Impact of Brexit: SEPA—quick guide

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Impact of Brexit: SEPA—quick guide
  • Overview of onshored and preserved EU-derived law post-IP completion day
  • Relevant retained EU law and UK legislation—SEPA requirements
  • Key changes introduced by the Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018
  • Binding Technical Standards—SEPA
  • EPC decision on continued participation of UK payment services providers in SEPA schemes
  • UK approach to CBPR2

Impact of Brexit: SEPA—quick guide

This Single European Payments Area (SEPA) quick guide details current UK legislation and retained EU legislation in relation to requirements that were amended by the Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018, SI 2018/1199 Transfers and Debits Exit Regulations 2018 (Transfers and Debits Exit Regulations 2018) at the end of the implementation period following the UK’s withdrawal from the EU.

The legal framework for SEPA lies in the Payment Services Directive (Directive 2007/64/EC) (PSD), since replaced by the recast Payment Services Directive (Directive (EU) 2015/2366) (PSD2). PSD and its replacement, PSD2, provide a harmonised legal framework for payments in the European Union, which is necessary for the smooth functioning of SEPA. 

The legal framework for SEPA also includes the following pieces of EU legislation:

  1. EU Regulation (EC) 924/2009 on charges for cross-border payments in euro (OJ L 266 9.10.2009 p 11) (the Cross Border Payments Regulation or EU CBPR). The EU CBPR (which replaced Regulation (EC) 2560/2001, (OJ L 344 28.12.2001 p 13)) eliminated the differences in charges for cross-border and national payments in euro. It applies to payments in euro, in all EU Member States. The basic principle is that the charges for payment transactions in euro offered by a payment services provider (PSP) (eg a bank) have to be the same whether the payment

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