We are confirming Handbook changes and revisions to our Approach Document to reflect PSD2.
The revised Payment Services Directive (PSD2) is required to be implemented in the UK by 13 January 2018. The Treasury has transposed PSD2 into UK legislation in the Payment Services Regulations 2017 (PSRs 2017). We will continue as the competent authority responsible for authorising and supervising payment service providers under PSD2. The Payment Systems Regulator will also be responsible for certain aspects which relate to payment systems.
Our Policy Statement confirms changes to our Handbook and Approach Document guidance, and new non-Handbook directions for excluded firms, to reflect PSD2 and the PSRs 2017. This follows the two consultations we issued in April (CP17/11) and July (CP17/22). We have made some amendments to our approach following feedback to these consultations.
We are also publishing the Payment Services and Electronic Money: Our Approach, having consulted on this in CP17/11 and CP17/22. This Approach Document is designed to help firms navigate the payment services and e-money regulatory requirements. It replaces the existing Payment Services and E-Money Approach Documents. Read draft versions of the Approach Document we consulted on: Draft: Payment Services and Electronic Money – Our Approach and Draft with tracked changes: Payment Services and Electronic Money – Our Approach.
Certain firms will need to become registered or authorised for the first time as a result of PSD2. Existing payment institutions and e-money institutions will need to be re-registered or re-authorised. We open for applications on 13 October 2017.
The Payment Systems Regulator is also confirming its approach to monitoring and enforcing the four Regulations in the PSRs 2017 that it is the competent authority for (Regulation 61 and Part 8 of the PSRs 2017).
Read the Payment Systems Regulator's approach document: The Payment Services Regulations 2017 – the PSR’s approach to monitoring and enforcement.
Who this applies to
This affects existing payment service providers and e-money issuers, as well as businesses not currently authorised or registered with the FCA that carry on payment related activities. It also affects businesses that are subject to regulation by the Payment Systems Regulator.
This paper will be of interest to consumers who use payment services or e-money. This includes those who make use of services that are newly being brought within the scope of regulation.
Under PSD2, the European Banking Authority (EBA) is mandated with the development of certain Regulatory or Implementing Technical Standards (RTS/ITS) and Guidelines. While many of these have measures have been finalised, some are yet to be adopted by the EU or EBA. We provide information on the progress of these measures in our Policy Statement and will continue to provide updates on our website.
More information about how we are implementing PSD2, and application forms for authorisation and registration, can be found on our PSD2 webpages.