On November 19, 2018, the Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 were made and will enter into force on the day the U.K. exits the EU. The Regulations are relevant for all Payment Service Providers—banks, payment institutions, e-money institutions and registered Account Information Service Providers.

The Regulations make amendments to the Payments in Euro (Credit Transfers and Direct Debits) Regulations 2012 and to the version of the Single Euro Payments Area Regulation (Regulation (EU) No 260/2012 establishing technical and business requirements for credit transfers and direct debits in Euro) that will be retained on Brexit. The purpose of the amendments is to ensure the SEPA Regulation can continue to operate effectively after Brexit and to maximize the likelihood of the U.K. remaining a member of SEPA as a third country. The Regulations provide HM Treasury with the power to revoke the retained SEPA Regulation, along with any other relevant associated legislation, in the event that the U.K. is no longer able to remain a member of the SEPA.

The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (SI 2018/1199) are available at: http://www.legislation.gov.uk/uksi/2018/1199/pdfs/uksi_20181199_en.pdf  and the explanatory  memorandum is available at: http://www.legislation.gov.uk/uksi/2018/1199/pdfs/uksiem_20181199_en.pdf.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.