What changed between the draft committee report and the plenary report

Added:(36) To ensure that evidence on the compliance with the obligations laid down in this Directive is duly preserved for a reasonable amount of time, it is appropriate to require payment institutions to keep all appropriate records for at least five years. Personal data should not be kept longer than necessary for ensuring that purpose and, where an authorisation has been withdrawn, data should not be kept longer than five years after that withdrawal.

Removed:Article 44 – paragraph 1 – subparagraph 2 – introductory part: Member States shall not require such payment institutions as referred to in the first subparagraph to submit to the competent authorities any supplementary information other than information that enables those competent authorities to assess, by [OP please insert the date = 24 months after the date of entry into force of this Directive], either of the following:

Added:(37) To ensure that an undertaking does not provide payment services or electronic money services without being authorised, it is appropriate to require all undertakings intending to provide payment services or electronic money services to apply for an authorisation, except where this Directive provides for registration instead of authorisation. Furthermore, in order to ensure the stability and integrity of the financial system and payment systems and to protect consumers, such undertakings must be established in a Member State and effectively supervised. This requirement should also cover payment institutions issuing electronic money, given the significant new prudential risks associated with the possibility for electronic money institutions to also issue electronic money tokens. The establishment of a legal person in the EU should be required for electronic money issuers to enable effective supervision of those entities, and to align with Regulation 2023/1114/EU. Electronic money tokens are a form of crypto-asset which can scale up significantly in size and pose risks affecting financial stability, monetary sovereignty and monetary policy.

Removed:This is to clarify that only the supplementary information added under this Directive and PSR for the purposes of re-authorisation needs to be submitted to competent authorities, while any information already submitted in relation to the original authorisation of PSD2 does not need to be re-submitted to competent authorities.

Added:(37a) In order for payment institutions to truly engage in cross-border services, the Commission should provide a dedicated internet website or a one-stop shop with all of the information in one place on how to register in each Member State.

Removed:Article 44 – paragraph 1 – subparagraph 3: Payment institutions as referred to in the first subparagraph which upon verification by the competent authorities comply with Title II shall remain authorised as payment institutions pursuant to Article 13 of this Directive and shall be entered in the registers referred to in Articles 17 and 18. Where those payment institutions do not comply with the requirements laid down in Title II by [OP please insert the date = 24 months after the date of entry into force of this Directive], they shall be suspended from providing payment services until such time as they provide to the relevant competent authority the required supplementary information which ensures their compliance with Title II and that competent authority has verified the accuracy of that information and duly authorised the payment services provider.

Added:(38) To avoid abuses of the right of establishment and to avoid cases where a payment institution establishes itself in a Member State without planning to perform any activity in that Member State, it is appropriate to require that a payment institution requesting authorisation in a Member State provides at least part of its payment services business in that Member State. The obligation for an institution to carry out a part of its business in its home country, which was already imposed by Directive (EU) 2015/2366, has been interpreted very differently, with some home countries imposing that most of the business be carried out in their country. A ‘part’ should be interpreted to mean less than the majority of the institution’s business in order to preserve the “effet utile” of the payment institution’s freedom to provide cross-border services.

Removed:Article 44 – paragraph 2: 2. Member States shall provide for payment institutions as referred to in paragraph 1 to be authorised automatically and to be entered in the register referred to in Articles 17 if the competent authorities have evidence that those payment institutions already comply with Articles 3 and 13. The competent authorities shall inform the payment institutions concerned of such automatic authorisation before the authorisation is granted.

Added:(39) A payment institution may engage in other activities than the provision of payment services or electronic money services. To ensure a proper supervision of the payment institution, it is appropriate to allow national competent authorities, where necessary, to require the establishment of a separate entity for the provision of payments services or electronic money services. Such a decision by the competent authority should take account of the potential negative impact that an event affecting the other business activities could have on the payment institution’s financial soundness, or the potential negative impact arising from a situation where the payment institution would not be able to provide separate reporting on own funds in relation to its payment and electronic money activities and its other activities.

Removed:Article 44 – paragraph 3 – subparagraph 2: Any person as referred to in the first subparagraph who has not, by [OP please insert the date = 18 months after the date of entry into force of this Directive], been authorised or exempted under this Directive shall be suspended from providing payment services until such time as they provide to the relevant competent authority the required supplementary information and that competent authority has verified the accuracy of that information and duly authorised the payment services provider.

Added:(40) To ensure a proper ongoing supervision of payment institutions and the availability of accurate and up-to-date information, it is appropriate to require payment institutions to inform national competent authorities of any change in their business affecting the accuracy of the information provided with regard to authorisation, including with regard to additional agents or entities to which activities are outsourced. Competent authorities should, in the event of doubt, verify that the information received is correct.

Removed:Article 45 – paragraph 1: 1. Member States shall allow electronic money institutions which were defined in Article 2, point 1, of Directive 2009/110/EC that have taken up, before [OP please insert the date = 18 months after the date of entry into force of this Directive], activities in accordance with national law transposing Directive 2009/110/EC as electronic money institutions in the Member State in which their head office is located in accordance with national law transposing Directive 2009/110/EC, to continue those activities in that Member State or in another Member State without having to seek a new authorisation in accordance with Article 3 of this Directive or to comply with the other provisions laid down or referred to in Title II of this Directive until ... [24 months from the date of entry into force of this Directive].

