News
PSD Consultation paper issued by Department of Finance
10 July 2009
The Department of Finance has yesterday (8th July) issued a consultation paper on the transposition of the Payment Services Directive. The consultation paper includes a near-to-final draft of a proposed statutory instrument which is due to come into force by November 2009. The legislation will undoubtedly be the most significant legislation in relation to payments ever enacted in Ireland.
The directive is constructed in such a way that the main elements should be identically implemented in the various EU states, but certain variations are permitted in some sections. One that has particular relevance to Ireland relates to small businesses or “micro-enterprises”. The Department is inviting specific comments in relation to the proposed inclusion of micro-enterprises in the scope of the transposing regulations in line with Articles 30(2) and 51(3). A separate note setting out relevant issues for consideration, together with specific consultation questions, is at Annex 3. The term “micro-enterprise” is defined in the Directive as meaning an enterprise, which at the time of conclusion of the payment service contract per Recommendation 2003/361/EC, is “an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed €2m”.
Within the legislation there are two levels of protection for payment users – one for consumers, and one for businesses and larger entities. The legislation proposes that in many respects micro-enterprises should have the same level of protection as consumers. This particular proposal will have significant on the operation of Sepa Direct Debits, as there are differing procedures for consumer direct debits and business direct debits.
The 84-page document can be found at http://www.finance.gov.ie/viewdoc.asp?DocID=5854.
Responses must be received by Department of Finance by 20th July.