Author name: Bara Addison

EMA responds to Consultation on Scheme of a proposed Consumer Rights Bill

EMA responds to Consultation on Scheme of a proposed Consumer Rights Bill: 

The Irish government is proposing to update Ireland’s consumer rights law, by bringing existing law into line with the European Union (Consumer Information, Cancellation and Other Rights) Regulations 2013 as well as filling in gaps in consumer protection. They are suggesting in particular new requirements on gift cards and voucher products, including a ban on the use of expiry dates. The EMA’s response argues that:

  • regulated e-money products, including gift cards and vouchers, should not come under the scope of the draft law, as there are already sufficient consumer protections in place under other legislation, such as the Payment Services Directive
  • unregulated gift cards and vouchers should be permitted to continue to have expiry dates, for both commercial reasons and consumer preference. Without the use of expiry dates, many limited network gift card and voucher schemes would cease to operate, removing a valuable customer proposition from the Irish market.

The Department for Competition and Consumer Policy will consider the feedback they receive before announcing any next steps.

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EMA responds to HMT CP on Interchange Fee Regulation

On 27 July, HM Treasury published a consultation on the application of the Interchange Fee Regulation in the UK, asking for feedback on their proposals on credit and debit card caps, a time-limited exemption from the rules for three-party schemes, and the regulatory structure. The EMA’s response to each question is below:

  • Credit cards: The EMA agrees with HMT’s plans to apply the same cap on interchange fees as set out in the regulation (i.e. maximum of 0.3% per domestic or international transaction).
  • Debit cards: The EMA agrees with HMT’s plans to apply a “weighted average” (i.e. interchange fees cannot exceed more than the equivalent of 0.2% of the annual average transaction value of all domestic debit card transactions within each payment card scheme). However the EMA raises concerns about the uncertainty this may bring for industry, and supports a review of the policy once its impact has been measured and analysed by the PSR.
  • Three-party schemes: The EMA agrees with HMT’s proposal to exempt three-party schemes that do not exceed 3% of market share across all card products for the maximum 3 year period permitted under the regulation. 
  • Regulatory oversight: Agrees in principle with HMT’s proposed regulatory regime of splitting regulatory responsibilities between the PSR, the FCA, and the Trading Standards Institute. However the EMA raises concerns about the potential for duplication of effort for firms, and calls for guidance for firms setting out the remit and jurisdiction of each regulator.

 

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Response to Slovenian Prevention of Money Laundering and Terrorist Financing Act

On 27th July, the Slovenian Office for Money Laundering Prevention from the Ministry of Finance published a new draft of their Prevention of Money Laundering and Terrorist Financing Act (ZPPDFT) to bring it in line with 4MLD. The EMA’s response raises 4 issues with the draft:

  • The draft scope of the Act extends to credit institutions, payment institutions and electronic money institutions passporting into Slovenia on a cross-border basis under Freedom of Services, and should be limited to those authorised in Slovenia or operating in Slovenia under the Freedom of Establishment only; 
  • The translation of the term “payment instrument” as “electronic medium” is legally unclear, potentially narrowing the e-money exemption from CDD, so the original EU translation should be used
  • The draft has incorrectly transposed the e-money CDD exemption by requiring EMIs providing reloadable cards that can be used outside of Slovenia to conduct CDD, regardless of any limits on the amount.
  • The current draft translation of the redemption provision under the e-money exemption from CDD doesn’t permit redemption transfers over €100 to a bank account to be exempt from CDD, so should be amended.

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EMA conference 2011: The evolution of e-money and payment institutions; new opportunities, new challenges.

We organised this conference on 29 and 30 November 2011 at the Crowne Plaza, Brussels ‘Le palace’.

Crowne Plaza, Brussels 'Le palace'
Crowne Plaza, Brussels ‘Le palace’

The conference focused on how e-money and payment institutions are changing and the new opportunities for industry and challenges for regulations that this creates.

What did the conference address?

The conference reviewed the evolution of e-money and alternative payment products over the last few years and invited issuers and payment service providers to describe developments that are likely to emerge. The EU regulatory model was compared to that of the US, Japan, Australia and the recently adopted Russian legislation.

