Included in this editon of InContact: PSR responds to the interim Access to Cash Review; Report with advice for the European Commission; EPC publishes results of polll on biometric authentication and more...


UK

UK Finance makes application on behalf of UK to remain in the Single Euro Payments Area (SEPA)

UK Finance is supporting its members in their efforts to retain access to key euro payments systems such as the Single Euro Payments Area (SEPA) in order to ensure SEPA payments can still be made. UK Finance has formally made an application to maintain participation in SEPA on behalf of the UK financial services and payments industry.

UK Finance, 9 January 2019

FCA removes several SPI registrations

The FCA has issued Final Notices against Royaume FEX Limited, Prestige Group (UK) I Ltd and Arab Link Ltd. The final notices refer to breaches of payment services regulations (PSR) related to failing to be open and co-operative in the payment services sector. The FCA has cancelled the firms' registrations as SPIs in accordance with Regulation 10(1)(h) of the PSR (as applied by Regulation 15 of the PSR).

FCA, 8 January 2019

FCA releases PS18/24

The FCA has published its policy statement PS18/24: Approach to final Regulatory Technical Standards and EBA guidelines under the revised Payment Services Directive (PSD2). This policy statement confirms the FCA's approach to assessing whether banks and other online account providers are properly set up to enable ‘open banking’. The FCA will start to accept exemption requests and make assessments of them from January 2019.

FCA, 19 December 2018

The FCA has also published a further version of its Approach Document - Payment Services and Electronic Money – Our Approach (version 3). This includes a new chapter 20 on strong customer authentication requirements and final guidance on the contingency exemption request (chapter 17). This document will help businesses to navigate the Payment Services Regulations 2017 (PSRs 2017) and the Electronic Money Regulations 2011 (EMRs) (together with the FCA's relevant rules and guidance), and to understand its general approach in this area.

FCA, 19 December 2018

Payment Services and Electronic Money – Our Approach

The FCA has  also published the tracked changed version of the 'Updated Finalised guidance: Payment Services and Electronic Money – Our Approach: The FCA’s role under the Payment Services Regulations 2017 and the Electronic Money Regulations 2011 (version 3)' highlighting all the changes between the previous version of the document and the current version.

FCA, 9 January 2019

Temporary permission notification direction (payments)

The FCA has published temporary permission notification directions in regards to the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 in relation to payments and e-money.

FCA, 19 December 2018

PSR responds to the interim Access to Cash Review

In the first of Natalie Ceeney’s reports, it’s clear that cash is being used by fewer people and for fewer transactions. But the report also highlights the importance of cash to consumers generally and that it remains a necessity for many. 

PSR, 19 December 2018

FCA releases CP18/44

The FCA has published Consultation Paper - Brexit – Regulatory Technical Standards for Strong Customer Authentication and Common and Secure Open Standards of Communication (CP18/44). In this Consultation Paper the FCA proposes to make regulatory technical standards for strong customer authentication and common and secure open standards of communication, which will apply in the UK from 14 September 2019 in the event of a no-deal exit by the UK from the EU. Comments are due by 19 February 2019.

FCA, 19 December 2018

FCA introduces new rules on handling complaints about Authorised Push Payment fraud

The FCA has  published new rules allowing victims of Authorised Push Payment (APP) fraud to complain to the payment services provider (PSP) receiving their payment. Read them here.

FCA, 14 December 2018

UK Finance: digitisation of financial services has the potential to increase financial inclusion

UK Finance has published a report on Financial Inclusion in a Digital Age, which explores how digitisation and a collaborative approach to understanding consumer benefits can help to attain and deliver enhanced financial inclusiveness in both the short, medium and long-term.

UK Finance, 14 December 2018

PSR update on its market review into the supply of card-acquiring services

In July 2018, the Payment Systems Regulator (PSR) announced its proposal to carry out a market review into the supply of card-acquiring services. The PSR originally intended to publish the final terms of reference by the end of 2018. It has confirmed that its final document will now be published at the beginning of 2019.

PSR, 11 December 2018

Worldwide

ECON endorses agreement on cross-border payments regulation

The European Parliament's Economic and Monetary Affairs Committee (ECON) has unanimously endorsed the provisional agreement resulting from inter-institutional negotiations on the European Commission's proposal for a regulation amending Regulation (EC) 924/2009 as regards charges on cross-border payments in the EU and currency conversion charges. The agreement between the Council of the EU, the Parliament and the Commission was reached on 11 December 2018. 

ECON, 11 January 2019

Report with advice for the European Commission

The European Banking Authority (EBA) published the results of its assessment of the applicability and suitability of EU law to crypto-assets. Typically, crypto-asset activities do not constitute regulated services within the scope of EU banking, payments and electronic money law, and risks exist for consumers that are not addressed at the EU level.

EBA, 9 January 2019

EPC publishes SEPA Direct Debit Core Scheme implementation Guidelines 2019

The European Payments Council (EPC) has published updated implementation guidelines (Guidelines) which set out the SEPA rules for implementing SEPA Direct Debit (SDD) Core Rulebook standards and SDD business-to-business (B2B) Rulebook standards. The Guidelines take effect on 17 November 2019.

EPC, 17 December 2018

EPC publishes results of poll on biometric authentication

The EPC has published the results of a poll on biometric authentication technology adoption for payments in the coming 5 years. The EPC asked professionals working in the payments industry which biometric authentication technology they considered to offer the greatest potential for customer adoption for payments in the coming 5 years. Most of the voters (60%) agreed that multiple and fingerprint scanning technologies have the greatest potential in the coming five years. Facial and eye recognition represented a fifth of the total votes and only 5% of respondents voted for no biometric authentication technology being in widespread use within 5 years.

EPC, 14 December 2018

EBA updates guidelines on fraud reporting under PSD2

The EBA published an updated version of their guidelines on fraud reporting under the revised PSD2. The guidelines applied from 1 January 2019, except data reported relating to the exemptions from the requirement to use strong customer authentication provided for in Commission Delegated Regulation (EU) 2018/389.

EBA, 10 December 2018

EBA publishes an Opinion on the use of eIDAS certificates under PSD2

EBA has published an Opinion on the use of eIDAS certificates under the Regulatory Technical Standards (RTS) on Strong Customer Authentication and Common and Secure Communication (SCA&CSC). In the Opinion, the EBA clarifies specific aspects on the use of qualified certificates for electronic seals (QSealCs) and qualified certificates for website authentication (QWACs) for the purpose of identification of payment service providers (PSPs) under the RTS, the content of these certificates, and the process for their revocation.

EBA, 10 December 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, UK

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