Content Options

Content Options

View Options

Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

Article 20 Cessation of exemptions based on transaction risk analysis

  1. (1)

    Payment service providers that make use of the exemption referred to in Article 18 shall immediately report to the FCA where one of their monitored fraud rates, for any type of payment transactions indicated in the table set out in the Appendix exceeds the applicable reference fraud rate and shall provide to the FCA a description of the measures that they intend to adopt to restore compliance of their monitored fraud rate with the applicable reference fraud rates.

  2. (2)

    Payment service providers shall immediately cease to make use of the exemption referred to in Article 18 for any type of payment transactions indicated in the table set out in the Appendix in the specific exemption threshold range where their monitored fraud rate exceeds for two consecutive quarters the reference fraud rate applicable for that payment instrument or type of payment transaction in that exemption threshold range.

  3. (3)

    Following the cessation of the exemption referred to in Article 18 in accordance with paragraph 2 of this Article, payment service providers shall not use that exemption again, until their calculated fraud rate equals to, or is below, the reference fraud rates applicable for that type of payment transaction in that exemption threshold range for one quarter.

  4. (4)

    Where payment service providers intend to make use again of the exemption referred to in Article 18, they shall notify the FCA in a reasonable timeframe and shall before making use again of the exemption, provide evidence of the restoration of compliance of their monitored fraud rate with the applicable reference fraud rate for that exemption threshold range in accordance with paragraph 3 of this Article.