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UK payment companies have urged the Payment Systems Regulator to delay new fraud reimbursement regulations following the recent resignation of PSR head Chris Hemsley, due to criticism from the industry and the UK government over the rules.
As reported by the Financial Times, The Payments Association has requested a one-year postponement of rules requiring banks and payment companies to reimburse victims of “authorised push payment” fraud up to £415,000 per claim from October.
In a letter to City minister Bim Afolami last month, members of the Payments Association, representing around 30 companies, have expressed concerns that the high reimbursement threshold could endanger smaller fintech firms. They are lobbying to lower the reimbursement threshold to £30,000.
In a briefing paper released to the PSR on Monday they also suggest that delaying the rules would give more time to include social media companies into the process.
Riccardo Tordera-Ricchi, head of policy and government relations at The Payments Association, stated that if the changes proceed as scheduled, “the prudential risk and requirements to participate in the UK payments market will increase significantly”.
“It will also result in an increase in cost and friction of real-time payments and a decrease in investment into the UK fintech market due to higher risks of failure and lower profitability,” he added.
UK Finance has also raised concerns, cautioning against potential exploitation of the reimbursement system by fraudsters posing as victims, though it is not seeking a delay in the rules. The PSR has yet to comment on the matter.
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US officials are expecting leaders from the G7 countries attending a summit in Italy this week to issue a “tough warning” to smaller Chinese banks to stop aiding Russia in evading western sanctions, as reported by Reuters citing unnamed sources familiar with the matter.
Leaders from the G7, including the US, UK, Canada, France, Germany, Italy and Japan, are expected to focus on the impact of Chinese-Russian trade on the Ukraine conflict during their June 13-15 meeting, hosted by Italian Prime Minister Giorgia Meloni.
According to Reuters, the G7 summit will likely result in public statements addressing small Chinese banks aiding Russia in evading sanctions. However, G7 countries are not expected to take immediate punitive actions, such as blocking Swift access, against these banks during the summit.
The focus will be on smaller financial institutions rather than China’s largest banks. In addition, the G7 summit will also explore using profits from frozen Russian assets to support Ukraine.
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The Financial Conduct Authority is expected to approve a significant overhaul of the UK’s listing regime this month, potentially announcing the changes within weeks of a new government’s formation.
The FCA board will meet on June 27 to decide on the final version of the rules, aimed at revitalising London’s ailing stock market, sources told the Financial Times.
Public confirmation of the changes will follow a two-week implementation period, likely after the July 4 election, with some City advisers expecting a mid-July unveiling.
The proposed rules, which include merging premium and standard listing segments into one category on the London Stock Exchange, aim to streamline the listing process and are part of a broader strategy to reinvigorate the LSE amid declining IPOs and a trend of UK companies opting for US listings.
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Global payments giants Visa and Mastercard are facing a new set of lawsuits in the UK over fees charged to retailers after a London tribunal ruled on Friday that cases brought on behalf of merchants can proceed. These fees, known as multilateral interchange fees, are paid by retailers for card transactions.
London’s Competition Appeal Tribunal is overseeing numerous lawsuits against both companies, with hundreds of claimants involved.
The tribunal’s ruling could significantly impact Visa and Mastercard’s UK operations, potentially leading to substantial financial liabilities if the merchants succeed in their claims.
In addition, UK retailers are reportedly closely monitoring the developments, as a favourable outcome for the merchants involved could result in refunds and changes to how interchange fees are structured.
