On 2 February, we finally saw the HM Treasury consultation paper on the implementation of PSD2 and the draft regulations. The paper confirms that the government’s default approach for implementing EU legislation is copy-out; however, to reduce the cost for businesses and consumers, the government proposes to build on the existing PSRs, including the continued use of derogations exercised in the implementation of the PSD, in order to ensure continuity and consistency with the implementation of the PSD in the UK and that the payment services regime remains, as far as is possible, tailored for the UK payments market. The draft regulations revoke the existing PSRs and replace them with a new set of Payment Services Regulations.
The government considers that this is likely to make the UK legislation easier to use. Large parts of the new draft regulations reproduce the equivalent parts of the PSRs. The draft also indicates, against individual regulations, the related regulations in the existing PSRs and relevant articles in the PSDII. Comments are requested by 16 March 2017.