European Commission taking the temperature of whether PSD2 is still fit for purpose
What has happened?
As of May 2022, the European Commission is seeking market feedback on open finance rules1 and amendments to PSD2 to address the continuing development of Big Tech, fintechs and cryptoassets.
1 https://ec.europa.eu/eusurvey/runner/open-finance-2022?surveylanguage=en
2 https://ec.europa.eu/eusurvey/runner/psd2-review-2022?surveylanguage=en
What are the key points?
The Commission wants to obtain the views of different stakeholders on various aspects of PSD2, and believes that both a targeted consultation and a public consultation are necessary. Views are being sought on everything from secure customer authentication to extending the list of compliance payment services in the PSD2 to include payment transactions using crypto-assets and to the issuance of e-money.
PSD2 was adopted in 2015, with most of the rules implemented by January 2018. In the interim, the payments sector has experienced the fintech phenomenon and the steady encroachment of Big Tech firms into financial services. Now the Commission intends to “evaluate whether the scope, exclusions and definitions of the Directive are still appropriate to ensure relevant market players are regulated, a level playing field exists and risks are sufficiently mitigated”.
Other aspects of the rules relating to payment fraud and access to account data and payments infrastructures will also be opened up for scrutiny to see if they remain fit for purpose.
For the Open Finance consultation, the Commission is seeking feedback on whether to extend access rights beyond purely transactional data to encompass other aspects of finance, including mortgages, savings, pension services and insurance.
Submissions for the PSD2 consultation are open until 2 August while the Open Finance consultation closes on 5 July. A separate consultation on technical matters related to PSD2 also closes on 5 July.
How can we help you?
If you’d like to know more about how we can help you with your compliance payment services or Open Finance arrangements, or any other regulatory compliance issues, our specialist team is here to help.
Contact us today on 0207 436 0630 – or email info@thistleinitiatives.co.uk.