Payment services

Recent Articles

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  27.07.2021

  UK Gov­ern­ment ex­plores AML re­form for Open Bank­ing pay­ment ser­vice pro­viders

  The perceived disconnect between the compliance burden on account information service providers (AISPs), who provide “information only” services to customers to enable them to view consolidated financial information about multiple accounts, and the actual ML/TF risks their services are exposed to has been observed by market participants for some time. This had led to different approaches in practice as to the level of customer due diligence that AISPs carry out. The European Banking Authority (EBA) has also recently consulted on and issued updates to its Guidelines on ML/TF risk factors...

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  02.02.2021

  An Up­dated Ap­proach: the FCA’s new Con­sulta­tion Pa­per CP21/3 on Pay­ment Ser­vices and E-Money

  This note summarises these changes and will be of interest to: credit institutions providing payment services and/or issuing e-money; payment institutions; e-money institutions; registered account information services providers; firms subject to the temporary permissions regime (the “TPRs”) and the financial services contracts regime; and Gibraltar firms providing payment services in the UK. 1. Amendments to the FCA approach document on payments and e-money The Approach Document sets out the regulators approach to the Payment Services Regulations 2017 (“PSRs”) and the...

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  17.07.2020

  FCA pub­lishes Fi­nal Guid­ance and Dear CEO let­ter on Coronavir­us and Safe­guard­ing Cus­tom­er­s' Funds

  The Guidance The Guidance aims to temporarily strengthen Payment Firms’ approach towards safeguarding and prudential risk management in light of Coronavirus and subsequent economic pressure. The FCA will conduct a full consultation later in 2020/21 on changes to its Approach Document. The key takeaways from the Guidance are as follows: Proposals for Payment Firms subject to safeguarding requirements Keeping records and accounts and making reconciliations – Where there is potential for discrepancies regarding the records and accounts of “relevant funds”, Payment Firms should...

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  02.07.2020

  FCA Re­search Note: Cryptoasset Con­sumer Re­search 2020

  As well as the 2018 joint report, the FCA published further consumer research in March 2019. Whilst the results were informative, the current research note acknowledges that the consumer research conducted in March 2019 had limitations. The FCA’s latest research note relates generally to unregulated transferable cryptoasset tokens, including the well-known tokens such as Bitcoin, Ether and XRP. The FCA intends to build on previous work in a more beneficial way by using a larger sample of cryptoasset owners and a longer survey. What are cryptoassets? The FCA defines cryptoassets as ‘cryptographically...

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  01.06.2020

  FCA pro­posed guid­ance for pay­ment in­sti­tu­tions and e-money in­sti­tu­tions: Coronavir­us and safe­guard­ing cus­tom­ers’ funds

  The FCA states in the Consultation and in a related press release, that in line with the FCA’s 2020/2021 Business Plan, the payments sector is a priority area for the FCA and the Consultation is part of ongoing work to ensure that Payment Firms are adequately protecting customers’ funds. The FCA notes that although the sector is developing and growing rapidly, some Payment Firms are unprofitable in the early stages and many also rely on investor funds to remain solvent in the short-term. Some Payment Firms may also be facing decreased revenues because of coronavirus and it could be...

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  18.05.2020

  FCA ac­cel­er­ates di­git­al sand­box pi­lot to sup­port firms amidst the Cov­id 19 pan­dem­ic

  The FCA will be updating its webpage with information on the specific proposals, and welcomes both feedback on its proposals and expressions of interest from firms (regulated or unregulated) and stakeholders who are interested in participating or would like to contribute to the development of the digital sandbox. The digital sandbox – FCA’s plans The FCA is already a global leader in innovation, having set up the world’s first regulatory sandbox and being at the forefront of the Global Financial Innovation Network’s sandbox. Our article of February 2019 explores the FCA...

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