Publications and events

EMA responds to the Irish Department of Finance’s consultation on the implementing of the Payment Accounts Directive (PAD)

The EMA has responded to the Irish Department of Finance’s consultation on the implementation of the Payment Accounts Directive (PAD). The EMA supports the aims of the Directive: to improve transparency around fees, facilitate switching between accounts, and ensure access to basic bank accounts. Similar to the response to HMT, the EMA expressed concern about the lack of clarity around the scope of the Directive, and proposed that the scope be more clearly defined. If not, it could bring a wide variety of e-money accounts into the scope unnecessarily, such as prepaid cards or online wallets, which are generally considerably different from bank current accounts in terms of consumer usage and purpose. Read the EMA response.

EMA responds to the Irish Department of Finance’s consultation on the implementing of the Payment Accounts Directive (PAD) Read More »

EMA response to the FCA’s Call for input on regulatory barriers to innovation

The Electronic Money Association (EMA) has responded to the FCA’s Call for input on the regulatory barriers to innovation, as EMA members have long had to grapple with regulatory features that prevent them either from developing a viable business model, or from growing beyond a certain size.

In this response, the EMA has focused mainly on EU regulation, as it has the greatest impact on our members, many of whom are authorized in the UK or Gibraltar and passport into other EU member states under the Freedom to Provide Services.

Read EMA response to FCA call for input on regulatory barriers to innovation.

EMA response to the FCA’s Call for input on regulatory barriers to innovation Read More »

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.

 

[button link=”https://emaprd.wpengine.com/wp-content/uploads/2015/08/EMA-Response-to-HMT-Interchange-Fee-Consultation.pdf” style=”download” color=”green”]Download the full response (PDF)[/button]

EMA responds to HMT CP on Interchange Fee Regulation Read More »

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.

[button link=”https://emaprd.wpengine.com/wp-content/uploads/2015/08/EMA-Response-to-Slovenian-Ministry-of-Finance-on-Draft-ZPPDFT.pdf” style=”download” color=”green”]Download full response (PDF)[/button]

Response to Slovenian Prevention of Money Laundering and Terrorist Financing Act Read More »

HM Treasury’s consultation on the implementation of the EU Payment Accounts Directive (PAD)

The EMA has responded to HM Treasury’s consultation on the implementation of the EU Payment Accounts Directive (PAD).The EMA supports the aims of the Directive: to improve transparency around fees, facilitate switching between accounts, and ensure access to basic bank accounts. We also support HMT’s proposed approach – to introduce as little disruption as possible to UK firms by aligning the implementing rules with the UK’s existing system. However, the scope of the directive in relation to non-bank payment accounts lacks clarity. As a result it could bring a wide variety of e-money accounts into the scope unnecessarily, such as prepaid cards or online wallets, which are generally considerably different from bank current accounts in terms of consumer usage and purpose. This would lead to significant disruption and cost for UK e-money issuers.

The law implementing PAD is due to be adopted and published by the UK government by 18 September 2016, with certain elements of the requirements applying by early 2018.

[button link=”https://emaprd.wpengine.com/wp-content/uploads/2015/08/EMA-response-to-HMT-Consultation-on-PAD.pdf” style=”download” color=”green”]Download the EMA response (PDF)[/button]

HM Treasury’s consultation on the implementation of the EU Payment Accounts Directive (PAD) Read More »

Money 2020 Las Vegas

Money20/20 is the largest global event enabling payments and financial services innovation for connected commerce at the intersection of mobile, retail, marketing services, data and technology. With 10,000+ attendees, including more than 1,000 CEOs, from over 3,000 companies and 75 countries, expected at its 2015 U.S. event, Money20/20 is critical to realising the vision of disruptive ways in which consumers and businesses manage, spend and borrow money. The next Money20/20 will be held in Las Vegas, October 25-28, 2015, followed by Money20/20 Europe in Spring 2016.

