Skip to content

News

UK Finance develops model clauses for variable recurring payments

FCA's Findings on Bank Account Access and Closures
Facebook
Twitter
LinkedIn

UK Finance has teamed up with law firm Addleshaw Goddard to put together a set of model clauses that bank account providers and PSPs can use in variable recurring payments (VRPs).

VRPs are a form of payments instruction that allows customers to authorise registered payment service providers to initiate payments from their bank account on an ongoing basis, where the timing or the amount might vary, within agreed limits.

Financial regulators in the UK have agreed plans for a Phase 1 roll out of non-sweeping VRPs by the third quarter of 2024.

To support the development of VRPs for commercial applications, UK Finance and Addleshaw Goddard have put together a set of model contractual terms that can be used in arrangements between account providers and PSPs.

The model clauses, they say, will help with driving competition, increasing efficiencies by removing some of the transaction cost of bilateral negotiations between payment providers, and ensuring banking customers have a consistent experience.

Use of the open source model clauses is “entirely voluntary”, says UK Finance, but the organisation is encouraging the industry to use them where possible.

Jana Mackintosh, MD, payments, innovation and resilience. UK Finance, says: “The thought leadership and model clauses we have developed with different types of firms including banks, fintech and schemes are a significant milestone in the progression of Variable Recurring Payments and a stepping-stone to a wider Multilateral Agreement.”

Source: Finextra

Facebook
Twitter
LinkedIn

Related Posts

FCA CEO letter

The FCA’s latest ‘Dear CEO’ letter – Key priorities for payments firms

The Financial Conduct Authority (FCA) has issued a new ‘Dear CEO’ letter (dated 3rd February 2025) outlining its priorities for firms within the payments sector. This follows the previous letter
Read More >
FCA

The FCA’s new portal for simplified access and reporting

The Financial Conduct Authority (FCA) is set to launch My FCA in spring 2025, a new online portal designed to streamline regulatory reporting and access for firms. This initiative is
Read More >