The Payment Systems Regulator (PSR) has published a consultation on two of its draft directions providing the legal means for putting its new APP scam reimbursement requirements in place. This marks the start point for the regulator’s plans to implement new requirements that will see mandatory reimbursement for victims of APP scams.
The regulator recently set out its requirements for tackling APP scams and improving protections for victims of these frauds, which include:
The PSR said it would seek views on the legal means by which the new changes will be enforced, focusing on the detail of two of the three legal instruments. The first requirement looks at rule changes that need to be applied within the Faster Payments System (FPS), the means by which people can make a payment from one account to another. The second focuses on making sure FPS operator Pay.UK has an effective monitoring regime that will measure whether payment firms are consistently complying with the reimbursement requirements.
The regulator has also published the draft details of the general direction that will see all payment firms reimbursing victims of APP scams. This third direction will be consulted on separately in October.
The PSR wants these requirements to be in place for consumers as soon as possible, and is proposing an implementation date of 2 April 2024. This is likely to be a challenging target for firms, and the PSR welcomes views on what is required for operational readiness, but would not expect implementation to be any later than Q2 2024.