Added:(41) To ensure a consistent authorisation regime of payment institutions throughout the Union, it is appropriate to lay out harmonised conditions under which national competent authorities may withdraw an authorisation issued to a payment institution.

Removed:Article 45 – paragraph 2 – subparagraph 1: Member States shall not require the electronic money institutions referred in paragraph 1 to submit to the competent authorities any information other than information that enables those competent authorities to assess by [OP please insert the date = 24 months after the date of entry into force of this Directive], whether those electronic money institutions comply with this Directive. Where such assessment reveals that those electronic money institutions do not comply with those requirements, the competent authorities shall decide which measures need to be taken to ensure such compliance, or to withdraw the authorisation.

Added:(42) To enhance transparency of the operations of payment institutions that are authorised by, or registered with, competent authorities of the home Member State, including their agents, distributors and branches, and to ensure a high level of consumer protection in the Union, it is necessary to ensure easy public access to the list of the undertakings providing payment services, with their related brands, which should be included in a public national register.

Removed:Article 45 – paragraph 2 – subparagraph 2: Electronic money institutions as referred to in the first subparagraph which upon verification by the competent authorities comply with Title II shall be authorised as payment institutions pursuant to Article 13 of this Directive, shall be entered in the registers referred to in Articles 17 and 18. Where those electronic money institutions do not comply with the requirements laid down in Title II by [OP please insert the date = 24 months after the date of entry into force of this Directive], they shall be suspended from providing electronic money services until such time as they provide to the relevant competent authority the required supplementary information and that competent authority has verified the accuracy of that information and duly authorised the electronic money institution.

Added:(43) To ensure that information on authorised or registered payment institutions or entities entitled under national law to provide payment or electronic money services is available throughout the Union in a central register, the EBA should operate such a register in which it should publish a list of the names of the undertakings authorised or registered to provide payment services or electronic money services. Where that entails the processing of personal data, the publication at Union level of information on natural persons acting as agents or distributors is necessary to guarantee that only authorised agents and distributors operate in the internal market and is therefore in the interest of the adequate functioning of the internal market for payment services. Member States should ensure that the data that they provide on the undertakings concerned, including their agents, distributors and branches, is accurate and up-to-date, and transmitted to the EBA without undue delay and if possible in an automated way. The EBA should therefore develop draft regulatory technical standards to specify the methods and arrangements for the transmission of such information. Those draft regulatory technical standards should ensure a high level of granularity and consistency of the information. When developing those draft regulatory technical standards, the EBA should take into consideration the experience in applying Commission Delegated Regulation (EU) 2019/411.40 To enhance transparency, it is appropriate that the information transmitted contains the brands of all payment and electronic money services provided. Publication of personal data should occur in compliance with the rules on data protection in force. Where personal data are published, appropriate data protection safeguards that prevent further unintended dissemination of the information online should be implemented.

Removed:Article 45 – paragraph 4: 4. Member States shall allow legal persons that have taken up, before [OP please insert the date = 18 months after the date of entry into force of this Directive], activities in accordance with national law transposing Article 9 of Directive 2009/110/EC, to continue those activities within the Member State concerned in accordance with that Directive until [OP please insert the date = 24 months after the date of entry into force of this Directive], without being required to seek a new authorisation under Article 3 of this Directive or to comply with the other provisions laid down or referred to in Title II of this Directive. Electronic money institutions as referred to in paragraph 1 which, during that period, have been neither authorised nor exempted within the meaning of Article 34 of this Directive, shall be prohibited from providing electronic money services.

Added:(44) To enhance transparency and awareness of the services provided by payment initiation and account information service providers, it is appropriate that the EBA maintains a machine-readable list containing basic information on such undertakings and services provided by them. The information contained in this list should allow for the payment initiation and account information service providers to be identified unequivocally.

Removed:Article 49 – paragraph 1: 1. Member States shall adopt and publish, by [ OP please insert the date= 18 months after entry into force of this Directive] at the latest, and within [ OP please insert the date= 3 months after entry into force of this Directive] for Article 46, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.

Added:(45) To expand the reach of their services, payment institutions may need to use entities providing payment services on their behalf, including agents or, in the case of electronic money services, distributors. Payment institutions may also exercise their right of establishment in a host Member State, different from the home Member State, through branches. In such cases, it is appropriate that the payment institution communicates to the national competent authority all the relevant information related to agents, distributors and branches and informs national competent authorities of any changes without undue delay. To ensure transparency vis-à-vis end users, it is also appropriate that agents, distributors or branches acting on behalf of a payment institution inform payment service users of that fact.

Removed:Article 49 – paragraph 2 – subparagraph 1: They shall apply those measures from [ OP please insert the date= 18 months after entry into force of this Directive] and from [ OP please insert the date= 3 months after entry into force of this Directive] for Article 46.

Added:(45a) When acquirers use an agent to deliver payment services, it should be noted that the agent only acts on behalf of one acquirer as the principal payment service provider and not in respect of all payment services provided to the payment service user.

Removed:Annex II – paragraph 1: Issuance of electronic money and electronic money tokens, maintenance of payment accounts storing electronic money units and transfer of electronic money units.

Added:(45b) To take account of evolving market realities, marketplaces and platforms supported by payment service providers that provide services to those marketplaces and platforms so that they do not have control or possession of funds for third parties, should not be considered to be by default agents of the payment service providers.