2.1 CHAPS is designated by HM Treasury as a regulated payment system under section 43 of Financial Services (Banking Reform) Act 2013 (FSBRA) for the purposes of Part 5 of FSBRA.
2.2 The PSR gives this specific direction in accordance with section 54(1) and (2) of FSBRA. In accordance with section 54(3)(c), this direction applies to persons of a specified description.
2.3 In making its decision to use its section 54 powers, the PSR had regard to section 62 of FSBRA (Duty to consider exercise of powers under the Competition Act 1998).
2.4 The PSR articulated its policy objectives in respect of the reimbursement of victims of APP scams in PS23/3, Fighting authorised push payment fraud: a new reimbursement requirement (June 2023). In particular the PSR considers that a legal framework is necessary to give effect to reimbursement of victims in order:
• to incentivise the payments industry to invest in fraud prevention, increasing consumer protections so most victims of APP scams are swif
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