BIS has published a report that looks at the growing trend in many jurisdictions towards an open banking. In particular, the report focuses on those aspects relating to customer-permissioned data sharing, ie where...
Category - Payment Services & Electronic Money
Roseyna JahangirEPC 2019 SEPA scheme rulebooks in force
The European Payments Council has confirmed that its rulebooks covering: SEPA Credit Transfers, SEPA Instant Credit Transfers, SEPA Direct Debits, and SEPA Direct Debits Business-to-Business, came into force from 17...
EBA reports on potential barriers to cross-border banking and payment services
The EBA has published a report identifying potential impediments to the cross-border provision of banking and payment services in the EU. The report was developed under the EBA’s FinTech Roadmap, and calls on the...
FCA confirms PSD2 SCA RTS standards to apply in event of no-deal Brexit
The FCA has published a policy statement setting out UK regulatory technical standards and Handbook changes that would apply to customer authentication if the UK were to leave the EU on ‘no deal’ terms. The...
FMLC evaluates exchange tokens
The Financial Markets Law Commission has published a report in which it evaluates some of the live issues and considerations in relation to exchange tokens and virtual currencies. The report provides an overview of...
EBA recommends enhanced online disclosure requirements
The EBA has issued an Opinion directed to the EC, setting out recommendations to revise the scope and consistency of disclosure requirements in EU law to take account of the increasing use of digital marketing channels...
FCA outlines five steps to drive the future of regulation
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, recently spoke about the FCA’s thoughts on how it approaches the future of regulation. He commented that the FCA will be issuing an...
ESMA to examine reporting issues in annual financial reports
ESMA has set out the matters it will prioritise when looking at the 2019 annual financial reports of listed companies. Among the specific areas of focus, ESMA has underlined the importance of the inclusion of...
Regulatory risks of Stablecoins in focus
The emergence of global stablecoins has been a focus point over the past few days, with the FSB, FATF and the G7 Working Group on Stablecoins all publishing statements on the impact and risks of the development of these...
EBA publishes further Opinion on SCA implementation deadline
Following the EBA Opinion on the implementation of SCA requirements under PSD2, and the indication of a possible grace period at the discretion of NCAs, the EBA has published a further Opinion providing further details...
FCA publishes feedback statement on climate change disclosures
The FCA has published its proposals for its future work on climate change and green finance, following responses to its Discussion Paper in 2018 . In its work, the FCA will be focusing on three outcomes: Issuers provide...
FCA provides Brexit preparations update for firms
The FCA has published an update on the steps firms will be expected to take in the event that there is a hard Brexit. In particular, the FCA reminds EEA passporting firms of the need to notify the FCA by 30 October if...
Payment Systems Regulator invites comments on LINK Specific Direction 8
The PSR is asking for views to be submitted on the operation of Specific Direction 8. This was given to LINK at the end of last year, and is focused on the maintenance of a broad geographic spread of free-to-use ATMs...
Queen’s Speech suggests post-Brexit FS Bill
Among the list of legislative proposals referred to in the Queen’s Speech is laws that will provide “certainty, stability and new opportunities” for the financial services sector through a Financial...
Emma RadmoreGuidance on unfair consumer terms Directive
The European Commission (the “Commission”) has issued guidance on the interpretation and application of Council Directive 93/13/EEC on unfair terms in consumer contracts (“UCTD”) The Commission...
Rachael PrestonPSR Updates on card-acquiring services
The PSR is currently undertaking a review into the supply of card-acquiring services. As part of its consultation, it published its proposed approach to the profitability analysis and set out two options – Gross...
Caroline StevensonDeprived of Cash? Which? report and PSR Response
On 18 September 2019, Which? published a report highlighting that poorer areas are worst hit by the rapid move to fee-charging cashpoints. In fact, the report notes that 9% of free cash points across the country closed...
FCA updates on Brexit preparations
In a recent speech, Andrew Bailey, the chief executive of the FCA, provided an update on the FCA’s state of preparation for Brexit, and in particular for a no-deal, no-transition Brexit scenario. However, while Mr...
No more ink? Law Commission confirms validity of electronic signatures
A Law Commission report confirms that electronic signatures can be used to execute documents as an alternative to wet ink signatures in most circumstances. There are some important exceptions and the report only relates...
