Short Reads

PSD II: an update on the implementation and the final RTS and guidelines

PSD II: an update on the implementation and the final RTS and guideli

PSD II: an update on the implementation and the final RTS and guidelines

07.06.2018 NL law

Despite considerable industry pressure, the Netherlands failed to implement the EU Payment Services Directive (PSD II) on time. The implementing Act is now expected to enter into force in the summer of 2018.

As part of promoting of the development and use of innovative payment services, PSD II will regulate two types of payment services: account information and payment initiation services. In addition, PSD II aims to enhance customer protection, security and competition between payment service providers.

Although the implementation has been delayed on a national level, the implementation on a European level remains in full process because of, among other things, the adoption of the regulatory technical standards (RTS) by the European Commission (EC) and the finalisation of guidelines by the European Banking Authority (EBA).

We list (in chronological order) the RTS and guidelines which until now have been finalised or adopted under PSD II.

The following RTS have been adopted by the EC:

  • On 23 July 2017 the EC has adopted the RTS specifying the framework for cooperation and exchange of information between competent authorities for passport notifications. The technical standards will ensure that information about payment institutions and e-money institutions that carry out business in one or more EU Member States is exchanged consistently between the national authorities.
  • On 27 November 2017 the EC adopted the long awaited RTS on strong customer authentication and common and secure communication. These will be effective as per 13 September 2019.The most important elements are that:
    • the authentication of a customer must be based on two (or more) elements which can be categorized as: knowledge (e.g. a password or code), possession (e.g. a card or mobile phone) and inherence (e.g. finger print or iris scan). The successful authentication will not be completed until the customer has entered a one-time password (such as a code sent by text), so there will de facto a three step authentication (3FA); and
    • the existing practice of third party payment providers without identification to use data that appears on the customer's screen from one application to translate it into another (which is also known as 'screen scraping') will no longer be allowed once the RTS become into force.

The following guidelines have been finalised by the EBA:

  • On 7 July 2017 the EBA published its final guidelines on how to stipulate the minimum monetary amount of the professional indemnity insurance (PII) or other comparable guarantee for third party payment providers.
  • On 11 July 2017 the EBA published its final guidelines on the information to be provided by applicants intending to obtain authorisation as payment and electronic money institutions as well as well as to register as account information service providers. These guidelines specify the detailed documentation that applicants are required to submit to national competent authorities for the purpose of authorisation or registration.
  • On 27 July 2017 the final guidelines from the EBA on major incident reporting were published. The guidelines set out the criteria, thresholds and methodology to be sued by payment service providers in order to determine whether an operational or security incident should be considered major and, therefore, be notified to the competent authority in the home member state.
  • On 13 October 2017 the final guidelines from the EBA on procedures for complaints of alleged infringement of PSD II were published. These guidelines govern the process through which payment service users and other interested parties can submit complaints to the competent authorities.
  • On 12 December 2017 the EBA published the final guidelines on security measures under PSD II. These guidelines aim to ensure that payment service providers have in place appropriate security measures to mitigate increased operational and security risks arising from electronic payments.

The status of the other RTS and EBA guidelines under PSD II can be found here. The Dutch Central Bank (DNB) has determined that all (available) guidelines will enter into force at the moment PSD II has been implemented in the Netherlands, with the exception of the RTS on Strong Customer Authentication & Secure Communication under PSD2, which will enter into force on 13 September 2019.

Team

Related news

18.07.2019 NL law
ESMA publishes report on licencing of fintech firms across europe

Short Reads - On 12 July, the European Securities and Markets Authority ("ESMA") published a report on the status of licencing regimes of FinTech firms across the European Union ("EU").  The report is based on two surveys conducted by ESMA since January 2018, which gathered evidence from EU national competent authorities ("NCAs") on the licensing regimes of FinTech firms in their respective jurisdictions.

Read more

05.07.2019 NL law
Consultation to extend shareholder notification obligations

Short Reads - Stibbe has taken part in the public consultation concerning the draft Act on the extension of substantial holding notification obligations, which was commissioned by the Dutch Minister of Finance.​ In its consultation response, Stibbe objected to the draft bill and recommended it be abandoned.

Read more

09.07.2019 NL law
Testen van zelfrijdende auto's sinds 1 juli 2019 vergemakkelijkt

Short Reads - Op 1 juli 2019 is de Experimenteerwet zelfrijdende auto's in werking getreden (Stb. 2019, 240), Het betreft een wijziging van de Wegenverkeerswet 1994 (Wvw) waardoor het testen van zelfrijdende auto's (met besturing op afstand) makkelijker wordt. De wetswijziging vormt een belangrijke stap om belemmeringen in de huidige regelgeving weg te nemen en ruim baan te maken voor nieuwe technologische ontwikkelingen op het gebied van zelfrijdende auto's.

Read more

02.07.2019 NL law
Debate night: HR Analytics: opportunity or threat?

Seminar - On 2 July 2019, Stibbe's Digital Economy Group will host a debate night in Amsterdam on the hot topic of HR analytics. During Stibbe's debate night, speakers from the world of business, politics, science and law will exchange views on HR analytics, how they can be used in practice, and their development in the context of employment and privacy law.

Read more

01.07.2019 NL law
Dutch government publishes plans to combat money laundering

Short Reads - The Dutch Minister of Finance and Minister for Justice and Security published a joint letter today (1 July 2019) that they sent to the Dutch Parliament containing plans to combat money laundering (click here to read the letter in full, in Dutch). These new plans follow recent scrutiny in the Netherlands and Europe relating to money laundering. Some of the plans are far reaching, and will lead to practical implications for our clients if these plans are transposed into Dutch law.

Read more

Our website uses functional cookies for the functioning of the website and analytic cookies that enable us to generate aggregated visitor data. We also use other cookies, such as third party tracking cookies - please indicate whether you agree to the use of these other cookies:

Privacy – en cookieverklaring