On 28 May 2014, the House of Commons European Scrutiny Committee (the Committee) published its 50th report of the 2013-14 session. The report, among other things, outlines (in section 5) the Committee’s consideration (at its meeting on 14 May) of the European Commission’s proposals for a Directive on payment services in the internal market (PSD2); and a Regulation on interchange fees for card-based payment transactions (MIF Regulation).

The Committee considered the European Central Bank’s (ECB) opinions on the legislative proposals, published in February 2014, and an update on the progress of the proposals through the EU legislative process provided by the government, by way of a letter from Andrea Leadsom, Economic Secretary to the Treasury.

What this means for you

Ms Leadsom advised that negotiations in the Council of the EU on PSD2 are at a relatively early stage; that the government is seeking a number of improvements to the legislative proposals (outlined in the 50th report); and that points raised to the Committee from MasterCard, the UK Cards Association and consumer groups relating to the capping of interchange fees, have been considered by the government.

Work on PSD2 will continue during the summer with the European Council potentially adopting its general approach in June 2014 (according to the European Commission’s Payment Systems Market Expert Group meeting documents). It could be at least late 2015 before PSD2 is adopted.