Payment Services Directive
With the aim of achieving a Single Market in retail payment services that provides fair and open access to payments markets, and increases protection for consumers, the European Commission proposed the Payment Services Directive (PSD) in December 2005. The harmonised framework for payment service provision that will be established by the PSD will also provide the legal underpinning for the Single Euro Payments Area (SEPA). SEPA is a banking industry-led initiative that aims to develop a pan-European infrastructure for payment schemes, namely credit transfers, direct debits and card payments.
The PSD, which was adopted by the Council and European Parliament in November 2007 and published in the EU Official Journal on 5 December 2007, introduces a new EU-wide licensing regime for non-credit or e-money institutions, known under the Directive as 'payment institutions.' This will allow such providers to offer their services EU-wide on the basis of a licence obtained in one EU Member State. The PSD also harmonises conduct of business rules for all EU providers of payment services.
It is stipulated in the PSD that Member States must implement its provisions into national law by 1 November 2009. The Government intends to implement the Directive in an effective, proportionate, and risk-based manner.
Media links
Documents and publications
In July 2006 the Government sought stakeholders views on the UK's approach to negotiating the Payment Services Directive in the Council of Ministers and the European Parliament:
In December 2007 the Government consulted on how it proposed to implement the Directive in an effective, proportionate, and risk-based manner. This consultation discussed the Government's proposed approach to implementing each Title of the Directive:
In July 2008 the Government consulted on the legislation that will implement the PSD. This document formed the final phase of the three-part consultation process. The consultation was open for a 12-week period from 21 July 2008 and closed on 3 October 2008.
On 9 February 2009 the Government laid before Parliament regulations to implement the EU Payment Services Directive into UK legislation. These Regulations entered into force on 2 March 2009, and the PSD regulatory regime will be in place on 1 November 2009.
On 10 September 2009 the Government laid before Parliament regulations which makes technical amendments to the Payment Services Regulations 2009. Certain regulations come into force on 1 October 2009, and the remainder will come into force on 1 November 2009.
Related links
External links
Some of the documents are available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the
Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the
HM Treasury accessibility page.
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