On 8 October 2024, the Financial Conduct Authority (FCA) published two Dear CEO letters, sent to banks and building societies and to payment and e-money institutions, in which it sets out its expectations on authorised push payments (APP) fraud reimbursement. The Payment Systems Regulator’s (PSR) reimbursement requirement for APP fraud carried out through the Faster Payments System and CHAPS came into force on 7 October 2024 (the date of the Dear CEO letters).
In the letters, the FCA sets out its expectations relating to the new measures, the role of the Consumer Duty and what firms can expect from the FCA through a data-led approach to monitoring progress. In-scope firms that have not already done so are asked to ensure they have appropriate oversight, systems and controls in place to comply with these requirements.
The FCA’s expectations
In relation to anti-fraud systems and controls, both letters highlight that payment service providers (PSPs) should be working to reduce APP fra
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