On February 2, 2017, the UK Government launched a consultation on implementation of the revised EU Payment Services Directive in the UK. The new Payment Services Directive (known as PSD2) aims to make payments between Member States as secure, easy and efficient as those made within a Member State. PSD2 focuses on electronic payments and payment services within the EU, regulating new types of payment services and payment services providers, which are currently unregulated, and stimulating competition in the electronic payments market. The Government's consultation comprises a consultation on issues to be considered in implementing PSD2 in the UK and proposed draft regulations. The draft regulations will revoke the existing Payment Services Regulations, although large parts of the new draft regulations will replicate parts of the existing PSRs. Consequential changes will also be required to other UK legislation, including the Electronic Money Regulations 2011. The consultation is relevant to banks, building societies, e-money institutions, payment institutions and payment users.
The Government is seeking feedback on its overall approach to implementation which is to adopt a copy out approach while continuing the use of derogations exercised in the implementation of the existing PSD. The Government is also seeking feedback on particular topics such as the scope of PSD2, authorization, capital and prudential requirements for payment institutions, transparency and the requirements on the provision of information to payment service users, conduct of business rules for payment service providers and implementation of the new rules on rights of payers to use third-party firms providing account information services and payment initiation services.
PSD2 will appeal the current PSD with effect from January 13, 2018. Member States must adopt and publish implementing laws by January 13, 2018 and apply those laws from that date, subject to certain exceptions and transitional measures. The UK Government is aiming to finalize the implementing legislation for consideration by Parliament in early 2017. Responses the consultation are due by March 16, 2017.
The consultation paper is available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/589023/implementation_of_revised_EU_directive.pdf ; and the proposed draft legislation is available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/588961/Annex_B.pdf.
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