Financial Services: FSA issues consultation on Payment Services Directive

The FSA has issued its consultation on implementation of the Payment Services Directive (PSD).   Under the PSD countries in the European Economic Area (EEA) will regulate payment services, this includes card payments, direct debits and money transfers.  PSD 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 issued its consultation on the Payment Services Regulations 2008 in July 2008.  The PSD is to be implemented by 1 November 2009.

The FSA will be responsible for the authorisation and registration requirements and the PSD conduct of business regime.  The proposed Handbook changes will include:

• applying the complaints handling rules to payment services firms;
  
  
• changing the jurisdiction of the Financial Ombudsman Service so that it can perform the out-of-court redress function required by the PSD; and
  
  
• introducing an approach to enforcing the Payment Services Regulations that mirrors the FSA's general approach to enforcement under the Financial Services and Markets Act 2000 (FSMA).

For more information see: Consultation CP08/14.

Contacts:

Peter McGowan at peter.mcgowan@blplaw.com or
Anne Conaty at anne.conaty@blplaw.com.