BT-REQ-3972 PSD3 Impacts v6(without crop marks) RL - Flipbook - Page 23
23
HL | PSD3 Impacts
What is the impact?
The Original Commission Draft is relatively tame in
comparison to the EP Text, which would increase
the impact of this new PSP liability significantly.
That said, it is unclear if Parliament’s proposal
is intended to be more limited than the scheme
that has been introduced in the UK. The EP Text
refers to the impersonation of entities of public
or private nature. While not defined, this suggests
frauds involving impersonation of individuals (e.g.
romance frauds) would not be covered; however,
this is an area to watch.
UK banks have been extremely vocal about the
impact the UK regime will have, with challenger
banks suggesting it could hit profits by as much
as 10% and raising significant concerns about the
moral hazard involved in this approach, effectively
making banks responsible for any lapse in
judgement or mistake by the PSU.
There is also considerable ambiguity about what
“gross negligence” looks like in this context, and
precisely where the obligation to refund falls where
a fraud involves a string of payment transactions
between PSPs.
The EP Text also seeks to capture “Big Tech”,
imposing liability on these companies where they
do not act to remove scams from their platform.
It’s not clear how this could work in practice since
the proposed PSR will not have direct application
to these entities – but represents a growing desire
to bring these companies within the scope of
regulation.
