Areas of Practice
27th Apr 2020
On 10 January 2020, the European Central Bank (ECB) received a request from the Governor of the Central Bank of Cyprus (CBC) for an opinion on a draft CBC directive on the operation of payment systems under its oversight, on the role and governance of payment system operators and on the obligations of payment system participants (hereinafter the ‘draft directive’).
The main purpose of the draft directive is to enact a set of rules governing the functioning and operating methods of payment systems and of the operators of those systems. The draft directive governs participation in, and suspension or exclusion from, a payment system. More specifically, the participation in a payment system is made conditional upon the satisfaction of eligibility and continuing participation criteria approved by the CBC for every payment system, and the procedure governing the admission of participants to a payment system, including the procedure to challenge the decision if the candidate participant is rejected, is set.
By way of a general observation, the ECB welcomed the draft directive, which will provide a more robust legal basis for the CBC’s existing tasks relating to the oversight of payment systems. The draft directive will help to promote the sound governance, security and stability of retail payment systems and their operators.
The ECB made the following comments on the draft directive:
This is a summary of the opinion of the ECB, which was published on its website on 19 March 2020.
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