PSD2 is coming, are you ready?

Industry Roundtable Event, Pinners Hall, London

27 November 2014

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Agenda

3.00pm Welcome and opening remarks VocaLink3.10pm Update on PSD2 Hogan Lovells3.20pm Round table discussion ALL4.45pm Summarise and next steps VocaLink5.00pm Drinks and networking ALL6.00pm CLOSE

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• Gather industry feedback on the UK response to PSD2

• Is a pro-active collaborative approach welcomed?

• Feedback and participation is encouraged

• Chatham House Rule to allow open discussion

Introduction

PSD2 – New third party services

Roger Tym27 November 2014

www.hoganlovells.com

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The context

• Payment Services Directive has had its 5th birthday• Number of areas to be refined (or needed to be) in PSD2, such as:

– Scope– Cross-border services/establishment– Treatment of merchant acquiring– Security– Liability

• Development to recognise new/developing payment services, such as PIS [and AIS]

• MIF Regulation• No sleepwalking!

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Third party services• Payment Initiation Services• Account Information Services

• "low-cost solution for both merchants and consumers"• "provide consumers with a possibility to shop online even if they do not possess

payment cards"

• Must grant access (unless unauthorised or fraudulent initiation)• No mandatory contract/rely on general legislative and supervisory framework• No discriminatory treatment of PIS-initiated vs payer-direct payment orders

• Collaborative response generally supports aims of the Directive in providing standardised and secure transmission of payment orders

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PSD2 Timeline

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24 July 2013Commission draft PSD2 proposal

3 April 2014Parliamentary Plenary session

27 June 2014Compromise

Text

23 July 2014Further

Compromise Text

12 Sept 2014Further

Compromise Text

14 Oct 2014Further

Compromise Text

31 Oct 2014Further

Compromise Text

31 Dec 2014Italian

Presidency ends

1 Jan 2015Latvian

Presidency begins

Trilogue discussions and ordinary legislative procedure

[Spring 2015] Adoption

[Spring/Summer2015]Publication in

Official Journal

[2017]Member States must adopt and publish laws within 2

years and must apply provisions within 30 months

(based on latest Compromise Text)

[2014/2015]Final

Compromise Text

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What has your organisation done, or planning to do, in preparation for PSD2?

Discussion points

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What would an industry collaborative approach look like?

Discussion points

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Where is the divide between the collaborative and competitive space?

Discussion points

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Would your organisation participate in a working group to define and scope a potential collaborative approach?

Discussion points

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• VocaLink is seeking early engagement with the industry

• Chance to input and shape a collaborative response to regulation

• Further industry day planned for Q1 2015

Summary and next steps

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Drinks and Networking

Thank you for participating