PSR plans to update the list of “directed legal entities” for the purposes of the supply of card0-acquiring services and the method for updating it in the future. PSR says several providers have told it...
Category - Payment Services & Electronic Money
Emma RadmoreFCA 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...
PSR publishes final APP fraud reimbursement details
PSR has made all its policy decisions and published details of the full APP fraud reimbursement regime which will take effect on 7 October 2024. It has confirmed: the upper claim limit will be £415,000 to match the FOS...
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...
Complaints Commissioner criticises FCA over Premier FX failure
The Complaints Commissioner has published its report on complaints from people affected by the 2018 collapse of Premier FX Limited. The payments firm had failed when, following the death of its sole director, it...
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...
PSR publishes cycle 2 APP fraud reporting guidance
PSR has published its finalised reporting guidance for firms required to provide it with APP scam data, the second batch of which will cover the calendar year 2023. This cycle will be a 12 month report, rather than the...
PSR speaks on preparing for APP scam reimbursement
Chris Hemsley has spoken of the preparatory work that both sending and receiving PSPs should be doing ahead of the mandatory reimbursement requirement for APP frauds coming into effect next year. The new rules will mean...
Treasury Select Committee comments on plans for a ‘digital pound’
The Treasury Select Committee (the Committee) has commented on Bank of England (BoE) and HM Treasury proposals for a retail ‘Central Bank Digital Currency’ (CBDC) or ‘digital pound’. Such a...
Duncan ScottFCA 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...
Vida FatemiTWG 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...
Autumn Statement: financial regulatory issues
The Government’s Autumn Statement covered several new and ongoing actions relevant to the financial services sector, including: legislation to replace retained EU, mainly in the markets space (securitisations...
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 calls for better treatment of fraud victims
FCA has carried out a review of firms’ fraud controls and complaints handling, and is disappointed with the way some firms support fraud victims. While it did find some examples of good practice, it found many...
PRA writes to deposit takers on innovation and stablecoins
PRA has written a Dear CEO letter to provide clarity on the ways in which it expects deposit-takers to address risks that arise from issuing multiple forms of digital money, while welcoming the benefits that could come...
FCA and BoE publish proposals for regulating stablecoins
FCA and BoE have requested feedback on their proposals for regulating stablecoins in the context of the regulators looking to harness the potential benefits stablecoin could provide to UK consumers and retailers...
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...
PSR releases first APP scam performance figures
PSR has released figures showing how the largest 14 banking groups performed during 2022 in tackling APP scams and reimbursing victims. The data covers 95% of payments made via Faster Payments. PSR had collected data...
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 restricts Modulr from onboarding new agents
FCA has published a restriction on Modulr, an authorised EMI, preventing it from onboarding any new agent or distributor without FCA’s consent. Existing agents and distributors may continue to distribute and...
Judicial review on ATM rate provision dismissed
PSR is pleased that the High Court has dismissed an application by NoteMachine for judicial review of PSR’s decision not to intervene in a dispute concerning concerns NoteMachine had over the fees it received for...
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...
PSR consults on APP fraud reimbursement limit and consumer standard of caution
PSR has launched two consultations relating to the implementation of its new APP fraud reimbursement requirements, which mean that the vast majority of victims will be reimbursed within 5 days of the fraud being...
Laura WilesUK 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 authorisations metrics Q1 2023/24
FCA has published its authorisations metrics for the quarter ended June 2023. FCA currently has: 2 red categories, relating to authorisations of EMIs and PIs 6 amber categories, relating to SMCR and AR related approved...
Treasury responds on payments systems regulation
HM Treasury has published a response to its 2022 call for evidence and consultation on payments regulation and the systemic perimeter. The Government confirms it will progress reforms to BoE and PSR’s respective...
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...
Government consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...
Financial Lives conclusions make uncomfortable reading
FCA has published the results of its latest Financial Lives survey, which it says serve to highlight the importance of the Consumer Duty. During the year to May 2022: less than half of UK adults had confidence in the UK...
Government introduces rules on payment account closures and freedom of expression
Following its call for evidence on the PSRs, the Government has set out proposed reforms to enhance requirements relating to contract termination for payment accounts, as per the new powers conferred by FSMA 2023. Under...
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...
Quincecare Duty defined in Philipp v Barclays
As we reported in last week’s edition of FIN in Philipp v Barclays Bank UK PLC [2023] UK SC25, the Supreme Court allowed the Barclays appeal against the Court of Appeal decision that had, in essence, widened the...
