Archive | EMA publications

The EMA frequently responds to government and European consultations on regulation that impacts the e-money and payment services industry. Sometimes, we also express our views on issues that are raised in the public domain where we feel it is important to provide an industry input.

Our publications reflect the views of the EMA as whole; individual members’ views may vary from time to time. The public consultation responses are listed below. For further information on these positions, please contact us.

September 20, 2015

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.

Download the EMA response document (PDF)

September 10, 2015

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.

September 7, 2015

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.

August 28, 2015

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.

 

Download the full response (PDF)
August 27, 2015

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.
Download full response (PDF)
August 3, 2015

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.

Download the EMA response (PDF)
June 5, 2015
April 2, 2015
March 13, 2015

Final EMA response to FCA consultation on complaint handling

The EMA welcomes the opportunity to respond to FCA’s consultation, ‘Improving Complaints Handling’ CP 14/30. The response below addresses the questions that are of particular concern to EMA members: Question 3 on the summary resolution communication, Question 8 on the use of premium rate telephone numbers, and Question 20 on the cost benefit analysis.

13 March 2015     Final EMA response to FCA consultation on complaint handling

November 17, 2014