Post-Brexit UK Secondary Legislation Published For Temporary Permissions Regime For Payments Services
09/05/2018HM Treasury has published draft statutory instruments on the regulation of payments and e-money and on access to the Single Euro Payments Area in preparation for the U.K.'s withdrawal from the EU - the draft Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 and the Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018. The draft Regulations are relevant to all Payment Service Providers and registered Account Information Service Providers. The draft Regulations will amend the Payment Services Regulations 2017, Electronic Money Regulations 2011 and the SEPA Regulation to:
- Create a temporary permissions regime for EEA payment firms
- Ensure access to segregated safeguarding accounts
- Maximize the prospect of the U.K. maintaining access to SEPA
HM Treasury is proposing not to retain the EU Cross-Border Payments Regulation on the basis that cross-border transactions will not be regulated under U.K. regulation and compliance with the requirements is unnecessary for third-country membership of SEPA. The U.K. government will assess whether this approach needs to be adopted once the proposed changes to the Cross-Border Payments Regulation have been finalized. HM Treasury has confirmed that draft regulations onshoring the Interchange Fee Regulation will be issued at a later date.
HM Treasury intends to lay the draft Regulations before Parliament in the autumn. The Financial Conduct Authority is expected to consult in the autumn on changes to its Handbook as a result of the draft Regulations and to reflect the relevant EU Technical Standards. The draft Regulations will not take effect on March 29, 2019 (Exit Day) if the EU and the U.K. agree an implementation period.
View the draft Regulations and the explanatory guidance.
View details of the TPR for FSMA firms.
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