On 1 August 2016, the Financial Conduct Authority (FCA) issued a policy statement on the Payment Accounts Regulations 2015. The statement includes a summary of feedback received in response to Consultation Paper 16/7: Payment Accounts Regulations 2015 – draft Handbook changes and draft guidance. Appendix 1 of the policy statement includes the final Handbook changes and the final guidance is available in Appendices 2 and 3.
What this means for you
In addition to some minor amendments to improve clarity, the FCA has made the following changes as a result of the consultation:
Guidance on packaged accounts:
- Clarification of the scope of the PARs provisions on packaged accounts, including what "other products and services" may include.
- Addition of guidance on the timing and method of providing information on the costs and fees of purchasing the other products and services separately.
- Regulatory reporting requirements:
- Total number of refusals of switching applications to be reported (rather than the proportion of total applications refused).
- Total number of refusals of applications for basic bank accounts to be reported (rather than the proportion of total applications refused).
- Reporting deadline extended to two months (instead of one month) after the end of the reporting period.
The final text of the FCA's rule changes comes into force on 18 September 2016 (the same day as the relevant provisions of the PARs come into force).