The EU Payment Accounts Directive (PAD) was adopted in July 2014 and implemented in the UK by means of the Payment Accounts Regulations 2015 (PARs), which were made in December 2015. The provisions on switching, payment accounts with basic features, and packaged accounts take effect on 18 September 2016.
The FCA has now published Consultation Paper 16/7: Payment Accounts Regulations 2015 – draft Handbook changes and draft guidance (CP16/7). Among other things, the FCA proposes to:
- issue guidance on the definition of a ‘payment account’ for the purposes of the PARs;
- issue guidance on the implementation of the provisions on packaged accounts;
- introduce new regulatory reporting requirements in relation to switching and payment accounts with basic features;
- make minor Handbook changes in order to take account of the provisions in the PARs on packaged accounts and switching; and
- update the Decision Procedures and Penalties Manual (DEPP) and Enforcement Guide (EG) to reflect the powers of enforcement we have been given under the PARs.
The deadline for responding to CP16/7 is 3 May 2016.