Implementation of Payment Services Directive 2
The revised Payment Services Directive (PSD2) is required to be implemented in the UK by 13 January 2018. The Treasury has transposed PSD2 into UK legislation in the Payment Services Regulations 2017 (PSRs 2017). The FCA will continue as the competent authority responsible for authorising and supervising payment service providers under PSD2. The Payment Systems Regulator will also be responsible for certain aspects which relate to payment systems.
The FCA’s Policy Statement confirms changes to the Handbook and Approach Document guidance, and new non-Handbook directions for excluded firms, to reflect PSD2 and the PSRs 2017. This follows the two consultations issued in April (CP17/11) and July (CP17/22). The FCA has also made some amendments to its approach following feedback to these consultations.
The FCA is also publishing the Payment Services and Electronic Money: Our Approach, having consulted on this in CP17/11 and CP17/22. This Approach Document is designed to help firms navigate the payment services and e-money regulatory requirements. It replaces the existing Payment Services and E-Money Approach Documents. Firms can read draft versions of the Approach Document that was consulted on at Draft: Payment Services and Electronic Money – Our Approach and Draft with tracked changes: Payment Services and Electronic Money – Our Approach.
What will happen?
Certain firms will need to become registered or authorised for the first time as a result of PSD2. Existing payment institutions and e-money institutions will need to be re-registered or re-authorised. The FCA opens for applications on 13 October 2017.
The Payment Systems Regulator is also confirming its approach to monitoring and enforcing the four Regulations in the PSRs 2017 that it is the competent authority for (Regulation 61 and Part 8 of the PSRs 2017).
Firms can read the Payment Systems Regulator’s approach document at The Payment Services Regulations 2017 – the PSR’s approach to monitoring and enforcement.
More services will be brought within the FCA’s scope by PSD2. These include account aggregation services which aim to help consumers manage their finances by bringing all of their bank account data together in one place, and services that allow consumers to make payments in different ways online, without using a credit or debit card.
PSD2 also introduces a number of new requirements around how firms treat their customers and handle their complaints, and the data they must report to the FCA
How can Thistle help you?
Thistle will continue to keep this area under review and will issue further updates where necessary. For more information, email email@example.com or call 0207 436 0630.