'The Transposition of the Payment Services Directive ('PSD') into UK Domestic Law: Providing a Solution to Overcoming the New Regulatory Challenges that Financial Institutions Will Face'
35 Pages Posted: 3 Nov 2009 Last revised: 6 Nov 2009
Date Written: October 30, 2009
Synopsis: The PSD, which was adopted in November 2007 at Community Level as a Directive, will have far ranging changes on financial services providers on a Euro-domestic and national level. The UK implemented the PSD via national legislation and the FSA Handbook ahead of the Directive's longstop date: 1 November 2009. It is one of the most dramatic pieces of legislation that moves to create a Single Euro Payments Area (‘SEPA’) by 2011.
This paper will aim to propose cost-effective solutions for practitioners to improve PSD compliance especially for small/medium sized participants that will feel the most impact. The PSD aims to enhance competition, efficiency and innovation in the European payments market by removing barriers to entry and providing a harmonisation as to rules, rights and obligations applicable to all service providers and end-users. The scope also extends to non-traditional payment service providers that until date have been unregulated (e.g. money remittance services) Bringing these institutions under the scope of the FSA will require changes. Notably clearing and settlement systems will be completely overhauled (EUR 250bn conservative cost impact). More importantly for the UK, will be the extension of the Money Laundering Regime and the ADR settlement regime to be exercised by the Financial Ombudsman Scheme
This report should be read by Solicitors engaged in financial market/Banking practice, Compliance Officers and governing bodies of the Financial Services Industry, Non-financial services Industry Professionals, Custodians, Administrators and Institutional Investors.
Keywords: Payment Services Regulations, Payment Services Directive, SEPA, Euro Payments Council, Pan-European payments systems, Financial Services Law and Regulatory Practice
JEL Classification: K20, K33, K23, K29
Suggested Citation: Suggested Citation