# PSD3 Article 22 — Entities to which activities are outsourced

Textual state: amended_substantial. 16 words changed

- Current text: Council final compromise text (Council document 8222/26) — not yet law.
- Compared against: COM(2023) 366 final — superseded.
- Classification is mechanical; method: https://paymentslaw.eu/method/
- Editorial review state: not_assessed. Markers are curated and selective, not a complete assessment.

Word-level diff, proposal → compromise: `{+text+}` was inserted, `[-text-]` was deleted.

## Paragraph 1

1. Member States shall ensure that payment institutions that intend to outsource operational functions of payment [-or electronic money -]services inform the competent authorities of their home Member State thereof. {+Without prejudice to Regulation 2022/2554, +}Member States shall ensure that payment institutions do not outsource important operational [-functions, including ICT systems, -]{+functions +}in such {+a +}way that the quality of the payment institution’s internal control and the ability of the competent authorities to monitor and retrace the payment institution’s compliance with all of the obligations laid down in this Directive is materially impaired. An operational function shall be important where a defect or failure in its performance would materially impair the continuing compliance of a payment institution with the requirements of its authorisation, its other obligations under this Directive, its financial performance, or the soundness or the continuity of its payment [-or electronic money -]services. Member States shall ensure that when payment institutions outsource important operational functions, they shall meet all of the following conditions: (a) the outsourcing does not result in the delegation by senior management of its responsibility; (b) the relationship and obligations of the payment institution towards its payment service users under this Directive is not altered; (c) the conditions with which the payment institution is to comply to be authorised and remain so is not undermined; (d) none of the other conditions subject to which the payment institution’s authorisation was granted is removed or modified.

## Paragraph 2

2. Member States shall ensure that payment institutions communicate without undue delay to the competent authorities of their home Member State any change regarding the use of entities to which activities are outsourced.