Payment Services Regulations Review and Call for Evidence

The HM Treasury has launched a review and call for evidence on the general functioning of the Payment Services Regulations 2017 and on ways to improve the current regulations particularly in view of government’s objectives to foster consumer trust while promoting competition, resilience, and customer protection. The Treasury thereby also considers – to some extent – the functioning of the Electronic Money Regulations 2011 and the retained Crossborder Payments Regulations and the interaction between the three pieces of legislation.
The call for evidence is very high level in nature and does NOT propose any specific amendments to named regulations. It is based on some issues pointed out by the Treasury in the general „review“ section of the document largely relating to the current authorization regime under the regulations, the adequacy of the regulations particularly in view of technological developments, or the level of protection of customers in cases of account terminations or fraud. Specifically, the HM Treasury seeks feedback on the following, among others:
– whether or not the Payment Services Regulations 2017 and the Electronic Money Regulations 2011 may be or should be converged into one regulation;
– whether or not the maintenance of two different authorization regimes under each of the regulations is necessary;
– whether or not there could be improvements to the authorization framework for smaller payment service providers and e-money institutions;
– whether or not the current regulations provide sufficient clarity as to the terms and provisions used in each legislation;
– whether or not the distinction between e-money issuers or institutions and payment service providers is clear or should be further clarified;
– whether or not the scope of each legislation is adequate and „capture the right actors“;
– whether or not the current exemptions provided in each legislation are still adequate;
– whether or not the current information requirements of payment services or e-money institutions is sufficient or whether or not there should be any enhancements, e.g. with respect to cross-border transaction fees;
– whether or not the current notification period and requirements pertaining to account terminations are adequate;
– whether or not further measures should be required (e.g. additional customer authentication requirements) to protect customers from fraud; and
– whether or not the current insolvency provisions are adequately protecting consumers.
Additionally, the HM Treasury would appreciate any general proposals on how to improve the legislations to reach better outcomes for customers.
The „consultation“ closes on April 7, 2023.