On 25 October 2019, the FCA published Policy Statement 19/26: Brexit – Regulatory Technical Standards for Strong Customer Authentication and Common and Secure Open Standards of Communication (PS19/26).
In PS19/26 the FCA follows up on its earlier consultation paper containing proposals that in the event of a no-deal Brexit it would make its own regulatory technical standards for strong customer authentication and secure open standards of communication that would apply from 14 September 2019.
The Payment Services Regulations 2017 (PSRs 2017) make provisions for firms to comply with the revised Payment Services Directive regulatory technical standards for strong customer authentication (SCA-RTS). In the event of a no-deal Brexit, exit related amendments to the PSRs 2017 will come into effect. These amendments will require firms in the UK to comply with the UK regulatory technical standards (UK-RTS) made by the FCA instead of the SCA-RTS.
In PS19/26 the FCA summarises the feedback it received to its earlier consultation and publishes the UK-RTS, together with Handbook changes, which it will make in the event of a no-deal exit.
Payment service providers must comply with the provisions of the UK-RTS in the event of a no-deal Brexit. In the event of a no-deal Brexit, firms should treat the FCA’s August 2019 correspondence regarding the SCA-RTS adjustment period as applying to the UK-RTS.