The BoE is seeking feedback on the Introductory Phase of the ISO 20022 migration, that will create a common language for payments data globally.
By Christian F. McDermott, Grace E. Erskine, and Amy Smyth
In 2018, the Bank of England (BoE) consulted on the adoption of ISO 20022 — a global standard for payments messaging — for the payments industry in the UK. In response to consultation feedback and market developments such as SWIFT and the European Central Bank’s requirement that ISO 20022 messaging begin in November 2021, the BoE is now seeking further feedback from interested parties. The BoE’s latest consultation focuses on the Introductory Phase of the CHAPS ISO 20022 migration, specifically the early adoption of “enhanced” data. Feedback must be submitted by 16 October 2019. The BoE has set out two options for the implementation of the Introductory Phase:
- Current approach (as outlined in the Consultation Response): the BoE could introduce a separate, optional Closed User Group (CUG) for those CHAPS Direct Participants (DPs) that want to send enhanced data to each other. Extra data would need to be removed from these messages to DPs outside the CUG (so that messages would be like-for-like). Sending enhanced data would be optional.
- Alternative approach: the BoE could allow DPs to send enhanced data to each other without a CUG. Under this approach, all DPs would need to be ready to receive and process the enhanced data in a manner that suits their systems. This approach reflects the BoE’s view that, given recent market developments as mentioned above, a greater number of DPs will be ready to support enhanced data during the Introductory Phase than previously predicted.
Regardless of the option selected, the BoE is not proposing to amend the implementation timetable. If the BoE ultimately adopts the alternative approach, the current 18-month implementation period for receiving enhanced data will remain in place (i.e., DPs will need to be ready to receive enhanced data no later than 18 months after publication of the enhanced schema). DPs will have 24 months in which to implement capabilities to send enhanced data. After the feedback period is closed, the BoE’s final decision will be published at the end of 2019.
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