Included in this weeks issue of InContact: FCA letter on authorised push payment fraud; SR welcomes LINK's revised ATM plans; uropean Commission publishes report on implementation and impact of 2EMD and more...

UK

FCA letter on authorised push payment fraud

The FCA has published a letter addressed to CEOs on authorised push payment (APP) fraud within the context of the Senior Managers and Certification Regime. It is noted that UK Finance has developed a set of APP Best Practice Standards for sending and receiving banks when dealing with APP fraud. The FCA hopes that these voluntary standards will become an effective tool in tackling APP fraud and adherence could significantly improve the experience of victims.

FCA, 31 January 2018

Information notices issued by PSR on monitoring the EU Interchange Fee Regulation 

The Payment Systems Regulator (PSR) has issued information notices to Visa Europe and Mastercard in order to help the PSR to monitor compliance with caps on interchange fees applicable to payment card transactions which were introduced by the Interchange Fee Regulation. The PSR has asked the two card schemes to provide information on the gross amount of interchange fees paid by a subset of acquirers and received by a subset of issuers in the UK from 9 December 2015 to 31 December 2017. 

PSR, 29 January 2018

PSR welcomes LINK's revised ATM plans 

The Payment Systems Regulator (PSR) has responded to LINK's UK ATM network plans stating that its plans meet the requirements to ensure consumers continue to have widespread free access to cash. Following consultation, LINK added measures to protect the current broad geographical spread of free-to-use ATMs. The PSR said it will continue to actively monitor developments, with LINK reporting to it monthly, if any protected ATM is due to close, the regulator is keen to ensure that there is a quick transaction to a new operator without any adverse effects on consumers. 

PSR, 31 January 2018

FCA speech on building cyber resilience

The FCA has published a speech by Robin Jones, FCA Head of Technology, Resilience & Cyber, on building cyber resilience. In the speech, Mr Jones refers to the basic principles of cyber resilience. The FCA's vision of resilience is that firms can protect themselves from many attacks, and identify threats and vulnerabilities. He goes on to say that how firms achieve these basic principles will depend on what is appropriate for each business, its customers and suppliers.

FCA, 26 January 2018

Worldwide

EBA publishes letter to European Commission on RTS on strong customer authentication under PSD2

Dated 26 January 2018, the EBA has published a letter from Andrea Enria, EBA Chairman, to Olivier Guersent, European Commission Director-General, DG FISMA, on the status of regulatory technical standards (RTS) on strong customer authentication and common and secure communication under the revised Payment Services Directive (PSD2). Mr Enria welcomes the timely adoption of the RTS by the Commission on 27 November, however he suggests the EBA should have been granted the opportunity to provide its opinion on the new changes applied, in line with the due process set out in Article 10(3) of the EBA Regulation.

EBA, 29 January 2018

European Commission publishes report on implementation and impact of 2EMD

The European Commission has published a report on the implementation and impact of the second Electronic Money Directive (2009/110/EC) (2EMD). The Commission has also published an annex to the report setting out the number of e-money institutions that are active in each member state. The Commission's conclusions include:

• a positive assessment of the 2EMD in that it mostly fulfils its objectives of removing barriers to market entry and creating a level playing field;
• the current regulatory framework could do with some improvement, for example, with guidance on the classification of products as e-money;
• certain provisions would benefit from greater harmonisation; and
• future revisions of 2EMD should not be brought in until all stakeholders have had the opportunity to experience the adapted framework following the adoption of PSD2.

European Commission, 25 January 2018

EU Commission requirements on independence of payment card schemes and processing entities

The EU Commission has issued new requirements designed to ensure the independence of payment card schemes and processing entities, in order to enhance competition in the card payment market. The new rules introduce separation for certain functions. This will enable retailers to choose the best processor for their card transactions, while consumers benefit from reduced processing costs in daily payments.

European Commission, 18 January 2018