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

20.05.2020 NL law
Perpetual securities not considered equity for Dutch corporate income tax purposes

Short Reads - In a decision of Friday 15 May 2020, the Dutch Supreme Court confirmed that fixed-to-floating rate perpetual equity securities (“perpetual securities”) should not be considered a “participation loan” (deelnemerschapslening) for Dutch tax purposes. Under Dutch tax law, characterization of a debt instrument as a “participation loan” implies that such instrument is deemed equity for Dutch corporate income tax purposes. Characterization of the perpetual securities as a participation loan would have meant that the interest would have been regarded non-deductible dividend.

Read more

12.05.2020 NL law
Kroniek van het mededingingsrecht

Articles - Wat de gevolgen van de coronacrisis zullen zijn voor de samenleving, de economie en – laat staan – het mededingingsbeleid laat zich op het moment van de totstandkoming van deze kroniek niet voorspellen. Wel stond al vast dat het mededingingsrecht zal worden herijkt op basis van de fundamentele uitdagingen die voortvloeien uit zich ontwikkelende ideeën over het belang van industriepolitiek, klimaatverandering en de positie van tech-ondernemingen en de platforms die zij exploiteren.

Read more

04.05.2020 NL law
Reputation assessment to be introduced for UBOs of several regulated institutions

Short Reads - On 21 April 2020, the legislative proposal for the Financial Markets Repair Act 2020 (the “Proposal”) was submitted to Dutch Parliament (Tweede Kamer). The Proposal repairs deficiencies and omissions that have occurred in the implementation in Dutch law of certain pieces of European legislation in the field of financial markets. A number of proposed changes are related to the implementation of the (amended) fourth Anti-Money Laundering Directive (“AMLD”).

Read more

01.05.2020 EU law
Commission adopts banking package in response to COVID-19 pandemic

Short Reads - On 28 April 2020, the European Commission adopted a banking package aimed at facilitating bank lending to support the economy and help mitigate the economic impact of the COVID-19-pandemic. The package intends to encourage banks to make full use of the flexibility embedded in the EU’s prudential and accounting frameworks, to allow banks to fully support citizens and companies during this pandemic by providing funding. The package includes an Interpretative Communication on the EU's accounting and prudential rules, as well as specific “quick fix” amendments to EU banking rules.

Read more

This website uses cookies. Some of these cookies are essential for the technical functioning of our website and you cannot disable these cookies if you want to read our website. We also use functional cookies to ensure the website functions properly and analytical cookies to personalise content and to analyse our traffic. You can either accept or refuse these functional and analytical cookies.

Privacy – en cookieverklaring