On 20 January 2020, the Payment Systems Regulator (PSR) published Consultation Paper 20/1 – Proposal to vary Specific Direction 10 (CP20/1). The objective of Specific Direction 10 (SD10) is to reduce losses to customers resulting from authorised push payment fraud and accidentally misdirected payments through the introduction of a “Confirmation of Payee” request on directed banks.
In CP20/1 the PSR proposes to introduce an additional basis for a directed Payment Service Provider (PSP) to ask for an exemption from an obligation under the direction where it is not reasonable or proportionate to require that PSP to comply with an obligation. The PSR provides examples where an exemption may be justified, such as transferring an account from one technology platform to another, plans for new banking products or brands that were in active development before SD10 was made.
The deadline for comments on the consultation is 29 January 2020.