Second Annual review of Specific Direction 12

We are publishing our second Annual Review of Specific Direction 12 (SD12). The Direction was designed to make sure LINK continues to maintain a broad geographic spread of free-to-use (FTU) ATMs. SD12 was issued to LINK in March 2022, replacing SD8 (and SD8a), which had been in place since October 2018.   

This review was assessed in the context of how SD12 would work alongside changes to the cash access regulatory landscape introduced in the Financial Services and Markets Act (FSMA) 2023, and the Financial Conduct Authority’s (FCA) new cash access rules. Given that the FCA’s regulations are more comprehensive in protecting access to cash across all channels, we have concluded that although SD12 was working well, it should be retired when it expires in January 2025. We believe that by not renewing this specific direction, we are reducing regulatory burden and ensuring the cash access regulatory framework is clearer and more streamlined. 

Why we are publishing this document  

Although the use of cash as a payment method has been declining, it remains important for many consumers and businesses alike, which is why we have had a specific direction in place for LINK since 2018. 

We committed to review SD12, 12 months and 24 months after implementation. Our first review was published in July 2023 and this report presents the findings and recommendations of our second annual review. It sets out our assessment of how well SD12 is working in practice, taking into account the stakeholder submissions we received in response to our Call for Views.  

Who should read this document  

This document will be of particular interest to ATM operators, consumer groups and merchants, as well as anyone with an interest in the provision of access to cash.  

What this document contains  

This second review looked at how well SD12 is working and how it aligns with the changes to the access to cash regulatory framework introduced in FSMA 2023. It takes into account analysis of data received from LINK, the current trends in cash usage and the feedback received from stakeholders through our Call for Views earlier this year. 

As set out above, we concluded that although SD12 has been working well, it is our intention to retire SD12 when it expires in January 2025. We are confident that the FCA’s access to cash rules are sufficient to address cash access needs.  

This outcome reflects the views of the majority of respondents to our second review of SD12 all non-confidential responses relating to this call for views are available to view further down this page.   

We have worked closely with the FCA as it finalised its policy approach and rules, which will address deficiencies in a wider range of scenarios than the current SD12 regime and will avoid the emergence of regulatory gaps. 

We believe that by not renewing this specific direction, we are reducing the potential for regulatory overlap and ensuring the cash access regulatory framework is clearer and more streamlined. 

Given the limited remaining time for SD12, we have set out our long-term expectations for LINK, to continue to build on the progress made to date including:

• maintaining a transparent approach to managing its ATM scheme and network – continue publishing key documentation and making information on its website more accessible, with a focus on consumer and stakeholder needs, and 
• ensuring alignment with the broader regulatory framework on cash access – e.g., the FCA’s final rules, and the PSR’s future supervisory approach. 

David Geale, the PSR’s Managing Director said:  

“FCA’s comprehensive cash access rules build on the positive outcomes achieved by our Directions.” 

"We are confident that the FCA’s rules can achieve the outcomes in cash access we want to see. However, we retain our oversight of LINK as a designated payment system under FSBRA 2013 and stand ready to take swift action to address any potential emerging issues if they arise in the future.”