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The second Payment Services Directive (PSDII) will apply from 13 January 2018. It is intended to create a more integrated and efficient European payments market, encourage innovation, and protect consumers by making payments safer and more secure.
On 9 February, the government published a consultation document, ‘Implementation of the revised EU Payment Services Directive II’, as well as draft legislation. The consultation invited responses on the government’s proposed approach to transposing this Directive into UK law. This document summarises the responses submitted to the consultation and outlines the government’s response. The statutory instrument that transposes PSDII has been laid before Parliament today (19 July 2017).
Alongside this document, HM Treasury and the Financial Conduct Authority are also publishing a supplementary document, setting out our expectations for the third party access provisions in PSDII.
The revised directive on payment services in the internal market, more commonly known as the Payment Services Directive II, or PSDII, was published on 23 December 2015. The government is required to implement it by 13 January 2018.
The directive widens the scope of the first Payment Services Directive (PSD), which came into force in 2009, and aims to increase competition in the payments market, leading to new services and lower costs for payment transactions. In order to meet the requirements set out in the PSDII, the UK government needs to make changes to the legislation that sets out the framework for UK payments regulation.
This consultation invites views on the legislative changes proposed to meet this obligation.