BT-REQ-3972 PSD3 Impacts v6(without crop marks) RL - Flipbook - Page 7
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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 – 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
EMD2 – 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 the EBA).
Transition (PSD3 Art 44, 45)
APIs and EMIs will have two and a half years under
the Council Text (up from two in the Original
Commission Draft and EP Text) 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
– especially EMIs who will need to register all
their distributors (like APIs are required currently
to register their agents).
The proposed transitional periods provide a
certain amount of respite in terms of time
pressure – but for some EMIs, this could be a
huge exercise (even with the additional 6 months
the Council Text allows).
Both APIs and EMIs will need to review their
safeguarding arrangements and notify regulators
of changes they are making to comply.
