Light at the End of the Tunnel

Light at the End of the Tunnel

Banking industry expert group publishes guidance document on PSD implementation

30 September 09

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The objectives of the PSD Expert Group

The PSD comprises legal and payments experts drawn from across the member organisations of the European Credit Sector Associations together with representatives of the and the international card schemes.

The PSD focuses on the following key objectives:

  • To develop and maintain an overview of implementation issues in different / Member States.
  • To prepare position papers for submission to the European Commission (EC) and the Member State Transposition Working Group (TWG) and follow up as appropriate on a European or individual Member State basis.
  • To monitor the transposition process across all Member States - including the application of Member State derogations and other national variations in transposition.
  • To develop (where appropriate) industry implementation guidance and market practice proposals to complement the production of PSD implementation guidance at the level of individual national banking communities and the for the Schemes.

In this context, the Group has been working actively over the last 18 months with the goal of promoting a harmonised PSD implementation approach across Member States and the adoption of balanced and pragmatic interpretations on key points of ambiguity in the text in close dialogue with the EC and the TWG. In addition, there has been a regular and informative sharing of positions and developments at individual Member State level - facilitated by the broad country representation on the Expert Group.

The PSD Guidance Document

As mentioned above, one of the original objectives of the PSD was to record and formulate practical implementation guidance for banks based on the outcome of the 's dialogue with the Commission and national regulators, reflecting the current status of the PSD across Europe and, based on the identification of best practice approaches for the European banking industry, to cope with this major regulatory requirement.

Against this background, the Group has prepared a high-level guidance document for banks. This document, which reflects the outcome of the Group's work over the last 18 months including its constructive dialogue with the Commission Services in DG Internal Market, provides very practical input with regard to the implications of certain provisions. The PSD Guidance covers the following areas:

I.          General Introduction

  • Overview of the structure context and scope of the PSD
  • Transposition situation (regular updates will be issued)
  • Update on non-standard approach being adopted in some MS to 'One-leg' transactions

II.         Scope and Definitions

  • / and some national exceptions - including use of derogations and approach to one-leg transactions
  • Key definitions

III.       Information Requirements

  • Best practices in relation to key information requirements

IV.       Payment Transaction Processing

  • Best practices in relation to key operational requirements

At the end of each chapter a number of FAQs raised by bankers across Europe are being answered. As this is a living document, regular reissuance of the guidance is planned in line with additional information available at Member State level.

A link to the PSD Guidance Document is provided below.

Update on PSD transposition progress by country

The European Commission regularly updates at a high level the transposition status by country (see pdf below). In addition to the information contained in the pdf below, the following information has been provided by the communities represented in the Programme Management Forum:

  • Countries that adopted national PSD legislation: United Kingdom, Denmark, Bulgaria, Czech Republic, France, Norway, Austria and Slovenia.
  • Countries where the PSD legal texts are in parliamentary decision process: Germany, Spain, Slovakia, Romania, Portugal, Netherlands and Hungary.
  • Countries that are still working on an existing draft of the PSD transposition law: Italy, Belgium, Ireland, Greece, Iceland, Malta, Poland, Luxemburg and Finland.

As of July 2009, Sweden is the only country which has confirmed that it will miss the transposition deadline, while for all other countries it is expected that the transposition law will enter into force on the 1st of November 2009.

The Scheme Rulebooks reflect the requirements of the PSD and are fully compliant with the Directive. Non / countries such as Switzerland or Monaco joined after having provided a legal opinion which confirmed that they have substantially equivalent local rules with respect to Titles III and IV of the PSD and to the Payer Information Regulation (1781/2006/EC).

Ruth Wandhöfer chairs the PSD Expert Group and is a member of the Plenary.

PSD Guidance Document delivered by the banking industry’s expert group.

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