HM Treasury has published a consultation document that sets out the proposed steps that the UK Government will take in order to make sure the UK meets its obligation to transpose the Payment Accounts Directive (PAD). Member States are required to implement the PAD by 18 September 2016.

The PAD sets out common regulatory standards that member states are required to meet in order to:

  • improve the transparency and comparability of fees related to payment accounts that are used for day-day payment transactions;
  • facilitate switching of those accounts; and
  • ensure access to bank accounts with basic features.

Whilst PAD gives Member States a discretion to extend its application in a number of areas the UK Government’s starting approach is not to extend it beyond what is strictly required. However, the exception to this concerns payment accounts with basic features (chapter IV of PAD) where UK policy on basic bank accounts is more developed than that set out in the Directive. As a result, the UK Government intends to implement PAD is such a way as to preserve the UK’s existing basic bank account policy as far as possible, while creating the necessary legal certainty for consumers required by PAD.

The deadline for comments on the consultation document is 3 August 2015.

View Implementation of the EU Payment Accounts Directive, 23 June 2015