European Banking Authority Publishes Final Draft Technical Standards on Information Sharing Between National Regulators for Passporting of Payment Services
12/14/2016The European Banking Authority published final draft Regulatory Technical Standards on the cooperation and exchange of information between national regulators where an authorized payment institution would like to provide payment services in a Member State other than its home Member State (so-called passporting) under the Payment Services Directive (also known as PSD2). The Directive aims to make payments between Member States as secure, easy and efficient as those made within a Member State. PSD2 focuses on electronic payments and payment services within the EU, regulating new types of payment services and payment services providers, which are currently unregulated, and stimulating competition in the electronic payments market. The RTS aim to ensure that information about those entities that carry out business in EU Member States is exchanged between national regulators in a consistent way, that there is clarity for payment institutions about their regulatory requirements and specifies the information that is to be shared between national regulators. The EBA consulted on draft RTS in late 2015 and, having taken feedback into account, has made certain amendments to the final draft RTS, including removing some of the information requirements on payment institutions relating to governance arrangements and internal control mechanisms, outsourcing and the agent structural organization. In addition, the EBA has now provided separate templates for when a payment institution or e-money institution is using an agent or when a distributor is used.
Member States must transpose PSD2 into their national laws by January 13, 2018 and apply those laws from that date, subject to certain exceptions and transitional measures. PSD2 will repeal the current Payment Services Directive with effect from January 13, 2018. The European Commission will now consider whether to adopt the final draft RTS.
View the final draft RTS.TOPIC: Corporate Governance