The FCA has published a consultation paper on how it intends to approach its regulatory role under PSDII. This ‘draft approach document’ complements the consultation on the implementation of the Directive itself issued by the Treasury to which techUK responded.
The PSDII will be implemented in the UK through changes to the UK’s Payment Services Regulations 2017. As the FCA is the authority charged with supervising payment services providers, it publishes guidance (known as the Approach Document) on how it intends to carry out this task. The current consultation, therefore, concerns changes to that guidance necessary for PSDII.
A brief summary of the proposals is as follows:
- PSDII will require changes to both the Payment Services Regulations 2017 and the E-Money Regulations 2011. The FCA proposes to set out their guidance on both sets of rules in one document: ‘Payment Services and Electronic Money – Our approach’
- Guidance on which types of business activity will constitute account information services (AIS) and payment initiation services (PIS). Businesses will therefore be able to establish whether they need authorisation from the FCA.
- PSDII also requires businesses wishing to provide payment services or issue e-money to provide further information to the FCA. Guidance on this is given.
- New guidance on the conduct of business requirements, such as complaint handling, procedures to deal with fraud risk and incorrect information.
- Changes to reporting requirements - both the general requirements and those imposed by the European Banking Authority’s regulatory technical standards(EBA/RTS) – e.g. reporting on security risk assessments, incident reporting and information exchange with other EU member states.
- Guidance on how the new PIS and AIS services should operate and the consequent obligations of the account service provider. This includes further guidance on the EBA/RTS
- The FCA’s proposed approach to supervising e-money issuers.