Recent regulatory developments include the UK FCA Dear CEO portfolio strategy letter for payment services firms and e-money issuers, and more.

Contents

• CHAPS enhanced ISO 20022 messages: BoE industry review
• FCA Dear CEO portfolio strategy letter for payment services firms and e-money issuers
• PSRs 2017: UK Finance blog on ensuring SCA compliance

CHAPS enhanced ISO 20022 messages: BoE industry review

The Bank of England (BoE) has published an industry review of the CHAPS enhanced ISO 20022 messages.

The document introduces the near-final draft of the enhanced messages (or "schemas") for the migration of CHAPS to the ISO 20022 messaging standard. The schemas are being made available to allow the industry to review them and provide feedback before the BoE publishes the final enhanced schemas in September 2020.

The document also outlines the BoE's updated thinking on how it will deliver its desired policy objectives as part of the adoption of ISO 20022 and use of enhanced data. This includes the BoE's thoughts on how it will mandate the provision of some of this enhanced information in CHAPS. Ahead of the publication of the final schema, the BoE encourages payment service providers to start considering how they will collect and transmit this additional information, including necessary changes to their customer channels.

The consultation closes on 31 July 2020.

FCA Dear CEO portfolio strategy letter for payment services firms and e-money issuers

The UK Financial Conduct Authority (FCA) has published a Dear CEO portfolio strategy letter to payment services firms and e-money issuers setting out the actions it expects them to take across six key areas to prevent customer harm by ensuring that they are compliant with their regulatory obligations.

The FCA highlights examples of failings and required action of firms in six areas where many firms may be failing to meet the required standards:

• safeguarding;
• prudential risk management;
• financial crime,;
• financial promotions and consumer communications;
• governance and oversight; and
• records management and reporting.

The FCA will keep all these areas under review and take action against non-compliant firms where necessary.

PSRs 2017: UK Finance blog on ensuring SCA compliance

UK Finance has published a blog on ensuring strong customer authentication (SCA) compliance for e-commerce transactions in the UK under the Payment Services Regulations 2017 (PSRs 2017). UK Finance's SCA Programme has worked with its members and the wider industry to develop an implementation plan on ensuring SCA for e-commerce transactions in the UK. The plan is designed to provide clarity to all e-merchants, gateways, acquirers, issuers and any other parties involved in the e-commerce payment ecosystem, to ensure they understand the key high-level milestones and the UK industry plan for an SCA "ramp up" (that is, a gradual and controlled introduction of SCA in advance of the UK enforcement date of 14 September 2021). The blog gives an overview of the key phases of the implementation plan.

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