The FSA says its proposed changes are required to apply its complaints handling rules to payment services firms and to extend the jurisdiction of the Financial Ombudsman Service.
It will also introduce an approach to enforcing the Payment Services Regulations that mirrors its general approach to enforcement under the Financial Services and Markets Act 2000.
The PSD requires countries in the European Economic Area to regulate payment services, including for example card payments, direct debits and money transfer.
It will impact all firms providing payment services, including banks, building societies, e-money issuers, money transfer operators and non-bank credit card issuers.
The FSA will be responsible for the authorisation and registration requirements under the PSD, as well as supervising the directive’s conduct of business regime.
HM Treasury is currently consulting on the text of the Payment Services Regulations 2008, which will implement the directive in the UK on November 1, 2009.
FSA director of permissions, decisions and reporting Graeme Ashley-Fenn says: “We are working closely with HM Treasury on implementation of the directive. Our proposals are a small but important step in the wider PSD project and aim to make the transition for firms, some of which will be new to FSA regulation, and consumers as smooth as possible.”
The FSA is inviting responses by November 28.