An updated, voluntary Code of Conduct for Indirect Access Providers (IAPs) has been published following a consultation with stakeholders.

The code is aimed at improving the experience of Indirect Payment Service Providers (IPSPs) by clearly setting out the responsibilities of IAPs that subscribe to it.

The New Payment System Operator (NPSO), in its role as code administrator, along with IAPs and the Payment Systems Regulator (PSR), has reviewed the code in light of the recently introduced Payment Services Directive 2 (PSD2) regulation.

Originally launched in 2015, the enhanced code reflects on the PSD2 powers relating to indirect access to designated payment systems.

ClearBank recently became the fifth subscriber to the code, alongside Barclays, HSBC, Lloyds and RBS.

The NPSO will continue to monitor the code’s effectiveness through regular compliance monitoring and engagement with stakeholders and the PSR. Tim Yudin, director of design and delivery at the NPSO, said the code is important in supporting the increasing number of payment service providers that rely on indirect access to the UK’s main payment systems.

“We are confident that code subscribers will continue to deliver services to the standards of best practice stated in the code and the NPSO will continue to monitor its effectiveness,” he added.

Incorporated in July 2017, the NPSO was created to consolidate Bacs Payment Schemes (Bacs), Faster Payments Scheme (FPSL), and the Image Clearing System (ICS), which will replace the paper processing system for cheques currently managed by the Cheque & Credit Clearing Company (C&CCC).

These retail payment systems, which process over £6.4 trillion pounds of payments every year between them, will be joined by UK Payments Administration, which provides the people, facilities and expertise to support the systems behind the payment system operators.

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