On 11 July 2023, HM Treasury published its response to the consultation on information requirements in the Payment Accounts Regulations 2015 (PARs). The consultation was published on 9 December 2022 as part of the Edinburgh Reforms. As well as providing an overview of the feedback to the consultation, the response document also outlines the government’s proposed next steps.
The consultation sought stakeholder views on the requirements under Part 2 and Schedules 1 and 2 of the PARs which relate to the requirements on UK payment service providers who offer payment accounts (i.e. bank accounts, or e-money accounts which operate in a similar way to bank accounts) to provide their personal customers with certain documents related to their account fees. These requirements were intended to improve the transparency and comparability of payment account fees.
The response confirms the government’s intention to revoke Part 2 and Schedules 1 and 2 of the PARs and hand over responsibility for detailed firm-facing requirements on customer information requirements to the FCA. It is the government’s understanding that the FCA is not planning to make rule changes in this area but will continue to hold firms to account on the standards that it sets through its supervision of firms.
The changes set out in the response will be implemented through secondary legislation. The government published the commencement order on 10 July with the changes taking effect on 1 January 2024.