The SEPA deadline extension to August 2014 was granted by The European Commission to ensure a smooth transition period to SEPA Credit Transfer and SEPA Direct Debits. The six-month extension was deemed necessary due to the low SEPA compliance rates throughout the eurozone.
However, the deadline extension has caused some confusion with UK corporates...
The key SEPA deadline questions to be answered
Ali Moiyed, CEO and founder of AccessPay explains "Unfortunately, there is some uncertainty around the SEPA deadline extension. It has disrupted planning for many corporates, and raised a number of questions."
Ali lists these key questions as:
• Will the November 2014 deadline for new rulebooks be moved?
• Could the October 2016 deadline for non-euro area countries also be moved by 6 months?
• Is the August 2014 deadline extension now ‘set in stone’ or could it be moved again?
• Has this extension set an unwelcome precedence? Will future payment deadlines will be ignored?
A call to action as August 2014 approaches
Since the start of February when the SEPA deadline extension was announced, many UK corporates have raised concerns that their SEPA planning for the next six months is based on assumptions, rather than facts.
Ali sympathises with them, "Nobody should be forced to make plans without the necessary information. UK corporates need guidance and clarity to smooth the journey through to August 2014 - and beyond!"
The European Central Bank (ECB) agrees, "(the proposed regulation) has given rise to confusion in the markets on the deadline for migration. It is therefore of the utmost importance to reinstate legal certainty, reduce the confusion in the markets and provide clear guidance..."
It appears that the need for clarity is in no doubt. The sooner it is given, the better for corporates in the UK and throughout the eurozone...
AccessPay is at the forefront of innovation in payments. AccessPay uses cloud-based technology to provide efficient, affordable and fully compliant solutions for Bacs, Direct Debit Management, Faster Payments, SEPA Credit Transfers, SEPA Direct Debits, HMRC RTI and Multi-Bank Cash Management.
For more information about AccessPay, visit http://www.accesspay.com
+44 (0) 203 282 7152
+44 (0) 203 282 7152