We addressed topics that are currently the focus of regulatory discussion, such as the review of AML legislation, the outsourced business model, the use of agents and distributors, as well as passporting.

The conference brought together the industry and regulators with an interest in Emoney and innovative payments to discuss developments and shared challenges.

Speakers included:

  • Alex Hoffman, PayPal France
  • Ben Steyn, Skrill
  • Caroline Gardner, FCA
  • Des Hellicar-Bowman, Vincento
  • Fabienne Weibel, PayPal
  • Jane Zavalishina, Yandex Money LLC
  • Javier Martell, Boku Inc
  • John Burns, FCA
  • John Plank, National Crime Agency
  • Mahmed Yurtcicek, Banking Regulation and Supervision Agency of Turkey
  • Mark Watkins, Voicecash
  • Michael Muller, PaysafeCard
  • Mike Smith, Raphaels Bank
  • Paul Townsend, WorldPay (Envoy Services)
  • Peter Howitt, Transact Network Limited
  • Philippe Pelle, European Commission
  • Ray Brush, PrePay Solutions
  • Dr Rhys Bollen, Australian Securities & Investments Commission
  • Shri G Padmanabhan, Reserve Bank of India
  • Stan Rubin, Ukash
  • Taiji Inui, NTT Data Corporation, Bank of Japan
  • Tobias Mackie, European Commission
  • Tobias Shreyer, PPRO GmbH

A printable version of the conference programme can be downloaded as a .pdf file (421.30Kb)

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EMA conference 2009: The European Payment Services Directive and Global Developments in Payments Regulation

EMA conference 2009 panel
EMA conference 2009 panel, 24 November, London

The Electronic Money Association (EMA) held its 3rd Conference on ‘The European Payment Services Directive and Global Developments in Payments Regulation’ on 24 November 2009 at the London Marriott Hotel West India Quay.

The payments framework in the US is undergoing huge changes at the moment, and both Japan and Russia are a new framework is being developed in Russia and Japan. Speakers described developments, and the opportunities that the different regimes provide. A further key theme was the effect of the credit crunch on regulatory attitudes generally.

The conference also focused on the practical impact of the European Payment Services Directive, and several payment service providers described the process of implementing local regulations, and the expected role of payment institutions in the coming years. We reviewed the recently published and revised Electronic Money Directive, and explored the expanded role of issuers under this regime.

Speakers included:

  • Evgeniya Zavalishina, general manager, Yandex.Money
  • Helmut Bauer, previously head of banking supervision at Bafin and head of global regulatory affairs at Deutsche Bank
  • Stephen Middlebrook, senior counsel, US Department of Treasury
  • Taiji Inui, NTT Data Corporation, previously head of payments policy, Bank of Japan
  • William Lorenz, banking and compliance director, Ixaris

A printable version of the conference programme (.pdf 874Kb).

 

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EMA conference 2007: The Future of Payments in Europe

The 2nd EMA Conference on ‘The Future of Payments in Europe’, took place on 28 and 29 November 2007 at the Marriot West India Quay hotel in London. It focused on the forthcoming implementation by European member states of the Payment Services Directive. It brought together regulators and industry representatives for a discussion of the challenges member states face during implementation. The most significant issue to have come out of the conference was the need for a synchronised approach, providing a consistent legal regime for products. The flexible approach that the Directive provides for member state discretion, needed to be balanced against the need for a uniform consumer experience and legal clarity for service providers.

Discussions were had on the prudential framework for Payment Institutions, the likely time frames, membership for PI’s of payment schemes, including the card schemes, and the contribution of this new regime to competition and consumer value.

The relative advantages of treating micro enterprises as consumers were set out, and the UKdescribed the rationale for this proposal, and the limited ability of these businesses to influence contractual terms offered by payment service providers.

The scope of payment services received much attention as did the liability and obligations of PSP’s and the varying disclosure obligations set out in Titles III and IV of the Directive.

Participants had numerous opportunities to discuss issues of concern with others, be they fellow service providers, regulators or service provider professionals. It closed on the second day, with a free ranging debate on the future of payments, and the likely contribution of the new regime to these changes.

 

A printable version of the conference programme

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