From 14 September 2019, new rules apply that affect the way banks or other payment services providers check that the person requesting access to their account or trying to make a payment is the person permitted to make a payment and validate specific payment instructions. We have agreed to give firms extra time to implement these rules in some circumstances.
The new rules, referred to as Strong Customer Authentication (SCA), are intended to enhance the security of payments and limit fraud during this authentication process.
The FCA is concerned that some third-party providers (TPPs) may not be able to continue providing their services after 14 September 2019. This is because TPPs have not always been able to use and migrate their customers to new or modified interfaces, and the implementation of SCA will prevent TPPs from accessing account data without the customer being present. This could cause significant disruption for customers of open banking services provided by TPPs.
This comes less than a month after The Financial Conduct Authority has announced a 6-month Open Banking adjustment period for PSD2 adoption. To avoid disruption to consumers and TPPs we have agreed an adjustment period. Therefore, in certain circumstances, companies have until 14 March 2020 to implement SCA for online banking.
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