FIN. TeamTreasury calls for input on future of payments review
Treasury has issued a call for input as part of its Future of Payments Review 2023, which will report on the steps required to deliver world leading retail payments in the UK and boost UK fintech competitiveness. The...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
Treasury publishes new PARs customer information requirements
Treasury has published the outcome of its consultation on customer information requirements in the Payment Accounts Regulations (PARs) 2015. It confirms the government’s intention to revoke Part 2 and Schedules 1...
PSR consults on APP fraud reimbursement directions
Following its June policy statement on its new APP fraud reimbursement requirement, PSR is consulting on two draft instruments set to implement the rules. The first specific requirement looks at the rule changes needed...
PSR outlines changes to card scheme and processing fees
PSR has published a third working paper on its market review of card schemes and processing fees. It previously published papers on competitive constraints and approach to profitability analysis. The latest paper...
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...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
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...
PSR confirms new APP scam reimbursement rules
PSR has confirmed new rules following its proposals to bring in measures to clarify how mandatory reimbursement for APP scams will work in practice. It says the requirements will prompt a “step change” in...
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.
FCA publishes authorisations metrics Q4 2022/23
FCA has published its authorisations metrics for the quarter ended March 2023. The metrics show that FCA is continuing to make progress towards meeting its targets, and that it has improved on the significant delays...
FSMB: Lords report stage scheduled for 6 June
The report stage in the Lords for the FSM Bill will start on 6 June. There is no set length of time for it to last, although further sittings have already been scheduled for 8 and 13 June.
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...
Regulators set out views for next phase of Open Banking
The Joint Regulatory Oversight Committee has published its recommendations for the next phase of open banking. Its priorities for the next 5 years cover: levelling up availability and performance mitigating the risks of...
PRA publishes policy statement on depositor protection rules changes
PRA has published a policy statement providing feedback on responses to its consultation on depositor protection. It also contains PRA’s final rules concerning the relevant amendments to the Depositor Protection...
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...
Treasury Committee critical of scam reimbursement plans
The Treasury Committee has published a report criticising both the “painfully slow” implementation of mandatory reimbursement for fraud victims and the PSR’s proposals that banks and building societies...
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.
EBA clarifies SCA application to digital wallets
EBA has published some additions to its Q&As on PSD2, which clarify its stance on the application of the PSD2 SCA requirements in relation to cards held in digital wallets. The questions confirm that the addition of...
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...
FCA concerned about consumer harm from coordinating money transfer firms
FCA has used its competition powers to issue a statement of objections alleging that three money transfer businesses coordinated with each other to fix prices for customers in Glasgow transferring money to Pakistan. It...
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...
BoE releases annual report on supervision of FMIs
The BoE has published its 2022 annual report on its supervision of financial market infrastructure firms (FMIs). FMIs provide services, such as payments, and networks that facilitate financial transactions. The...
Government raises POCA ‘exemption’ threshold
The Government has published the Proceeds of Crime (Money Laundering) (Threshold Amount) Order 2022 and an accompanying explanatory memorandum. The Order will amend section 339A of the Proceeds of Crime Act 2002...
The Edinburgh reforms – and more
See our article, summarising various FIN posts over the past week on the state of play of the FSM Bill and the Edinburgh reforms.
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 consults on PAR information requirements
Treasury is consulting on the customer information requirements in the Payment Accounts Regulations. It is reviewing the requirements in the Schedules to the Regulations, in the expectation that many of them are too...
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...
“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
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...
TPT launches ‘gold standard’ for climate transition plans
The Transition Plan Taskforce (TPT) has published its Disclosure Framework and accompanying Implementation Guidance. The Framework makes recommendations for companies and financial institutions to develop gold-standard...
Final day of FSMB debate published
In the morning and afternoon of the final day of the Public Bills Committee debate on the FSM Bill, the remaining tabled new clauses were discussed: that the Chair of the PSR should be a member of the FCA board: this...
LSB reports on progress of CRM code in tackling APP scams
The LSB has published a review of the progress that has been made by signatories to the Contingent Reimbursement Model Code (CRM Code) in tackling APP scams. The LSB concluded that the firms which have signed up to the...
PSR publishes final card market review terms
The PSR has published the final terms of reference for its reviews into: card scheme and processing fees: PSR has set an ambitious timetable to conclude a review of the levels, structure and types of scheme and...
Emma Radmore