UK Payment Systems Regulator Publishes Policy Statement on Confirmation of Payee Requirements
02/14/2020The U.K. Payment Systems Regulator has published a policy statement setting out its final decision on varying Specific Direction 10, which requires payment service providers to implement the Confirmation of Payee system by March 31, 2020. Confirmation of Payee is a system which ensures that certain identifiers (including name, sort code and account number) of a payee are verified against the records of a payment services provider before a payment is made.
The PSR launched a consultation in January 2020 on its proposed changes to Specific Direction 10. Following feedback from PSPs, consumer groups, industry associations and payments consultancies, the PSR has decided to implement three changes to Specific Direction 10, namely:
- To introduce an additional basis for a directed PSP to ask for an exemption from an obligation under the direction;
- To make clear that the PSR will always impose a new date for compliance with the Specific Direction 10 requirements if it approves an exemption under the additional basis (this aspect was not originally proposed by the PSR and has been added to the amendments as a result of feedback to the consultation); and
- To exempt HSBC UK Bank plc from the obligations of the direction in respect of accounts held with it that form part of HSBC Group’s Private Banking brand.
View the Payment Systems Regulator's Policy Statement on Confirmation of Payee requirements.
View the revised Specific Direction 10 as varied in February 2020.
View details of the PSR's consultation on its proposals to vary Specific Direction 10.
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