Recent regulatory developments focussed on the payments sector. See also our General regulatory news in the Related Materials links.
- Safeguarding UK cash infrastructure: Joint Authorities Cash Strategy Group policy paper
- Brexit: EPC outlines content of SEPA payment instructions after end of Brexit transition period
- APP scams: LSB consults on post-implementation review of CRM code
- RTGS and CHAPS: BoE 2020/21 strategy
- Enhancing cross-border payments: CPMI report
Safeguarding UK cash infrastructure: Joint Authorities Cash Strategy Group policy paper
HM Treasury has published a policy paper of the Joint Authorities Cash Strategy (JACS) Group on safeguarding the UK's cash infrastructure.
The paper provides an update on developments within the UK's cash infrastructure and the work of the JACS Group members, including the state of, and key pressures on, the overall end-to-end infrastructure across the UK. The paper also outlines major industry initiatives that JACS Group members are tracking and engaging with, as well as actions the members themselves are undertaking.
The JACS Group is chaired by HM Treasury and includes representatives from the FCA, the Bank of England (BoE) and the Payment Systems Regulator (PSR).
Brexit: EPC outlines content of SEPA payment instructions after end of Brexit transition period
The European Payments Council (EPC) has outlined the following required content of payment instructions that involve a UK-based Single Euro Payments Area (SEPA) payment scheme participant, which are to be executed or settled on or after the end of the Brexit transition period on 31 December 2020:
For SEPA Credit Transfer and SEPA Instant Credit Transfer instructions from the originator:
- the full address details of the originator; and
- the BIC code of the beneficiary bank when the originator bank explicitly requests this data element from the originator.
For SEPA Direct Debit Core and SEPA Direct Debit Business-to-Business collection files from the creditor:
- the full address details of the debtor; and
- the BIC code of the debtor bank when the creditor bank explicitly requests this data element from the creditor.
The lack of these additional transaction details may lead to rejected transactions or potential other issues from the scheme participant receiving the payment message. Therefore, the EPC strongly recommends each SEPA participant identifies as soon as possible its customers with incoming and outgoing cross-border SEPA transactions involving both a UK and an EEA payment account. They should inform all customers concerned about the need to provide this extra SEPA transaction data as from 1 January 2021 (as execution or settlement date).
APP scams: LSB consults on post-implementation review of CRM code
Following its launch in May 2019, the Lending Standards Board (LSB) is consulting on a post-implementation review of the contingent reimbursement model code (CRM code) for authorised push payment (APP) scams.
The consultation ends on 30 September 2020. Responses may be used to inform revisions to the CRM code and its supporting documents.
RTGS and CHAPS: BoE 2020/21 strategy
The Bank of England has published its annual report for real-time gross settlement (RTGS) and CHAPS. The report includes the BoE strategy for 2020/21.
Enhancing cross-border payments: CPMI report
The Committee on Payments and Market Infrastructures (CPMI) has published a stage 2 report for the G20: Enhancing cross-border payments: building blocks of a global roadmap. The report forms part of a three-stage process instigated by the G20 to develop a roadmap to enhance cross-border payments. The Financial Stability Board (FSB) published the stage 1 report on existing cross-border payments arrangements and challenges in April 2020.
In the stage 2 report, the CPMI identifies 19 building blocks where further joint public and private sector work could enhance cross-border payments. It also supports stage 3 work, when the FSB will report to the G20 in October 2020 on practical steps and indicative timeframes needed to develop a roadmap on cross-border payments.
The CPMI has also published a technical background report, which sets out the detailed analysis underlying the findings in the main report.