BT-REQ-3972 PSD3 Impacts v6(without crop marks) RL - Flipbook - Page 29
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HL | PSD3 Impacts
17. EBA powers of
intervention
(PSR Art 104)
Overview
The EBA will have temporary intervention
powers to prohibit or restrict a certain type
or a specific feature of a payment service or
instrument or an electronic money service or
instrument where certain conditions apply.
Any such action taken by the EBA must be
reviewed at least every 3 months to see if it is
still necessary.
What’s the impact?
The EBA will be able to restrict or prohibit a certain
product or product feature where:
doing so addresses a significant number of PSUs
or electronic money services users or a threat
to the orderly functioning of the payment or
electronic money markets, and the integrity of
those markets or to the stability of the whole or
part of these markets in the Union;
current regulatory requirements that apply do
not address the threat; and
the relevant NCA(s) have not taken action to
address the threat or, where they have, the
actions do not adequately address the threat.
or restriction expiring if it is not renewed.
The Commission will specify criteria and
factors to be considered by the EBA in
determining when it is right to intervene,
which shall include:
the degree of complexity of a service or
instrument and the relation to the type of
users, including consumers, to whom they
are offered;
the level of risk for consumers;
the possible use by fraudsters;
the size or the level of uptake of the service
or instrument; and
The EBA must ensure that any action:
does not have a detrimental effect on the
efficiency of the payments market or electronic
money services market or on payment services
or electronic money service providers that is
disproportionate to the benefits of the action;
does not create a risk of regulatory arbitrage; and
has been taken after consulting the relevant
NCA. Any prohibition or restriction must be
published by the EBA on its website. In doing
so, the EBA must specify when the measures
will take effect. The EBA is required to review a
prohibition or restriction at appropriate intervals
and at least every 3 months, with the prohibition
its degree of innovation.
It will be interesting to see if this power
to intervene marks the start of a more
interventionist approach by the EBA (and
national authorities as a result) given the speed
with which digitalised payment services or
products can reach scale on a cross-border basis
– and the extent to which this reflects concerns
that certain regulators are perceived as “light
touch” in comparison to others.
