[Newsflash n. 22]

Last 11th of December EBA launched a consultation on the draft Regulatory Technical Standards (RTS) on passporting pursuant to article 28(5) of the Payment Services Directive 2 (PSD2).

The PSD2 came into force on 12 January 2016 and is due to be implemented in all Member States on the 13th of January 2018.

The directive mandates EBA to develop draft RTS specifying the framework for cooperation and exchange of information between Competent Authorities of the home and of the host Member States.

Pursuant to article 28, the final draft of the RTS specifies the method, means and details of cooperation in the notification of payment institutions operating on a cross-border basis and, in particular, the scope and treatment of information to be submitted, including common terminology and standard notification templates to ensure a consistent and efficient notification process.

Here as follows the main principles introduced by EBA with these RTS:

  1. Payment institutions will be informed when the passport notification is transmitted from the home to the host Autority of different Member States;
  2. Agents and distributors will use a separate notification template from payment institutions to enhance the level of information to be provided on passporting when such passporting is achieved through agents or distributors;
  3. The template notifications will include the Legal Entity Identifier (LEI) where possible.

The EBA’s final draft however does not seem to clarify whether passporting through an agent or a distributor constitutes “establishment” pursuant to the Directive. This was one the questions raised during the consultation period. This point seems to remain open for assessment by the host Authorities.

To the extent that they will be finally endorsed and adopted by the European Commission, these RTS will be applicable in the EU from October 2018, at the earliest.

The text of the Regulatory Technical Standards is available here.

Please do not hesitate to contact us for any clarification you might require on the new RTS.

 

Contacts:

Marina Mirabella
Senior Partner

Vito Vittore
Senior Partner

Elena Pagnoni
Of counsel

Luigi Bonifacio
Associate