The PSR has published PS22/1 Confirmation of Payee: response to consultation CP21/11 ending dual running. The document assesses the implementation of Phase 1 thus far, and introduces Specific Direction 11 which will...
BIS updates on 2022 work programme
BIS has announced that its Innovation Hub will launch new projects in 2022, including those relating to: central bank digital currencies (CBDCs); next generation payments systems; and Decentralised Finance (DeFi). The...
PSR consults on card-acquiring services review
The PSR has published a consultation on remedies for its card-acquiring market review. This follows its report in November 2021 which identified the following three features of concern in relation to how the market...
FCA to impose requirements on non-compliant API
FCA has published its first supervisory notice of its intent to require an API authorised to provide money remittance services to cease doing so without prior written approval. It wants Probitas to cease all business...
Prepaid cards market hit by huge fines for cartel conduct
PSR has fined five companies – Mastercard, Allpay, Advanced Payment Solutions, Prepaid Financial Services and Sulion – a total of £33 million after finding them to be in breach of Chapter 1 of the...
PSR publishes new strategy
The PSR has published its new strategy which sets out its priorities and desired outcomes within the payments sector over the next 5 years. This follows the PSR’s consultation last year, for which it has now...
FCA updates on skilled persons reviews
FCA has published the figures for the skilled persons reviews commissioned in October – December 2021. There were 12 in total, of which 4 were on retail banking and payments firms and 3 on investment management...
PSR publishes report on interbank payment systems
The PSR has published its latest annual access and governance report. This most recent report describes data and developments in access to interbank payment systems across both 2019 and 2020 due to the 2019 report...
FCA outlines new authorisation fee structure
The FCA has set out the new structure for authorisation application fees which takes effect on 24 January 2022. The current charges are being condensed into 10 simple pricing categories and the following additional...
FCA updates TPR information for payment firms
The FCA has updated its webpage on cancelling temporary permissions to include information for payment services and e-money firms in the TPR or the supervised run-off (SRO) regime. FCA has also published new forms for...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
All-Party Parliamentary Group on Blockchain publishes 2022/23 programme
The All-Party Parliamentary Group (AAPG) on Blockchain has published its 2022/23 work programme entitled ‘ensuring industry and society benefit from the full potential of blockchain‘. The AAPG’s three...
ECB comments on European Parliament’s Banking Union Annual Report
The European Central Bank (ECB) Banking Supervision has published its comments on the input provided by the European Parliament as part of its “Resolution on Banking Union – Annual Report 2022”. The...
EPC issues SEPA reminder
The European Payments Council (EPC) has published a press release reminding Single European Payments Area (SEPA) payment scheme participants to comply with the EU Revised Wire Transfer Regulation (2015/847)...
FCA updates on rule changes
FCA’s latest Handbook Notice confirms, among other things: changes to SUP to clarify what FCA expects to see reported on form FIN-A changes to LIBOR rules (previously reported in FIN) and changes to the value...
PSR extends ATM Direction
The PSR has extended Specific Direction 8, which requires LINK to do all it can to fulfil its commitment to maintain the broad geographic spread of free-to-use ATMs. Specific Direction 8, as varied by Specific Direction...
PSR updates Specific Directions on Pay.UK
The PSR has published its decision on varying Specific Directions 2 and 3 on Pay.UK. This follows the PSR’s consultation earlier this year in which it consulted on proposed changes to Specific Directions 2 and 3...
UK banks join forces to preserve access to cash
Further to their commitments to continue to preserve access to cash for consumers and businesses, the UK’s major retail banks, consumer groups, Post Office and LINK have agreed to collaborate to share services...
ECJ delivers ruling on interpretation of PSD2
In Vodafone Kabel Deutschland GmbH v Bundesverband der Verbraucherzentralen und Verbraucherverbände – Verbraucherzentrale Bundesverband e.V., the Oberlandesgericht München (Higher Regional Court – Munich) made a request...
PSR consults on CoP: ending dual running
The PSR is consulting on the wider implementation of Confirmation of Payee, following its adoption by the UK’s largest banking groups. It has published a draft direction to ensure migration to the Phase 2...