Suzanne GadoPayment Systems Regulator working on widening data access
In the PSR’s response to its Data in the Payments Industry discussion paper, the regulator heralds work with Pay.UK on opening up access to data in the UK’s new payments architecture. The aims of such a...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October, and also other miscellaneous amendments including: minor...
PSR update on LINK interchange fees
On 9 September 2019, the PSR published a document setting out (1) the responses it had received to its call for views on the structure of LINK interchange fees and (2) a summary of the roundtable event which discussed...
EC calls for action with publication of no-deal Brexit checklist
The EC is urging EU businesses and citizens to consider whether they are prepared for the UK leaving the UK on ‘no-deal’ terms on 31 October, reminding them in this scenario there will be no transition...
FCA publishes SCA webpage
As the official deadline approaches for SCA implementation, albeit mitigated by the conditional extension agreed with UK Finance, the FCA has published an overview page setting out the state of play for industry...
European Payments Council urges no-deal Brexit preparation
Earlier this year, the European Payments Council (EPC) approved (on the application of UK Finance) the continued participation by UK PSPs in the SEPA payment schemes in the event of UK withdrawal from the EU on a no...
Pay.UK call for information
Pay.UK has today published a call for information following a change request which was requested by UK Finance on behalf of seven of their members. This change would introduce a new requirement to the Faster Payments...
FCA ‘Dear CEO’ letter on SCA published
The FCA has sent a Dear CEO letter to payment firms within the scope of PSD2 SCA, confirming the plan for an 18 month phased implementation of SCA for card-not-present e-commerce transactions. The FCA’s letter...
Consultation on restricting use of credit cards for gambling
The Gambling Commission is consulting on whether to prohibit or restrict the use of credit cards for online gambling. The basis for this proposal lies in evidence they have received suggesting there are risks of...
ESAs respond on crypto assets
EBA and ESMA have published a joint response to the Commissions’ paper on crypto-assets. The response explains the work the ESAs are undertaking, including an imminent national stock-taking exercise on the...
FCA provides more time to implement Secure Customer Authentication
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...
Natasha BrownleeFeedback on EBA Single Rulebook published
The EBA has published the results of a review exercise it conducted to assess the utility of the Single Rulebook. As might be expected, overall feedback from the competent authorities and selected industry...
FCA’s Final Guidance on Cryptoassets published
Having issued a consultation earlier this year on its proposed guidance on categorisation of cryptoassets and the perimeter of regulated activities, the FCA has now published its finalised guidance. The FCA notes that...
Publication of AG Opinion on consequence of removing unfair terms in consumer contracts
The European Court of Justice has published the AG’s Opinion in a case concerning the effect of a declaration of unfair terms for the purposes of the Unfair Contract Terms Directive (in UK law as the Consumer...
EC sets out position statement on equivalence decisions
The EC has published a communication about equivalence decisions (the timing of which is no doubt entirely unrelated to the ascension of pro-Brexit Boris Johnson to the Prime Ministership of the UK). The communication...
Call for views on Access to Cash research
The Payment Systems Regulator has published the results of its commissioned research into how people and businesses are using cash in today’s landscape. It found that despite the transition to and increase in...
EBA FinTech report published
The EBA has analysed the regulatory landscape for FinTech firms, both in terms of activities around the regulatory perimeter and within authorisation. The report sets out the findings of this analysis, including...
FCA discusses AI in financial services
In a recent speech, Christopher Woolard of the FCA considered three lenses through which the FCA views the issues relating to AI: what are new, and what are existing issues; how to ensure that AI creates value for...
FCA invites feedback on Gabriel replacement
The FCA has announced that it is planning a replacement for Gabriel, its data collection system. It has therefore asked current Gabriel users to complete a feedback survey to provide views that can be considered in the...
ESA evaluates cross-border supervision of retail financial services
A report published by the Joint Committee of European Supervisory Authorities, ie the EBA, ESMA and EIOPA, has reviewed the current landscape of cross-border supervision, in particular in the light of the regulatory...
EBA evaluates FinTech’s impact on business models of payment and electronic money institutions
The EBA has published a thematic report evaluating the impact of FinTech on the payment institution (PI) and electronic money institutions’ (EMI) business models. The report reviews key trends and drivers in the...
UK Finance publishes payment account service guide
On 1 July, UK Finance published a voluntary good practice guide to help credit institutions providing access to payment account services and those seeking to access such accounts. The guide recommends that: all relevant...
