The Financial Services Authority (FSA) has issued a consultation paper proposing Handbook changes that are required to implement aspects of the Payment Services Directive (PSD).
The PSD requires countries in the European Economic Area (EEA) to regulate payment services, including for example card payments, direct debits and money transfer. It will impact all firms providing payment services, including banks, building societies, e-money issuers, money transfer operators and non-bank credit card issuers. HM Treasury is currently consulting on the text of the Payment Services Regulations 2008, which will implement the directive in the UK on 1 November 2009.
The FSA will be responsible for the authorisation and registration requirements under the PSD, as well as supervising the Directive’s conduct of business regime. In addition to the responsibilities and powers set out in the Payment Services Regulations, the FSA needs to make a small number of Handbook changes to:
apply its complaints handling rules to payment services firms;
change the jurisdiction of the Financial Ombudsman Service so that it can perform the out-of-court redress function required by the PSD; and
introduce an approach to enforcing the Payment Services Regulations that mirrors its general approach to enforcement under the Financial Services and Markets Act 2000 (FSMA).
“We are working closely with HM Treasury on implementation of the directive,” says Graeme Ashley-Fenn, director of permissions, decisions and reporting at the FSA .”Our proposals are a small but important step in the wider PSD project, and aim to make the transition for firms, some of which will be new to FSA regulation, and consumers as smooth as possible.”
The FSA is inviting responses by 28 November 2008.