“Notoriously difficult and hard to implement.” That’s the initial feedback from the head of the Emerging Payments Association (EPA), Tony Craddock, on a new set of rules put forth by the U.K.’s Financial Conduct Authority (FCA) that would dictate the “duty” that businesses have to consumers when processing transactions.
While the government regulator had asked for feedback from the industry on its recently published proposal, the trade group’s response pulled no punches in saying the plan would do more harm than good.
See also: UK Financial Watchdog Wants More Protection For Retail Financial Investors
The 56-page consultation paper called “CP21/13: A new Consumer Duty” was issued by the FCA in May and is targeted at firms in the payments industry. According to the regulator, the administrative requirement is necessary to ensure that companies “consistently focus on consumer outcomes” and by doing so, put retail clients “in a position where they can act and make decisions in their interests.”
Unintended Consequences
In a conversation with Karen Webster,…
