On the 26 June 2018 the Financial Conduct Authority (FCA) published a consultation paper (CP18/16) setting out its proposed changes to its Dispute Resolution: Complaints Sourcebook (DISP) in relation to victims of authorised push payment (APP) fraud
The FCA is concerned that APP fraud is increasing. At present victims of APP fraud cannot complain to the Financial Ombudsman Service (FOS) about the Payment Service Provider (PSP) receiving their payment where their own PSP is not at fault. The FCA is therefore consulting on:
(1) whether to require firms to handle these complaints in line with DISP, and
(2) a proposal to allow eligible complainants to refer these complaints to the FOS if they are unhappy with the outcome reached by the receiving PSP, or if they have not received a response to the complaint at all.
The consultation is part of an ongoing industry response to the Which? super-complaint to the Payment Systems Regulator (PSR) and the FCA regarding measures to safeguard consumers against APP fraud. The proposals are intended to be in addition to the work carried out by the PSR.
The key points of the consultation are as follows:
The proposed changes would be facilitated by amendments to the DISP sourcebook and the Glossary of the FCA handbook.
This consultation, along with the PSR report, increases the mounting pressure on PSPs to alter the way in which they handle APP fraud. If the proposed changes are implemented there will be greater obligations on receiving PSPs to respond to complaints and may require PSPs to increase security measures by carrying out further checks on account opening.
The FCA invites comments on the consultation by 26 September 2018, with final rules to take effect in January 2019.
For more information please contact Richard Hayllar (Partner), Warren Clark (Partner), Alanna Tregear (Associate) or Emma Davey (Trainee Solicitor).
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at June 2018. Specific advice should be sought for specific cases. For more information see our terms & conditions.
On 12 October 2018, the FCA published a Guidance Consultation (GC 18/4) on the Senior Managers and Certification Regime on statements of responsibilities (SoRs) and responsibilities maps (which apply to enhanced firms).