FCA publishes final rules on strong customer authentication
The FCA has published a policy statement on changes to the SCA technical standards (SCA-RTS), the payment services and e-money approach document and guidance in PERG. The policy statement summarises feedback received to...
FOS sees rise in “authorised” scam complaints
FOS has seen a 30% increase in complaints about “authorised” scams in the second quarter of the financial year compared to the same period last year. half of the nearly 4,500 complaints were about...
UK Finance makes Open Banking recommendations
UK Finance has published a report setting out its recommendations for the future strategy of open banking. Open banking payments have increased exponentially over the past 3 years and there are now over 2.5m each month...
PSR announces next steps to stop APP fraud
The PSR has set out its latest plans to force the financial sector and others involved in the digital ecosystem to prevent APP fraud. It is consulting on plans to: require the UK’s largest banking groups to...
European Commissioner speaks at EPIF annual conference
Mairead McGuinness, European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, recently gave a speech at the European Payment Institutions Federation (EPIF) Annual Conference. She...
Government sets out net zero transition plans
The government has set out its plans for the UK to be the world’s first net zero aligned financial centre and has called for other countries to follow suit. The government has confirmed it will be introducing...
PSR publishes card-acquiring services report
The PSR has published its final market review into the supply of card-acquiring services. The report concludes that the supply of card-acquiring services does not work well for SME merchants and large merchants with...
PSR publishes consultation on Specific Direction for free-to-use ATMs
The PSR is proposing to issue a new Specific Direction to support LINK in meeting the objective of continuing to maintain a broad geographic coverage of the Free-to-Use ATM network in the UK. The draft Specific...
PSR responds on COP call for views
PSR issued its call for views on the wider implementation of Confirmation of Payee in May 2021. It has now set out the findings from its call for views and its plans and expectation on industry for the next step. It...
FCA publishes 2020/21 Perimeter Report
The FCA has published its latest Perimeter Report, in which it calls for greater consumer protection and legislative change to address concerns beyond its remit. Highlights include recommendations that: duties on...
European Commission adopts work programme for 2022
The EU Commission has adopted its 2022 work programme which sets out the next steps in its agenda towards a greener, fairer, more digital and more resilient Europe. The programme contains 42 new policy initiatives...
Contactless card payment limit increased to £100
As of Friday 15 October 2021, the spending limit for contactless card payments has been increased to £100. The decision of HM Treasury and FCA to raise the limit from the previous cap of £45 was made following the...
BoE looks at financial stability risks of crypto
Jon Cunliffe has spoken of the potential risks to financial stability of crypto assets such as bitcoin and stablecoins. Crypto assets have grown by 200% in 2021 alone. Mr Cunliffe feels that they have the potential to...
G20 Roadmap for enhancing cross-border payments
The Financial Stability Board (FSB) has published “G20 Roadmap for Enhancing Cross-border Payments – First consolidated progress report“, which summarises the progress made during the first year of the...
PSR responses to consumer protection in interbank payments
The Payment Systems Regulator (PSR) has published the outcome of its consultation on consumer protections in interbank payments in PS21/2 – “Consumer protection in interbank payments – response to CP21/4“...
Government publishes Payments Landscape Review
The government has published its response to the 2020 Payments Landscape Review: Call for Evidence. The relevant consultation, which ran from 28 July 2020 to 20 October 2020, sought views from across the sector to be...
FSB reports on regulation, supervision and oversight of global stablecoin arrangements
The Financial Stability Board (FSB) has published a progress report on the implementation of its high-level recommendations on the regulation, supervision and oversight of “global stablecoin” arrangements...
CMA welcomes new power to tackle competition and consumer law breaches
The Competition and Markets Authority (CMA) welcomes the Government’s proposals in publishing its responses to the two recent consultations: “Reforming competition and consumer policy“ and “A new...
PSR publishes approach to Interchange Fee monitoring
The PSR has updated its guidance on how it monitors and enforces the Interchange Fee Regulation in the UK. The update from the 2020 version is mainly to take account of Brexit. The guidance is relevant not only to card...
