The Financial Conduct Authority (FCA) has released its Policy Statement on the Implementation of the revised Payment Services Directive (PSD2), together with updated guidance handbook changes and their Approach Document.
AIME posed significant questions and challenges to the FCA on its interpretation of the PSD2 Electronic Communications Networks (ECN) exclusion and has already announced one success through gaining a cascade of the ECN exclusion to encompass intermediaries processing the same payment. This prevents intermediaries from being caught in financial regulation as “Payment Acquirers”
The other significant challenge was on the question of scope of a payment service, particularly with the PSD wording being changed by the UK government that potentially expanded scope. FCA guidance is that where the ECN is acting as “principle” in the supply of services to its consumer, then the transaction is not in scope of Payment Services Regulations.
AIME also challenged FCA view that the “bill payer” was the individual subscriber referenced by the ECN exclusion, which meant any limits could apply to all phones on a single account. “We have succeeded in establishing clarity on this point in that it is a single number (fixed line) or SIM (mobile),” says Rory Maguire, CEO of AIME. “This still presents difficulties for fixed line providers who may however be able to review how the clarity on scope can benefit them.”
AIME will be providing a full breakdown of the FCA documents in a Guidance Document in the near future – and will be World Telemedia Marbella 9-11 October to discuss this and many other regulatory matters.