Included in this issue of InContact: Retail payments authority NPSO changes its name to Pay.UK; UK Finance issues guidance on strong customer authentication under PSD2; ECON vote for equal charges for domestic and cross-border non-euro payments and more


UK

Retail payments authority NPSO changes its name to Pay.UK

The retail payments authority formerly known as the New Payment System Operator (NPSO) has changed its name and brand to Pay.UK. It said that changing its identity was a logical progression following the consolidation of the UK's three retail payment schemes (Bacs, Faster Payments and the Cheque and Credit Clearing Company) under the remit of the NPSO earlier in 2018 and better promotes its core purpose of transforming the UK's payment infrastructure.

Pay UK, 19 October 2018

BoE and Pay.UK seek members for new Standards advisory panel

The Bank of England (BoE) and Pay.UK have issued an open call for interest for members of the payments industry wishing to join a newly created Standards Advisory Panel, which is jointly run by the two bodies.

BoE, 8 November 2018

Payment Accounts (Amendment) (EU Exit) Regulations 2018

SI 2018/Draft: This draft enactment is laid in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft enactment proposes to amend UK subordinate legislation and revoke EU legislation in relation to payment accounts regulation arising from the withdrawal of the UK from the EU, ensuring the legislation continues to operate effectively at the point at which the UK leaves the EU.

UK Government, 7 November 2018

Pay.UK seeks strategic partner to build payments infrastructure

Pay.UK has announced that it is seeking a strategic partner to deliver retail payments infrastructure. It says it is the start of a competitive process to appoint a strategic partner to help define, deliver and operate an evolving payments infrastructure.

C&CCC, 26 October 2018

Pay.UK announces new 'confirmation of payee' safeguard for payments

Pay.UK  has announced a new 'confirmation of payee' service, to be rolled out by banks, building societies and payment providers in 2019 to reduce the risk of payments being sent to the wrong account. The preventative confirmation of payee safeguard is one of a package of measures being introduced across the payments industry, which also includes help for customers if they fall victim to authorised push payment (APP) fraud.

Pay.UK, 19 October 2018
PSR publishes specific direction to ensure LINK ATM operator meets commitments

The Payment Systems Regulator (PSR) has published a specific direction to LINK Scheme Holdings Ltd (LINK), the operator of the LINK ATM system. The direction is designed to make sure LINK does all it can to fulfil the public commitments it made at the beginning of 2018 regarding the ongoing availability of access to free-to-use ATMs for UK consumers. The PSR is requiring LINK to fully develop its policies and processes for applying and implementing its public commitments and to report to the PSR on a regular basis.

PSR, 19 October 2018

UK Finance issues guidance on strong customer authentication under PSD2

UK Finance has published guidance on implementing the requirements under the regulatory technical standards (RTS) supplementing the revised Payment Services Directive (PSD2) with regard to strong customer authentication (SCA) and common and secure open standards of communication (CSC). The RTS will apply from 14 September 2019, with some provisions relating to testing applying from 14 March 2019.

UK Finance, 19 October 2018

Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018

SI 2018/Draft: This draft enactment is laid in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft instrument amends pieces of UK primary and subordinate legislation in order to ensure that the Payment Services Regulations 2017, SI 2017/752 and the Electronic Money Regulations 2011, SI 2011/99 can continue to operate effectively after the UK’s withdrawal from the EU. This draft instrument will achieve this by using the section 8 powers of the European Union (Withdrawal) Act 2018 (EU(W)A 2018) to fix deficiencies in these regulations.

UK Government, 12 October 2018

FCA's consultation on the Temporary Permissions Regime (CP18/29)

The FCA published two consultation papers, setting out its proposals in the event the UK leaves the European Union on 29 March 2019 without an implementation period. The two consultation papers focus on: i) Amendments to the FCA Handbook and Binding Technical Standards (detailed EU rules which the FCA will have responsibility for after exit) (CP18/28) resulting from leaving the EU, and the FCA’s approach after Brexit to EU non-legislative material; and ii) the Temporary Permissions Regime (CP18/29), which will allow EEA firms and funds passporting into the UK to continue operating here for a limited period after Brexit while seeking full UK authorisation. CP18/29 sets out details of the TPR regime for both firms and fund marketing activities, how the regime will operate for firms and investment funds and the rules the FCA proposes to apply to firms and fund marketing activities during the regime. It also sets out information for Electronic Money Institutions, Payment Institutions and Registered Account Information Service Providers. The consultations will close by 7 December 2018.

FCA, 11 October 2018

PSR responds to second LINK ATM footprint report

The PSR has published its response to the second 'footprint report' of the UK's largest cash machine network, LINK, on access to cash points. The PSR is concerned about closures of free-to-use (FTU) ATMs, particularly 'protected' ones, i.e. those 1km or more away from another FTU machine. The PSR is working closely with, and receiving regular updates from, LINK's senior team to ensure it delivers on its commitments to protect the broad spread of free to use ATMs.

PSR, 11 October 2018

Treasury Committee publishes PSR’s LINK update letter

The chair of the Treasury Select Committee, Nicky Morgan MP, has published an 11 September 2018 letter from the managing director of the Payment Systems Regulator (PSR), Hannah Nixon, updating the committee on LINK and the provision of free-to-use (FTU) ATMs in the UK.

Treasury Committee, 10 October 2018

Worldwide

ECON vote for equal charges for domestic and cross-border non-euro payments

The Economic and Monetary Affairs Committee (ECON) MEPs have voted to put an end to the existence of two categories of payment service users in the EU: those who benefit from the single euro payments area (SEPA) and the users paying high costs for their cross-border payments in euro. The MEPs decided banks should charge equally for cross-border and domestic payments in national currencies and cut charges for euro payments from non-euro areas.

ECON, 6 November 2018

ECB amends TARGET2 terms and conditions to reflect new instant payment settlement service

The executive board of the European Central Bank (ECB) has adopted a decision amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB. The changes reflect amendments recently made to Guideline ECB/2012/27 of the ECB regarding the terms and conditions of TARGET2-ECB and clarify some other points in the terms and conditions.

ECB, 12 October 2018

BIS general manager on the evolution of money

The Bank for International Settlements (BIS) published a speech by its general manager, Agustín Carstens, on money and payment systems in the digital age. Mr Carstens said central banks are using the latest technologies to make payment systems more robust, more resilient and more timely, and will continue to play a critical role in pushing the boundaries of how technology can enhance the payments landscape. 

BIS, 1 November 2018

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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