CP21/3: Changes to the SCA-RTS and to the guidance in ‘Payment Services and Electronic Money – Our Approach’ and the Perimeter Guidance Manual

Open consultation
28/01/2021
Consultation closed (for questions 5 and 6 relating to contactless payments)
24/02/2021
24/02/2021
Consultation closes for all other questions
30/04/2021

We’ve identified barriers to the success of open banking and future innovation in UK payments. To address these, we’re proposing amendments to our Technical Standards on Strong Customer Authentication and Common and Secure Methods of Communication. We’re also taking this opportunity to amend our guidance on prudential risk management and safeguarding in our Approach Document (AD), and make general updates to a number of areas and onshoring-related changes. We’re also updating our Perimeter Guidance Manual (PERG). 

Sections of the CP for questions 5 and 6, relating to contactless payments, have now closed, see our policy statement on contactless payments. The rest will close on 30 April 2021.

Read CP21/3

Why we’re consulting

The payments landscape has grown and evolved in recent years, as business models adapt to user needs. The coronavirus (Covid-19) pandemic has accelerated these changes. This consultation will help us make sure regulatory expectations keep pace with the changing landscape. 

We want to remove identified barriers to continued growth, innovation and competition in the payments and e-money sector (including open banking), while making the sector more resilient and protecting consumers if firms fail.

Who this applies to

Payment service providers (PSPs) and e-money issuers, as well as trade bodies representing them, should read this consultation. Our proposals affect credit institutions providing payment services and/or issuing e-money, as well as payment institutions (PIs), e-money institutions (EMIs) and registered account information services providers (RAISPs). 

It also applies to firms that are subject to the temporary permission regime (TPR) and the financial services contracts regime (FSCR) set out in Schedule 3 of the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 (Exit SI). It also applies to Gibraltar firms providing payment services in the UK. 

It may be of interest to:

  • retailers
  • consumers and micro-enterprises
  • consumer groups
  • those involved in open banking initiatives
  • credit unions 
  • businesses providing payment services under exclusions of the Payment Services Regulations 2017 (PSRs)/Electronic Money Regulations 2011 (EMRs)

Background to our approach

In our 2020/2021 Business Plan, we identified the payments sector as a priority for the next 3 years. Our work intends to make sure: consumers transact safely with payment firms; payment firms meet their regulatory obligations while competing on quality and value; and consumers and SMEs have access to a variety of payment services. 

In this consultation paper, we’re also proposing changes to the AD to reflect the UK’s withdrawal from the European Union and the end of the transition period.

Respond to this consultation

Online response form

Next steps

We have summarised the responses received on our proposed changes relating to contactless card payment limits at Q5 and Q6 in CP21/3 in this policy statement

We’re asking for comments on all other questions in the consultation by 30 April 2021. Complete the online response form, email [email protected] or write to: Financial Conduct Authority, 12 Endeavour Square, London E20 1JN.