Specific guidelines on chatting with customers found in Chapter 2 of BCOBS associated with the FCA Handbook on chatting with clients (that have been originally made for credit organizations) now additionally connect with companies payment that is providing and electronic cash solutions. The overarching requirement is that organizations communicate information to clients that is reasonable, clear and not deceptive and in addition now pertains to those activities related to the supply of electronic cash and re re payment solution tasks.
The re payments regime is put down mainly within the PSRs, supplemented by step-by-step guidance into the FCA’s ‘Payment Services and Electronic Money: Our Approach’ document. The PSRs applied the 2nd EU Payment Services 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 companies (AISPs), each of that are kinds of non-bank banking institutions, along with considerable conduct demands, which use not just to re payment organizations (and, to an extent that is limited to AISPs) but in addition to many other kinds of banking institutions such as for instance banking institutions and electronic cash organizations (EMIs) whenever supplying re re re payment solutions with regards to their products or services. The PSRs are described by us in detail later on in this chapter.
Closely associated with the re re re payments regime may be the electronic cash (or e-money) regime beneath the Electronic Money Regulations 2011 (EMRs), which implement the EU 2nd Electronic cash Directive. The EMRs consist of a certification regime for EMIs, that are non-bank economic organizations allowed to issue and hold e-money balances (efficiently quasi-deposit balances being meant as a way of investing instead of as a method of saving), and that may additionally give you the payment that is same as re re payment organizations and restricted credit facilities such as for instance bank cards or quasi-overdraft facilities. The EMRs have a number that is limited of demands designed for e-money, including prohibitions on re re payment of great interest (or equivalent) and client liberties to refunds of the e-money. The conduct demands generally connect with all clients, though there is just a partial opt-out from the reimbursement conditions readily available for non-consumers (like the manner in which (as talked about below) bigger company clients can choose away from specific conditions into the PSRs).
The areas of re re payments legislation consist of:
- the EU Interchange Fee Regulation, which caps interchange costs, calls for separation of card scheme activities (such as for example Visa and MasterCard) and activities that are processing and affords merchants with legal rights 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 obligations to designate competent authorities, set down rules on charges and simply take measures for the settlement of disputes under the EU Interchange Fee Regulation;
- the EU Payment Accounts Directive, as implemented in the united kingdom by the Payment Accounts Regulations 2015, which enforce charges transparency, account switching and accessibility responsibilities typically with regards to present accounts supplied by banking institutions but additionally possibly particular other re re payment records; and
- A regime that is purely UK the Financial Services (Banking Reform) Act 2013, which include broad conditions geared toward increasing competition, innovation additionally the solution consumer experience into the context of re re re payment systems ( e.g., Visa, MasterCard and domestic UK clearing systems like the faster payments service).
You will find, also, a number of horizontal needs generally speaking applicable across all of the customer financing, retail banking and re re payment solutions known above, including, as an example:
- the anti-money laundering, counterterrorist finance and sanctions regimes under legislation including the cash Laundering, Terrorist Financing and Transfer of Funds (informative data on the Payer) Regulations 2017, profits of Crime Act 2002, Terrorism Act 2000, EU Wire Transfer Regulation and Consolidated listing of HM Treasury together with workplace of Financial Sanctions Implementation;
- fairness needs underneath the customer Rights Act 2015 (CRA). The FCA may be the regulator underneath the CRA and therefore, this has the charged capacity to give consideration to complaints and challenge organizations on unjust contract terms;
- the FCA’s axioms for organizations, including particularly, the ‘fair remedy for clients regime’. You will need to note the current extension from 1 August 2019 of this application associated with FCA’s maxims for companies (such as the requirement under Principle 6 to ‘treat clients fairly’) to your supply of re payment solutions, the issuance of e-money along with other connected tasks by re re payment institutions 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 services agreements joined into remotely with consumers ( ag e.g., online or through a phone, underneath the Financial Services (Distance advertising) Regulations 2004);
- information requirements and provisions on the confirmation and placing of sales beneath the Electronic Commerce (EC Directive) Regulations 2002, that also use in part to non-consumers;
- prohibitions on a selection of improper techniques with regards to customers, including, as an example, misleading omissions from marketing, underneath the customer Protection from Unfair Trading Regulations 2008; and
- limitations and demands regarding usage of people’ individual information, including for advertising purposes, under legislation including the information Protection Act 1998 (deriving from the EU information Protection Directive 1995, that has been changed by the EU General information Protection Regulation with impact from might 2018) plus the Privacy (Electronic Communications) Regulations 2003 (deriving from the Privacy and Electronic Communications Directive).