CP24/6 Securing compliance: proposed extensions and exemptions guidance

Date Published: 1 May 2024          Closing Date: 3 June 2024   

What does this document contain and why are we publishing it?  

We are consulting on draft guidance setting out how we propose to make decisions on whether to grant an extension or exemption to a specific direction or requirement.  

Specific directions and requirements are important tools the PSR uses to require firms to implement changes improving payments for people and businesses across the UK. We recognise, however, that there may be circumstances when an extension or exemption may be appropriate.  

The proposed guidance provides firms with clarity on how and when to engage with the PSR to find an effective way forward in these situations. 

The PSR expects to grant extensions and exemptions only in very limited circumstances. The guidance proposes four key factors for the PSR to use as a starting point when considering an extension or exemption request. These are:   

• Whether granting an exemption or extension would adversely impact payment systems users, undermine any of our statutory objectives, undermine the priorities set out in our five -year Strategy, or adversely impact the improvements we seek. If granting the request undermined these objectives, we would be unlikely to grant it.
• The context in which the specific direction arose, including the underlying policy aims and the key factors set by the specific direction or requirement.
• The burden that not granting the request would place on the regulated party, as well as any impact of granting the request on businesses and consumers more widely.
• In relation to extension requests, the steps the regulated party has taken to ensure that it will comply with the rules in a timely manner and that any risks to service users and/or markets have been mitigated.