Payments regulatory news, June 2020 #2

Hogan Lovells

Hogan Lovells

Recent regulatory developments include the UK FCA/PSR joint approach to access to cash and updates to the PSR's Powers and Procedures Guidance and Guidance on its approach to the EU Interchange Fee Regulation.


  • Access to cash: FCA and PSR joint approach
  • PSR updates Powers and Procedures Guidance and Guidance on approach to IFR
  • Hogan Lovells Global Payments Newsletter, June 2020

Access to cash: FCA and PSR joint approach

The UK Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) have published a statement on their approach on access to cash. The statement includes a summary of the action the regulators have taken to help ensure access to cash in the light of bank branch and cash machine closures due to COVID-19.

In addition, while the legislation announced in the 2020 Budget is being developed (which will enhance the regulators' ability to protect access to cash), the FCA and PSR will continue to work with the industry to explore how they can provide an appropriate and sustainable model of accessing cash, for example through wider use of shared services and initiatives involving local communities.

The FCA's focus will be engaging with the industry on the steps they are taking to consider the impact of their decisions on providing cash machines and bank branches on consumers who need to withdraw cash, and businesses who need to deposit cash.

The PSR will continue to work with LINK, the operator of the UK's cash machine network, to ensure that it does all that it can to protect widespread access to cash through the geographic "footprint" of free-to-use cash machines.

The FCA and the PSR intend to publish a further update on their approach and work with the industry later this summer.


PSR updates Powers and Procedures Guidance and Guidance on approach to IFR

The PSR has revised its Powers and Procedures Guidance (PPG) for regulated firms to reflect developments in the PSR's processes and practices, as well as its increased remit. The PSR consulted on the changes to the PPG in July 2019 and has also published a summary of the responses it received to the consultation.

The PSR has also published a revised version of its Guidance on the PSR's approach as competent authority for the EU Interchange Fee Regulation (IFR) to bring it in line with the updated PPG.

Hogan Lovells Global Payments Newsletter, June 2020

Key developments of interest over the last month covered in our Global Payments Newsletter include:

  • Brazil: the Central Bank of Brazil has confirmed that open banking regulations will begin to be implemented from November 2020. The implementation will consist of four phases, to end in October 2021;
  • Europe: the European Banking Authority (EBA) has published an opinion under Article 32(3) of the regulatory technical standards (RTS) on strong customer authentication (SCA) and common and secure communication (CSC) (SCA RTS) on obstacles to the provision of payment initiation and account information services in the context of dedicated interfaces. The EBA issued this opinion to ensure that the SCA RTS (mandated under the Payments Services Directive (PSD2)) are implemented consistently; and
  • United Kingdom: the FCA has published draft additional temporary guidance to strengthen payment firms' prudential risk management and client money safeguarding arrangements in light of COVID-19.

Read more on these developments and more, here.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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