The Analysis News & Opinions


Regulator sets out decision on reducing interbank risks


The successful renewal of the UK’s


interbank payments infrastructure will benefit people and businesses but risks to its successful delivery need to be reduced. The Payment Systems Regulator (PSR)


has decided that Pay.UK should phase the development of the UK’s New Payments Architecture (NPA)by narrowing the scope of the NPA central infrastructure services (CIS) contract. Pay.UK must secure this contract through


a competitive tender. The regulator is also consulting on the draft legal instruments it plans to give to implement its decisions. The NPA is the payment industry’s


proposed way of organising the clearing and settlement of most interbank payments in the future, including those that currently use Bacs and Faster Payments. Interbank payments, payments made from


one bank account to another, are essential to the day-to-day lives of millions and the functioning of the UK’s economy. Chris Hemsley, the PSR’s managing


director, said: “We want the UK’s interbank payment systems to serve the diverse and evolving needs of everyone who uses them for many years to come. “The NPA is a great opportunity to meet


growing demand for digital payments, bolster resilience and boost competition. “It will help deliver improved services that


benefit people and businesses throughout the UK, like better payment tracking and the ability to send more information with payments. “The decisions we set out today will help


lower risks to the delivery of the NPA by simplifying the programme. This will make it easier for Pay.UK to secure a contract that provides value for money and enables some NPA benefits to be realised sooner.” Pay.UK, the operator of Bacs and Faster


Payments, is responsible for delivering the NPA. This includes procuring NPA CIS. Earlier this year, the PSR reached the


view that there are unacceptably high risks that the NPA programme being operated by Pay.UK will not provide value for money


8


and could delay or prevent the delivery of the benefits of the NPA. These risks prompted the PSR to consult


in February on requiring Pay.UK to phase the development of the NPA by narrowing the scope of the CIS contract. The PSR also asked for views on the approach to the procurement. Having considered the responses, the PSR


will require Pay.UK to narrow the scope of the CIS contract by mandating that Pay.UK: lMust, as a minimum, buy services needed to support single-push payments (which will allow most Faster Payments transactions to migrate to the NPA). l May buy additional services and system functionality only if the PSR does not object (which will include taking account of the adequacy of Pay.UK’s consultation with industry on its proposals) The obligation on Pay.UK to carry out a competitive procurement will remain.


Pay.UK can discharge this obligation by continuing the current competitive procurement or starting a new one. To implement these decisions, the PSR


intends to vary Specific Directions (SDs) 2 and 3. These require Pay.UK to run a competitive procurement for the contract to supply central infrastructure for Bacs and Faster Payments respectively. The regulator will consult until 10


September 2021 on the changes it proposes to make to SDs 2 and 3 to implement its decisions. Having considered views, the PSR plans


to give the directions to vary SDs 2 and 3 later this year. In addition, the PSR plans to publish a


separate policy statement by the end of this year that sets out its regulatory framework for the NPA, informed by feedback following its consultation on mitigating risks to competition and innovation relating to when the NPA is operational.


New enforcement oversight supported


The High Court Enforcement Officers Association is backing the creation of a new enforcement oversight body proposed by the Centre for Social Justice (CSJ). In a new report entitled ‘Taking Control


for Good’, the CSJ has announced plans for a new body – the Enforcement Conduct Authority (ECA), which would provide independent, fair and formal supervision of enforcement. Alan J. Smith, chair of the High Court


Enforcement Officers Association, said: “We already have a Code of Best Practice which our members are expected to adhere to, so this is a logical next step. It is great that the whole concept and remit of the proposed Enforcement Conduct Authority has been co-designed by the debt relief sector,


www.CCRMagazine.com


working together alongside the CSJ and the enforcement profession. We are very supportive.” “As an association, we support the aims of


the ECA and will continue to work with the CSJ on the ECA project alongside other voices from the debt relief sector and enforcement profession.”


August 2021


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52