European Central Bank Consults on Changes to Systemically Important Payment Systems Regulation11/27/2020The European Central Bank is consulting on revisions to the Regulation on oversight requirements for systemically important payment systems (known as the SIPS Regulation). The SIPS Regulation applies to systemically important large-value and retail payment systems. The Regulation is designed to improve the safety and efficiency of those payment systems.
Three key amendments are being proposed, namely:
- Including clearly defined criteria for determining which of the Eurosystem central banks will be the competent authority to oversee a SIPS, including an option for compliance to be overseen by both a national central bank and the ECB in exceptional circumstances where a pan-European payment system has been overseen by a national central bank for five years or more prior to becoming a SIPS;
- Including a flexible, forward-looking methodology for the identification of a payment system as a SIPS, so as to ensure that all relevant factors can be taken into account when assessing the systemic importance of a payment system; and
- Introducing a phasing-out period of two consecutive years' failure to meet the SIPS identification criteria prior to reclassifying a SIPS as a non-SIPS; there will also be the option for earlier reclassification if a SIPS has failed to meet the criteria in one year and it is unlikely to fulfil the criteria in the next verification exercise.
Responses to the consultation should be submitted by January 8, 2021.
View the ECB's consultation on oversight requirements for SIPS.
View the ECB's proposed amending Regulation.
View the ECB's proposed amending Decision on procedural aspects concerning the imposition of corrective measures for non-
compliance with SIPS Regulation.
View the ECB's amending Decision on the procedure and conditions for exercise by a competent authority of certain powers in relation to oversight of systemically important payment systems.
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