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UK FCA allows more time for new EU customer authentication rules' implementation

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UK FCA allows more time for new EU customer authentication rules' implementation

The U.K. Financial Conduct Authority agreed on an 18-month plan allowing the country's ecommerce and payments industry more time to implement new EU rules on customer authentication.

The rules — strong customer authentication — come into effect Sept. 14 and require multifactor authentication at the time of making electronic payments.

"While these measures will reduce fraud, we want to make sure that they won't cause material disruption to consumers themselves; so we have agreed a phased plan for their timely introduction," said Jonathan Davidson, the FCA's executive director for supervision of retail and authorizations.

The regulator will not take action against companies that do not meet the requirements by Sept. 14 in certain areas, if there is evidence the company has taken necessary steps to comply.

It will also continue monitoring whether banks are meeting its expectation that they must consider the impact of these rules on different consumer groups, and subsequently offer alternative means of authentication if required.

The FCA's move is in line with the recent opinion of the European Banking Authority on the implementation of the rules.