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Clifford Chance

Clifford Chance

Briefings

Transaction Services Newsletter - October 2011

13 October 2011

Those who work in the Transaction Services sector know that some lucky colleagues get to spend a week in some exciting city during September when they can party, party, party. At least, that’s how it seems if you got left behind. This annual gathering of payments, securities, trade and software people is called Sibos (the SWIFT international banking operations symposium, if we have it right), an impressive four-day conference where there are approximately 200 seminars, 200 exhibitors, 7000 delegates, and one terrific party at the end of the proceedings. After all that, heads might hurt, particularly on the morning after the Sibos closing party.
Perhaps, but at the 2011 Sibos in Toronto, there was a good deal of focus on regulatory issues affecting payments, and that was not really putting many people in a dancing mood. One regulatory development which comes into force on 1 January 2012 is the deferred effect of article 69 of the Payment Services Directive. This provides that a payer’s payment service provider must ensure that a payment is credited to the payee’s payment service provider’s account by the end of the next business day after the point in time of receipt of the payment instruction. In other words, next year you have to get the money to the recipient’s bank by the day after you get the transfer instructions. And this provision – known as the requirement to execute on D+1 – is causing a few headaches.
 

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