PSR publishes policy statement on Direct Debit Facilities Management
The Payment Systems Regulator (PSR) has published PSR PS17/3 which sets out its decision on its provisional conclusions and proposals to change the Direct Debit rules relating to the switching of Facilities Management (FM) providers. An FM provider is an organisation that collects and/or administers direct debits on behalf of other organisations. Under the current Direct Debit rules, where a customer wants to switch its FM provider, a bulk change process can only be used with the consent of the outgoing provider. The PSR has found that the ability of the outgoing provider to hinder or prevent switching can increase costs, reduce competition and hinder innovation. The PSR has decided to use its powers under section 54 (Directions) of the Financial Services (Banking Reform) Act 2013 to direct the operator of the Bacs payment system to:
- ensure that commercial FM service providers that wish to do so can use the Bacs bulk change process;
- help clients who wish to switch to/from another provider; and
- submit a plan and timetable to achieve that outcome for approval.
PSR, 13 December 2017
FCA PSD2 passporting gateway opens
The FCA has updated the following webpages on the revised Payment Services Directive (PSD2):
- Passporting under PSD2: The FCA confirms that PSD2 and the Payment Services Regulations 2017 (PSRs) introduce two new activities that may be passported: payment initiation services (PIS) and account information services (AIS) and that the FCA's PSD2 passporting gateway has now opened. Firms planning to provide AIS or PIS in another EEA country from 18 January 2018 must make a passport application and the webpage contains links to the application forms.
- Passporting webpage: The FCA notes that firms passporting into the UK under PSD2 or the second Electronic Money Directive with not be displayed on the Financial Services Register, it will be necessary to check the register of the firm's host state to confirm what business the firm can conduct in the UK.
- How we process passporting notifications webpage: The FCA highlights that it takes three months for the FCA to assess a passporting notification and inform the host state regulator.
- Notify changes to PSD individuals and agents webpage: The FCA advises that under PSD2, it may take up to two months to process an application for adding a standalone agent.
FCA, 13 December 2017
Final EBA guidelines on security measures for operational and security risks under PSD2
The EBA has published its final report on guidelines on the security measures for operational and security risks under the Directive on payment services in the internal market (PSD2). The guidelines are set out in chapter 3 of the report and have been developed by the EBA, in close co-operation with the European Central Bank, under a mandate set out in Article 95(3) of PSD2. The guidelines aim to ensure that payment service providers have in place appropriate security measures to mitigate operational and security risks and will apply from 13 January 2018.
EBA, 12 December 2017
Final EBA report and RTS relating to central contact point under PSD2
The EBA has published a final report containing draft regulatory standards (RTS) on central contact points under the revised directive on payment services (PSD2). Article 29(4) of PSD2 gives member states the option to require payment institutions that have their head office in another member state and operate through agents in a host member state territory to establish a central contact point in the host member state's territory. The purpose of the contact points is to ensure adequate communication and information reporting and to facilitate supervision. The RTS specify the criteria to be applied when determining the circumstances when the appointment of a central contact point is appropriate.
EBA, 11 December 2017
Final EBA draft RTS and ITS on EBA electronic central register under PSD2
The EBA has published its final report on draft regulatory technical standards (RTS) and implementing technical standards (ITS) relating to the establishment of the EBA electronic central register under the revised directive on payment services (PSD2). Under Article 15(1) of PSD2, the EBA is required to develop, operate and maintain an electronic central register that contains information as notified by competent authorities in order to provide transparency on the operation of payment and e-money institutions across the EU. The final draft RTS and ITS are in sections 4 and 5 of the report, which will be submitted to the European Commission for adoption.
EBA, 13 December 2017