PSD2 - Are your report applications ready?

Since the implementation of the revised Payment Services Directive (PSD2) on 13 January this year, payment service providers and e-money issuers are required to submit specific regulatory returns to the FCA disclosing both financial and non-financial information.

Most firms operating under the PSD2 regime will have already reported through the GABRIEL system on Complaints, Capital Adequacy, Controllers and Close Links. In addition there are two more reports that will shortly be due to the FCA for the first time, namely the ‘Payments Fraud Report’ (REP017), due by 31 January 2019, and the ‘Operational and Security risk’ (REP018), due by 31 December 2018.

All payment service providers (PSPs), including banks, building societies, credit card providers, account information service providers, payment initiation service providers, money remitters and e-money issuers must complete and submit these new returns. The information to be reported is statistical data on fraud relating to the relevant means of payment they offer in REP017, and information on the assessment of the operational and security risks and mitigating measures relating to the payment services they provide in REP018.

It is important to remember that these returns are based on information that firms must collect regularly, and not just once a year, on the potential and actual exposure to fraud risk and on the results of the operational risk assessment and security testing that must be completed at regular intervals.

The REP018 must be submitted to the FCA at least once every calendar year by 31 December however it can be submitted as frequently as every quarter. The REP017 is also an annual return and is due at the end of January.

The reporting process is the same as with all other regulatory returns and the relevant data items will be found on your GABRIEL schedule, but smaller firms who do not have a GABRIEL account can also download and submit the returns by email.

How we can help
If you require any assistance with the REP018 that is due imminently or any other regulatory returns, please do not hesitate to contact us. At Moore Stephens we have a team of regulatory experts who can assist with the preparation of all FCA regulatory returns and can advise on all aspects of PSD2.

We would also remind you that on 19 December the FCA has published an updated version of their Approach document.

For details of the full range of services offered by our financial services team, click here.

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