Included in this issue: Retail transactions see 5% annual fall in use of cash payments; CPMI task force to review wholesale payments security; SEPA Instant Credit Transfer scheme rulebook due for publication soon and more...


UK

Retail transactions see 5% annual fall in use of cash payments

A new survey by the British Retail Consortium has shown that cash was used for less than half of all retail transactions in the UK in 2015, a fall of 5% on last year. The annual payments survey, which looks at methods of payment UK shoppers use in store and online, has indicated that almost 20% fewer transactions are made with cash now than in 2011.

Talking Retail, 21 September 2016

CPMI task force to review wholesale payments security

A task force has been established by the Committee on Payment and Market Infrastructures to review the security of wholesale payments involved in banks, financial market infrastructures (FMIs) and other financial institutions. The first phase of work will be a review of current practices, followed by a decision on next steps based on findings.

Bank for International Settlements, 19 September 2016

Policy paper on UK implementation of Payment Accounts Directive

HM Treasury has published a policy paper on how the UK has met obligations to implement PAD by 18 September 2016. The position on the Payment Accounts Directive is summarised as follows:

  • The Payment Accounts Regulations 2015 have come into force
  • The FCA and PSR have been appointed as competent authorities under the PARs
  • The Money Advice Service has also been given duties under the PARs, especially relating to consumer advice
  • Measures regarding transparency and comparability of fees related to payment accounts will come into force at a later date
  • The PSR has designated the Current Account Switch Service as an alternative switching arrangement
  • The nine largest providers of current accounts in the UK have been designated under the PARs and will be legally required to offer basic bank accounts to eligible customers from 18 September 20178

HM Treasury, 18 September 2016

Designation decision on alternative switching services under PARs 2015

The PSR has published a decision designating the Current Account Switch Service as an alternative arrangement under PARs. To meet the necessary criteria, the scheme must, amongst other things, be clearly in the interests of consumers.

Payments Systems Regulator, 14 September 2016

WORLDWIDE

SEPA Instant Credit Transfer scheme rulebook due for publication soon

The EPC blog has confirmed it is getting ready to publish the finalised SEPA Instant Credit Transfer scheme rulebook (SCT Inst), taking into account the over 350 change requests that were received during consultation. It believes the market is readying itself to propose SCT Inst transactions as early as November 2017, and in an interview with Hays Littlejohn from EBA Clearing, considers top priorities to ensure success including sound risk management.

EPC News, 20 September 2016

Bitcoin is money, rules US judge

A US judge has ruled that Bitcoin qualifies as money, rejecting efforts of a defendant to get charges relating to the virtual currency dismissed. District Judge Alison Nathan in Manhattan rejected claims that Bitcoin did not count as "funds" and ruled that as Bitcoins can be accepted as direct payment for goods and services, they are used as pecuniary resources and should be treated as such.

Reuters, 19 September 2016

Response on consultation on further considerations for implementing NSFR under CRR

The ECB has published the response of the Eurosystem to the EC's consultation on further considerations for implementing the net stable funding ratio in the EU. This follows the consultation in May 2016 and the Eurosystem (the ECB and national central banks of member states in the Eurozone) has commented that the NSFR will contribute to financial stability by improving banks' funding profiles and making the sector more resilient.

European Central Bank, 14 September 2016

Key contacts

Amanda Hulme

Amanda Hulme

Partner, Head of Financial Regulation
London

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Fiona Ghosh

Fiona Ghosh

Partner, Commercial
United Kingdom

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Bruce Kilpatrick

Bruce Kilpatrick

Partner, Head of Competition
London

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William James

William James

Partner, Corporate
London

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