SEPA is a programme which is developed and managed by the banking industry, as represented by the European Payments Council. It will be implemented by the national banking association in each country. The Internal Market Commissioner of the EU is a powerful driver of SEPA. The European Central Bank and the Eurosystem (Central banks of individual countries) have oversight roles, and many other groups have roles in its delivery.
A program of the scale of SEPA requires participation of various disparate interest groups. Each interest group is represented through a representative body:
- The European Payments Council (EPC)
- EU Commission
- European Central Bank (ECB)
- National Banking Associations
- National clearing operators
- Pan-European Automated Clearing House(es) (PEACH)
- European Credit Sector Associations (ESCAs)
- European Committee for Banking Standards ECBS
- User representation
- SEPA Payments Council
1. The European Payments Council (EPC)
www.europeanpaymentscouncil.eu
The European Payments Council (EPC) was established in 2002 to bring the SEPA to fruition. Prior to that date, European negotiations by the banking industry were done by ad-hoc committees of the European Banking Federation (EBF) and similar bodies. The EBF is an advisory and representative body.
Under a new constitution agreed a few years ago, the EPC became a decision-making body with powers to commit the banking industry in relation to payments issues.
The EPC has 74 members, representing banks, banking communities and payment institutions. Ireland has one seat, held by the Chief Exec of IPSO. Over 300 people sit on the many sub-committees
2. EU Commission - internal market - Banking section
europa.eu/scadplus/leg/en/s08011.htm
The EU Commission has been in the forefront in terms of persuading, and cajoling the banking industry to move forward with SEPA. While a number of commissioners have been involved in various aspects, the primary focus has been on the Internal Market Commissioner, currently, Mr. Michel Barnier
3. European Central Bank (ECB)
www.ecb.int
The European Central Bank is the responsible body in regard to currency matters. It was responsible for the introduction of the Euro. Working with the Eurosystem (the committee of Central Banks of the EU) it has oversight responsibilities in relation to payment and clearing systems.
The ECB has long been a proponent of SEPA. Every year or so, it produces a forthright review of the current state of SEPA. However, the ECB does not have powers to compel banks to adopt SEPA.
4. National Banking Associations
www.ibf.ie/about/links_i.shtml
National banking associations are mandated by EPC and by member banks to implement SEPA in their respective countries. In many countries there are more than one national association. There are associations representing respectively, commercial banks, savings banks, and co-op banks.
In Ireland, the relevant national association is Irish Payment Services Organisation Ltd (IPSO)
5. National Clearing Operators
Each country has one or more national clearing operator, and these must change under SEPA. National clearings must become SEPA-compliant. The ECB has published “self assessment” criteria to comply with SEPA here.
SEPA-compliance requires full integration into a PEACH - a Pan-European Automated Clearing House. For smaller countries, including Ireland, this appears to mean shifting the clearing operation to one of the PEACH operators. But it is by no means clear that other options are excluded.
Note that Ireland does not have an Automated Clearing House (ACH). Instead, Ireland has a series of bilateral links between the major banks. The Irish national clearing operator is Irish Retail Electronic Clearing Company Ltd, a company within the IPSO umbrella.
IPSO has assumed the role of the National Adherence Support Organisation (NASO) for the Irish SEPA Community. The role of the NASO is to provide a link between proposed participants to the SEPA Credit Transfer Scheme and the EPC. IPSO will act as the first point of contact regarding SEPA issues and will facilitate the adherence administrative process. The Irish NASO helpdesk can be contacted at naso@ipso.ieeail address is being protected from spam bots, you need Javascript enabled to view it
6. Pan-European Automated Clearing House(es) PEACH
A PEACH is a clearing arrangement which conforms to SEPA standards and has "reachability" to every bank in Europe - so that it can clear items throughout Europe. Larger banks participate in a PEACH as direct participants. Smaller banks may participate through linkages with direct participants.
Euro Banking Association (EBA) has operated a PEACH called STEP2 (Straight -Through Electronic Processing) for about 4 years. EBA is owned by a consortium of banks. Other clearing operators, including VOCA in UK, have signalled their intention to become PEACH operators.
7. European Credit Sector Associations (ECSAs)
Banking Federation of the European Union (EBF)
European Association of Co-operative Banks (EACB)
European Savings Banks Group (ESBG)
Europe’s three credit sector associations are collectively known as the European Credit Sector Associations (ECSAs). The ECSAs represent the interests of the European banks from the countries of the European Union (EU), the European Economic Area (EEA), and the European Free Trade Association (EFTA). The ESCAs provide major support to the European Payments Council (EPC).
The Irish banks are represented in this structure through EBF.
8. Banking Standards
www.ecbs.org
Until 2004, ECBS developed and monitored standards for inter-bank transactions. The IBAN and BIC standards which are at the core of SEPA credit transfers and direct debits were developed by ECBS. ECBS was formed by the ESCAs (see above). From 2004-2006, the functions of ECBS were subsumed into the European Payments Council (EPC). Since 2006:-
The Standards Support Group (SSG) of the European Payments Council provides a forum where standards in relation to SEPA are developed and monitored
The former ECBS standards e.g. IBAN & BIC have been aligned with the relevant ISO standards
SWIFT has been designated by ISO as the registration authority of IBAN and BIC formats, and the registry of such formats can be downloaded free from them here
9. User Representation
ec.europa.eu/transparency/regexpert/detail.cfm
Users of payment services have had some input into certain elements of SEPA. The EU Commission has established the Payment Systems Market Group (PSMG) which includes representatives of consumer groups and business users. The Association of Corporate Treasurers has been particularly prominent in such discussions, and has been critical on many occasions.
The remit of PSMG is "to advise the Commission and to give it feedback on issues related to payment services". There is no Irish member on the PSMG.
The level of user representation on SEPA in Ireland is low, but SEPA was an agenda item at the IPSO payment conferences 2006 and 2008, and these conferences were attended by representatives of business and consumer groups.
10. SEPA Payments Council
Established in 2010, The SEPA Payments Council is intended to bring together the major interested parties from both the supply side and the demand side, and is co-chaired by the ECB ind the EU Commission (Internal Market). The main issues on the agenda are the need and conditions to establish (a) migration end-date(s) for SEPA and the future of a SEPA for payment cards.