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Payments regulatory news, 28 June 2021

FIG Bulletin

28 June 2021

Recent UK and EU regulatory developments focussed on the payments sector. See also our Financial institutions general regulatory news of broad relevance in the Related Materials links.

Payment and Electronic Money Institution Insolvency Regulations 2021 (SI 2021/716)

The Payment and Electronic Money Institution Insolvency Regulations 2021 (SI 2021/716) have been published, together with an explanatory memorandum. They come into force on 8 July 2021. No changes have been made to the Regulations from the previous draft version.

The Regulations create a new special administration regime for payment and electronic money institutions. It applies with modifications Part 24 of the Financial Services and Markets Act 2000 (which makes provision for insolvency) to those institutions except in respect of special administration. It also makes an amendment to the Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 and to the Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020.

UK real time gross settlement system: BoE speech

The Bank of England (BoE) has published a speech given by Victoria Cleland, Executive Director for Banking, Payments and Innovation, on "A new dawn for payments". In her speech, Ms Cleland talks about the evolution of payments systems in the UK, sets out the role of BoE's Real Time Gross Settlement (RTGS) system and its vision for the future.

Proposed codified Regulation on cross-border payments: Addendum to JURI report

The European Parliament's Legal Affairs Committee (JURI) has published an Addendum to its report on the European Commission's legislative proposal for a Regulation on cross-border payments in the EU.

PSD2: European Commission adopts draft Delegated Regulation with RTS on framework for home-host cooperation and information exchange

The European Commission has adopted a draft Delegated Regulation supplementing the revised Payment Services Directive (PSD) with regard to regulatory technical standards (RTS) specifying the framework for cooperation and the exchange of information between competent authorities of the home and the host member states in the context of supervision of payment institutions and electronic money institutions exercising cross-border provision of payment services. The RTS specify:

the framework for cooperation and for exchanging information between the competent authorities of the home member state and the host member state under Title II of the PSD; and
how to monitor compliance with national law transposing Titles III and IV of the PSD.

The Council of the EU and the European Parliament will now scrutinise the draft Delegated Regulation. The draft Delegated Regulation will enter into force, and apply, 20 days after its publication in the Official Journal of the European Union and apply from 1 January 2021.