BIS mBridge: a multi CBDC platform for international payments
The mBridge project – a prototype of multiple Central Bank Digital Currencies (mCBDCs) developed by the Bank for International Settlements (BIS) Innovation Hub and the four central banks of Hong Kong, Thailand...
EBA to enhance monitoring of digital platform use in EU banking and payments sectors
A Report published by the European Banking Authority (EBA) today on the “platformisation” (use of digital platform-based business models) of the EU banking and payments sector: identifies the rapid growth in...
PSR panel publishes annual report
The PSR panel has published its annual report for 2020/21 which outlines how it has engaged with the PSR over the last year. Key themes that the panel highlighted over the last 12 months include the rapid acceleration...
FCA Chair speaks on risks of token regulation
Charles Randell, Chair of the FCA and PSR has delivered a speech on the risks of regulating crypto tokens. Speech highlights include: whilst platforms’ efforts to crack down on fraudulent advertisements are welcome, a...
Contactless limit to increase from 15 October
UK Finance has confirmed the £100 contactless limit will apply from 15 October. However, it warned that it is likely to take retailers some time to update their terminals to accept the new limit.
First report for Payments Standards Strategy Group
In February 2021, UK Finance published the Future Ready Payments 2030 report which set out an ambitious 10-year strategy for the payments industry. The recently-formed Payments Standards Strategy Group (PSSG) has now...
Banks back Confirmation of Payee extension
Following Pay.UK’s confirmation that the reach of the Confirmation of Payee Service (CoP) will be extended, a group of the UK’s major banks has written to the PSR to provide a public commitment to deliver...
Next steps for the Consumer Duty
The FCA’s consultation on a new Consumer Duty has now closed and the FCA has outlined its next steps. After considering the responses, the FCA will set out the proposed text for any new rules in a second...
BIS publishes blueprint for instant cross-border payments
BIS Innovation Hub and Monetary Authority of Singapore have published proposals for enhancing global payments network connectivity via multilateral linkages of countries’ national retail payment systems. The...
PSR writes to banks and UK Finance on Phase 2 of CoP
PSR has written an open letter to the 6 banking groups directed under its SD10 and to UK finance, on the public commitment to deliver the first part of Phase 2 of Confirmation of Payee. The banks had confirmed their...
Treasury consults on SMCR for Financial Market Infrastructures
HM Treasury is consulting on proposals to create an SMCR for financial market infrastructures (FMIs). The proposed regime would mirror the existing SMCR and would give the BoE new rule-making, supervisory and...
EBA consults on limited network exclusion guidelines
EBA is consulting on draft Guidelines to provide clarity on the application of the limited network exclusion in PSD2. The exclusion is supposed to be used for products like store cards, fuel cads, public transport cards...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
G20 Finance Ministers and Central Bank Governors meeting
The G20 Finance Ministers and Central Bank Governors (FMCBGs) have had their third official meeting under the Italian G20 Presidency. Highlights include: The global outlook has improved, mainly thanks to the roll out of...
Pay.UK publishes resources for organisations implementing ISO 20022
The New Payments Architecture (NPA) will unlock significant benefits for many businesses and personal customers within the UK, helping transform the way they control their professional and personal transactions, and...
Hannah FrostUK and Singapore agree landmark Financial Partnership for financial services
An historic new partnership for financial services between the UK and Singapore, which will help to boost jobs and investment in the UK, has been agreed by the Chancellor. The Financial Partnership is a new agreement...
BoE and Pay.UK collaborate on payment messages
Pay.UK and BoE have announced a collaboration on ISO 20022 payment messages. ISO 20022 will be implemented in the CHAPS and NPA. The collaboration started in 2018 and BoE and Pay.UK will continue to work together to...
More of FS Act comes into force
The second Commencement Order under the FS Act 2021 brings into force: on 28 June the provisions on forfeiture of money in relation to EMIs and payment institutions, as they extend to Northern Ireland; and on 1 July...
BoE speech: A new dawn for payments
Speaking at City Week 2021, Victoria Cleland (Executive Director for Banking, Payments and Innovation at the BoE) talked about the evolution of payments systems in the UK, the BoE’s vision for the future and the...
