The European Commission has announced that it has adopted a proposed Regulation that amends the SEPA Migration Regulation. Although 1 February 2014 is the deadline set for euro area migration to SEPA credit transfers (SCT) and SEPA direct debits (SDD), the Commission believes that it is “very unlikely” that SEPA migration will have been achieved by this date and this of course may cause payment or market disruption.
The proposed Regulation gives banks and payment services an additional six months until 1 August 2014, within which they may continue to process payments through their legacy payment systems, rather than the SEPA format.
The Commission urges the European Parliament and the Council of the EU to adopt the proposed Regulation as a matter of urgency. Should there be a delay in the adoption of the proposed Regulation, it would still have a retroactive effect as from 31 January 2014. After the additional six month transitional period, the Commission warns that it will take far more decisive action against firms that do not conform with the new SEPA format.
View Statement of the eurosystem on SEPA migration end date, 9 January 2014
View Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) N° 260/2012 as regards the migration to Union-wide credit transfers and direct debits, 9 January 2014