On 17 January 2022, the Bank of England (BoE) published a new webpage summarising the changes to its ISO 20022 migration approach announced in January 2022, by type of organisation.
Key messages on the webpage include:
- The migration of CHAPS to ISO 20022: Transition State 2 will now take place as a single event in April 2023, rather than two separate stages in June 2022 (migration from MT to MX (ISO) network) and February 2023 (enablement of enhanced data).
- Enhanced data will be immediately supported from April 2023; removing the need for an initial like-for-like implementation stage.
- There will be a new test environment (the Pilot Platform) open to all CHAPS Direct Participants from summer 2022.
- Direct Participants who elected to migrate non-payment messages (e.g. statements, notifications and liquidity-related messages) from MT to ISO 20022 format when CHAPS transitions from the MT to MX (ISO 20022) networks will now see these messages migrate in April 2023.
- Direct Participants who elected to migrate non-payment messages (e.g. statements, notifications and liquidity-related messages) from MT to ISO 20022 format when the new core ledger goes live will now see these messages migrate in spring 2024.
- The framework for managing data truncation will remain in place.
- For the majority of indirect participants (i.e. those who make CHAPS payments via a Direct Participant), the BoE expects that the impact of the revised approach announced in January 2022 will be very limited. However, in all cases the BoE strongly encourage indirect participants to speak with their CHAPS direct participants.
- All Settlement Account and Reserves Account holders will be required to send funds to their account using pacs.009 (MT202 equivalent) CHAPS payments from Transition State 2; pacs.008 (MT103 equivalent) CHAPS payments will be rejected from then onwards. This requirement will now apply from April 2023.
- For Settlement Account or Reserves Account Holders, the migration of account-related messages from MT to ISO (e.g. MT950 statement messages moving to camt.053 messages) will still take place with the introduction of the new RTGS core ledger in Transition State 3 in spring 2024.
- All payment messages supporting the (Deferred) Net Settlement service will switch from MT to ISO 20022 with the introduction of the new RTGS core ledger in Transition State 3 in spring 2024 – this change to the (Deferred) Net Settlement service does not impact settlement participants in those payment systems.
- The change in migration approach will have low impact on end users of CHAPS payments. End users may start to receive enhanced data in the CHAPS payments they receive from April 2023 (previously February 2023).