FCA reviews non-bank PSP safeguarding
FCA has carried out a review of the safeguarding arrangements of 11 non-bank PSPs. It wanted to see how well they complied with the requirements of the EMRs and PSRs and found both good and bad practices. Among its key...
CMA launches digital advertising market study
The CMA has launched a study into online platforms and digital advertising. The study will focus on harm caused by consumers in connection with three areas of digital advertising: the extent online platforms (such as...
Alex LouchUK financial regulators publish climate change Joint Declaration
The FCA, PRA, TPR and FRC have jointly issued a declaration reiterating their commitment to work on the enhancement of climate-related disclosures. The Joint Declaration also welcomes the UK’s Green Finance...
PSR updates on access and governance
The PSR has published its fourth report on access to payment systems and governance of system operators. Key developments since the last update are: 12 new participants joining FPS, Bacs and CHAPs in 2018 (with the...
BoE Governor outlines plans for a ‘new economy’
In his recent speech at Mansion House, Mr Carney addressed what he saw as an emerging ‘new economy’, that would be driven by a ‘new finance’. He outlined measures taken by the Bank of England to...
Chancellor outlines financial services plans at Mansion House speech
The Rt Hon Philip Hammond MP spoke at Mansion House on 20 June, and outlined government’s plan to safeguard and expand the financial services industry, despite the uncertainties of Brexit and its likely impact on...
EBA announces conditional ‘grace period’ for PSD2 SCA RTS compliance
Much of the payments industry has been taxed greatly by the issue of both interpreting and implementing compliance with the prescriptive requirements of the PSD2 SCA RTS. The deadline for compliance with these...
“Not all about Brexit” says Philip Hammond
Philip Hammond, speaking at the Mansion House dinner, highlighted the many ways in which a no-deal Brexit would be damaging for the financial services industry and the UK as a whole. He noted also the political...
CMA may be given enhanced powers to impose fines for consumer law breaches
The government has announced that it will consult on whether the CMA should be given the power to fine businesses directly if they have breached consumer law, for example through the ‘loyalty penalty’ and...
Terms of Reference of the Joint Authorities Cash Strategy Group
In line with the Government’s policy to safeguard access to cash for those who need it, whilst supporting digital payments, HM Treasury (HMT) has establish the Joint Authorities Cash Strategy (JACS) Group...
Angie BamboulisPSR Review of the Structure of LINK Interchange Fees
The PSR has published a Call for Views (CP19/5) on the structure of LINK interchange fees. The paper examines how the structure of the interchange fees works now, what other options there could be and how the...
PRA and FCA impose £1.89m fine for outsourcing failures
The PRA and FCA have imposed a joint fine on Raphaels Bank following an investigation in to the cause and consequence of an IT incident in December 2015. The incident occurred by a failure of services provided by a sub...
FSB continues work to address decline in correspondent banking
The FSB has published an update on its ongoing work to address the decline in correspondent banking that has emerged in recent years. The latest report notes that the number of active correspondent banks reduced by 3.4%...
EBA reports on 2018 work
The EBA has published its Annual Report for 2018. The Report records the key areas of focus for the EBA in 2018, in particular the development and maintenance of the single rulebook, and the work on payments and the...
APP scam victims provided greater protect under new Code
The APP Scams Steering Group has published the new voluntary Code which gives customers greater protection against APP scams and provides victims, who meet certain requirements, with full refunds. To help protect...
FCA extends temporary permissions deadline
FCA has confirmed the deadline for EEA firms to notify it of their intention to use the temporary permissions regime is now 30 October. FCA has updated its website with details of how the TPR applies, and its policy for...
PSR consults on merchant survey in card-acquiring review
Following publication of its terms of reference for its market review into the supply of card-acquiring services in January, the PSR published its consultation paper on the approach to the merchant survey on 22nd May...
Combatting fraud with payee verifications
We have written an article on the steps the payments industry is taking to mitigate the risks of APP fraud, in particular the introduction of ‘Confirmation of Payee’, an account name checking system.
Treasury committee report on access to financial services
On 13 May 2019, the Treasury Committee published its 29th report on consumers’ access to financial services. The report urges financial services providers, the Government, and financial regulators to ensure...
PSR publishes second Confirmation of Payee consultation paper
On 9th May 2019, the PSR published a consultation paper (CP19/4) setting out its response to the first Confirmation of Payee consultation and setting out it’s draft specific direction for further consultation...
