Approval of revised Charter
The European Payments Council ( ) approved its revised Charter which will be published once it takes effect in the first quarter of 2015 subject to procedures to be observed under Belgian law. The revised Charter reflects the new governance model of the .
As previously reported, with the main phase of the migration to harmonised Single Euro Payments Area ( ) payment schemes in the euro area complete1, the resolved in October 2014 to adapt its current structure to further enhance governance and stakeholder involvement. The primary objective of this process is to ensure that the continues to be best equipped to perform its main task, i.e. to manage the Credit Transfer ( ) and Direct Debit ( ) Schemes, in an efficient and transparent manner. With this objective in mind, the will create several new bodies responsible for managing the administration and evolution of the and Schemes. The carries out the scheme management function subject to legal and regulatory conditions defined by the European Union ( ) authorities.
The remains committed to contributing to safe, reliable, efficient, convenient, economically balanced and sustainable payments, which meet the needs of payment service users and support the goals of competitiveness and innovation in an integrated European economy. Considering that the authorities driving the process have clarified that migration to harmonised payment schemes does not conclude this integration project, the adjusted structure will also facilitate developing positions on behalf of members, representing payment service providers ( ), vis-à-vis the institutions, public authorities, international organisations, and the general public on European payment issues as well as on policies, legislation and regulations impacting payments.
The new governance model will become operational in the first quarter of 2015 once the revised Charter takes effect and the new Scheme Management Internal Rules (SMIRs) come into force. (The principles governing the administration and evolution of the and Schemes are set out in the SMIRs, which are included as an Annex to the , Core and Business to Business (B2B) Rulebooks. The SMIRs are binding on both the and the scheme participants, i.e. that have formally adhered to the and Schemes. On 31 October 2014, the launched a 90-day consultation among scheme participants on the draft revised SMIRs amended in line with the new governance model.)
For detailed information on the new governance model, refer to the article, entitled ‘European Payments Council 2.0: with Migration (Euro Area) Complete, the Adapts its Structure to Further Enhance Governance and Stakeholder Involvement’ published with the October 2014 edition of the Newsletter (see ‘related articles in previous issues’ below).
Approval of the Core Rulebook version 9.0 and B2B Rulebook version 7.0 to take effect in November 2016
The evolution of the and Schemes, as set out in the and Rulebooks, reflects changes in market needs and updates of technical standards developed by international standards bodies, such as the International Organization for Standardization (ISO).
Following approval in December 2014, on 26 January 2015 the published the Core Rulebook version 9.0 and the B2B Rulebook version 7.0 (see ‘related links’ below). The Core Rulebook version 9.0, the B2B Rulebook version 7.0 and associated implementation guidelines will take effect on 20 November 2016.
The has traditionally published updated versions of the rulebooks and associated implementation guidelines once annually in November to take effect in November of the next year. As previously reported in October 2014, exceptionally, the resolved to publish the Rulebook versions to take effect in November 2016 in January 2015. This decision was made to give participating in the payment schemes an extended lead-time to implement principal changes incorporated in the Core Rulebook version 9.0 and B2B Rulebook version 7.0 prior to them taking effect.
The Core Rulebook version 9.0 introduces a shorter standard time cycle. Both the Core Rulebook version 9.0 and B2B Rulebook version 7.0 have been amended to simplify the use of sequence types. The public consultation on possible modifications to be incorporated into next generations rulebooks carried out by the in 2014 identified broad support to amend the Core Rulebook as regards the standard time cycle and both the Core and B2B Rulebooks as regards the use of sequence types. A majority of scheme participants advocated implementing related changes by November 2016 to allow for sufficient time to update processes and operations.
For detailed information, refer to the article, entitled ‘In January 2015 the Published the Core Rulebook Version 9.0 and Business to Business (B2B) Rulebook Version 7.0 to Take Effect in November 2016’ in this edition of the Newsletter (see ‘related articles in this issue’ below).
Approval of the second and updated edition of the document ‘ Overview on Mobile Payments Initiatives’
Following publication of the first edition in June 2014, the approved the second and updated edition of the document ‘ Overview on Mobile Payments Initiatives’, which was subsequently published on the Website (see ‘related links’ below).
This document describes various existing and new initiatives on mobile payments and aims to create awareness on the latest developments, based on the following sources:
- Contributions by members on community initiatives.
- Initiatives reported in various newsfeeds.
It contains sections highlighting underlying payment instruments, mobile wallet initiatives, and developments on mobile points of sale (mPOS), all of which have newly appeared on the market over the past year. The first edition of the report included initiatives launched between November 2013 and May 2014 within and outside. The second edition features, in addition, initiatives launched between June and October 2014.
The collection of the initiatives is done on a best-effort basis and is not exhaustive. The inclusion of any initiative into the document does not imply that the in any form endorses, supports, or recommends such initiative.
Approval of version 4.0 of the document ‘Guidelines on Algorithms Usage and Key Management’
The approved version 4.0 of the document ‘Guidelines on Algorithms Usage and Key Management’. This document was first produced by the European Committee for Banking Standards (ECBS) as technical report (TR) 406, with its latest version published in September 2005. Following the cessation of activities by ECBS, ownership of this document passed to the . The has published regular updates of the document in view of new developments on this topic during past years.
The purpose of this technical report is to provide guidance to the European banking industry in the field of cryptographic algorithms and related key management issues. Its targeted audience is: security officers, risk managers, system engineers and systems designers. Although its content does not assume expertise in cryptology, it contains some sections which require a basic mathematical background.
Version 4.0 of this document was updated to incorporate newsworthy developments in cryptography in 2013 and 2014 such as:
- The publication by the National Institute of Standards and Technology (NIST) of a draft standard for SHA-3.
- The withdrawal of the Dual Elliptic Curve Deterministic Random Bit Generator (EC-DRBG) mechanism from ISO and NIST random number generation standards.
The updated version of the document ‘Guidelines on Algorithms Usage and Key Management’ is available on the Website (see ‘related links’ below).
Javier Santamaría is the Chair of the .
Related article in this issue:
In January 2015 the EPC Published the SDD Core Rulebook Version 9.0 and SDD Business to Business (B2B) Rulebook Version 7.0 to Take Effect in November 2016. The SDD Core Rulebook version 9.0 includes a shorter standard time cycle; both the SDD Core Rulebook version 9.0 and SDD B2B Rulebook version 7.0 feature simplified use of sequence types
Related articles in previous issues:
European Payments Council 2.0: with SEPA Migration (Euro Area) Complete, the EPC Adapts its Structure to Further Enhance Governance and Stakeholder Involvement. The new EPC governance model will become operational in the first quarter of 2015 ( Newsletter, Issue 24, October 2014)
SCT and SDD Rulebooks: Modifications to the Rulebooks to Take Effect in November 2015 and November 2016, Respectively. Based on feedback received during the 2014 public consultation on changes to the rulebooks, the EPC resolved to update the release schedule applicable to the next rulebooks generations ( Newsletter, Issue 24, October 2014)
1 For more information on the migration, refer to the Blog, entitled ‘1 August 2014 Does Not Mark the End of the Migration Process. Get Ready for 2016. Act Now.’ http://www.europeanpaymentscouncil.eu/index.cfm/blog/1-august-2014-does-not-mark-the-end-of-the-migration-process-get-ready-for-sepa-2016-act-now/
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