What The Payments Association has or will be responding to

Consultation

FCA

The potential competition impact of big tech entry and expansion in retail financial services

PSR Authorised Push Payment scams

Description

The purpose of this paper is to stimulate a discussion on the potential competition impact raised by big tech firms. This includes the benefits to consumers as well as any significant risk if competition were to develop in a particular way.

The PSR consulted on guidance for PSPs who will have to publish data on their performance on authorised push payment (APP) scams. This will be a requirement of the specific direction that it plans to publish in March 2023.

Cabinet Office / DCMS Consultation on draft legislation to support identity verification

This Government wants to improve the way data and information is shared and used across the public sector to deliver better, joined up services, while also maintaining privacy, trust and building confidence. The Digital Economy Act 2017 was designed to give flexibility to introduce new data sharing gateways to support the delivery of key services, as the need arises, by secondary legislation. This consultation sets out proposed data sharing legislation that would make it easier for people to prove who they are online when accessing government services. The proposed legislation will also unlock the full benefits of a new government identity verification system, known as GOV.UK One Login.

HM Treasury Payment Services Regulations Review and call for evidence

HM Treasury Regulation of buy-now pay-later: consultation on draft legislation

The review and call for evidence will look at how UK payments regulation should evolve to continue to meet the government’s aims and address the specific challenges highlighted in the review.

On 2 February 2021, the government announced it would regulate interest-free buy-now pay-later (BNPL) products. It consulted on policy options in October 2021, followed by a consultation response in June 2022.

The government is now consulting on the proposed draft legislation that will bring BNPL into FCA regulation. The consultation asks for stakeholders’ views on whether the draft legislation effectively delivers the policy positions set out in the government’s consultation response.

HM Treasury Future financial services regulatory regime for cryptoassets

In April 2022, the government pledged to introduce a regulatory regime for cryptoassets, reflecting the risks and opportunities they present.

This consultation paper sets out proposals for this future regime and marks the next phase of the government’s approach to regulating cryptoassets. It builds on previous HM Treasury proposals, which focused on stablecoins and the financial promotion of cryptoassets.

Bank of England and HM Treasury Digital pound: a new form of money for households and business?

The way people use money is changing. This consultation paper sets out the BoE and HMT’s assessment of the case for a retail central bank digital currency (CBDC) – a so-called ‘digital pound’.

Confirmed regulation

FCA Consumer Duty rules

The rules will come into force in July 2023. It includes a new consumer principle that requires businesses to act to deliver good outcomes for retail customers.

Who it affects

Big tech firms; established regulated financial services firms; and smaller challenger firms.

Dates

Consultation closed on 15 January 2023

Links

https://www.fca.org.uk/publications/discussion-papers/dp22-5-potential-competition-impacts-big-tech-entry-and-expansion-retail-financial-services

Payments industry, consumer groups and PSPs – particularly those already involved in the work on APP scams. This guidance will be particularly relevant to both sending and receiving PSPs.

This consultation is aimed at the general public, UK public authorities and other government departments, arm’s length bodies, non-departmental public bodies or other organisations who may consider they could be affected by the draft regulations. It may also be relevant to other bodies that have an interest in identity verification services.

Electronic money institutions

Consultation closed on 23 February 2023

Guidance due to be published in March 2023

Consultation closed 1 March 2023 https://www.psr.org.uk/publications/consultations/cp23-1-app-scams-data-publishing-guidance/?utm_medium=email&utm_name=&utm_ source=govdelivery https://www.gov.uk/government/consultations/ draft-legislation-to-help-more-people-provetheir-identity-online/consultation-on-draft-legislation-to-support-identity-verification

Merchants and credit brokers would be exempt from FCA regulation where they offer newly regulated agreements as a payment option.

Consultation closes 7 April 2023

Consultation closes 11 April 2023 https://www.gov.uk/government/consultations/payment-services-regulations-review-and-call-for-evidence https://www.gov.uk/government/consultations/ regulation-of-buy-now-pay-later-consultation-on-draft-legislation

Responses are welcome from all stakeholders, including cryptoasset firms, technology companies, financial institutions, other businesses impacted by cryptoasset regulation, trade associations, representative bodies, academics, legal firms, and consumer groups.

Responses to this consultation are invited from all interested members of the public, experts, and organisations.

Consultation closes 30 April 2023 https://www.gov.uk/government/consultations/future-financial-services-regulatory-regime-for-cryptoassets

Consultation closes 7 June 2023 https://www.bankofengland.co.uk/paper/2023/ the-digital-pound-consultation-paper

Regulated firms, including those in the e-money; payments sector

30 April 2023

Manufacturers to have completed necessary reviews for their existing open products and services.

31 July 2023

New and existing products or services that are open to sale or renewal come into scope.

31 July 2024 https://www.fca.org.uk/publications/policy-statements/ps22-9-new-consumer-duty

Closed products or services come into scope.