Tell Them What You Think ^beta

HMT is currently conducting a consultation on the implementation of the Payment Services Directive (PSD). The European Commission proposed the Directive in December 2005, with the aim of achieving a Single Market in retail payment services that provides a fair and open access to payments markets, and increases protection for consumers. The harmonised framework for payment service provision that will be established by the PSD should also provide the legal underpinning for a Single Euro Payments Area (SEPA). SEPA is a banking industry-led initiative that aims to develop a pan-European infrastructure for payment schemes, namely credit transfers, direct debits and card payments.

The PSD, which was adopted by the Council and European Parliament in November 2007 and published in the Official Journal on 5 December 2007, introduces a new EU-wide licensing regime for non-credit or e-money institutions, known under the Directive as ‘payment institutions.’ This will allow such providers to offer their services EU-wide on the basis of a licence obtained in one EU Member State.

It is stipulated in the PSD that Member States must implement its provisions into national law by 1 November 2009. This consultation document sets out how the Government proposes to implement the Directive in an effective, proportionate, and risk-based manner. It discusses the Government’s proposed approach to implementing each Title of the Directive. It also explains where the Government has flexibility in implementation and presents and asks questions about the options available, and on the interpretation of the Directive’s provisions.

Here are the documents we were able to locate that relate to this consultation: