EBF advisor: Pascale Marie Brien
Publication date: 30 November 2017
General introduction The European Banking Federation welcomes the opportunity to comment on the draft guidelines suggested by the European Banking Authority (EBA) on the criteria on how to stipulate the minimum amount of the professional indemnity insurance or other comparable guarantees under Article 5(4) of the revised Payment Services Directive (PSD2) for Payment Initiation Services (PIS), Account Information Services (AIS) and Card Issuing Services (CIS) Providers.
Defining the appropriate criteria for a professional insurance (or equivalent guarantee) requires striking the right balance between the sustainability of the modus operandi of PIS/AIS and Card Issuing Services hereafter referred to as “TPPs”), whilst maintaining customers’ and corporates’ trust in European payment services that must continue to offer the highest level of certainty and protection in case of fraud. The PSD2’s objectives, both to secure the global environment, and to promote competition and innovation must therefore be fully met.
The provision of pan-European payment initiation services and account information services cannot be envisaged with 27 different regulatory regimes when it comes to professional indemnity insurances or comparable guarantees. The EBA should therefore seek to it that the forthcoming guidelines are not implemented in a divergent manner by competent authorities, leading to a fragmentation within the European Union that would be particularly damaging for the entire payment ecosystem. Consequently, we would propose that the Guidelines leave no room for varying interpretations and modus operandi.
We would also suggest clarifying, in the final Guidelines, that these requirements do not apply to AS PSPs since their activities and the risks related to them are already covered in their own operational risk management and solvency requirements.