CP20/1- Confirmation of Payee: Proposal to vary Specific Direction 10
We are consulting on a proposal to vary our Specific Direction 10 on Confirmation of Payee.
Why we are publishing this document
The implementation of Confirmation of Payee will be an effective way of combatting Authorised Push Payment Scams. On 1 August 2019, we gave Specific Direction 10 to members of the UK’s six largest banking groups to fully implement Confirmation of Payee by 31 March 2020.
We have always said that exemption requests can be made by the banks under exceptional circumstances and, as it stands, Specific Direction 10 only makes provision for exemption requests on that basis.
We think there could be some circumstances where an exemption could be justified, but which would not be considered exceptional. As a regulator, we must be proportionate and reasonable in our requirements. This consultation is about including an additional clause in Specific Direction 10 that will help us make effective decisions.
What this document contains
This publication contains the text of the proposed Specific Direction 10 at Annex 1.
We are proposing two changes to the direction:
• to introduce an additional basis for a directed Payment Service Provider (‘PSP’) to ask for an exemption from an obligation under the direction (the only current basis relates to exceptional circumstances)
• to exempt HSBC UK Bank plc from the obligations of the direction in respect of accounts held with it that form part of HSBC Group’s Private Banking brand
We are looking for your views about our proposed changes to SD10 and why you hold that view.
Who should read this document
The consultation will be of particular interest to PSPs, especially those subject to the obligations of the direction, and to others with an interest in the introduction of Confirmation of Payee.
What happens next
We will collect all responses by 5pm on 29 January 2020.
You can email your comments to firstname.lastname@example.org or write to us at:
Confirmation of Payee consultation
Payment Systems Regulator
12 Endeavour Square
London E20 1JN
We will consider those responses in full before we make our final decision.