EU writes to credit card providers on subscription payments
Recent research has revealed that many EU and UK consumers have ordered cheap products and services online, only to discover that they have been lured into a costly monthly subscription. In most cases the information...
LSB updates on CRM code review
LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...
Taskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
EBA reports on industry readiness for SCA
The EBA has published a report on data provided by PSPs on their readiness to apply strong customer authentication (SCA) for e-commerce card-based payment transactions. Despite PSPs in some jurisdictions lagging behind...
PSR consults on new 5-year strategy
The Payment Systems Regulator (PSR) has announced plans for a new five-year strategy. The proposals set out an approach that aims to make sure payments and payment systems work well for everyone and that there is fair...
EBA finalises PSD2 incident reporting guidelines
EBA has finalised and published its revised guidelines for major incident reporting under PSD2. PSD2 requires PSPs to report major operational or security incidents to their supervisors where those incidents are likely...
FSB consults on cross-border payments
The FSB is consulting on global targets for addressing the challenges of cross-border payments. The proposed targets set goals for improving cost, speed, transparency and access for cross-border payments in the coming...
ASA publishes further ruling on delayed payment services
Continuing the flurry of rulings against delayed payment service ads, ASA published a further ruling on 26 May, this time against a claim appearing on the Laybuy UK website. Text on the website stated: “…...
FCA extends SCA deadline to March 2022
The FCA has extended the deadline for implementing Strong Customer Authentication for e-commerce transactions from 14 September 2021 to 14 March 2022. This further 6-month extension is in response to concerns about...
FCA writes to CEOs of EMIs on client money
FCA has written a Dear CEO letter asking e-money firms to write to their customers to explain how their money is protected. It is worried that these firms’ promotions to customers give the impression that their...
FCA consults on new Consumer Duty
The FCA has set out plans for a new Consumer Duty which will set clearer and higher expectations for firms’ standards of care towards consumers. It is hoped that the proposals will drive a shift in culture and behaviour...
FCA and PSR make statement on access to cash
A joint statement from FCA and PSR stresses that although there has been an overall decline in use of cash, withdrawals have started again as restrictions ease, and there must remain access to cash and banking services...
Banking industry supports access to cash
UK Finance and the UK’s largest retail banks and building societies have announced their commitment to continue to preserve access to cash for consumers and businesses over the long term. The 8 financial...
Pay.UK announces Confirmation of Payee extension
Pay.UK has confirmed that, from July 2021, the reach of the Confirmation of Payee Service (CoP) will be extended with a revised capability and simplified processes. This will allow CoP to be introduced more widely to...
FCA publishes latest Regulatory Initiatives Grid
FCA has published the third edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. This edition marks the end of a successful one-year pilot exercise – the FCA has confirmed that...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
PSR consults on Brexit changes to IFR guidance
PSR has opened a consultation into changes to its guidance on the Interchange Fee Regulation (IFR) as a result of Brexit and changes to the regulatory framework. Following Brexit, the IFR is now retained EU law, which...
Duncan ScottHM Treasury publishes response to consultation on Insolvency changes for payment and electronic money institutions
The Insolvency changes for payment and electronic money institutions consultation was launched on the 3 December 2020. The Government received 15 written responses to the consultation, and these responses have been...
CMA publishes annual concurrency report
CMA has published its 2020/21 annual concurrency report outlining how CMA has worked alongside other regulators, including FCA, to enforce competition law across a range of industry sectors. Highlights from the report...
LSB updates CRM Code
The LSB has published updates to the CRM Code following its review. The new provisions include those on governance and oversight, and will take effect from 14 June 2021.
BoE and Treasury announce creation of Central Bank Digital Currency Taskforce
The Bank of England (BoE) has announced, jointly with HM Treasury, the creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC. The BoE has also published the...
Financial Services Bill passed by Lords
Following day three of its Report stage, the House of Lords has passed the Financial Services Bill with amendments. The final amendments to be agreed by the Lords include: an amendment that, in certain circumstances...
LSB looks at APP scam prevention
LSB has stressed the importance of preventing APP fraud in the first place, rather than just ensuring customers who suffer can be reimbursed – critical though that is. It notes that the increase in online and...