The EMA responded to the HM Treasury Call for evidence on Financial Services Future Regulatory Framework Review.
Author Archive | Bara Vaneckova
The EMA’s CEO, Thaer Sabri, will be joining the speaker’s panel at Brunswick Group’s roundtable discussion on AML in the EU on 23 October 2019.
About the event:
The idea is to bring together key stakeholders, including Member State Attachés and/ or experts, European Parliament Assistants and other industry participants for a Chatham House exchange of views on the scale of the challenges in the area of AML, and how best to address these, including the role that cross-border cooperation, technology and data have to play in improving the ability of financial institutions, supervisors and law enforcement to better fight criminal activity in the financial system.
The EMA responded to Pay.UK’s Call for Information on the UKF Change Request for an FPS levy to fund the APP Scam “no blame” pot.
The EMA submitted a response to De Nederlandsche Bank’s consultation on the Q&A regarding Customer Journey Obstacles for Third Party Payment Initiation and Account Information Services.
The EMA submitted a response to the HM Treasury consultation on the transposition of 5MLD in the UK.
The EMA sent a letter to to the ERPB Chair regarding the Report of the ERPB Working Group on a SEPA API Access Scheme, outlining the EMA’s views about the next steps of the Scheme.
The EMA sent a letter to the Federal Ministry of Finance on the proposed implementation of 5MLD in Germany.
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.
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.
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.