The regulator reminds CEOs of their obligations on strong customer authentication
Following last week’s announcement that the FCA will be introducing a phased implementation of the Strong Customer Authentication (SCA) requirements, the regulator has written to the CEOs of payments and e-commerce companies to remind them of their obligations. The phased implementation only applies to SCA in card-not-present e-commerce transactions and firms have until 14th March 2020 to comply with the SCA requirements.
Firms are being advised to liaise with their trade body and UK Finance to ensure they have a full understanding of the implementation plan. It’s also recommended they take appropriate steps to manage their fraud risk in the interim. Firms must also manage the negative impact of SCA on potentially vulnerable customers, particularly those with limited digital access. In these cases, firms must provide a viable means of authenticating these customers.
Upper Tribunal publishes its decision on a case involving former COO of an investment bank
The Upper Tribunal has published its decision in a contested enforcement case involving the COO of an investment bank. In this case, the individual received a report about the culture of the bank, which was reportedly suppressed. During an earlier hearing the individual gave the impression that such a document didn’t exist. He made misleading statements to the US Federal Reserve Bank of New York and his professional regulator, leading the Upper Tribunal to conclude that he lacked the honesty and integrity to hold a regulated position within financial services. The Upper Tribunal did not conclude that the individual mislead the FCA.