The UK’s Financial Conduct Authority (FCA) has today announced a plan for the phased implementation of Strong Customer Authentication under PSD2. The plan gives the UK a minimum 18-month extension to the 14 September 2019 deadline for firms to comply with the new rules.
The plan reflects the recently published EBA (European Banking Authority) Opinion which set out that more time was needed for the industry to implement SCA due to the complexity of the requirements, lack of preparedness and concerns that it would have a significant impact on consumers.
In a statement today, the FCA’s Jonathan Davidson, Executive Director for Supervision – Retail and Authorisations, said: “The FCA has been working with the industry to put in place stronger means of ensuring that anyone seeking to make payments is not a fraudster. While these measures will reduce fraud, we want to make sure that they won’t cause material disruption to consumers themselves; so we have agreed a phased plan for their timely introduction’.
The FCA will not take enforcement action against firms not meeting the requirements of SCA from 14 September 2019 in areas covered by the agreed plan, where there is evidence that these firms have taken the necessary steps to comply with the plan.
Read the FCA’s full statement here.