FCA Consults on Approach to SCA-RTS and EBA Guidelines Under PSD2
FCA, in CP18/25, is consulting on the new rules and guidance to implement the revised Payment Services Directive (PSD2). CP18/25 focuses on the regulatory technical standards for strong customer authentication and common and secure open standards of communication (SCA-RTS). It proposes changes to reflect final regulatory standards on security and new fraud reporting requirements that were published by EBA. It also proposes new complaints reporting rules about authorized push payment (APP) fraud. Comments are requested by October 12, 2018.
Most of the SCA-RTS provisions have to be applied by firms from September 14, 2019. The SCA-RTS seeks to increase the security of customer payments and sets out new rules that affect open banking services. In June 2018, EBA published an additional Opinion and Draft Guidelines on SCA-RTS while FCA issued a statement in response. FCA is now consulting on the proposed approach to SCA-RTS and implementation of the guidelines that set out an exemption process for banks and other account providers building interfaces for third-party providers engaged in open banking.
FCA is also consulting on the new fraud reporting requirements that will affect the data collected and reported by all payment service providers. In June 2018, FCA consulted (via CP18/16) on requiring payment service providers and credit unions to handle complaints when they have received funds as a result of the APP fraud. FCA is now proposing to require these firms to record and report data on complaints about APP fraud. Finally, FCA is also proposing to update the Payment Services and E-Money Approach Document guidance to reflect other legislative changes and clarify the existing expectations, based on the experience of the regime since September 2017. The proposed amendments and additions have been included in Annex 3.
Related Links
Comment Due Date: October 12, 2018
Keywords: Europe, UK, Banking, PMI, PSD2, CP18/25, Regulatory Technical Standards, SCA-RTS, EBA, FCA
Previous Article
EBA Intends to Clarify End-Treatment of Grandfathered InstrumentsRelated Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.