The Payments Accounts Directive (PAD) has been implemented in the UK by means of the Payment Accounts Regulations (PARs). The provisions on switching, payment accounts with basic features (basic bank accounts), and packaged accounts take effect on 18 September 2016. The PARs require some changes to be made to the FCA Handbook before this date.

In March 2016 the FCA consulted on the changes to its Handbook in Consultation Paper 16/7: Payment Accounts Regulations 2015 – draft Handbook changes and draft guidance (CP16/7). The consultation closed on 3 May 2016.  In summary the FCA proposed to:

  • issue guidance on the definition of a ‘payment account’ within the meaning of the PARs;
  • issue guidance on the implementation of the provisions on packaged accounts;
  • introduce new regulatory reporting requirements in relation to switching and basic bank accounts;
  • make minor Handbook changes in order to take account of the provisions in the PARs on packaged accounts and switching; and
  • update its Decision Procedures and Penalties Manual (DEPP) and Enforcement Guide (EG) to reflect the powers of enforcement the FCA has been given under the PARs.

The FCA has now published Policy Statement 16/20: Payment Accounts Regulations 2015  – feedback on CP16/7, final Handbook changes and finalised guidance (PS16/20) setting out its final rules and guidance and feedback to the responses to the earlier consultation. The FCA notes that respondents broadly agreed with its overall approach and with its proposals for Handbook changes and non-Handbook guidance. The FCA has, however, made some slight modifications to its proposals and these are summarised in a table that appears in paragraph 1.23 of PS16/20.

The final rules and guidance come into force on 18 September 2016.

View FCA policy statement on Payment Accounts Regulations 2015, 1 August 2016