UK Government Launches Consultation on Payments Services Directive
The UK Treasury is launching a consultation into the implementation of the payment services directive (PSD), which aims to increase competition by removing obstructions to the creation of an EU-wide internal market for payments. The PSD, which was passed by the European Parliament earlier this year, would introduce a licensing regime to allow non-bank payment service providers – such as money transfer operators – to operate across borders. In addition, all payment service providers will have to comply with new ‘conduct of business rules’. The Directive will also introduce information and liability requirements to provide greater legal certainty for payment services users and providers in the event of a transaction going wrong, or of a card being lost or stolen, as well as agreed timescales for executing a transaction. Kitty Ussher, Economic Secretary to the Treasury, says the main aim of the PSD is to support the single market in financial services. “In implementing this Directive in the UK we will be seeking to balance consumer protection with a proportionate, principles-based regulatory framework,” says Ussher. “In the consultation published today, we are looking to achieve an approach which will support further competition, choice, efficiency and innovation in the payments market, including opening up markets for UK firms.”