Included in this issue: FCA policy statement – The Payment Accounts Regulations 2015; PRA consultation on reporting requirements for operational continuity in resolution; UK consumer use of cash falls below 50% and more...
FCA policy statement – The Payment Accounts Regulations 2015
The FCA has published a policy statement (PS16/20) which includes feedback on CP16/7, final Handbook changes and guidance in relation to the Payment Accounts Regulations. The FCA has also published the following finalised guidance:
- Payment Accounts Regulations 2015: Definition of a "payment account" (FG16/6)
- Payment Accounts Regulations 2015: Regulation 13 (packaged accounts) (FG16/7)
FCA, 1 August 2016
PRA consultation on reporting requirements for operational continuity in resolution
The PRA has published a consultation paper (CP28/16) on reporting requirements for ensuring operational continuity in resolution. This applies to UK banks and building societies and designated investment firms providing functions critical to the economy. The paper sets out proposals for firms to report on the activities and financial resources of their group provider and includes appendices outlining proposed amendments to the Regulatory Reporting Part of the PRA Rulebook plus new reporting templates and instructions. The consultation closes on 28 October 2016.
PRA, 29 July 2016
Final draft technical standards on separation of payment card schemes and processing entities under the IFR published by EBA
The European Banking Authority has published final draft Regulatory Technical Standards (RTS) which specify the requirements which payment card schemes and processing entities must comply with to ensure the independence of their accounting, organisation, and decision-making processes. These standards aim to facilitate greater competition among processing service providers, supporting the general objective of the Interchange Fee Regulation to create a single market for card payments across the EU.
EBA, 27 July 2016
UK consumer use of cash falls below 50%
For the first time, UK consumer use of cash slipped below 50% in 2015 as alternative payment methods increased their hold. New data from the Link ATM network suggests consumers began to turn away from notes and coins for everyday purchases with other options including contactless payments and mobile payment providers growing in popularity. Link predict a 34% drop in payments with cash by 2025.
Finextra, 01 August 2016
Paper on standards to speed up UK fintech development
A paper produced by the BSI and presenting findings of research carried out among fintech companies and banks, has suggested that standards could help strengthen and speed up fintech development in the UK. Three key areas which could especially benefit from standards were identified as:
- Procurement and onboarding process;
- Integration of fintech into the standards and language of the FS industry; and
- Consumer assurance around use of fintech services.
The BSI found that both banks and fintech companies were willing to explore how standards could help and suggested approaches for their development in the areas above.
BSI, 28 July 2016
PSR: Infrastructure needs reform
The Payment Systems Regulator has announced following a market review that the UK payments infrastructure needs reform in order to increase competition and better meet consumer needs. Possible remedies include adopting a common international messaging standard to encourage new entrants, and creating a competitive procurement process that addresses consumer needs.
Payment Systems Regulator, 28 July 2016
Partner, Head of Competition