Other UK and EU legislative developments

PSD2

The new EU Payment Services Directive (PSD2) came into force on 13 January 2016. Implementation into Member State law must be completed by 13 January 2018 at which point the 2007 Directive will be repealed.

Under PSD2, banks and other payment service providers (PSPs) must give payment initiation service providers (PSIPs) access to their customers' accounts to allow them to facilitate customer requested transactions. PSIPs will be subject to data security obligations and take on liability in relation to unauthorised transactions. PSPs are subject to rules on customer authentication, facilitating third party access to accounts, data security and liability as well as transparency requirements. The new legislation covers a wider range of organisations than the outgoing legislation.

Link to EU ODR platform published

The EC published a link to its pan-European Online Dispute Resolution platform which went live on 15 February 2016. The platform is intended to facilitate dispute resolution for cross-border online purchase of goods and services and will facilitate the appointment of an ADR entity to help resolve disputes, particularly by helping overcome language barriers by offering the service in all 23 official languages of the EU.

With the launch of the platform came the enforcement of information obligations on EU online traders and marketplaces offering goods and services in the EU under the ODR Regulation as implemented by the Alternative Dispute Resolution for Consumer Disputes Amendment Regulations 2015 (the ADR Amendment Regs).

There are two levels of information requirements:

  • All online traders and marketplaces
    • must include a link to the ODR platform on their website; and
    • must provide its email address on their website.
  • Online traders and marketplaces required to use ADR by law, under the rules of their trade association or under contract must
    • provide a link to the ODR platform in any offer made to a consumer by email; and
    • inform consumers of:
      • the existence of the ODR platform; and
      • the possibility of using the ODR platform for resolving disputes.
  • This information must also be provided in general online terms and conditions for sales or services contracts where they exist.
    These requirements are in addition to information requirements under the ADR Directive (implemented by the Alternative Disputes (competent Authorities and Information) Regulations 2015 as amended).

PSC (people with significant control) register

From 6 April, every UK company (unless listed in UK or on specified overseas market) and every UK LLP has been required to:

  • take reasonable steps to find out if there is anyone who is a registrable person or registrable relevant legal entity in relation to it and, if so, identify them;
  • give notice to anyone whom it knows or has reasonable cause to believe to be a registrable person or registrable relevant legal entity in relation to it (unless the company has already been informed of that person's status as a registrable person or registrable relevant legal entity and been supplied with the required particulars – and, if a PSC, the information and particulars were provided by the person or with his/her knowledge); and
  • maintain a PSC register, which must never be empty. Official wording must be used.
    See our Global Guide to Corporate Transparency for more information.

Trade Secrets Directive

One of the major pieces of EU legislation to pass this year was the Trade Secrets Directive which seeks to harmonise the way trade secrets are protected across the EU. Read more.

Read more on Radar

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