FCA supports guidelines on the Open Banking Fall-Back Provisions Exemption

The Financial Conduct Authority has published a statement on its website relating to the European Banking Authority’s Opinion and draft Guidelines of 13th of June 2018 on the Regulatory Technical Standards on Strong Customer Authentication and Common and Secure Communication under PSD2 (the RTS).

The RTS require account servicing payment service providers to make account information available to third party providers via either a modified version of the customer interface, or a dedicated interface (such as a secure application programming interface, or API). The Financial Conduct Authority encourages account servicing payment service providers to take the option of providing a dedicated interface. The Financial Conduct Authority would encourage account servicing payment service providers to use standardised APIs (such as those developed by the Open Banking Implementation Entity) as a framework, to the extent that these align with PSD2 requirements.

In terms of timing, the Financial Conduct Authority states that it plans to consult on changes to its rules and guidance over the summer of 2018 to reflect the RTS and related EBA publications. This will include consulting on the Financial Conduct Authority’s proposed process for making exemption assessments, and the level of information required for such assessments.