Included in this weeks issue of InContact: Access and governance report on payment systems 2018; HM Treasury call for evidence on cash and digital payments; PSD2 RTS published in the Official Journal; and more... 


UK

Access and governance report on payment systems 2018

The PSR has published its third report on access to payment systems and the governance of payment system operators in the UK, providing stakeholders with updates on the developments over the last 12 months. The PSR says that improvements in access to payment systems and the governance of payment systems operators include a record number of new direct participants joining the interbank systems and new players offering indirect access to payment service providers (PSPs). In addition, the choice of access options for PSPs has increased and the time it takes to join a payment system continues to reduce. During 2018, the PSR expects to see the first new non-bank PSP joining one of the interbank systems and the first new participants connecting directly to Faster Payments but using a sponsor bank for settlement. Operators have also continued to engage with service-users on aspects of their existing service offerings and their plans for new services. A useful factsheet summarising the report is available.

PSR, 14 March 2018

HM Treasury call for evidence on cash and digital payments

HM Treasury published a call for evidence on cash and digital payments in the new economy in order to help the government understand how the transition from cash to digital payments impacts different sectors, regions and demographics, seeking both domestic and international evidence of what the government can and should do in this area. Specifically, the call for evidence seeks comments on:

  • Supporting digital payments. What further work can be done to remove barriers to digital payments (including costs and disincentives), and can government play a greater role in addressing them)?
  • How can the government ensure that cash remains accessible and secure for those who need to use it (e.g. sufficient access to ATMs)?
  • What more can be done to crack down on the minority who use cash to evade tax and launder money? The government wants to understand more about large cash transactions and why they are used. Some countries have taken steps to limit these, and the government wants to know more about the impact this has had, including on tax compliance.

The deadline for responding to the call is 5 June 2018.

HM Treasury, 13 March 2018

Worldwide

ECB's Benoît Cœuré on the balance between financial regulation and innovation

Benoît Cœuré, a member of the executive board of the ECB, gave a speech  on the balancing act between encouraging FinTech innovation, and safe regulation. Mr Cœuré said pre-emptively drawing in the reins in the name of financial stability could stifle innovation, prevent FinTechs from developing important economies of scale, and deprive small businesses and households of the benefit of technological progress. But allowing risks to accumulate in an unregulated sector may undermine financial stability and undo the benefits of past regulatory efforts.

ECB, 16 March 2018

PSD2 RTS published in the Official Journal

Commission Delegated Regulation (EU) 2018/389 supplementing the revised Payment Services Directive ((EU) 2015/2366) (PSD2) with regard to regulatory technical standards (RTS) for strong customer authentication and common and secure open standards of communication has been published in the Official Journal of the EU (OJ). It will enter into force on 14 March 2018 (the day after publication in the OJ). It will apply from 14 September 2019, with the exception of Article 30(3) and (5), which will apply from 14 March 2019.

ECB, 13 March 2018

The EPC launches the Public Consultation on the 2018 change requests for the SEPA Credit Transfer and SEPA Direct Debit Rulebooks

As part of the rulebook evolution of the Single Euro Payments Area (SEPA) Credit Transfer (SCT), the Instant Credit Transfer, the Direct Debit Core (SDD Core) and the SDD Business-to-Business (SDD B2B) schemes, and in line with its commitment to stakeholders’ involvement, the European Payments Council (EPC) has launched the public consultation on possible modifications to these schemes. 

All Payment Service Providers, end users and technical players can participate in the public consultation during this three-month period.

EPC, 13 March 2018

EBA speech on designing a FinTech roadmap

The EBA has published a speech  made by Andrea Enria, Chairperson, on designing a regulatory and supervisory roadmap for FinTech. This defines a series of priorities for the next two years reflecting the results of a public consultation. 

EBA, 9 March 2018

European Commission communication on FinTech action plan

European Commission published a communication setting out its FinTech action plan, which includes measures to create a more competitive and innovative European financial sector. A set of FAQs  and a factsheet  have been published alongside the action plan. The FinTech action plan initiatives are listed in a workplan  annexed to the communication, many of which invite the European Supervisory Authorities (ESAs) to carry out specific work.

European Commission, 8 March 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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Al Mangan

Al Mangan

Managing Associate, Competition & Regulation
London

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William James

William James

Partner, Corporate
London

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Bruce Kilpatrick

Bruce Kilpatrick

Partner, Head of Competition
London

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