21 March 2014

EPC: SEPA migration regulation published in TJEU

The Regulation on migration to Union-wide credit transfers and direct debits was published in the Official Journal of the EU on 20 March, 2014. It applies, with retroactive effect, from 31 January, 2014.

The European Commission introduced, on 9 January 2014, a proposal for a new EU Regulation amending the SEPA Regulation to “give an extra transition period of six months during which payments which differ from the SEPA format can still be accepted” in the euro area after 1 February 2014.

In February 2014, the European Parliament and the Council of the EU, respectively, adopted a new ‘Regulation (EU) No 248/2014 amending Regulation (EU) No 260/2012 as regards the migration to Union-wide credit transfers and direct debits’. This new EU Regulation states, among other things: “In Article 16 of Regulation (EU) No 260/2012, paragraph 1 is replaced by the following: (...) By way of derogation from Article 6(1) and (2), PSPs [payment service providers] may continue, until 1 August 2014, to process payment transactions in euro in formats that are different from those required for credit transfers and direct debits pursuant to this Regulation. [EU] Member States shall apply the rules on the penalties applicable to infringements of Article 6(1) and (2) (…) from 2 August 2014.”

In the view of the European Commission, this procedure “does not change the formal deadline for migration of 1 February 2014.” Consequently, Article 6(1) and (2) of Regulation (EU) No 260/2012, which stipulates the 1 February 2014 compliance date, remains unchanged.

Regulation (EU) No 248/2014 was published in the Official Journal of the EU on 20 March 2014. Article 2 of Regulation (EU) No 248/2014 states: “This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union. It shall apply, with retroactive effect, from 31 January 2014.”

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