Shearman & Sterling LLP | FinReg | Final EU Guidelines on Contingency Mechanism Exemption for Account Servicing Payment Service Providers
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  • Final EU Guidelines on Contingency Mechanism Exemption for Account Servicing Payment Service Providers

    12/04/2018
    Following its consultation earlier in 2018, the European Banking Authority has published final guidelines on the conditions to benefit from an exemption from the contingency mechanism under the revised Payment Services Directive. PSD2 and the related Regulatory Technical Standards on strong customer authentication and common and secure communication regulate, among other things, the access by account information service providers and payment initiation service providers to customer payment account data held in account servicing payment service providers.

    The RTS require, among other things, ASPSPs with payment accounts that are accessible online to offer at least one access interface ensuring secure communication with account information service providers, payment initiation service providers and payment service providers issuing card-based payment instruments. An ASPSP may choose between offering: (i) an interface that is dedicated to the communication with account information service providers, payment initiation service providers, and payment service providers issuing card-based payment instruments; or (ii) use of the interface for the identification and communication with the ASPSP's payment service users. Where a dedicated interface is elected, ASPSPs must establish a contingency mechanism to ensure that payment service providers who rely on the dedicated interface can continue to provide their services in the event that the dedicated interface suffers from unavailability or inadequate performance. ASPSPs may apply for exemption from having to provide such a mechanism, demonstrating that the dedicated interface complies with certain other specific conditions.

    The guidelines will apply to national EU regulators and payment service providers from January 1, 2019. The guidelines clarify the requirements that ASPSPs must meet to obtain an exemption, in particular, the service level, availability and performance of the interface, the publication of performance indicators, stress testing, obstacles to accessing payment accounts and resolution of problems. The guidelines also clarify the information that national regulators should consider when determining whether an ASPSP qualifies for the exemption.

    View the final guidelines.

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