On May 10, 2022, the EU Commission launched a consultation on the revision of PSD2. “The public consultation seeks views on both the PSD2 review and the open finance framework. It is available in all EU languages and will run for 12 weeks. You can have your say here. In addition, the Commission has also launched two targeted consultations on the PSD2 and the open finance framework. The targeted consultations require specialist knowledge. They will also run for 12 weeks and are available”
The questionnaire prepared by the EU Commission with the official title “Targeted consultation on the review of the revised payment services Directive (PSD2)” is 125 pages long and raises a number of very detailed questions.
What kind of questions?
Among them: What kind of changes has PSD2 brought to the payments market? Whether PSD2 favours any technical solutions or payments means? Whether the benefits of PSD2 outweigh the costs of implementing it?
What particular new regulatory requirements of PSD2 are to be criticised or which of those are viewed favourably and what needs revision.
Condensed version and proposals for answers prepared by Goerg
We at the Goerg Payment and FinTech Team have made the effort to review the questionnaire, have melted it down to a 24 pages paper (see "Artikelzusatz" with a download option on the right hand corner of this page) and have made an attempt to propose some answers in order to enhance the discussion before the consultation must be submitted on July 5, 2022.
For example we proposed some revisions to SCA and to the regulations of XS2A. We requested to align the PSD2 rules on data protection with GDPR. We raised the request to amend the regulation for credit granting of payment institutions and e-money institutions. And we asked to harmonize the (in spite of PSD2 EU wide differing) rules on safe guarding customer funds payment institutions and e-money institutions. We further propose to adapt the rules (according to proportionality) for the control of significant shareholdings for small payment institutions and small e-money institutions.
As a new regulatory topic we would propose to include crypto transactions in a PSD3, including specific crypto related rules on customer authentication and maybe for access to crypto accounts.
What are your thoughts on this?