Regulatory Technical Standards on passporting under PSD2

Adopted and published on the Official Journal

These Regulatory Technical Standards (RTS) on the framework for cooperation and exchange of information between competent authorities for passporting will ensure that information about those 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. They distinguish the notifications related to branch establishments, agent’s engagement and free provision of services.

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EBA consults on cooperation and exchange of information for passporting under PSD2

11 December 2015

The European Banking Authority (EBA) launched today a consultation on its draft technical standards on the framework for cooperation and exchange of information between competent authorities for passporting under Article 28(5) of the revised Payment Services Directive (PSD2). The technical standards will ensure that information about those 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. The consultation runs until 11 March 2016.

These draft RTS proposed in this Consultation paper set out a harmonised framework aimed at providing clarity to payment institutions about regulatory requirements and, in so doing, at fostering the cross-border provision of payment services in the EU internal market.

These draft requirements specify in particular the information that national supervisors will have to exchange with one another. In so doing, the RTS distinguishes the notifications related to branch establishments, agent's engagement and free provision of services. Some specific features that the notifications shall have in terms of format, transmission channel and language are also defined in the RTS.

Next steps

Responses to this Consultation Paper can be sent to the EBA until 11 March 2016, by clicking on the "send your comments" button on the website. The EBA will assess the responses received before finalising the RTS, which it will publish in the summer of 2016.

Legal basis

The Directive of the European Parliament and of the Council on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC, is expected to be published in the EU's Official Journal in December 2015 or January 2016. The Directive will then enter into force 20 days later and will apply 24 months after that.

The PSD2 will confer 11 mandates on the PSD2, of which five are Guidelines and six are Technical Standards, which includes the RTS on passporting notifications published today. In order for external stakeholders to have clarity on regulatory requirements as early as possible in 2016/17, the EBA has decided not to await the publication of the PSD2 in the EU's Official Journal. Instead it issued today's Consultation paper using the Directive that had been signed by the EU Council on 16 November 2015 as a basis for the proposal.

Press Release

EBA publishes final draft technical standards on cooperation and exchange of information for passporting under PSD2

14 December 2016

The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) specifying the framework for cooperation and exchange of information between Competent Authorities for passport notifications under the revised Payment Services Directive (PSD2). 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 of the home and host Member States.

The final draft RTS set out a harmonised framework for cooperation and exchange of information between Competent Authorities to facilitate cross-border provision of payment services in the EU internal market. They also address some of the concerns that had been raised by the industry during the consultation period.

In order to enhance transparency, the final draft RTS foresee that payment institutions are informed when the passport notification is transmitted from the Competent Authority in the home Member State to the authority in the host Member State. The template passport notifications were also amended to include the Legal Entity Identifier (LEI), where available.

Furthermore, the final draft RTS require separate templates for agents and distributors in order to increase clarity with regard to the information that is to be provided when a payment institution or e-money institution is using an agent and when an e-money institution is using a distributor when providing services in another EU Member State. However, given the legal remit of the RTS, the EBA was unable to address the related concerns raised during the consultation as to whether or not a passporting activity via an agent or a distributor is to be regarded as an establishment. Instead, the templates cater for both possible scenarios (right of establishment or freedom to provide services) in which an agent or distributor may operate and clarify that the information transmitted to the host Authority regarding the nature of the passporting reflects the assessment of the home Authority. In addition, in order to enhance transparency, in cases where the home Authority considers that the use of agents or distributors does not constitute an establishment, the final draft RTS provide for additional information to be transmitted to the host Authority regarding the circumstances that were taken into account by the home Authority in its assessment.

The EBA also published a diagram to help Competent Authorities of the home Member States identify the templates they have to use.

Legal basis

These final draft RTS have been developed in accordance with Article 28(5) of Directive (EU) 2015/2366 on payment services in the internal market (PSD2), which mandates the EBA to develop draft RTS specifying the framework for cooperation and exchange of information between Competent Authorities for passporting.

Consultation Papers

Consultation on Regulatory Technical Standards on passporting under PSD2 (EBA/CP/2015/25)

Summary 11/12/2015

These draft requirements specify in particular the information that national supervisors will have to exchange with one another. In so doing, the RTS distinguishes the notifications related to branch establishments, agent’s engagement and free provision of services. Some specific features that the notifications shall have in terms of format, transmission channel and language are also defined in the RTS.

Next steps

Legal basis

The Directive of the European Parliament and of the Council on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC, is expected to be published in the EU’s Official Journal in December 2015 or January 2016. The Directive will then enter into force 20 days later and will apply 24 months after that.

The PSD2 will confer 11 mandates on the PSD2, of which five are Guidelines and six are Technical Standards, which includes the RTS on passporting notifications published today. In order for external stakeholders to have clarity on regulatory requirements as early as possible in 2016/17, the EBA has decided not to await the publication of the PSD2 in the EU’s Official Journal. Instead it issued today’s Consultation paper using the Directive that had been signed by the EU Council on 16 November 2015 as a basis for the proposal.