The European Union (EU) Regulation No. 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation EC No. 924/2009 (the Single Euro Payments Area () Regulation), was published in the Official Journal of the EU on 30 March 2012. The Regulation stipulates the mandatory deadlines for compliance with its rules for euro credit transfer and direct debit transactions. In the euro area, this will be 1 February 2014, subject to certain limited exemptions mentioned in the Regulation. Consequently, payment service providers and payment service users need to evaluate its impact on their day-to-day operations. On 2 August 2012, the Payments Regulatory Expert Group (PREG), which comprises of industry experts, published its industry implementation guidance document (see ‘related links' below). The guidance document provides clarity to payment service providers and payment service users on a range of practical questions related to the Regulation.
Following the model applied to develop the Payment Services Directive guide, published by this expert group in 2009, the PREG's Regulation guidance document reflects in-depth dialogue with the industry as well as other key stakeholders and institutions. The structure of this most recent guidance document allows a step by step analysis of each article included within the Regulation. Where the Regulation offers limited insight into how certain situations should be dealt with, the guidance document provides an interpretation as to what is being intended with the respective provision.
‘Frequently Asked Questions and Answers' document with regard to the Regulation in preparation: go to the Newsletter article ‘Help is Here: Payments Regulatory Expert Group (PREG) Publishes Guidance Document on Regulation' and post your questions using the comment function included in the Newsletter!
In addition to this guidance document, the PREG is currently developing a ‘Frequently Asked Questions and Answers' (FAQ) document with regard to the Regulation. This will be a living document intended to support all market participants required to achieve compliance with the Regulation. These forthcoming FAQs will be regularly updated. Once finalised, the latest version of the FAQs will be available from the Website. Follow the on Twitter and join the on LinkedIn to receive notification when this FAQ document is published.
Everyone is invited to share their questions with regard to the Regulation. To share your question, please go to the Newsletter article ‘Help is Here: Payments Regulatory Expert Group (PREG) Publishes Guidance Document on Regulation' (see third ‘related link' below), and post your question using the comment function in this newsletter article. Please note that these questions will not be answered in the Newsletter (or on this blog), but will be logged by the PREG to be addressed in the FAQ document now in preparation.
Less than 18 months remaining to achieve compliance with the Regulation in the euro area: the time to act is now
This author reiterates that the Regulation affects not only payment service providers, but also payment service users such as corporates, small and medium sized enterprises, public administrations and government agencies. Article 16 of the Regulation permits individual Member States to extend the deadline for compliance with some of its provisions to 1 February 2016. It is however, strongly recommended that payment service users analyse the impact of the Regulation on their operational models now, even if Member States opt to make use of the derogations permissible under Article 16. To date, the experience of early movers handling major payment volumes indicates that migration to Schemes and technical standards requires careful planning. The relevant actions and resources should be identified as soon as possible.
Ruth Wandhöfer chairs the PREG. She also chairs the Information Security Support Group.
- Regulation (EU) No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009
- Payments Regulatory Expert Group: Practical Guidance for the Implementation of Regulation (EU) No 260/2012 Establishing Technical and Business Requirements for Credit Transfers and Direct Debits in Euro and Amending Regulation (EC) No 924/2009
- EPC Newsletter (follow this link to log your questions on the SEPA Regulation!): ‘Help is Here: Payments Regulatory Expert Group (PREG) Publishes Guidance Document on Regulation'
- EPC Blog Series (Parts I-V): Get Ready for SEPA by February 2014. Early Movers on the Customer Side Share Lessons Learnt
- EPC Newsletter - SEPA Case Studies: Articles Highlighting Successful SEPA Migration Projects of Bank Customers
- EPC Video ‘SEPA for Billers. The Time to Act is Now': This Film is Available with Subtitles in the EU Languages
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