EC takes action to bring e-money laws into line

Six Member States – Belgium, Spain, France, Cyprus, Poland and Portugal – have been asked to notify the European Commission what steps they are taking to bring their national laws into line with the revised E-Money Directive.  This Directive was due to be implemented across the EU by 30 April 2011.

With the increasing take-up of e-money and mobile payments services, the delay by certain Member States in updating their legislation is creating a two-speed Europe.  This presents a challenge for banks, financial services providers, mobile operators and other players in engaging effectively with the varying regulatory rules, when a level playing field should have been established by April 2011.

If the national authorities do not notify the necessary implementing measures within two months, the Commission may refer the Member States to the Court of Justice requesting financial penalties.

This move comes at a time when the Commission is now digesting the responses to its Green Paper on the creation of an integrated market in payments, including internet and mobile payments. The Commission expects to announce the next steps following the consultation in the second quarter of 2012.

John Worthy, Partner in the Technology & Outsourcing Group at Field Fisher Waterhouse LLP