FSA and FOS are consulting on the changes it needs to make to its Rules to implement the PSD. Most of the UK implementing rules will be in the Payment Services Regulations, but FSA will need to amend DISP and its enforcement procedures. The proposals:
- amend DISP to apply the complaints handling rules to payment services providers and make payment services part of the FOS compulsory jurisdiction. FOS also wants to extend the voluntary jurisdiction to payment services that would not otherwise fall within its remit;
- allow FOS to provide the PSD "out-of-court redress function" (Treasury will also legislate for this);
- change parts of DEPP and EG to explain how FSA will enforce the PSD implementing legislation: FSA will apply its general enforcement principles to supervise providers and will use its usual policies in applying the powers the Regulations give it;
- allow authorised payment institutions to use FSA's logo (but not EEA or registered payment institutions); and
- make consequential rule changes: most importantly, to clarify PRIN will not apply to payment service providers unless they carry on regulated activities also. Even then, they will not apply to the extent they conflict with the PSD.
FSA wants responses by 28 November.