The UK Government is set to introduce new legislation aimed at safeguarding access to cash and requiring banks to reimburse victims of authorised push payment fraud.
The upcoming Financial Services and Markets Bill, revealed during today’s Queen’s Speech at the state opening of parliament, will “ensure the continued availability of withdrawal and deposit facilities across the UK, and that the country’s cash infrastructure is sustainable for the long term.”
Additionally, the Bill will empower the Payment Systems Regulator to mandate banks to reimburse losses from authorised push payment (APP) scams, which amount to hundreds of millions of pounds annually.
Economic Secretary to the Treasury, John Glen, stated: “We know that access to cash is still vital for many people, especially those in vulnerable groups. We promised we would protect it, and through this Bill we are delivering on that promise.
“We are also supporting victims of financial scams that can have a devastating impact, by ensuring the regulator can act to make banks reimburse people who have lost money through no fault of their own.”
This Bill builds upon the Financial Services Act 2021, which marked the initial step in amending the UK’s regulatory framework outside of the EU. Glen indicated that more details on the proposed measures will be provided when the Bill is formally introduced.