Specific guidelines on chatting with clients contained in Chapter 2 of BCOBS associated with FCA Handbook on chatting with clients (that have been initially created for credit organizations) now additionally connect with companies payment that is providing and electronic cash solutions. The overarching requirement is the fact that organizations communicate information to clients that is reasonable, clear and never deceptive and in addition now pertains to the actions linked to the supply of electronic cash and re re payment solution tasks.
The re payments regime is lay out mainly into the PSRs, supplemented by step-by-step guidance within the FCA’s ‘Payment Services and Electronic Money: Our Approach’ document. The PSRs applied the EU that is second Payment Directive (PSD2) with impact from 13 January 2018 вЂ“ changing the Payment Services Regulations 2009, which had implemented the initial EU Payment Services Directive (PSD1). The PSRs include both a licensing regime for ‘payment organizations’ and an enrollment regime for username and passwords providers (AISPs), each of that are kinds of non-bank finance institutions, in addition to substantial conduct needs, which use not just to payment organizations (and, to an extent that is limited to AISPs) but in addition to many other forms of finance institutions such as for example banking institutions and electronic cash institutions (EMIs) when supplying re re payment services pertaining to their products or services. We describe the PSRs in detail later on in this chapter.
Closely associated with the re re payments regime may be the electronic cash (or e-money) regime underneath the Electronic Money Regulations 2011 (EMRs), which implement the EU 2nd Electronic Money Directive. The EMRs come with a licensing regime for EMIs, that are non-bank monetary organizations allowed to issue and hold e-money balances (efficiently quasi-deposit balances being meant as a method of spending instead of as a method of saving), and which could also supply the exact same repayment solutions as payment organizations and restricted credit facilities such as for example bank cards or quasi-overdraft facilities. The EMRs have actually a number that is limited of demands especially for e-money, including prohibitions on re payment of great interest (or equivalent) and consumer liberties to refunds of the e-money. The conduct demands generally connect with all clients, even though there is really a partial opt-out from the refund conditions designed for non-consumers (like the manner in which (as talked about below) bigger business clients can choose away from specific conditions into the PSRs).
Areas of payments legislation consist of:
- the EU Interchange Fee Regulation, which caps interchange costs, calls for separation of card scheme tasks (such as for instance Visa and MasterCard) and processing tasks, and affords merchants with liberties whenever using re re payments through the card schemes. The Payment Card Interchange Fee Regulations 2015 had been implemented in britain to comply with the responsibilities to designate competent authorities, lay out rules on charges and simply simply simply take measures for the settlement of disputes under the EU Interchange Fee Regulation;
- the EU Payment Accounts Directive, as implemented in britain by the Payment Accounts Regulations 2015, which enforce charges transparency, account switching and accessibility responsibilities typically in terms of present reports supplied by banking institutions but additionally possibly specific other re payment reports; and
- A regime that is purely UK the Financial Services (Banking Reform) Act 2013, including broad conditions aimed toward improving competition, innovation additionally the service consumer experience into the context of re payment systems ( ag e.g., Visa, MasterCard and domestic UK clearing systems for instance the quicker payments service).
You can find, furthermore, a number of horizontal needs generally speaking relevant across all of the customer financing, retail banking and re re payment solutions described above, including, as an example:
- the anti-money laundering, counterterrorist finance and sanctions regimes under legislation for instance the cash Laundering, Terrorist Financing and Transfer of Funds (information about the Payer) Regulations 2017, profits of Crime Act 2002, Terrorism Act 2000, EU Wire Transfer Regulation and Consolidated range of HM Treasury and also the workplace of Financial Sanctions Implementation;
- fairness demands beneath the customer Rights Act 2015 (CRA). The FCA could be the regulator beneath the CRA and therefore, it offers the charged capacity to start thinking about complaints and challenge companies on unjust agreement terms;
- the FCA’s maxims for companies, including especially, the ‘fair remedy for clients regime’. It is vital to note the current extension from 1 August 2019 for the application associated with the FCA’s axioms for organizations (like the requirement under Principle 6 to ‘treat clients fairly’) to your supply of payment solutions, the issuance of e-money along with other connected tasks by re re payment organizations and e-money issuers;
- prohibitions on surcharging within the customer liberties ( re re Payment Surcharges) Regulations 2012;
- customer termination legal rights and information demands for economic solutions agreements entered into remotely with customers ( ag e.g., online or by way of a phone, beneath the Financial Services (Distance advertising) Regulations 2004);
- information needs and conditions from the placing and verification of sales underneath the Electronic Commerce (EC Directive) Regulations 2002, that also apply in component to non-consumers;
- prohibitions on a selection of improper methods pertaining to customers, including, for example, misleading omissions from marketing, underneath the customer Protection from Unfair Trading Regulations 2008; and
- limitations and needs use that is regarding of’ personal information, including for advertising purposes, under legislation for instance the information Protection Act 1998 (deriving from the EU information Protection Directive 1995, that was changed because of the EU General Data Protection Regulation with impact from might 2018) as well as the Privacy (Electronic Communications) Regulations 2003 (deriving from the Privacy and Electronic Communications Directive).