Welcome to the latest edition of Osborne Clarke’s Payments Law Update.
We hope that you find it interesting. If you would like to discuss any of the content, or have a subject that you would like us to cover in the next edition, please let us know. Our contact details are set out below.
The last few months have seen a raft of new developments in payments regulation: notably, PSD2 entering into force on 12 January 2016. To help prepare for the upcoming regulatory deadlines, we set out a timeline of key dates in 2016 and beyond.
The table available from the link below sets out a timeline of some of the key dates and deadlines. As well as initiatives by UK bodies like the FCA and PSR, it covers the following European measures and their UK implementation:
- Payment Services Directive 2 (“PSD2”);
- Interchange Fees Regulation (“IFR”);
- Payment Accounts Directive (“PAD”);
- SEPA Regulation (“SEPA”);
- Wire Transfer Regulation (“WTR”); and
- Fourth Money Laundering Directive (“MLD4”) and other AML related developments.
European Commission’s Green Paper on retail financial services
The European Commission has now launched its consultation on how to create a stronger and better integrated European market for retail financial services. We explain the scope of the consultation and highlight the objectives of the European Commission in preparing the Green Paper.
PSD2: strong authentication: discussion paper and call for input
On 8 December 2015 the European Banking Authority issued a discussion paper on strong customer authentication and secure communication. Responses to this discussion paper will inform the development of the Regulatory Technical Standards that the EBA is mandated to deliver under PSD2.
All change for interchange: new legislation takes effect
The UK’s Payment Card Interchange Fees Regulation 2015, which implements the EU Interchange Fees Regulation in the UK, came into force on 9 December 2015. As part of that regulatory change, the UK’s Payment Systems Regulator has been undertaking research into the value of the UK’s domestic card-based payment market. We look at the PSR’s information request and how that information is being applied.
EBA consults on separation of payment card schemes and processing entities under IFR
The European Banking Authority launched a consultation on 8 December 2015 on its draft technical standards on the separation of payment card schemes and processing entities under Article 7(6) of the Interchange Fees Regulation.
PSR publishes Access and Governance report
At the end of 2015, the Payment Systems Regulator published a report on direct access to payment systems and governance of the operators of payment systems. We consider the objectives behind the report, operator responses and the specific requirements against which progress has been measured.
China central bank details rules on online payment
On 29 December 2015 China’s central bank released details of new regulations covering online payment services by non-bank institutions. We discuss the ramifications of this initiative by the Chinese authorities to introduce legislation for an industry that was previously subject to little (if any) regulation in China.