On May 17, 2016, the UK PSR published a Policy Statement and final Guidance on the application of the Payment Accounts Regulations 2015 in respect of alternative arrangements for switching accounts. The final guidance sets out the approach under the PSR to designating alternative switching schemes and is relevant to operators of alternative switching schemes, payment service providers, consumers and regulators. The Payment Accounts Directive outlines the common regulatory standards across EU Member States to improve transparency and comparability of current account fees; facilitate current account switching; and ensure access to bank accounts with basic features. The PAR transposed the Directive into UK law and requires payment services providers to offer a switching service for payment accounts. Under the PAR the PSR has been nominated as the regulator for designating alternative switching schemes and monitoring and enforcing schemes.
The designation criteria have been amended in response to numerous comments. The PSR has altered the information requirements for applications, reporting on complaints and compensation to customers. The PSR has also made changes where applications cannot be processed in time for the September 18, 2016 deadline; where these circumstances arise, the PSR will now inform the relevant operators as soon as practicable that a decision will not be made by September 18, 2016.
The PSR made no changes on its approach to monitoring compliance of designated schemes. Operators that wish to be designated under the PAR by the appropriate deadline should submit their application by June 10, 2016. The Policy Statement is available at: https://www.psr.org.uk/sites/default/files/media/PDF/PS162-the-application-of-the-PARs.pdf and the Final Guidance is available at: https://www.psr.org.uk/sites/default/files/media/PDF/PARs-final guidance.pdf.
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