AIME has influenced major changes to a section of the UK Payment Services Regulations 2017 (PSRs2017) with estimated savings to industry that could total more than £250,000 in the first year alone.
The PSRs2017 was laid before Parliament on 19th July with significant and beneficial alterations having been made. AIME and other trade bodies have worked hard to get their message across to HM Treasury about the impact to businesses.
There were major concerns that telemedia intermediaries may have been required to be authorised or registered as Payment Institutions with the Financial Conduct Authority (FCA) – with financial, operational and client safeguarding implications. Due to the tireless lobbying and input into the consultation, this risk has now been removed and intermediaries benefit from the same regulatory exclusions as the network operators.
There is now a lesser requirement for intermediaries to register with the FCA as a party benefiting from the exclusion and to provide an annual audit showing how the PSR limits were managed.
AIME still has a considerable amount of work to do with the FCA on how a fixed line retailer monitors each ‘individual subscriber’ on a single number. AIME is seeking a legal analysis on whether a voice or text premium rate service is inside the scope of a payment transaction. All networks will experience significant technical challenges with counting and controlling each individual subscriber’s spend to the defined monthly limit of £240.
A significant battle has been won but the PSD2 war is not over! For further information visit the AIME website.
PSRs2017 is the UK implementation of EU’s PSD2. It becomes effective from January 13th 2018.