HMT has finally published the draft regulations that will implement PSD2 in the UK.
They are intended to replace the existing Payment Services Regulations 2009 (PSRs) and they come alongside a consultation paper which provides an overview of the changes from the original Payment Services Directive (PSD), the government's overarching approach to implementing the new regime and specific questions for interested parties to respond on.
If you would like a summary of some of the key changes between PSD and PSD2, please get in touch and we can provide a copy of the PSD2 brochure which we produced last year. However, many PSD2 implementation projects will of course have already completed their analysis of the new directive and based initial project assumptions (including technological, operational and terms and conditions issues) on the European legislation and the limited guidance available.
They will therefore be very keen to:
- see where UK government has not taken a copy out approach and
- whether the consultation sheds any further light on some of the PSD2 provisions which lacked clarity on what payment service providers are precisely going to be required to do.
On some of the PSD2 projects we are working on, we have already arranged workshops on the back of Thursday's HMT release to:
- validate/update existing project assumptions and
- establish where particular focus needs to be given in responding to the consultation.
There are a number of areas in the consultation where payment services providers will need to do exactly this because HMT has not simply reflected the wording in the directive and/or they have provided details of their interpretation of certain areas where much industry speculation has previously been focused.
For further information on the draft regulations and to receive a copy of the full briefing that sets out some of the issues which will be of particular interest, please contact us directly.
We would also emphasise though that large parts of the draft regulations reproduce the equivalent parts of the PSRs without amendment. They also helpfully indicate the equivalent regulations in the PSRs and the relevant articles in PSD2.
A list of specific consultation questions is included in Appendix A to the consultation paper. The consultation closes on 16 March 2017. Responding is of course essential to drive government to put in place the necessary discretions which it has the power to do and to also provide further guidance on areas of uncertainty. If you are feeding back via an industry body, we would recommend also providing an individual response to add weight to areas which you particularly want to be closely considered by HMT.
After this consultation, the FCA is expected to consult on the necessary changes to its guidance and Handbook rules, so ensuring you have processes in place to efficiently review and respond on these two significant consultations is essential.