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UK Finance
The collective voice for the banking and finance industry, representing around 300 firms.
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?The Terminal Markets Order (‘TMO’) provides a valuable legislative simplification, which aids the smooth operation of the commodities markets and provides an important anti-VAT fraud measure.
Confirmation that the TMO is being retained is positive news, and the government’s consultation offers an important opportunity to explore the modernisation of the existing measures to accommodate the increasing globalisation and digitalisation of commodities trading.
UK Finance has been pleased to respond to the Consultation on Legislative Reform of the TMO. ?We support the aims of modernising the legislation to improve clarity and certainty. We consider, however, that this must be done in a way that is sensitive to the broader regulatory and competitive environment and to ensure that unintended consequences do not arise. The best outcome will be achieved through HM Treasury (HMT), HMRC and representatives from industry working together to create a shared understanding prior to defining any proposed legislative principles.
?Read the full blog post by Gabby Donald Director, Financial Services VAT, KPMG, Secondee, VAT Policy at UK Finance.
Following the UK’s withdrawal from the EU, it has nonetheless maintained access to the Single European Payments Area (SEPA). This system, created by the EU, makes it possible for people doing business within the SEPA area to make payments across borders with the same cost and convenience of domestic payments.
It is for reason that maintaining access to SEPA is critical to individuals and businesses both in the UK and the EU. As both the UK and the EU are reviewing their legal frameworks for payment services, changes need to be monitored to mitigate the risk of SEPA access being disrupted.
This blog post explores the impact of changes to instant payments and PSD3/PSR1 regarding SEPA membership equivalence.
?*Payment Services Directive (PSD) and Payments Services Regulation (PSR)
?Read the?full blog post?by Sophie Willaert, Manager, International payments and Innovation, UK Finance
On 25 September the Department for Science, Innovation and Technology (DSIT), published an “introduction” to its AI Safety Summit.?
Limited to around 100 participants, the Summit will take place on 1 and 2 November 2023 at Bletchley Park in Buckinghamshire. The Summit will focus on managing the risks from the most recent advances in artificial intelligence.
The Summit will focus on specific types of AI systems: 1) Frontier AI and 2) ‘Narrow AI’ with “dangerous capabilities”. These two types of AI system are the Summit focus, as they are seen as posing the highest risks in terms of ‘misuse risk’ and have the potential for unpredictability / loss of control. Other types of AI system are acknowledged to bring risks, such as misinformation, bias, or workforce impacts. But the intention is for these risks to be left to existing domestic and international policy processes, including the UK’s AI Whitepaper process. (See the UK Finance response here).
This blog post explores what the summit means to the financial services sector.
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Read the?full blog post?by Walter McCahon, Principle, Privacy and Data Ethics, UK Finance
The Payment Systems Regulator (PSR) has recently announced significant changes which will enforce ?mandatory reimbursement regime for Authorised Push Payment fraud proposed for implementation by?2 April 2024. The proposals present?significant challenges for financial institutions preparing for the far-reaching reform.
An overarching concern with the measures is the complexity of balancing the need to protect consumers from fraud and not causing excessive friction in the processing of payment.
There are several legal requirements that intersect with the new requirements; including Financial Conduct Authority (FCA) regulations and the common law, which also need to be assessed.
There are additionally several aspects of the new scheme that may prove inherently uncertain to implement, such as the gross negligence customer standard of caution that will apply, the extent to which PSPs can “stop the clock” in a “proportionate” manner, and the definition of vulnerable consumers.?
Although changes to the proposals may be unlikely, it remains important that financial institutions engage with the PSR and Pay UK during the critical time as the proposals are finalised as part of the extensive consultation process. ?
Read the?full blog post?by Piers Reynolds, Partner and Laura Feldman, Senior Associate (Barrister), Freshfields.
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The perception of chatbots in a financial services context is mixed. Even the organisations that leverage them adopt a ‘net positive’ mindset, expecting a level of friction and customer frustration.
This reputation is understandable as it took a decade of trial and error before chatbots began to perform. But make no mistake, they?do?perform well. In 2021,?around 90% of companies reported quicker complaint resolution?and 80% mentioned an increase in call volume processing.
This post explores three areas where Generative AI can enhance Conversational AI chatbots, including better comprehension, advanced training support and assisting agents/advisors in real time.
Read the?full blog post?by Danny Baggs, Director of Marketing UK, Unblu.
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