On 31 July 2018, the European Banking Authority (EBA) published its final report on draft regulatory technical standards (RTS) on cooperation between competent authorities in home and host Member States in the supervision of payment institutions (PIs) operating on a cross-border basis under the Payment Services Directive (PSD2) (RTS on Cooperation).
The RTS on Cooperation have been published in accordance with Article 29(6) of PSD2 requiring the EBA to draft RTS specifying (i) the method, means and details of cooperation in the supervision of PIs operating on a cross-border basis and, in particular, the scope and treatment of information to be exchanged, to ensure consistent and efficient supervision of PIs exercising cross-border provision of payment service; and (ii) the details of any reporting requested by host Members States from PIs on the payment business activities carried out in their territories.
In accordance with the requirement in Article 29(6) of PSD2, the RTS on Cooperation establish the framework for cooperation, and for the exchange of information, between the competent authorities of the home Member State and of the host Member State under PSD2 and, as far as the payment service business is conducted under the right of establishment, for the monitoring of compliance with the provisions of national law transposing Titles III and IV of PSD2.The RTS on Cooperation also establish the means and details of any periodical reporting required by the competent authorities of the host Member States from PIs having agents or branches within their territories on the payment business activities carried out in their territories, including the frequency of such reporting, in accordance with the first subparagraph of Article 29(2) of PSD2.
The RTS on Cooperation specify the obligations for the competent authorities to:
- Designate a single contact point to receive and transmit requests for cooperation and for the exchange of information;
- Comply with the general requirements e.g. to language and security for the exchanged information;
- Use a standardised form when submitting requests for cooperation or exchange of information;
- Respond no later than 20 working days after receipt of a request for cooperation or exchange of information:
- Notify their intention of caring out an on-site inspection in the host Member State; and
- Give notice in the event of an infringement or suspected infringement.
Finally, the RTS on Cooperation set out the reporting requirements that host competent authorities may request from PIs in their territories via agents or branches for (i) information or statistical purposes and (ii) additional information and data to be reported for monitoring compliance with the provisions of national law transposing Titles III and IV of PSD2.
The next step is that the RTS on Cooperation will be submitted to the European Commission for endorsement following scrutiny by the European Parliament and the Council, before being published in the Official Journal of the European Union. The RTS on Cooperation will enter into force on the twentieth day following publication in the Official Journal of the European Union.
The draft RTS on Cooperation is available here.
If you have any questions, please do not hesitate to get in touch with any member of the Bird & Bird international payments team - see the contacts below.