European Central Bank Publishes Amendments to Systemically Important Payment Systems Regulation

An amending Regulation (Regulation (EU) 2021/728) and two amending Decisions (Decision 2021/729 and Decision 2021/730) have been published in the Official Journal of the European Union, introducing certain changes to the SIPS Regulation on oversight requirements for systemically important payment institutions. The SIPS Regulation applies to systemically important large-value and retail payment systems and is designed to improve their safety and efficiency. Draft versions of the amending Regulation and Decisions were consulted on between November 2020 - January 2021 and proposed: (i) changes to the criteria for determining which of the Eurosystem central banks should be the competent authority for oversight of a SIPS; (ii) introduction of an additional methodology for identifying a payment system as a SIPS; and (iii) introduction of a phasing-out period for the reclassification of a SIPS as a non-SIPS.
 
The final versions of the Regulation and Decisions were published largely in the form consulted upon. The ECB has added into the Regulation an explicit stipulation that any decision classifying a new payment system as a SIPS will be reasoned (although this is fully in line with past practice). The ECB has also introduced due process guarantees into the Regulation to demonstrate its commitment to proportionality and equal treatment.
 
View the ECB's statement on the revision of the SIPS Regulation.
 
View details of the consultation on the draft Regulation and Decisions.
 
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