Financial Conduct Authority
FCA agrees plan for a phased implementation of Strong Customer Authentication
The Financial Conduct Authority (FCA) has today agreed a plan that gives the payments and e-commerce industry extra time to implement Strong Customer Authentication (SCA).
From 14 September 2019, new European Union (EU) rules will start to apply that impact the way in which banks or payment services providers verify their customers identity and validate specific payment instructions. The new rules, called Strong Customer Authentication (SCA), are intended to enhance the security of payments and limit fraud during this authentication process.
The FCA has today agreed an 18-month plan to implement SCA with the e-commerce industry of card issuers, payments firm and online retailers. The plan reflects the recent opinion of the European Banking Authority (EBA) which set out that more time was needed to implement SCA given the complexity of the requirements, a lack of preparedness and the potential for a significant impact on consumers.
Jonathan Davidson, Executive Director for Supervision – Retail and Authorisations, said:
'The FCA has been working with the industry to put in place stronger means of ensuring that anyone seeking to make payments is not a fraudster. While these measures will reduce fraud, we want to make sure that they won’t cause material disruption to consumers themselves; so we have agreed a phased plan for their timely introduction'.
The FCA will not take enforcement action against firms if they do not meet the relevant requirements for SCA from 14 September 2019 in areas covered by the agreed plan, where there is evidence that they have taken the necessary steps to comply with the plan. At the end of the 18-month period, the FCA expects all firms to have made the necessary changes and undertaken the required testing to apply SCA.
The FCA will also continue to monitor the extent to which banks and payment service providers are meeting its expectation that they consider the impact of SCA on different groups of consumers, and provide alternative means of authentication where needed.
Notes to editors
- CP18/25: Approach to final Regulatory Technical Standards and EBA guidelines under the revised Payment Services Directive (PSD2).
- FCA’s response to EBA’s Opinion on Strong Customer Authentication.
- The EBA published an Opinion(link is external).
- Information for consumers on Strong Customer Authentication.
Latest News from
Financial Conduct Authority
Upper Tribunal publishes decision on Andrew Tinney, the former COO of Barclays Wealth19/08/2019 11:20:00
Following contested proceedings, the Upper Tribunal has found that Andrew Tinney, the former Chief Operating Officer (COO) of Barclays Wealth and Investment Management (Barclays Wealth), breached his obligation as an approved person to act with integrity.
5 million pension savers could put their retirement savings at risk to scammers08/08/2019 10:25:00
The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) are joining forces again this summer to warn the public about fraudsters targeting people’s retirement savings. This warning comes as new research suggests that 42% of pension savers, which would equate over 5 million people across the UK, could be at risk of falling for at least one of six common tactics used by pension scammers.
FCA provides clarity on current cryptoassets regulation01/08/2019 10:25:00
The FCA yesterday published its Final Guidance which sets out the cryptoasset activities it regulates. This is in response to the FCA’s consultation published earlier this year.
FCA acts to protect consumers transferring out of defined benefit pension schemes31/07/2019 09:20:00
The Financial Conduct Authority yesterday published a package of pension related proposals designed to improve the quality of pension transfer advice, and to help consumers get better value from their pension.
FCA calls for consumers to think back, then act as PPI deadline closes in29/07/2019 13:05:00
With only one month to go until the 29 August 2019 PPI complaints deadline, the Financial Conduct Authority (FCA) is urging consumers to jog their memories back to the 1990s and 2000s when they may have bought products and were mis-sold PPI at the same time.
FCA issued Final Notices against Cathay International Holdings Limited, its CEO and Finance Director26/07/2019 14:10:00
On 3 June 2019, the FCA published Decision Notices concerning Cathay International Holdings Limited, Mr Jin-Yi Lee, its CEO and Mr Eric Siu, its Finance Director.
FCA announces extension to its use of the temporary transitional power26/07/2019 12:33:00
The Financial Conduct Authority (FCA) yesterday confirmed it intends to extend the proposed duration of the directions issued under the temporary transitional power to the 31 December 2020. This is to reflect the extension of Article 50. Other than the additional time the FCA’s approach remains unchanged.
Further details of Independent Investigation into London Capital and Finance announced26/07/2019 10:25:00
Dame Elizabeth Gloster, has made a first announcement of how she will conduct the investigation into the relevant events relating to the regulation of London Capital & Finance plc.