On Mar. 27, UK PSR called for views on specific direction functioning.
UK PSR issued call for views on second annual review of specific direction 12 (LINK).
Follows UK PSR Jul. 2023 findings of its review of functioning of SD12, see #166988.
Specific Direction 12
Specific Direction 12 (SD12) issued Mar. 2022 is designed to ensure LINK: maintains a broad geographic spread of the UK’s free-to-use (FTU) cash machine network.
Meets service-user needs by having and maintaining appropriate and effective policies.
Changes due to FSMA 2023
Since publication of first review, Financial Services and Markets Act 2023 (FSMA 2023) introduced legislative changes confirming FCA’s lead role in access to cash regulation.
Therefore, want second review to consider role in context of changes to regulation.
Call for Views
Requested views on 4 areas: how effective SD12 has been in delivering its purpose.
How well the requirements under SD12 have worked in practice in relation to maintaining and replacing protected ATMs, as defined in paragraph 3.7 of SD12.
How successful LINK has been in addressing areas for improvement in the first review.
and finally, the role of SD12 in the regulatory landscape introduced by FSMA 2023.
Call for Views Deadline
Call for views open until May 2, 2024, 5pm.
Jul. 2024 Review Outcome
On Jul. 29, 2024, UK PSR issued the findings of the second annual review of the functioning of SD12, including the non-confidential responses to the call for views.
Review was assessed in context of how SD12 would work alongside changes to cash access from FSMA 2023 (UK) and UK FCA's new cash access rules, see #194065.
Given that the FCA's rules are more comprehensive in protecting access to cash across all channels, the PSR has concluded that, although SD12 has been working well, it should be retired when it expires in Jan. 2025, this should reduce regulatory burden.
And will also ensure cash access regulatory framework is clearer, more streamlined.
This outcome reflects the views of majority of respondents to second review of SD12.
Given limited remaining time for SD12, PSR sets out long-term expectations for LINK, including managing transparent approach to managing its ATM scheme and network.
PSR considers that FCA's comprehensive cash access rules build on positive outcomes achieved by its Directions and is confident these rules can achieve desired outcomes.
However, PSR retains oversight of LINK as a designated payment system and stands ready to take swift action to address any issues that may emerge in the future.
