The European Banking Authority has published a Consultation Paper (CP) and draft Regulatory Technical Standards (RTS) on the “framework for cooperation and exchange of information between competent authorities for passport notifications, under PSD2“. The consultation will run until 11 March 2016, and responses must be submitted here.
The RTS are intended (a) to “ensure that information about … payment institutions that carry out business in one or more EU Member States is exchanged consistently between the national authorities of the home and host Member States“; and (b) to “create a harmonised framework aimed at providing clarity to payment institutions about regulatory requirements and … at fostering the cross-border provision of payment services in the EU internal market”. The RTS therefore specify the information that payment institutions will be required to provide to their home state regulators, if they want to operate on a cross-border services basis into, or they want to establish a branch in, another EU Member State. They also include format, language, submission and other requirements.
PSD2 is expected to come into force in January 2016; and payment institutions will almost certainly have to comply with their local regulator’s Directive implementing rules, from January 2018.
Our Client Alert on PSD2 is available here.