Response to consultation on Regulatory Technical Standards on passporting under PSD2
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The level of information requested in branch passport notification (art 5, §1.(i),(k),(l)) are similar as the one to be provided for a PI license.
This RTS is missing the objective of the EU passporting, by leading to nearly a full PI license process into the home and host member state.
Same remark is also valid for the Agent passport notification (art 9, §1.(k),(l),(m))
The art 5 §2 and art 9 §2 (related to: PI outsourcing of operational activities to an entity in the host member state) are to our opinion not relevant for the passporting notification process.
We do not understand why this information on outsourcing is relevant for the host member state ? Unless the Agent is also the outsourcer entity.
Remark:
If disagreement between Home and Host Member State, the Home Member State to inform the PI. In case the decision is different the resolution is pending, RTS to ensure clear timelines & procedure (EU 1093/2010 art 19).
We consider that the level of information and details requested in ANNEX II is too detailed in the following questions:
Q22 (employees, business plan, branch activities, target customer, 3Y budget forecast),
Q23 related to internal control mechanism (branch risk control procedures, Internal audit, accounting procedure, branch’s IT and BCP),
Q24 (c) (outsourcing activities in host member state). We wonder that outsourcing is the responsibility of the Home member state and has not relation with the passporting process in itself.
What will be the responsibility of the Host Member State towards the outsourcing company ?
We consider that the level of information and details requested in ANNEX III is too detailed in the following questions:
Q20 related to internal control mechanism (agent structural organization: such as number of employees, functional and legal reporting line into the corporate structure of its group), are not relevant for the passporting.
Q22 (b) the request to demonstrate that Agent directors are Fit & Proper may lead to the fact that only regulated entity will be allowed to become agent. This is not the objective to have a more open and competitive EU market in payment.
Q23 We consider that outsourcing is the responsibility of the Home member state and has not relation with the passporting process in itself.
What will be the responsibility of the Host Member State towards the outsourcing company ?
We disagree with question 16 related to outsourcing, which to our opinion is not a question related to passporting.
1) Do you agree with the draft RTS on passport notifications under the PSD2? If not, outline why you disagree and how the RTS could be improved?
Worldline disagrees with the draft RTS proposed.The level of information requested in branch passport notification (art 5, §1.(i),(k),(l)) are similar as the one to be provided for a PI license.
This RTS is missing the objective of the EU passporting, by leading to nearly a full PI license process into the home and host member state.
Same remark is also valid for the Agent passport notification (art 9, §1.(k),(l),(m))
The art 5 §2 and art 9 §2 (related to: PI outsourcing of operational activities to an entity in the host member state) are to our opinion not relevant for the passporting notification process.
We do not understand why this information on outsourcing is relevant for the host member state ? Unless the Agent is also the outsourcer entity.
Remark:
If disagreement between Home and Host Member State, the Home Member State to inform the PI. In case the decision is different the resolution is pending, RTS to ensure clear timelines & procedure (EU 1093/2010 art 19).
2) Do you agree with the format of the relevant unique identification number in each Member State set out in Annex I? If not, please outline which content you disagree with, why you disagree and how the format could be improved.
Yes, Worldline agrees3) Do you agree with the draft notification form for branch passporting set out in Annex II? If not, please outline which content you disagree with, why you disagree and how the notification form could be improved.
Worldline disagrees.We consider that the level of information and details requested in ANNEX II is too detailed in the following questions:
Q22 (employees, business plan, branch activities, target customer, 3Y budget forecast),
Q23 related to internal control mechanism (branch risk control procedures, Internal audit, accounting procedure, branch’s IT and BCP),
Q24 (c) (outsourcing activities in host member state). We wonder that outsourcing is the responsibility of the Home member state and has not relation with the passporting process in itself.
What will be the responsibility of the Host Member State towards the outsourcing company ?
4) Do you agree with the draft notification form for agent/distributor passporting set out in Annex III? If not, please outline which content you disagree with, why you disagree and how the notification form could be improved
Worldline disagrees.We consider that the level of information and details requested in ANNEX III is too detailed in the following questions:
Q20 related to internal control mechanism (agent structural organization: such as number of employees, functional and legal reporting line into the corporate structure of its group), are not relevant for the passporting.
Q22 (b) the request to demonstrate that Agent directors are Fit & Proper may lead to the fact that only regulated entity will be allowed to become agent. This is not the objective to have a more open and competitive EU market in payment.
Q23 We consider that outsourcing is the responsibility of the Home member state and has not relation with the passporting process in itself.
What will be the responsibility of the Host Member State towards the outsourcing company ?
5) Do you agree with the draft notification form for the passporting of services set out in Annex IV? If not, please outline which content you disagree with, why you disagree and how the notification form could be improved.
Worldline disagrees.We disagree with question 16 related to outsourcing, which to our opinion is not a question related to passporting.