SEPA

SEPA is the new European area for payments in euros. It was defined in December 2004 by the EPC (European Payment Council). It includes 27 European Union members, the three countries member of the European Economic Area (Island, Liechtenstein, Norway), and Switzerland.

As from January 28th 2008, Société Générale proposes to represent its clients on clearing systems (CORE and ABE/Step2) and to manage their SCT flows.

Basically, SEPA provides the customer with three different means of payment:

• SCT (SEPA Credit Transfer) for ordinary credit transfers in euros in the SEPA area. SCT was launched on January 28th 2008.



• Payment cards: SCF (SEPA Card Framework) defines a new extended European environment for cards, aiming at harmonizing payment conditions for any card-related transaction in euros.



• SDD (SEPA Direct Debit) for direct debits in euros in the SEPA area. The launching of the SDD is postponed to the beginning of 2010.

Société Générale has undertaken to process SEPA orders from its clients as from the entry into force of the project (SCT, SDD, payment cards).

Resident banks’ adherence to SEPA schemes will take place bank by bank. Each bank will have to validate specific SEPA testing so that it can be declared as « SEPA compliant ».

At the beggining, SEPA representation offer will be added to the current offer on the SIT for usual mass operations (transfers, direct debits, bills of exchange…). Société Générale still accepts your current orders, under the same protocols, and under SIT-MINOS format as the ones you’re used to. We also progressively take charge of SEPA orders you send us, with appropriate protocols: FileAct, Etebac5, PeSIT, FTP.


Agence des Banques offering depends on the positioning of your bank:

• You can receive and process orders in XML format, and you comply with SEPA scheme(s) (self-certification, after self-testing).

From January 28th 2008, Agence des Banques proposes a specific offer, as intermediary bank. This offer includes all the communication protocols existing in France: FileAct, FTP, Etebac5, PeSIT.Please note that it is not possible to send SEPA orders via Etebac 3, as this protocol does not bear XML variable format, used for SEPA transactions.

• You are not in a position to receive and process orders in XML format

Agence des Banques has developped a specific offer for you so that, once you have signed the SEPA adherence pack, you have no specific SEPA technical development to undertake. Our solution is flexible, adapted to your information system and to your specific constraints:

• No need to implement a specific SEPA structure in your information system;
• No investment required;
• Transparent solution toward your own clients;
• Orders pass through clearing systems under your banking code;
• SEPA testing becomes a mere declaration.

Some questions ? Suggestions ? Please contact us !
Commerciaux.AGB@socgen.com

TARGET2

Target is the gross settlement system in real-time for high-value payments. It is operational since January 1st 1999 with the introduction of the euro.

The new generation Target 2 comes into force according to four windows:

• November 2007 (Austria, Cyprus, Germany, Latvia, Lithuania, Luxembourg, Malta, Slovenia);


• February 2008 (Belgium, Finland, France, Ireland, Netherlands, Portugal, Spain);


• May 2008 (Denmark, Estonia, ECB, Greece, Italy, Poland);


• September 2008 for countries that might not have migrated in time (« contingency window »).

Three different points, independent from each other, are to be considered:


1) Payment Module (cash flow management)


Each banking community (National Central Bank, Commercial Banks and local Ancillary Systems) migrate to the new Target2 platform on the switch day. Current national RTGS systems close at this moment. In the case of France, it was on February 18th 2008.

Agence des Banques clients can choose between two status: Indirect Participant for banks member of the EU, or Addressable Bic for financial institutions (in or outside Europe).

Being our customer, the Target 2 registration process is very simple: you fill in a document of declaration to the Banque de France (« Autorisation d’information », which you can download on the Banque de France Website, or we can send it to you, upon request), specifying your contact details. Société Générale then entirely takes charge of your Target 2 registration file. You do not have any certification test to do with the Banque de France.


2) Home Account Module (reserve management+cash)

The migration has taken place on February 18th 2008.

The banking clients must hold a Home Account (HA) for compulsory reserves and cash transactions. Agence des Banques proposes a HA co-management offer, which requires no specific infrastructure (whereas, the management of one’s own HA account requires a substantial SWIFT equipment to communicate with the Target 2 platform, equipment generally too heavy compared with the volumes considered on this account, dedicated to reserves). Do not hesitate to contact us for any information relative to our co-management offer.


3) Ancillary Systems:

From February 18th, French ancillary systems have been transferred to Target 2.
The type of participation to Ancillary Systems remains unchanged as for Target 2.

Some questions ? Suggestions ? Do not hesitate to contact us !
Commerciaux.AGB@socgen.com

Clearer

« Clearer » is a publication from Société Générale Agence des Banques ; it includes recent news as well as other major articles. It is part of the various means of communication offered by Société Générale Agence des Banques to its customers.

For more information about Clearer, click here

Société Générale Agence des Banques  will be pleased to meet you and give you all the explanations you need about our commercial offer. Should you wish to meet our representatives, feel free to write to : Commerciaux.Agb@socgen.com

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