aimm posed significant questions and challenges to the FCA on their interpretation of the PSD2 Electronic Communications Networks (ECN) exclusion. aimm achieved a number of successes:
- Gaining a cascade of the ECN exclusion to encompass intermediaries processing the same payment. This prevents intermediaries from being caught in financial regulation as “Payment Acquirers”.
- aimm questioned the scope of a payment service, particularly with the PSD wording being changed by the UK government that potentially expanded scope. FCA guidance is that where the ECN is acting as “principle” in the supply of services to its consumer, then the transaction is not in scope of Payment Services Regulations.
- aimm also challenged FCA view that the “bill payer” was the individual subscriber referenced by the ECN exclusion, which meant any limits could apply to all phones on a single account. aimm have succeeded in establishing clarity on this point in that it is a single number (fixed line) or SIM (mobile). (This still presents difficulties for fixed line providers who may however be able to review how the clarity on scope can benefit them).