Watch the introductory video to Money2020 Las Vegas:

LINK HERE: https://youtu.be/h13R6U-qMt0

 

Event date(s)

October 25-28, 2015

 

Event Location

The Venetian, Las Vegas, NV

                            

Country  

United States                  

 

Booking URL            (closed)

 

 

Event URL                

http://money2020.com/

 

Organizer Name

Money20/20

 

Organizer Email

Info@Money2020.com

Rob@Money2020.com

Money 2020 Las Vegas Read More »

Thaer Sabri at 3rd Annual Mobile Wallet 2015

MobileWalletbanner_500x387

 

Thaer Sabri, the EMA CEO was representing the EMA moderating the panel, discussing the role of regulatory bodies in the introduction & growth of mobile wallet solutions.

Event: 3rd Annual Mobile Wallet 2015
Date: 18-21 August 2015
Location: Jakarta | Indonesia

Event Description: Focusing on the latest initiatives for mobile wallets and insights on consumer and retailer’s adoption & awareness, the 3rd Annual Mobile Wallet conference has addressed the key factors in implementing a successful business model and players’ collaboration to accelerate scale and adoption in mobile wallets in Asia, with a special focus this year on Indonesia’s market. The conference not only provided a single platform for market trends, insights and networking opportunities, it has convened international and regional key players to exchange ideas on innovative approaches driving mobile wallet initiatives in Asia.

For more information, please click here: www.mobilewallet-asia.com

Thaer Sabri at 3rd Annual Mobile Wallet 2015 Read More »

Thaer Sabri was a speaker at 2nd International Conference on E-money, Cards and Payments, Budapest, Hungary

Thaer Sabri, the EMA CEO did represent the EMA at the 2nd International Conference on E-money, Cards and Payments held in Budapest, Hungary between 8 – 9 June 2015, in Danubius Health Spa Resort Margitsziget.

Thaer spoke about evolution of alternative payments, E-payments laws and Risk and compliance as part of Payments regulatory review.

Thaer Sabri was a speaker at 2nd International Conference on E-money, Cards and Payments, Budapest, Hungary Read More »

European regulators begin to signal implementation of EBA security guidelines

The European Banking Authority (EBA) published its final guidelines on the security of internet payments late last year (19 December 2014) with an implementation deadline of 1st August 2015. The guidelines are required to be implemented by payment service providers within this deadline, with an obligation to ‘make every effort’ to comply.

Member state competent authorities on the other hand are required to either comply or to explain a departure from the Guidelines and to notify their position to the EBA within 2 months of publication (of the Guidelines) in the official EU languages. This took place on the 5th of March, and so notification is required by the 5th of May.

We have set out below a list of member states that have notified compliance, and we have contacted others to enquire of their intentions.

In January, Denmark stated it will adopt the EBA Guidelines on 1 August 2015, and it was closely followed by Malta on the 23rd of January, which stated that it will be issuing a Banking Rule implementing the guidelines

In February, Luxembourg issued a circular confirming compliance, and the Dutch Central Bank similarly confirmed compliance by 1st of August.

Bafin, the German competent authority has recently completed a national consultation exercise and is expected to issue a final circular providing for a six-month transition period for compliance.

The Financial Services Commission in Gibraltar has recently confirmed their intention to comply with the EBA guidelines as well.

Significantly however the UK FCA have indicated that they will not be incorporating the obligations into their supervisory framework by the 1st of August deadline, as they are anticipating changes to IT security obligations that will be set out in the forthcoming PSD2. This is expected to reach political agreement next week at a meeting on the 5th of May, and adoption would then follow late in 2015, and implementation by mid-2017.

The FCA’s view is that the objectives are desirable, but the changes to IT security systems will soon be eclipsed by new obligations – within two years or so. The implication is that firms should not have to adopt standards that require changes to their systems, when new standards are anticipated within a short period of time. Given the time it takes small and large organizations to implement IT projects, this appears to be is a helpful position.

It is not clear what approach will be taken by other member state competent authorities; whether they will enforce against firms that delay implementation, or how they will police compliance.

[Update 18 May 2015]
The EMA has seen further responses from Austria, Finland, Latvia, Lithuania, Slovenia, Spain and Sweden all broadly indicating the intention to adopt the guidelines but with some caveats.

[Update 22 May 2015] The European Banking Authority (EBA) has now made public a compliance table (.pdf)  summarising the responses it received from EU and EEA member states.

European regulators begin to signal implementation of EBA security guidelines Read More »