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The UK’s Payment Systems Regulator (PSR) has opened a new consultation looking at the compliance requirements for payment service providers (PSPs) that come into the scope of its incoming rules on authorised push payment (APP) scams.
Stakeholders have until May 28 to respond to the PSR’s feedback document, which sets out proposals for what data firms will need to report to adhere to the APP fraud reimbursement requirement that becomes effective on October 7.
Retail payments authority Pay.UK, the operator of the UK’s Faster Payment System, will be responsible for monitoring all regulated PSPs’ compliance with the reimbursement rules.
The proposals now being consulted on also set requirements for how this data must be provided, and how it will be managed by Pay.UK. This includes proposing to require PSPs to use Pay.UK’s reimbursement claim management system (RCMS) to collate, retain and provide data to the interbank standards body.
The PSR has said that it recognises the significant work required to establish these reporting channels. “We are proposing a pragmatic, streamlined approach and phased reporting from the policy start date,” the regulator said in an email announcing the new consultation.
Further, the PSR has said it is also consulting on placing limits on what Pay.UK is permitted to do with the monitoring data and information it receives from PSPs, including in respect of disclosure.
The PSR has ruled out new specific directions to impose these rules. Instead, the requirements will be fed into the existing specific directions for companies that the regulator oversees.
“We are not proposing any changes to the powers exercised, or the requirements already contained within the specific directions relating to Faster Payments APP scam reimbursement,” the PSR confirmed in the email.
The implementation of the new APP fraud reimbursement rules is a priority for the regulator, as outlined in its Annual Plan published earlier this month.
In a speech at the Innovation Global Finance Summit earlier this week, Aidene Walsh, chair of the PSR, acknowledged to attendees that the regulator is aware of industry challenges in implementing the new reimbursement model.
“We recognise that the requirements we’ve set out in APP scams are challenging for some companies,” she said during a keynote address at the fintech event.
Walsh nevertheless struck an optimistic tone, telling the audience that innovation should play an important role when combating fraud, and that firms that are better at managing fraud should have an advantage and attract more customers.
“With this work, we recognise there is more to do and we will continue to engage with you, providing support in implementing our requirements and enabling further fraud prevention tools such as enhanced fraud data,” she said.
Walsh said that the PSR will continue to support PSPs after October 7, and committed to ensure that the policy remains proportionate through ongoing monitoring, including on the maximum level of reimbursement.
