On 7 July 2023, the Payments Systems Regulator (PSR) published a consultation paper concerning the legal instruments with which it will implement its authorised push payment (APP) scam reimbursement requirement policy. The consultation paper follows the PSR’s Policy Statement 23/3: Fighting authorised push payment fraud: a new reimbursement requirement – response to September 2022 consultation (PS23/3).

In this consultation paper the PSR states that it will be using three legal instruments to give effect to its APP scam reimbursement policy, outlined in PS23/3. The PSR is inviting views on the specific detail of two of the three legal instruments, a specific requirement under section 55 of the Financial Services (Banking Reform) Act 2013 (FSBRA) and a specific direction to Pay.UK under section 54.

The PSR will direct Pay.UK to put the new reimbursement requirement into Faster Payments rules using its powers under section 55 of the Financial Services (Banking Reform) Act 2013. Using its powers under section 54 of FSBRA, the PSR will give a specific direction to Pay.UK to:

  • Develop and implement rules and arrangements to monitor compliance by all PSPs with the reimbursement rules.
  • Monitor the nature, extent and effectiveness of compliance with the reimbursement rules by PSPs.
  • Gather data and information in order to facilitate the monitoring of PSPs’ compliance with the reimbursement rules.
  • Report to the PSR on the nature, extent, and effectiveness of compliance with the reimbursement rules by PSPs.

The PSR also publishes its general direction to payment service providers (PSPs) for visibility but intends to consult on it separately in October. The intention is to allow Pay.UK to draft the reimbursement rules beforehand, so that the consultation will be better informed on PSPs’ obligations under the section 54 general direction.  There will be a further consultation on the general direction on PSPs in October 2023.

The deadline for comments on the consultation paper is 25 August 2023.

The PSR intends to finalise and publish all three legal instruments in December 2023.

The PSR is proposing an implementation date of 2 April 2024.