PSR publishes CP20/1 – Confirmation of Payee – Proposal to vary Specific Direction 10

Industry News | 20/01/20

Specific Direction 10 was given to members of the UK’s six largest banking groups to ensure that they fully implement Confirmation of Payee by 31 March 2020. The effect of Specific Direction 10 is that, since 31 December 2019, the directed banks have been obliged to respond to a Confirmation of Payee request made to them and that, from 31 March 2020, they must send them for their own customers. The PSR proposes to vary the circumstances under which banks can request an exemption. As it stands, Specific Direction 10 only provides for exemption requests in ‘exceptional circumstances’. The PSR considers that there are some circumstances in which an exemption could be justified, but which would not be considered exceptional, and proposes adding a clause to Specific Direction 10 to help it make effective decisions. Feedback is sought by 29 January 2020.