The FCA has set out an agreed plan that it will not take any action against firms that are not ready for the strong customer authentication (“SCA”) EU rules by 14 September this year.
In the plan, the FCA has provided an 18 month grace period. However, firms will need to provide “evidence that they have taken the necessary steps” to meet the longer transition plan, if they are to avoid enforcement action.
The FCA expects all firms to have made the necessary changes and undertaken the required testing to apply SCA by March 2021.
The plan is as a result of the recent opinion of the EBA which said that more time was needed to implement the SCA given the complexity of the requirements, a lack of preparedness and the potential impact on consumers.