Implementation of PSD2

How your firm should be planning for PSD2 and how we will implement the changes.

We have now confirmed our changes to guidance and rules.  Firms should review the final rules and guidance as they continue to plan for 13 January 2018 – the date from which firms must comply with most provisions of PSD2. 

PSD2 introduces a significant number of changes that all existing and prospective PSPs will need to be aware of. The Treasury’s consultation, our consultations - CP17/11, CP17/22 and our Policy Statement set out these changes and the types of businesses they affect. 

Payment Services and Electronic Money – Our Approach provides guidance for a practical understanding of the requirements, our regulatory approach and how businesses will experience regulatory supervision.

The legislative process

PSD2 has two levels of European legislation:

  • The 'Level 1' Directive text ‘PSD2’
  • The Level 2 legislation in the form of ‘technical standards’ (RTS) and ‘guidelines’ which the European Banking Authority (EBA) will develop to supplement PSD2. 

The EBA is developing its RTS and Guidelines and will consult publicly on draft versions. Each set of RTS will be scrutinised by the European Parliament and Council before being adopted by the European Commission.

The RTS and Guidelines being developed by the EBA can be found here:

Guidelines on authorisation and registration under PSD2

Guidelines on major incidents reporting under PSD2

Regulatory Technical Standards on passporting under PSD2

Regulatory Technical Standards on stronger customer authentication and secure communication under PSD2

Guidelines on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance under PSD2

Regulatory technical standards on Central Contact Points

Guidelines on complaints to Competent Authorities about infringements of PSD2

Guidelines on operational and security risk measures

Guidelines on fraud reporting under PSD2

Technical Standards on the EBA Register under PSD2

How we will implement the changes

PSD2 has been implemented in the UK through the Payment Services Regulations 2017, which were laid before Parliament on 19 July 2017. 

In CP17/11 and CP17/22 we consulted on a number of new or amended FCA rules, directions and guidance intended to implement the PSD2. This included a revised Approach Document which set out the FCA’s approach to applying the Payment Services Regulations 2017  and the E-Money Regulations 2011 (EMRs) in a single document. This replaces the existing Payment Services and E-Money Approach Documents. 

Our Policy Statement confirms the revised Approach Document and Handbook changes following consultation feedback. It is important to note that at the time of publication, elements of PSD2 implementation are ongoing at the EU level. As a result, we will need to make further changes to the Approach Document and Handbook.