08 December 2015

EBA consults on separation of payment card schemes and processing entities under the IFR

The EBA launched this consultation under Article 7(6) of the Interchange Fee Regulation (IFR). The technical standards introduce specific requirements related to the independence of payment card schemes and processing entities.

The European Banking Authority (EBA) draft RTS requires payment card schemes and processing entities to have accounting processes in place to produce annual audited information related to separated balance sheets, and profit & loss accounts; to separate workspaces; and to ensure the independence of senior management, management bodies and staff. It also sets out requirements related to the use of shared services and a shared information management system; the treatment of sensitive information; a code of conduct; and the separation of annual operating plans.

The IFR aims at facilitating the creation of a single market for card payments across the European Union, by ensuring a level playing field that will facilitate greater competition. In order to contribute to this objective, and to ensure effective and sustainable competition among processing services providers, the IFR confers on the EBA the mandate to develop regulatory technical standards (RTS) to separate payment card schemes and processing entities in terms of accounting, organisation and decision making process.

The CP also provides some clarity to market participants as regards supervisory expectations during the period between the application date of Article 7 IFR on 8 June 2016 and the possibly later application date of the RTS.

Responses to this Consultation Paper can be sent to the EBA until 8 March 2016.

Press release

Consultation paper

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