Payment services and e-money

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This Overview is a guide to the Financial Services content within the Payment services subtopic, with links to appropriate materials.

EU regulation of payment services

The Payment Services Directive (Directive 2007/64/EC) (PSD1) provided the legal foundation for the creation of an EU-wide single market for payments.

PSD1 was intended to regulate PSPs and harmonise the payments sector within the EU. However, advances in payments systems have outstripped the regulatory capacity of PSD1 and, in July 2013, the European Commission introduced a proposal for a second Payment Services Directive (COM(2013) 547 final) (PSD2) (see: Proposal), which incorporates and repeals PSD1. PSD2 addresses the technological advances affecting payments, the increased incidence of online payments fraud and inconsistent implementation of certain provisions of PSD1. It introduces rules for third-party PSPs, expands the geographic scope, increases requirements on security and narrows the exemptions available under PSD1.

The second Payment Services Directive (PSD2) (Directive 2015/2366/EC) was published in the Official Journal of the EU on 23 December 2015 (here) and came into force on 13 January 2016.

EU regulation of payment services providers—essentials

This Practice Note provides an overview, and

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Latest Financial Services News

FCA continues to simplify supervisory communications under Consumer Duty requirements review

The Financial Conduct Authority (FCA) has announced changes to its supervisory communications to make it easier for firms to find up-to-date information on its website. As part of its Consumer Duty requirements review, the FCA is simplifying its multi-firm and thematic reviews and labelling those published before 2022—accounting for around 80% of the total—as ‘historical’. Historical documents will remain publicly accessible via existing links. The FCA notes that it will continue to publish multi-firm and thematic reviews and intends to publish a small number of market reports instead of Dear CEO or portfolio letters. These reports will provide firm-type specific information and insights drawn from supervisory work. In the meantime, firms should continue to rely on relevant supervisory communications for guidance. The FCA will continue to review its approach to other historical publications.

Financial Services—other developments (28/8/2025)

A round-up of other developments, which have not been covered in full by the LexisNexis Financial Services practical guidance team but may nevertheless be of interest.

FCA removes more regulatory data returns to reduce firm reporting burden

The Financial Conduct Authority (FCA) has announced the removal or reduction of a number of regulatory data returns as part of its Transforming Data Collection programme, aimed at making data reporting more proportionate and reducing unnecessary burdens. From 28 August 2025, around 36,000 firms will no longer need to submit a nil return for REP008  (Notification of Disciplinary Action relating to conduct rules staff – other than senior manager functions). The FCA also announced plans to decommission REP022 (General Insurance Pricing Attestation) and retail investment adviser complaints reporting and to reduce the frequency of reporting for REP009 (Consumer Buy-To-Let Mortgage Aggregated Data). These changes follow the removal of three other returns earlier in 2025.

Financial Services weekly highlights—28 August 2025

This week's edition of Financial Services weekly highlights includes: FCA’s multi-firm review of algorithmic trading controls under MiFID RTS 6; WFE’s warning to SEC, IOSCO and ESMA of investor risks from mimicked tokenised equities; BoE’s RTGS and CHAPS annual report 2024/25; plus dates for your diary over the coming week.

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