Treasury publishes digital economy responses
Treasury had published a summary of the responses it received to its consultation on cash and digital payments in the new economy, which closed last year. It received 218 responses. Key themes are: the government...
HM Treasury sets up Joint Authorities Cash Strategy Group
In a letter to the Treasury Committee, the Chancellor has announced the formation of the Joint Authorities Cash Strategy (JACS) Group. The membership of the Group will be HM Treasury, the BoE, FCA and PSR. The aims of...
FIN. TeamMastercard and Visa to lower interchange fees for payments in Europe
The European Commission has announced that Mastercard and Visa have made binding commitments to reduce interchange fees charged for payments in Europe to customers with consumer debit and credit cards issued outside the...
EBA Opinion on Passport Notifications for E-Money Agents and Distributors
The EBA has published an opinion on the nature of passport notifications regarding agents and distributors under PSD2, 2EMD and MLD4. In particular, the opinion provides clarity on: the criteria that national competent...
Treasury presses on with MLD5 implementation
HMT has opened a consultation on the implementation of MLD5. Treasury proposes a number of changes to UK law, and seeks views on its proposals in several areas. Aspects of MLD5 addressed in the consultation include:...
PSR ADOPTS SMR PRINCIPLES
As a wholly owned subsidiary of the FCA, the Payment Systems Regulator (PSR) has announced that it is adopting and applying the same core principles of the Senior Managers Regime as the FCA. A formal description of the...
EBA PSD2 API working group publishes second set of clarifications
The EBA has published the second set of responses to issues raised by its Working Group on PSD2 APIs. These issues relate to: API performance and support, the identification of Third Party Providers (TPP) that are...
FCA publishes final no-deal Brexit rules
Perhaps in anticipation of what would follow later in the day, FCA published its final instruments and guidance that would apply in the event of a no-deal, no-implementation period Brexit, on the morning of 29 March...
PSR publishes Annual Plan and Budget for 2019/2020
The Payment Systems Regulator (PSR) published its annual plan and budget setting out its key objectives and activities for 2019/2020. The PSRs key initiatives include: to protect people from Authorised Push Payment...
FOS letter to Treasury Committee on reasonable adjustments under the Equality Act
On 26th March 2019, the House of Commons Treasury Committee published a letter from Caroline Wayman (FOS Chief Ombudsman and Chief Executive) to Nicky Morgan (Committee Chair) setting out the requirements to make...
FCA looks at life beyond Brexit
In a speech on Brexit delivered by Nausicaa Delfas, Executive Director of International, the FCA reminded firms that the deadline for notifications under the temporary permissions regime is 28 March 2019. Firms that...
What the Spring Statement brings for regulation
In the Chancellor’s Spring Statement, the Chancellor referred to the need to ensure financial regulation can adapt to a no-deal Brexit and then, longer term, to the UK’s new constitutional position.
EBA Working Group on PSD2 APIs: first set of clarifications published
Following the first meeting of the EBA Working Group on APIs under PSD2, the EBA has published the first set of issues identified and consequent clarifications. The issues relate to the testing environment mandated by...
EU agrees draft directive to enhance consumer protection
The EU has agreed the terms of a draft directive that, if passed, will amend a number of consumer protection directives, including the consumer rights directive (2011/83/EU), to introduce measures such as: harmonised...
APP Scam Steering Group announces voluntary code to combat fraud
The Authorised Push Payment (APP) Scams Steering Group announced that it has agreed a voluntary Code of good practice. The Code aims to better protect customers and reduce the occurrence of APP fraud. It sets out the...
BoE and FCA update on Brexit approach
BoE and FCA have updated their respective websites with coordinated information on their approach to a hard Brexit. BoE has published a series of materials setting out its updated plans to its supervisory approach to a...
FCA renews call for firms to prepare for Brexit
The FCA has published sector-specific information to help regulated firms ensure they are prepared for the consequences of Brexit, including a no-deal Brexit. The guidance covers banking and payments, life insurance...
Revised Guidelines on outsourcing published by EBA
The EBA has published a revision to the Committee of European Banking Supervisors’ 2006 Guidelines on outsourcing arrangements. The revised guidelines take into account and are consistent with CRD IV, MiFID II...
