(6 min read)
In this edition, we discuss the Government's policy to reform the Payment Services Regulations 2017 (PSRs) to toughen rigour concerning contract terminations, provide an update on recent developments in relation to Authorised Push Payment (APP) fraud and we cover the new regulation in Europe on Instant Credit Transfers requiring Payment Service Providers (PSPs) to offer instant payment services in euro. We also discuss the proposals for design of future entity for UK open banking.
Regulation on instant credit transfers in euro published in Official Journal
On 19 March 2024, Regulation (EU) 2024/886 on instant credit transfers in euro has been published in the Official Journal (OJ) of the European Union. The Regulation requires PSPs, who provide standard credit transfers in euro, to offer the service of sending and receiving instant payments in euro. The Regulation entered into force on 8 April 2024 with requirements coming into force for some PSPs as early as January 2025.
Discover what this means for you
HM Treasury policy note on amending payment services contract termination provisions and draft regulations
On 14 March 2024, HM Treasury published a near-final version of the Payment Services and Payment Accounts (Contract Terminations) (Amendment) Regulations 2024. Changes are being made to the PSRs to impose new requirements on the providers of payment services in relation to the rules governing provider-initiated framework contract terminations.
Read what is required under the new rules
Authorised Push Payment (APP) fraud update
This edition contains recent updates relating to APP fraud including HMT's policy on changes to the PSRs requiring banks to adopt a risk-based approach to payments and allow further time to assess potentially fraudulent payments and PSR's recent proposals to require PSPs to collect, retain and report specific data and information to Pay.UK in certain ways to ensure compliance with the reimbursement rules.
Read here to know further on these requirements and the strict regulatory deadlines that are being imposed on firms
JROC proposals for design of future entity for UK open banking
On 19 April 2024, the Joint Regulatory Oversight Committee (JROC) published its proposals for the design of the future entity for UK open banking. JROC is consulting on the structure, governance and purpose of the new entities and, more importantly, a new funding structure which may impact many PSPs.
Find out more on these proposals
Next steps
If you want to find out what these updates mean for your business, or discuss training opportunities or systems and controls changes, please feel free to get in touch with our Payments Team who would be delighted to speak to you.
