PSD2 Implementation: UK FCA Amends Supervision Guide To Cater For New Security Measures

Financial data is one of the most attractive data sets for hackers, so financial institutions are at a high risk of being attacked. The consequences of an attack can be severe. Cyber attacks are on a steady rise in an increasingly interconnected world with attackers becoming ever more sophisticated. Regulators are making cybersecurity a priority and urging firms to become more resilient and to report security breaches. The EU's revised Payment Services Directive (PSD2) is no exception and contains requirements to manage operational and security risks.

In this context, the UK's Financial Conduct Authority (FCA) is updating its Approach document on the regulation of payments and the Supervision manual (SUP) in its rulebook.  Its latest consultation (CP18/6 – chapter 5) arises from publication of the EBA's Guidelines on security measures for operational and security risks in December, together with the need to align its Approach document with the UK Payment Systems