# PSD3 Article 25 — Supervision

Textual state: amended_substantial. 272 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- Compared against: COM(2023) 366 final — superseded.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 the controls exercised by the competent authorities for [-checking -]{+ensuring +}continued compliance with this Title are proportionate, adequate and responsive to the risks to which payment institutions are exposed. To [-check -]{+ensure +}compliance with this Title, the competent authorities shall, in particular, be entitled to take the following steps: (a) require the payment institution to provide any information needed to monitor compliance specifying the purpose of the request, as appropriate, and the time limit by which the information is to be provided; (b) carry out on-site inspections at the business premises of the payment institution, of any [-agent, distributor -]{+agent +}or branch providing payment services [-or electronic money services -]under the responsibility of the payment institution, or at the business premises of any entity to which activities are [-outsourced; -]{+outsourced or that acts on behalf of the payment institution; +}(c) issue recommendations, guidelines and, if applicable, binding administrative provisions; (d) [-to -]suspend or [-to -]withdraw an authorisation pursuant to Article [-16. -]{+16; (e) require payment institutions to have own funds in excess of the requirements set out in Articles 7, 8 or 10(4)(d), or to adjust the own funds required in case of material changes in the business of those payment institutions; (f) require the reinforcement of the arrangements, processes, mechanisms and strategies implemented in accordance with point (c) of Article 13(1); (g) restrict or limit the business, operations or network of payment institutions or request the divestment of activities that pose excessive risks to the financial soundness of a payment institution; (h) require the reduction of the risk inherent in the activities, products and systems of payment institutions, including outsourced activities; (i) restrict or prohibit distributions or interest payments by a payment institution to shareholders, members or holders of own funds instruments; (j) require payment institutions to establish a separate entity for the provision of non-payment services activities, where the payment institutions are engaged in other business activities that may impair, or are likely to impair, either the financial soundness of the payment institution or the ability of the competent authorities to monitor the payment institution’s compliance with this Directive; (k) impose administrative sanctions and administrative measures in accordance with paragraph 2 and with national law; (l) require payment institutions to remove persons responsible for the management of the payment institution when they fail to comply with the requirements set out in Article 3(3), point (n) (ii).+}

## Paragraph 2

2. Without prejudice to Article 16 and any national provisions of criminal law, Member States shall provide that their competent authorities may impose [-penalties -]or {+initiate administrative or legal proceedings to impose penalties and +}measures aimed specifically at ending observed infringements, and removing the causes of such infringements, upon payment institutions or those who effectively control the business of payment institutions which breach the provisions transposing this Directive.

## Paragraph 3

3. Notwithstanding the requirements of Article 5, Article 6(1) and (2), Article 7, and Article 8, Member States shall ensure that the competent authorities can take the steps referred to in paragraph 1 of this Article to ensure sufficient capital for payment institutions, in particular where activities other than payment services [-or electronic money services -]impair or are likely to impair the financial soundness of the latter.