On 5 September 2018, HM Treasury published the draft Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (the Regulations), together with an explanatory memorandum. The Regulations are made under section 8(1) of the European Union (Withdrawal) Act 2018 to address any failures of retained EU law to operate effectively after Brexit day, and were published in conjunction with the Draft Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018.
The Regulations amend the Payments in Euro (Credit Transfers and Direct Debits) Regulations 2012 and Regulation (EU) No 260/2012 of 14 March 2012 on business requirements for Euro credit transfers.
The Regulations maximise the prospect of the UK maintaining access to the Single Euro Payments Area (SEPA) by retaining the SEPA Regulation with amendments. The amendments primarily alter the wording of the text and take into consideration the UK’s future position as a third-country rather than an EU Member State. Part 4 of the Regulations is of particular note; the Government proposes a power to enable it to revoke the SEPA Regulation from the UK legal framework, in the instance where the UK is unable to continue to participate within SEPA.