The Payment Services (Amendment) Regulations 2024: impact assessment - RPC opinion (green-rated)
Regulatory Policy Committee opinion on HMT's impact assessment (IA) in respect of The Payment Services (Amendment) Regulations 2024, which were laid before Parliament on 9 October 2024.
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In most cases, when a payer orders its payment service provider (PSP), such as a bank, to execute a payment order, the Payment Services Regulations 2017 require the payee’s account to be credited by the end of the business day following receipt of the payment order. The amendment regulations alter those provisions to give a payer’s PSP the ability to delay execution of certain payment orders where, within a specified time, the PSP establishes reasonable grounds to suspect that the order has been made subsequent to fraud or dishonesty perpetrated by a third party (which may include the payee). The delay enables the PSP to determine whether the order should be executed, and must not exceed a specified time limit.
The IA - available here - provides a sufficient assessment of the problem under consideration and the rationale for intervention. It describes existing protections against payment fraud and how engagement with industry has indicated that further measures are required. The IA sets out data on the level of existing payments fraud and describes how the regulations can be expected to reduce this. Some areas of the IA, such as wider impacts and the monitoring & evaluation plan, could be strengthened.