Recent regulatory developments focussed on the payments sector.
The Bank of England (BoE) has updated its webpage on ISO 20022 with the following information.
The real-time gross settlement (RTGS) Renewal Programme has consulted with CHAPS direct participants, other central banks and members of the payments industry on its plans for ISO 20022 migration. In light of this and an impact assessment, the Programme confirms a revised approach to ISO 20022 migration:
The BoE will provide further guidance for CHAPS direct participants on these changes, together with technical information, during the week commencing 26 October 2020.
Commission Delegated Regulation (EU) 2020/1423 supplementing the revised Payment Services Directive (PSD2) with regard to regulatory technical standards (RTS) on the criteria for appointing central contact points within the field of payment services and on the functions of those central contact points, has been published in the Official Journal of the EU.
The RTS set out the criteria for the appointment of central contact points by payment institutions. Their aim is to create legal certainty about the criteria that member states will apply to determine whether it is appropriate to appoint a central contact point and to set out the functions a central contact point must have to fulfil its duties.
The Delegated Regulation will enter into force and apply on 29 October 2020.
The European Banking Authority (EBA) has published a consultation paper setting out proposals to revise its guidelines on major incident reporting under PSD2. The guidelines apply to the classification and reporting of major operational or security incidents in accordance with Article 96 of PSD2 and are addressed to payment service providers (PSPs) and the competent authorities (CAs).
The EBA acknowledges the European Commission's recent legislative proposal for an EU regulatory framework on digital operational resilience (DORA), which contains a proposal for incident reporting that is inspired by PSD2 but goes beyond payments-related incidents. It notes that, while it will be years before that framework becomes legally applicable, it expects the revised guidelines proposed in the current consultation to become applicable in Q4 2021 and remain in force at least until the DORA requirements take effect.
The consultation closes on 14 December 2020 and the EBA will publish a final report in due course.
The Financial Stability Board (FSB) has published a Stage 3 report on enhancing cross-border payments, in which it presents a roadmap to address the key challenges faced by cross-border payments and the frictions in existing processes that contribute to these challenges.
The roadmap was developed by the FSB, in coordination with the Committee on Payments and Market Infrastructures (CPMI) and other relevant international organisations and standard-setting bodies. It builds on the FSB's Stage 1 report, setting out the challenges and the frictions in cross-border payments that contribute to them, and the CPMI's Stage 2 report, describing the necessary elements of a response.
The roadmap provides a high-level plan setting goals and milestones that can be adapted as work progresses across five focus areas:
The FSB will coordinate the work and report annually on progress to the G20 and the public, which may result in the roadmap being updated and adapted over time to ensure it meets its goals.
The roadmap has been delivered to G20 Finance Ministers and Central Bank Governors for their meeting on 14 October 2020.