Issue 7 - July 2010
Legal and Regulatory Issues
PSD: taking ActionCommission determined to ensure transposition and PSD Expert Group offers further guidance
19.07.10 BY Ruth Wandhöfer
While the majority of EU Member States has fully implemented the Payment Services Directive (PSD), six Member States - Cyprus, Greece, Spain, Poland, Romania and Sweden - still have to implement some or all of its provisions. In June 2010, these countries received reasoned opinions from the European Commission requesting them to fully implement the PSD in their national laws. Ruth Wandhöfer gives an update on the PSD implementation status and introduces the addendum to the PSD Guidance Document first released by the banking industry's PSD Expert Group in August 2009. The addendum primarily seeks to clarify several key PSD concepts currently subject to inconsistent market practices. A link to this document is included at the end of this article.***
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Commission acts to ensure that EU Member States fully implement PSD
In June 2010, the European Commission has taken action against six EU Member States to ensure full transposition of the PSD into their respective national law. Cyprus, Greece, Spain, Poland, Romania and Sweden received reasoned opinions requesting them to fully implement the PSD in their national laws (a link to the related press release of the Commission is included below). If a Member State does not reply satisfactorily to its reasoned opinion within two months, the Commission may refer the matter to the Court of Justice. In Greece, Sweden and Poland the entire PSD still has to be implemented. In three Member States, additional or secondary legislation is still required in order to implement a number of provisions, mainly related to prudential requirements for payment institutions (Romania), information requirements (Spain) or anti-money laundering requirements (Cyprus).
Sweden now anticipates completing the transposition process by 1 August 2010. Greece, Poland and Iceland - the latter being the remaining Member of the European Economic Area (EEA) where transposition remains outstanding - are expected to follow suit by the latest in the fourth quarter of 2010. Once all EEA countries have finally fully implemented the Directive, it will be task of the Commission Services' to identify any instances of non-conforming interpretation and / or transposition by individual Member States to ensure that the expected legal harmonisation based on the PSD will actually materialise.
PSD Expert Group publishes addendum to the PSD Guidance Document
As previously reported, various inconsistencies have been observed in the live PSD environment including but not limited to diverging practices with regard to charging options; unexpected deductions and / or lifting fees applied to credit transfers and differing charging models exhibited by intermediary institutions. For details on these inconsistencies refer to the article "PSD in Practice: a Follow-Up" (a link is included below).
To help remediating emerging issues under the PSD regime as described above, the banking industry's PSD Expert Group recently published a supplement (the addendum) to its original PSD Guidance Document first issued in August 2009 (see links below).
The addendum to the Guidance Document has the following objectives:
- Reinforce core PSD concepts and scope where there is evidence pointing to a lack of common understanding.
- Reiterate and, where necessary, elaborate on existing market best practice with regard to various PSD-related topics.
- Collate an overview of derogation usage and examples of variations in transposition at the level of individual Member States as a starting point for alignment in the mid-term.
The addendum, therefore, offers valuable and practical support to payment service providers. In addition, the PSD Expert Group expects that the document will serve as basis for further dialogue aimed at efficient and consistent PSD implementation across the EEA.
Ruth Wandhöfer chairs the PSD Expert Group and is a member of the EPC Plenary. She also chairs the EPC Information Security Support Group (ISSG).
Related article in previous issue:
Other articles in this issue
19.07.10 Update EPC Plenary Meetings - Main decisions taken in June 2010 By Gerard Hartsink 19.07.10 SEPA Scheme Rulebooks: next Release - Public consultation ends in August 2010 By Javier Santamaría 19.07.10 EPC Card Fraud Prevention Forum - Agreement on new measures to fight card fraud By Cédric Sarazin 19.07.10 Standardisation is Key - Focus on security requirements and a European certification framework By Claude Brun 19.07.10 New Business Opportunities with Chip and PIN - How to create added value based on EMV technology By Nick Collin 19.07.10 New and Improved - EPC publishes updated guidelines on the use of audit trails in security systems By Björn Flismark 19.07.10 SEPA in the Context of the Financial Crisis - Retail payments business proves to be resilient By Wiebe Ruttenberg and Monika Hempel 19.07.10 Gaining Momentum - A progress report on e-Invoicing By Charles Bryant 19.07.10 Facing the Facts in July 2010 - The EPC Newsletter tracks the progress of SEPA implementation By Herman Segers 19.07.10 Missed Opportunity - European Commission recommendation on scope and effects of euro cash as legal tender By Leonor Machado 19.07.10 Continued Commitment to high Quality - EU Regulation on authentication of euro coins and handling of euro coins unfit for circulation By Leonor Machado 19.07.10 Why change? Why me? Why now? - The political mismanagement of the SEPA process reinforces resistance to change By Javier Santamaría 19.07.10 On Payments and Light Bulbs - Commission ready to write off SEPA via EU legislation? By Gerard Hartsink 19.07.10 Promoting the SEPA Vision - European Commission and ECB establish the SEPA Council By Gerard Hartsink
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