Payment services and e-money

This Overview is a guide to the Financial Services content within the Payment services subtopic, with links to appropriate materials.

EU regulation of payment services

The Payment Services Directive (Directive 2007/64/EC) (PSD1) provided the legal foundation for the creation of an EU-wide single market for payments.

PSD1 was intended to regulate PSPs and harmonise the payments sector within the EU. However, advances in payments systems have outstripped the regulatory capacity of PSD1 and, in July 2013, the European Commission introduced a proposal for a second Payment Services Directive (COM(2013) 547 final) (PSD2) (see: Proposal), which incorporates and repeals PSD1. PSD2 addresses the technological advances affecting payments, the increased incidence of online payments fraud and inconsistent implementation of certain provisions of PSD1. It introduces rules for third-party PSPs, expands the geographic scope, increases requirements on security and narrows the exemptions available under PSD1.

The second Payment Services Directive (PSD2) (Directive 2015/2366/EC) was published in the Official Journal of the EU on 23 December 2015 (here) and came into force on 13 January 2016.

EU regulation of payment services providers—essentials

This Practice Note provides an overview, and

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Financial Services News

Sustainable finance and ESG weekly round–up—21 November 2024

This week's edition of the Sustainable finance and ESG weekly round-up from the Finance Group includes: (1) ICC issues guidance on successful Carbon Pricing, (2) COP29 round up, and (3) ESAs issue ‘Fit-For-55’ climate scenario analysis results.

HM Treasury issues advisory on Oil Price Cap evasion tactics

HM Treasury (HMT)and the Office of Financial Sanctions Implementation (OFSI) have released an advisory concerning the Oil Price Cap (OPC) regime. The guidance specifically addresses evasion strategies involving the manipulation of product origin through the use of fabricated and falsified Certificates of Origin (CO). This advisory aims to alert relevant parties to the risks associated with such practices and to enhance compliance efforts within the oil trade sector.

FCA proposes extension for handling motor finance commission complaints following court ruling

The Financial Conduct Authority (FCA) has published a consultation paper (CP24/22) on extending the timeframe for motor finance firms to handle complaints related to non-discretionary commission arrangements (non-DCA). The proposed options are either until 31 May 2025 or until 4 December 2025. Responses are sought by 5 December 2024. The FCA also plans on publishing its feedback and its policy statement by 19 December 2024, emphasising that firms should use this extended period to adequately prepare resources for investigating and responding to complaints.

BoE’s Sasha Mills’ speech on the potential transformative impact of innovation in wholesale financial markets

The Bank of England (BoE) has published a speech by its executive director for financial markets infrastructures, Sasha Mills, discussing how innovation in wholesale financial markets, such as tokenisation and programmable platforms, could revolutionise post-trade processes, making them faster, cheaper, and more efficient. The BoE is also exploring ways to maintain central bank money as a settlement asset for digital transactions, including plans for experiments on synchronisation and wholesale central bank digital currency.

View Financial Services by content type :

News