On 25 July 2024, the Prudential Regulation Authority (PRA) published Policy Statement PS12/24 on its approach to rule permissions and waivers. In PS12/24, the PRA sets out its final statement of policy (SoP) on the topic, along with feedback to Consultation Paper CP3/24. The PRA explained in CP3/24, published on 31 January 2024, that its aim in setting out its approach in a SoP is to help improve clarity and transparency over the criteria the PRA will use to assess applications under s138BA of the Financial Services and Markets Act 2000. This has an overarching objective of lowering costs and increasing the speed of s138BA rule permissions. Following the responses it received to CP3/24, the PRA has made two amendments to the draft SoP, to clarify: What the PRA generally expects to include in a subject specific SoP. That there may be exceptional circumstances where it may be appropriate to grant a s138BA permission for which it has not set out a criteria despite the s138A statutory tests not being met. The SoP has effect from the date of publication of PS12/24.

On 24 July 2024, the Payment Systems Regulator (PSR) published Policy Statement PS24/4 setting out its finalised new guidance on how it will make decisions on whether to grant exemptions or extensions to a specific direction or requirement.  Background The PSR uses specific directions and requirements to require firms to make changes that improve payments for people and businesses in the UK. It consulted in May 2024 on proposed guidance setting out factors that it would use to decide whether to grant an extension or exemption to parties affected by one of the specific directions or specific requirements.  The finalised guidance Following the consultation, the PSR has made some limited revisions to its draft rules to provide additional clarity on its approach. The final guidance is set out in PS24/4, along with a summary of the consultation responses, the PSR’s response to the issues raised by respondents, and the revisions made to the guidance. Commenting on the guidance, PSR Managing Director David Geale said: “We’ve confirmed our position that extensions and exemptions are likely only to be granted in exceptional circumstances. It’s important that our rules are not weakened by too many firms failing to take the right steps to comply within the set timeframe. However, we recognise that on occasion there may be good reasons to allow flexibility for individual firms. Each request will be looked at on a case-by-case basis, with a high degree of scrutiny.”

On 24 July 2024, the Financial Conduct Authority (FCA) published Policy Statement PS24/8, which sets out the final rules for its access to cash regime. Background The FCA consulted in December 2023 on establishing an access to cash regulatory regime, which would require banks and building societies designated by the Government to assess and fill gaps, or potential gaps, in access to cash. These proposals followed the granting to the FCA of a new remit and powers under the Financial Services and Markets Act 2023, to ‘seek to ensure reasonable provision’ of cash deposit and withdrawal services for personal and business current accounts across the UK. The final rules Under the new rules, banks and building societies will be required to: Assess cash access and understand if additional services are needed, when changes are being made to local services. Respond to local residents, community organisations and representative groups, who will be able to request an assessment of whether there are gaps in local cash access. Deliver reasonable additional cash services, where significant gaps are found. Keep facilities, including bank branches and ATMs, open until any additional cash services identified are available. The final rules reflect some changes from the draft rules consulted on, including a longer period for banks and building societies to carry out cash access assessments (to give local communities more time to make their case) and an ability for firms to review the provision of identified cash services after 2 years. Fourteen banks and building societies have been designated by the Government to deliver this new cash access system. Next steps The rules will enter into force on 18 September 2024. The FCA flags that firms designated by the Government, and therefore subject to the new access to cash regime, must identify gaps in cash provision, assess a wide range of local needs, and provide additional cash access services promptly if assessments find a significant gap in provision. For firms that have already announced closures of cash access services taking place before the rules come into force, these will not be subject to the new regime. However, the FCA emphasises that firms should not rush through closures before 18 September, as they should (under Finalised Guidance 22/6) communicate closures to customers at least 12 weeks before they take effect.