WG-REQ-1516 Word-to-A4-PPT-portrait PSD3 IMPACTS-STAGE-3 PRINT3mmBLEED - Flipbook - Page 7
HL | PSD3 Impacts
Safeguarding (PSD3 Art 9)
What is the impact?
Changes to the safeguarding regime will also
trigger NCA engagement since the draft PSD3:
The uplift will be a less burdensome exercise
than that required for PSD2 3 although this will
still require PSPs to perform a gap analysis and
work out what (if anything) must be provided
to regulators.
§
§
Aligns the safeguarding regimes of PSD2
and Second Electronic Money Directive
(EMD2) 2009/110/EC 3 with the result that
EMIs will now have to safeguard by the end
of the following business day following
receipt of funds (previously, EMIs were
permitted to safeguard funds within 5
business days after issuing the e-money
where such funds were paid by card).
Introduces a new requirement to mitigate
concentration risk of safeguarded funds.
Firms will therefore need to notify regulators of
their new arrangements.
E-money distributors (PSD3 Art 19,20)
Additionally, the PSR proposes to align the
status of e-money distributor with that of
payment services agent with the result that
distributors would be subject to registration
requirements (as agents are) with NCAs
(and EBA).
Transition (PSD3 Art 44,45)
APIs and EMIs will have two years to
demonstrate compliance with the above Title II
requirements of PSD3.
Credit institutions are less likely to be impacted
since most of the new requirements would be
covered by licensing requirements under the
CRD in any event.
However, certain aspects of the PSD3 changes
could prove costly and time-consuming for
some 3 especially EMIs who will need to
register all their distributors (like APIs are
required currently to register their agents).
The two-year transitional period provides a
certain amount of respite in terms of time
pressure 3 but for some EMIs, this could be a
huge exercise.
Both APIs and EMIs will need to review their
safeguarding arrangements and notify
regulators of changes they are making to
comply.
7
