The Payment Systems Regulator (PSR) has published for comment draft Terms of Reference that explain how it intends to consider the potential for payment system operators to play a role in minimising consumer harm caused by authorised push payment (APP) scams in the UK.
The background to the draft Terms of Reference is the PSR’s response to a super-complaint issued by the consumer group Which? and the regulator’s commitment to introduce a package of measures that are aimed are reducing this type of fraud.
The PSR’s proposed work has two objectives:
- It will consider whether it would be effective and proportionate for operators of push payment systems to play a greater role in preventing and responding to APP scams. The PSR considers that this might be in the form of actions that the operators might take, or new requirements that the operators might place on payment service providers using their systems; and
- if the PSR concludes the new measures are appropriate, it will consider whether it could be best to introduce them through regulatory action or through other approaches. The PSR will develop proposals for consultation if it decides on a regulatory approach.
The deadline for comments on the draft Terms of Reference is 21 March 2017.