News
UK moving rapidly ahead with payments legislation
05 May 2009
From May 1st, the UK Financial Services Authority commences to accept applications for new-type payment institutions in conformity with the EU’s Payment Services Directive of 2007.
The UK government has moved rapidly, and is now the first EU country to have implemented the relevant legislation. The Payment Services Regulations were laid before parliament in February. They were made into law on March 2nd. An Approach Document outlining their approach to matters such as authorisation and supervision under the PSD, Perimeter Guidance and a Policy Statement were published in March, and application forms have been available since 24th April.
The provisions of the legislation will come into force on November 1st 2009, at the same time as all of the other SEPA countries.
The PSD was originally intended to bring a greater level of harmonisation between the payments legislation systems in the EU, and to remove barriers which would prevent the implementation of a Europe-wide direct debit. And so much of the legislation is concerned with the “conduct of business rules” which set out many of the rules concerning the interaction between customers and providers of payment services.
Given that the UK is a non Euro country it initially appears unusual that it should have given such a high priority to such legislation. It is likely that the Financial Services Authority considers that the payment business is strategically important for Britain, and indeed, the British-based Voca has aspirations to become a major player in the payments business of Europe.
The text and format of the UK legislation is significantly different from the European directive, but it is intended that the substance should be the same.