European Payments Council reacts at European Commission proposal to give an extra transition period of six months for SEPA migration

The European Commission communicated on 9 January 2014 (see ‘related links’ below) that it proposes to modify Regulation (EU) No 260/2012 to “ during which payments which differ from the SEPA format can still be accepted” after 1 February 2014. The EPC recommends that all market participants in the euro area continue working towards meeting the 1 February 2014 deadline since the modification of the Regulation (EU) No 260/2012 has not yet been confirmed by the European Parliament and the Council of the EU.

The European Commission indicated that its proposal to modify Regulation (EU) No 260/2012 could still be “in process of adoption” by the European Parliament and the Council of the EU on 1 February 2014. This would mean that payment service providers and users in the euro area would not have certainty by 1 February 2014 whether the “extra transition period” proposed by the European Commission applies or not.

The EPC emphasises that in the event that the EU legislator would change the Regulation (EU) No 260/2012 in line with the proposal introduced by the European Commission on 9 January 2014, it will be crucial that relevant public authorities ensure that all stakeholders impacted across the euro area are informed on the effectively modified deadline for compliance with this EU law immediately.

It is the responsibility of the public authorities determining the SEPA compliance requirements to avoid a situation where uncertainty around applicable legal deadlines would impact ongoing migration efforts and further delay the completion of migration.

For more details: EPC press release