Court rules that Brexit is not frustrating event for a lease
The High Court has ruled that a European agency cannot terminate the lease of their premises at Canary Wharf on the basis of Brexit being a ‘frustrating event’. Our article provides more detail on this case...
EU Customers to get currency conversion transparency and cheaper transfer costs
The Commission has published a fact sheet on legislative changes that will give customers from non-Euro Member States access to cheaper intra-EU euro payments. The new Cross-Border Payments Regulation, that will take...
European Parliament votes to abolish high costs for cross border payments within EU
The European Parliament has approved new rules to prohibit high charges on cross-currency payments within the EU. The new rules will mean that charges for cross-border payments in the single euro payments area (SEPA)...
EBA sets up PSD2 working group
EBA has set up a working group on APIs under PSD2. It has published details of its meetings and the group on a new website page.
ESMA briefs on non-EU branches
ESMA has published a supervisory briefing aimed at helping supervisors dealing with non-EU branches of EU firms. It highlights how the supervisors should ensure that the non-EU branch can comply with the requirements of...
ESMA creates Brexit page
ESMA has created a new web-page on Brexit, setting out how it is preparing for it. Its latest agreement is a MoU with BoE for recognition of CCPs and the Central Securities Depository. It aims to recognise all UK CCPs...
Treasury lays Brexit FS SI before Parliament
Treasury has laid before Parliament the Financial Services (Miscellaneous)(Amendment)(EU Exit) Regulations 2019. The wide-ranging instrument amends several pieces of UK and retained EU law relating to financial...
FCA publishes rules and guidance for payment services and e-money sectors
Following its consultation on general standards and communication rules for payment services and e-money sectors, the FCA has now published final rules and guidance on, among other matters, the extension of the...
FCA agrees Brexit MoUs with European securities regulators
As part of the preparation for a ‘no-deal’ Brexit, the FCA has agreed MoUs with ESMA and with EU and NCAs, covering supervision, enforcement and information exchange, including in relation to credit rating...
FCA makes new rules
FCA’s latest Handbook Update lists rules made in December and January. The key changes: amend the rules on PCAs and Overdrafts from 18 December 2019: these changes amend BCOBS and CONC to tackle low levels of...
Treasury Committee launches post-Brexit FS inquiry
The Treasury Committee has started a new inquiry looking at financial services in the UK after Brexit. Its focus is to look at: what the UK’s financial services priorities should be when negotiating the UK’s...
PSR publishes TOR for card-acquiring services review
The PSR has published its final terms of reference for its market review into the supply of card-acquiring services. the review will look at a variety of issues including how merchants buy the services, whether there...
Treasury writes to Treasury Committee on no-deal planning law
The Treasury has written to the Treasury Committee enclosing a draft of secondary legislation that would give temporary transitional powers to the UK financial regulators in the event of a no-deal Brexit that would...
FCA to look at product governance and research unbundling
A set of oral evidence given to the Treasury Committee includes statements from FCA that: it is now content on how to interpret the mortgage affordability test compliantly with the MCD and now plans to consult on...
New Financial Services head at Womble Bond Dickinson
We are delighted that Jonny Williams has joined the financial services regulatory team at Womble Bond Dickinson UK.
More information on Jonny and his appointment can be found here.
FCA publishes sector views
FCA has published its “Sector Views” setting out its observations from monitoring its 7 selected sectors of: retail banking retail lending general insurance and protection pensions and retirement income...
UK Finance wants to stay in SEPA
UK Finance has applied on behalf of the UK to stay in SEPA. SEPA is operated by the EPC outside the EU institutional framework. UK Finance says the SEPA community would support it staying, and its own members want to...
FCA consults on Brexit contractual continuity provision
At the end of last year, the the Treasury published draft regulations making provision for contractual certainty for firms currently passporting into the UK in the event of a ‘hard’ Brexit. Following this...
FCA opens temporary permissions notification window
FCA has opened the notification window for passporting-in firms. Firms will need to have notified FCA of their intention to seek full UK authorisation to carry on services in the UK before exit day in the event of a...
Up next from FCA
FCA’s latest Policy Development Update highlights a number of publications due before the end of Q1 2019: a policy statement on general standards and communication rules for payment services and emoney providers;...
PRA consults on Brexit measures
As part of its preparation for onshoring EU legislation, the PRA has published CP32/18. This consultation paper contains two consultations: the first sets out the PRA’s proposals regarding the PRA Rulebook and...