EPIF is delighted to share with you its position on the Settlement Finality Directive.

Adopted in 1998, the SFD guarantees that transfer orders within the European Union which enter the intra-bank payment system of central banks or are used for clearing and settlement of securities are legally settled. Under the current settlement arrangements for SCT Inst, EPIF members can only be indirect members of the TIPS ECB clearing arrangements. This puts the non-bank payment sector at a competitive disadvantage. Access to TIPS rests on our members having access to the system via their own banking relationships.

EPIF members have always supported an amendment to the SFD to extend direct access to the non-bank payment sector. With the evolution of the payments market and the objectives of the European Union with the proposals mandating instant credit transfers and the possibility to introduce a Digital Euro, this is becoming increasingly urgent.

In light of the above, EPIF strongly calls for payment and e-money institutions to be added to the list of eligible system participants under the SFD. This would ensure a level playing field and provide legal certainty in a cross-border context.

You can read our full position below.