Presentation of Osborne Clarke's Paul Anning at European Payments 2012 (4 December)

1. European Payments
The Payment Services Directive Review – What matters and
why?
Paul Anning, 4 December 2012

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European payment services regulatory regime:
Objectives
Regulated field
of payment
services
Digital economy
Greater
efficiency
Consumer
protection
Enhanced
competition

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European payment services regulatory regime:
PSD review – Key issues (December 2012)
Digital
economy
Overlay
services
Liability for
unauthorised
transactions
and defective
execution
Access to
payment
systems
One-leg
transactions
/all
currencies
'Negative
scope'
matters
Mobile
payments
Acquiring
Refund rights
(back-dating)
Surcharging
Merging PI
and EMI
regimes
PSD 2
Passporting
issues

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PSD review
Scope, subject matter and definitions
• Extension to one-leg transactions/all currencies?
• Clarification of negative scope:
– commercial agents
– 'limited network'
– telecom exception
• Extension of PSD to a new payment service: overlay services

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PSD review
Market access, structure and prudential rules
• Considering merger of PI and EMI classifications
• Reducing friction in functioning of passporting regime
• Examining access to payment systems

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PSD review
Rights and obligations of PSUs and PSDs;
Transparency
• Further harmonisation of surcharging rules
• Refinement of refund right (for payee-initiated transactions;
back-dating of refunds)
• Reappraisal of balance between PSP and payer for liability for
unauthorised payment transaction or non-execution/defective
execution

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PSD review
Integrated Market for Card, Mobile and Internet
Payments
• Acquiring – clarity on application of PSD
• Mobile Payments – proposal expected Q2 2013
• Digital economy:
– security of payments
– e-invoicing to be the standard mode for public procurement
– convergence

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PSD review
What matters and why?
• Legislative objectives will keep driving change and evolution
• Fundamental to ensure PSD delivers:
– clarity and certainty
– flexibility for market and technology developments
– level-playing field
• Highlights: overlay services; passporting regime; and mobile
payments

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Further reading
• Payment Services Directive
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32007L0064:EN:NOT
• Electronic Money Directive
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32000L0046:EN:NOT
• European Commission’s Green Paper: Towards an integrated European
market for card, internet and mobile payments
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52011DC0941:EN:NOT
• ECB's Recommendations for the Security of Internet Payments
http://www.ecb.int/pub/pdf/other/recommendationsforthesecurityofinternetpaymentsen.pdf
• Single Market Act II
http://ec.europa.eu/internal_market/smact/docs/single-market-act2_en.pdf
• European Payments Council’s White Paper: Mobile Payments
http://www.europeanpaymentscouncil.eu/knowledge_bank_detail.cfm?documents_id=564

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Contact details
Paul Anning is head of European law
firm, Osborne Clarke's Financial
Institutions Group and a specialist
financial services lawyer. Paul has
market leading experience and
expertise in the payments industry
where he has guided clients through
new product development, regulatory
change and transformational projects,
such as the creation of the UK's
Payments Council (which sets the
strategy for UK payments), the merger
creating VocaLink (the UK’s largest
payments processor), the UK's first
NFC enabled stored value mobile
payment solution (QuickTap) and the
acquisition of one of Europe's leading
prepaid card issuers.
Paul is well versed in the complexities
of the payments industry's network
arrangements. He also has a deep
knowledge of legal and regulatory
developments affecting the payments
industry, including key European
developments such as SEPA, PSD and
the 2EMD.
Paul and the Osborne Clarke Payments
team act for a range of clients from
infrastructure providers and traditional
credit institutions and GTS businesses
through to electronic money issuers and
corporates and retailers (including on
corporate card and co-branded
arrangements). Their Payments
practice is recognized externally as top-
tier ranking, with commentary such as -
"Osborne Clarke is one of the leading
practices working in the payments
services sphere" and in July 2012 an
award for "TMT Team of the Year 2012"
at The Lawyer Awards for their work on
Everything Everywhere and
Barclaycard's QuickTap product.
Paul Anning
Partner and head of Financial Institutions Group
T+44 (0) 20 7105 7446
paul.anning@osborneclarke.com
"A fabulous, full-
service firm stuffed
with bright and
efficient people"
Chambers UK
"Osborne Clarke is one of the leading practices
working in the payments services sphere"
Chambers UK