PS16/20: Payment Accounts Regulations 2015 - feedback on CP16/7, final Handbook changes and finalised guidance

In this Policy Statement we summarise the feedback we received to Consultation Paper 16/7: Payment Accounts Regulations 2015 – draft Handbook changes and draft guidance. We publish the final Handbook changes and the finalised guidance.

Why are we publishing this policy statement?

The Payment Accounts Directive (PAD) has been implemented in the UK by means of the Payment Accounts Regulations (PARs). The provisions on switching, payment accounts with basic features (basic bank accounts), and packaged accounts take effect on 18 September 2016. The PARs require some changes to be made to our Handbook before this date.

In CP16/7, we sought stakeholders’ views of proposed Handbook amendments. We also consulted on proposed non-Handbook guidance to assist payment service providers with the implementation of certain aspects of the PARs. 

In summary, we proposed to:

  • issue guidance on the definition of a ‘payment account’ under the PARs
  • issue guidance on the implementation of the provisions on packaged accounts
  • introduce new regulatory reporting requirements in relation to switching and payment accounts with basic features
  • make minor Handbook changes in order to take account of the provisions in the PARs on packaged accounts and switching
  • update our Decision Procedures and Penalties Manual (DEPP) and Enforcement Guide (EG) to reflect the powers of enforcement we have been given under the PARs

We received 11 responses to the consultation. Respondents broadly agreed with our overall approach and with our proposals. The feedback we received has helped us to improve the clarity of our guidance and to ensure that payment service providers have more certainty regarding the new reporting requirements. 

Besides the matters on which we consulted, several stakeholders suggested that we should also make rules or provide guidance on additional issues arising from the PARs.

In this Policy Statement we summarise the feedback and respond to the issues raised. The final Handbook changes are in Appendix 1 of the document. The finalised guidance is in Appendices 2 and 3.

PS16/20: Payment Accounts Regulations 2015 – feedback on CP16/7, final Handbook changes and finalised guidance (PDF)

Who should read this Policy Statement?

This policy statement will primarily interest:

  • banks
  • building societies
  • e-money institutions
  • other providers of payment accounts, such as payment institutions
  • trade bodies representing providers of payment accounts

It may also be of interest to organisations representing consumers.

What are the next steps?

Payment service providers that offer, or are planning to offer, payment accounts within the meaning of the PARs should read the Handbook changes and finalised guidance.

PSPs should pay particular attention to the new reporting requirements, and act to make the necessary changes to enable them to comply from 18 September 2016.

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