The regulator has always said more should be done to better protect people from APP scams and set out a number of initiatives for the industry to deliver to stop this fraud from happening. This includes a voluntary industry code, developed by the industry and consumer groups, and the introduction of CoP.
At the end of 2018, the regulator opened its initial consultation seeking views on a proposal to give a general direction for all payment service providers to implement CoP. In the main, there was overall support for the proposal for a direction with useful feedback on its design and proposed deadlines.
Now, having reviewed the feedback and carefully considered the best approach, this latest consultation sets out a revised proposal alongside the legal text of the proposed direction.
The PSR proposes giving a specific direction to members of the six largest banking groups in the UK, who are involved in around 90% of bank transfers, to fully implement CoP by 31 March 2020.
The regulator expects the remaining payment service providers to bring in this important protection at the earliest opportunity, and will keep this under review.
Chris Hemsley, Co-Managing Director of the PSR, said:
“People should be properly protected. This includes taking steps to prevent the fraud from happening in the first place, and Confirmation of Payee is an important part of this.
“But it needs to be done in the right way if it is going to help protect people from APP scams and help stop payments being sent to the wrong account. This is why we have updated our plans and focussed our proposed direction so that more people start to benefit from this protection sooner.”
From 28 May, consumers will benefit from protection against APP scams in the form of the new, voluntary industry code, giving people better protection than they have ever had before.
The PSR’s latest consultation closes on 5 June 2019 and welcomes feedback from everyone.