Onshoring EU Regulatory Technical Standards under the Interchange Fee Regulation: EU Exit Instrument and Policy Statement
The PSR has now adopted the EU Exit instrument onshoring the regulatory technical standards Regulation (RTS Regulation) supplementing Article 7(1)(a) of the EU Interchange Fee Regulation (IFR). We’ve published a policy statement alongside the instrument.
The changes we’ve made address deficiencies which would arise if the UK leaves the EU without a withdrawal agreement or implementation period in place (a ‘no-deal’ scenario).
The EU Exit Instrument changes the RTS regulation supplementing Article 7(1)(a) of the EU IFR to ensure that it:
- functions effectively after the UK leaves the EU on exit day
- is consistent with the amendments the Treasury made to the IFR under the European Union (Withdrawal) Act 2018 (EUWA)
If the UK leaves the EU in a no-deal scenario, the EUWA will convert the RTS Regulation into UK law on exit day. The EU Exit instrument onshoring the RTS Regulation will also take effect.
Article 7(1)(a) of the IFR requires payment card schemes and processing entities to be independent in terms of accounting, organisation and decision-making processes. The RTS Regulation sets out the specific requirements applicable to payment card schemes and processing entities.
On exit day, the EUWA will repeal the European Communities Act 1972 and convert existing directly applicable EU law (including EU Regulations) into UK law.
The Treasury has delegated EUWA powers to us to onshore the RTS Regulation and maintain it in the future. These powers are linked to our role as the main competent authority for monitoring and enforcing the IFR in the UK.
We consulted on our proposed changes to the RTS Regulation in November 2018. None of the respondents to the consultation objected to these changes and they did not propose any additional changes to the RTS Regulation.
Who should read this document?
We expect this policy statement to be of interest to various parties, including:
- card schemes subject to Article 7 of the EU IFR
- parties contracting with card schemes and/or processing entities (for example, issuers and acquirers)
- third-party card payment processors
For more information on the work we’re doing to prepare for the UK’s withdrawal from the EU, see our Brexit webpage.