Faster Payments publication puts scheme at forefront of international stability standards

12th December 2013

  • Publication of CPSS-IOSCO statement and re-launched website increase transparency and prime service for growth in membership
  • Governance strengthened by first Independent Director appointments

Faster Payments, the UK’s immediate internet and phone banking payment scheme, has reaffirmed its commitment to stability and transparency following its first ever publication of a self-assessment disclosure to meet new CPSS-IOSCO international governance standards.

The new standards are designed to ensure that the infrastructure supporting global financial markets is sufficiently robust to withstand financial shocks. The self-assessment, published on the redesigned fasterpayments.org.uk website, gives a public account of the policies, controls and procedures used by Faster Payments to manage settlement, credit, liquidity and the other key risks the service faces.

Faster Payments is recognised by the Bank of England as a systemically important Financial Market Infrastructure (FMI) – in the five and a half years since launch, the service has processed more than 3 billion payments worth in excess of £1.8 trillion, the equivalent of almost £75,000 for every household in the country.

The publication of the self-assessment disclosure follows the appointment of Faster Payments’ first Independent Chair, Nick Caplan, and Independent Director, Duncan Ingram. The Independent appointments strengthen Faster Payments management capability in terms of real-time high availability IT infrastructure and risk management.

Craig Tillotson, Managing Director of Faster Payments, commented:

“It is a particularly exciting time for Faster Payments at present, with rapid growth in the service continuing as more customers become familiar with the world-leading payment services we offer. I am delighted to welcome Nick Caplan and Duncan Ingram to the Board – their skills and experience will be of great value to the company. Taken as a whole, the changes we’re making mean Faster Payments can continue to be relied upon to play a critical role for the UK economy.”

Other changes to the way the scheme is run have seen the creation of a team within the company that focusses on improving access to Faster Payments for prospective new members. Discussions are ongoing with an increasing number of institutions to join the 10 existing members that directly fund and develop the Faster Payments Service.

About Nick Caplan, Independent Chair 
Nick took up his role as Chair of Faster Payments Scheme Limited on 14 June 2013.  He is also Chairman of Managed Networks, an IT service provider to the small business market; a Director of Oxand, a specialist engineering risk consultancy; and a Director of Abacus, a media software company.  Nick also runs a Business Accelerator that drives the growth of existing and emerging businesses working alongside private equity, VCs and Angel investors.  Nick is a graduate of the University of London.

Prior to this, Nick spent over five years at Logica where he was Group Chief Marketing Officer and a member of the Executive Board. Whilst at Logica Nick was responsible, inter alia, for Logica’s payments business.  His previous experience includes running a corporate turnaround venture where his roles included interim Chief Executive of two software houses and before this as head of CSC's European financial services consultancy, systems integration and outsourcing business.

About Duncan Ingram, Independent Director
Duncan Ingram was appointed to the Faster Payments Board on 25 September 2013. He is also currently Chair of the Children’s Trust, a Trustee of YMCA England, a Director of the Hyde Group and sits on Ofcom's Advisory Committee for England. Duncan is a graduate of Oxford University.
 
Duncan spent a significant part of his career at BT in a variety of roles including UK Marketing Director, Managing Director Broadband, Managing Director Customer Service and Group Director responsible for London and London 2012. He has been a Non-Executive Director of the Tullis Russell Group, Think London, London First, The British Quality Foundation as well as a number of BT subsidiaries and a Member of the British Olympic Association’s Advisory Board.

ENDS

For further information contact the press office on 020 3217 8441/ 8251/ 8368/ 8340 or press@paymentscouncil.org.uk. Pictures of Craig Tillotson, Nick Caplan and Duncan Ingram are available on request. Faster Payments shares its press office with the Payments Council.

Notes to editors

The publication is made in line with the principles for Financial Market Infrastructure of the Committee on Payment and Settlement Systems and Technical Committee of the International Organization of Securities Commissions (CPSS IOSCO): Disclosure framework for financial market infrastructures.

Faster Payments’ CPSS IOSCO disclosure is available to view at http://www.fasterpayments.org.uk/governance/stakeholders-regulatory-regime

About Faster Payments
The Faster Payments Scheme enables personal and business customers to move phone and internet payments within a few hours at any time - almost at the touch of a button. Immediate and forward dated payments are processed 24 hours a day, seven days a week. Standing orders are set up to be processed on bank working days. All Faster Payments must be credited to the receiving customer’s account within two hours of being sent. Faster Payments was the first new payments service to be introduced in the UK for more than 20 years, enabling phone, internet and standing order payments to move quickly and securely. The service and infrastructure was launched on 27th May 2008.

The Faster Payments Scheme has 10 members: Barclays, Citi, Co-operative Bank, Clydesdale and Yorkshire Banks (National Australia Group), HSBC, Lloyds Banking Group, Nationwide Building Society, Northern Bank (Danske Bank), Royal Bank of Scotland Group (including NatWest and Ulster Bank) and Santander UK. Faster Payments Scheme membership is open to credit institutions with a settlement account at the Bank of England who can connect their payment system to the central infrastructure 24 hours a day, 7 days a week. Other financial institutions are able to join, either as direct members, or to access the system through agency arrangements with a member.