WG-REQ-1516 Word-to-A4-PPT-portrait PSD3 IMPACTS-STAGE-3 PRINT3mmBLEED - Flipbook - Page 5
HL | PSD3 Impacts
3 Legislative process
to date and expected
timing
When considering what the
final text for PSD3 will look
like, it is important to look at
the EU legislative process.
Whilst not a rule, the Council usually reaches a
general approach before the Parliament has an
agreed text. As a result, the Parliament often
looks at the Council general approach and
bakes into its own text grounds for negotiation
during trilogues.
This 8convention9 was not followed during PSD3,
where as a result of the European elections, the
Parliament had to expedite its position to reach
an agreement before the end of the mandate.
Failing to reach a Parliament position carries a
number of risks ranging from the file becoming
a political orphan, i.e. lost in the new mandate,
or that the new file takes a completely different
direction as a result of a new negotiating team
and composition of Parliament. As a result of
this expedited process, the Parliament reached a
position before the Council. What this means in
practice is that the ordinary buffer that is built
in is not there and as such some of the precooked trilogue discussions will not have been
had. It is important to note that the Council
dynamic is different which is why this approach
is not reciprocated.
5
2 Glossary of Terms
AISP
Account Information Service Provider
API
Authorised Payment Institution
ASPSP
Account Servicing Payment Service Provider
EBA
European Banking Authority
EMI
Electronic Money Institution
NCA
National Competent Authority
PSP
Payment Service Provider
PSU
Payment Service User
SCA
Strong Customer Authentication
TPP
Third Party Provider
At present, the Council discussions are ongoing
and whilst the Hungarian Presidency was
bullish about concluding PSD3, after the first
two working groups it too is resigned to the
reality that this may not be completed in their
mandate. This is a large blow in the timeline.
Poland is the next presidency and it looks as
though the Polish presidency will conclude this
file. If this is the case, then our estimation is
that a general approach would only realistically
be found in Q2 of 2025 after which trilogues
can begin.
Where Parliament has not had sight of the
Council text, there will be a risk that trilogues
could be much longer if there are new matters
that have not been discussed previously or if
there are wildly different positions.
Acknowledging this, we consider that in a
best case scenario, there may be an H1 2025
agreement in trilogues. At present there is an
18 month implementation period (although this
may be altered in trilogues) if this continues to
be the case, then we can expect PSD3 to only
come into effect in Q1 2027.
