On 27 October 2020, the European Central Bank (ECB) published the following consultation papers on the draft Eurosystem oversight framework for electronic payment instruments, schemes and arrangements:
- Eurosystem oversight framework for electronic payment instruments, schemes and arrangements. In this consultation the ECB proposes a single oversight framework for electronic payment instruments, payment schemes and payment arrangements – the PISA framework. The new framework would replace the “Harmonised oversight approach and oversight standards for payment instruments” and all related oversight frameworks for cards, direct debits, credit transfers and the security objectives for e-money. The ECB states that the proposed framework takes into consideration the Eurosystem’s approach to the oversight of payment systems and is, where appropriate and possible, aligned with the relevant parts of the Principles for Financial Market Infrastructures (issued by the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions) and the ECB’s revised Oversight Framework for Retail Payment Systems.
- Eurosystem assessment methodology for electronic payment instruments, schemes and arrangements. The underlying methodology is based on the “Revised assessment methodology for payment systems” but in view of the different scope of the PISA framework some key considerations and assessment questions have been adjusted and complemented by content from previous assessment guides for payment schemes. In addition, new requirements have been added which take into account market developments. The PISA assessment methodology combines and replaces the guidance that was previously provided in dedicated documents for each payment instrument.
- Exemption policy for the Eurosystem oversight framework for electronic payment instruments, schemes and arrangements. The draft policy defines the criteria used to identify the payment schemes / arrangements to be overseen by the Eurosystem and those which are exempt, taking into account their relevance for the overall payment system. In this respect the size, market penetration and geographical relevance of a payment scheme / arrangement within the euro area are considered. The exemption criteria and their respective thresholds seek to be proportionate to the risks introduced by small and/or emerging payment schemes / arrangements and exempt payment schemes / arrangements which do not meet the defined criteria and thresholds. The Eurosystem will review this policy at least every three years to ensure it is in line with market developments.
The deadline for responding to the consultations is 31 December 2020.