EPC Blog: PSD2: Almost final – a state of play

EPC Blog: PSD2: Almost final – a state of play

18 June 15

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The European Commission (the Commission), which has the right of initiative to propose laws, published its proposal for the revised on 24 July 2013. The draft legislation was then subject to review and adoption, respectively, by the EU co-legislators; the European Parliament and the Council of the EU.

The members of the European Parliament approved the final report of its Economic and Monetary Affairs Committee (ECON) on at its plenary session on 3 April 2014. On 5 December 2014, the Council of the EU agreed its final compromise text on . The next step was the so-called ‘trialogue’ process during which the Commission, the European Parliament and the Council of the EU agreed the final version of the forthcoming on 5 May 2015. To finalise the text, a few ‘technical’ trialogue meetings were planned. The is expected to be approved by the Parliament in September 2015. This would indicate that will be published between October and December 2015 in the Official Journal of the European Union. The Member States will then have to implement into their national legislation by a set date between October and December 2017.

The European Payments Council’s () opinion focuses on two key aspects of the agreed proposal, namely the unconditional refund right for direct debits and the authentication of the bank customer, and provides an update on the state of play of the legislative process.

The welcomes the amendments proposed to Article 67 and Article 87. Under Article 67, consumers making Direct Debit (SDD) payments can continue to rely on the ‘no-questions-asked’ refund right for direct debits as stipulated under the Scheme. At the same time Article 67 paragraph 3 leaves open the option for a waiver of the refund right by the debtor, which, in ’s view, would require a separate scheme if supported by the Euro Retail Payments Board (). In addition, subject to the draft regulatory technical standards to be developed by the European Banking Authority (), the changes to Article 87 should ensure a strong customer authentication procedure which, in turn, ensures confidentiality and security for consumers as well as technological neutrality. The looks forward to the ’s consultative process in this area and to the opportunity it will provide to contribute to achieving those objectives.



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