In this weeks edition of InContact: HM Treasury derecognition order for CHAPS and amending designation order for Cheque & Credit; EBA publishes opinion on transition from PSD to PSD2; and more...
HM Treasury derecognition order for CHAPS and amending designation order for Cheque & Credit
HM Treasury has published a payment systems derecognition order in relation to CHAPS and a designation order amending an earlier order designating Cheque & Credit as a regulated payment system.
- A derecognition order under which it revokes the recognition order of 5 January 2010 specifying CHAPS as a recognised payment system for the purposes of Part 5 of the Banking Act 2009.
- A designation order amending an earlier order made on 19 March 2015 designating Cheque & Credit as a regulated payment system for the purposes of Part 5 of the Financial Services (Banking Reform) Act 2013. The amending order widens the arrangements that constitute the Cheque & Credit system to include the processing of images of cheques and other paper instruments and to refer to participants as well as members of Cheque & Credit.
Both orders were made on 19 December 2017 and came into force on 20 December 2017.
HM Treasury, 20 December 2017
FCA publishes statement on EBA guidelines on operational and security risks under PSD2
The FCA has published a statement relating to the EBA's guidelines on operational and security risks under the revised Directive on payment services (PSD2). All Payment Service Providers (PSPs), including firms undertaking account information and payment initiation services, will be expected to comply with the guidelines from 13 January 2018, when PSD2 is transposed into UK legislation. This is in addition to the requirements set out in regulation 98 (Management of operational and security risks) of the Payment Services Regulations 2017 (PSRs 2017). The FCA will consult on its approach to applying the EBA guidelines and its expectations on PSP's future reporting requirements in 2018. The FCA reminds firms wishing to apply for authorisation or registration under PSD2 (and PSPs re-applying) to bear in mind that applications must contain a statement of the applicant's security policy, including a description of the applicant's measures to comply with regulation 98(1) of the PSRs 2017, taking into account the EBA's guidelines.
FCA, 19 December 2017
PSR sets out decisions and consults further on 2018/19 fees proposals
The Payment Systems Regulator (PSR) has published a consultation and decision paper (CP17/44) setting out its policy decision on the way it will collect its regulatory fees in 2018/19 and in subsequent years, and is consulting further on its proposed fees allocation method.
The PSR has decided to collect fees directly from fee payers, rather than collecting them indirectly via operators of payment systems, from 2018/19. The PSR says this approach will make its fees collection process simpler and more efficient, and also reduce the administrative burden on operators and the payment services providers that pay PSR fees.
The PSR is consulting further on a fees allocation method that is based on the volumes and values of the fee payers’ transactions in the payment systems it regulates. It is also consulting on the draft amendments to the fees rules that reflect the fees allocation proposal. The PSR says it considers that the proposed fees allocation method is fit for purpose because it is proportionate, simple and efficient to administer, resilient enough to not require frequent rule changes, and unlikely to introduce any negative impact on competition. Feedback is sought by 26 January 2018.
PSR, 15 December 2017
EBA publishes opinion on transition from PSD to PSD2
The EBA has published an opinion on the transition from the Payment Services Directive (PSD) to the revised PSD2, clarifying a number of issues identified by market participants and national competent authorities (NCAs).
The EBA explains that under PSD2 it has obligations to develop 12 binding technical standards (BTS) and guidelines covering a number of different areas. However, by the PSD2 application date, some of these will not yet be applicable either because they have not been completed or because PSD2 envisages that certain security-related provisions will be applicable after its application date. PSD2 also foresees that some groups of providers will not have to comply with all the PSD2 requirements from its application date. This misalignment, whether explicitly foreseen in PSD2, or a result of the delayed entry into force of BTS and guidelines.
In the opinion, the EBA sets out views and provides advice on how to address these issues. The EBA also clarifies how and when the existing EBA guidelines on the security of internet payments under the PSD will be superseded by the provisions of PSD2 and related EBA instruments.
EBA, 19 December 2017