FCA advises on PSD2 implementation

Today, the FCA published the policy statement PS17/19 regarding the Implementation of the revised Payment Services Directive (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.

The FCA’s 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 the FCA issued in April (CP17/11) and July (CP17/22). The FCA has made some amendments to its approach following feedback to these consultations.

The FCA is also publishing the Payment Services and Electronic Money: Approach Document, 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.

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. The FCA opens 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).

The full FCA statement is available here.