FCA Dear CEO letter on approach to SCA deadline under PSD2

Regulatory Updates | 21/08/19

The FCA has published a Dear CEO letter setting out its approach to giving the payments and e-commerce industry extra time beyond the 14 September 2019 deadline to implement strong customer authentication (SCA) under PSD2. While the FCA explains that it cannot alter the legal deadline for complying with the SCA requirements, it will not take enforcement action against firms simply because they have not met the relevant requirements for SCA by 14 September. This decision, the FCA explains, is limited to the application of SCA to card-not-present e-commerce transactions where there is evidence that firms have taken steps to comply with the plan agreed with UK Finance to deliver SCA by 14 March 2021. Failure to comply after this date will be subject to full FCA supervisory and enforcement action.