Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, with reference to the Government response to the consultation on the Payment Services Regulations, what steps his Department will take to (a) bear in mind the disclosure requirements listed in recital 84 of the Payment Services Directive and (b) achieve greater transparency.

The Government did not include a requirement in the Payment Services Regulations 2017 (PSRs) for increased transparency as it had to weigh up the potential benefits of doing so against other issues, such as the Government’s approach to implementing maximum harmonising Directives. The Government encourages all firms to bear in mind the recitals of the second Payment Services Directive and operate within the spirit of the Directive.

The Financial Conduct Authority (FCA) is the regulatory body responsible for enforcing the PSRs. As part of ensuring that firms comply with the specific requirements of the Regulations, the Government is extending the FCA's rule-making powers to allow them to, among other things, make rules on financial promotions for payment institutions and e-money institutions.

On 19 July 2017 the FCA clarified concerns it has about some firms' misleading use of currency converter tools in relation to their currency transfer services. It announced plans to consult on making new rules within this market using the extended powers.