FCA to draft action plan for SCA compliance and readiness

Wednesday 3 July 2019 10:57 CET | News

The UK’s Financial Conduct Authority (FCA) has published its response to the European Banking Authority’s Opinion on Strong Customer Authentication (SCA) under PSD2.

The Opinion says that EBA, in order to avoid unintended negative consequences for some payment service users after September 14, 2019, national competent authorities (NCAs) may decide to work with PSPs and relevant stakeholders, including consumers and merchants, to provide limited additional time.

The legal deadline for complying with the Regulatory Technical Standards on Strong Customer Authentication remains September 14, 2019. However, the FCA recognises the challenges in meeting this deadline and has been working with the industry to develop a plan to migrate the industry to implement SCA for card payments in ecommerce.

The plan encompasses a blueprint for compliance and readiness, a timetable for achieving this, and key milestones and targets to deliver improved security of customer authentication and fraud reduction along the way. Once the plan is agreed, the FCA expects all participants to meet the agreed milestones, targets and final delivery date, and could take enforcement action against companies, where there is evidence that they have not taken the necessary steps to comply with the plan, after September 14, 2019.

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Keywords: ecommerce, FCA, UK, merchants, authentication, fraud prevention, SCA, PSD2
Countries: World