With its press release of January 9, 2014 on the SEPA migration end-date for corporate clients, the European Commission has published a proposal to keep the end-date unchanged, but to allow for an extra transition period of six months – to August 1, 2014 - during which payments (credit transfers and direct debits) that differ from the ISO 20022 XML SEPA format can still be accepted and processed by Payment Service Providers and legacy clearing/payment schemes.
In practice this means a continuation of the parallel existence of local legacy payment schemes and clearing systems together with the SEPA schemes (SEPA Credit Transfers und SEPA Direct Debits) in the eurozone until July 31, 2014.
This will help Payment Service Users that have not yet migrated to SEPA. The motivation of the European Commission to raise such a proposal is in response to the perceived low SEPA migration rate across Europe, and specifically, in the SME sector.
The proposal has to be converted into EU legislation by amending the original SEPA migration regulation in order to become effective.
Deutsche Bank recommends that you stay the course in your SEPA migration projects and finish them as soon as possible. We will continue to support those clients that are not yet ready to achieve SEPA readiness and we suggest that they do not hesitate in contacting their day-to-day contact within Deutsche Bank.
We will keep you informed about further communications from the authorities.