# PSD3 Article 31 — Supervision of payment institutions exercising the right of establishment and freedom to provide services

Textual state: amended_substantial. 530 words changed; 1 paragraph added

- 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- Compared against: COM(2023) 366 final — superseded.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. When carrying out the controls and [-take -]{+taking +}the necessary steps provided for in this Title {+and Titles II and III of Regulation XXX (PSR) +}in respect of the [-agent, distributor -]{+agent +}or branch of a payment institution located in the territory of another Member State, the competent authorities of the home Member State shall cooperate with the competent authorities of the host Member State, including by informing the competent authorities of the host Member State of where they intend to carry out an on-site inspection in the territory of that host Member State. The competent authorities of the home Member State may delegate to the competent authorities of the host Member State the task of carrying out on-site inspections of the payment institution concerned.

## Paragraph 2

2. The competent authorities of the host Member States may require that payment institutions having [-agents, distributors -]{+agents +}or branches within their territories report to them periodically about the activities carried out in their territories. Such reports shall be required for information or statistical purposes and, as far as the [-agents, distributors -]{+agents +}or branches provide payment [-services or electronic money -]services, to monitor compliance with Titles II and III of Regulation XXX [PSR]. Such [-agents, distributors -]{+agents +}or branches shall be subject to professional secrecy requirements that are at least equivalent to those referred to in Article 26. The competent authorities of the host Member State may request ad hoc information from payment institutions where those authorities have evidence of non-compliance with this Title or with Titles II and III of Regulation XXX [PSR].

## Paragraph 3

3. The competent authorities of the home and host Member States shall provide each other with all essential or relevant information, in particular in the case of infringements or suspected infringements by an [-agent, a distributor -]{+agent +}or a branch, and where such infringements occurred in the context of the exercise of the freedom to provide services. Competent authorities shall communicate, upon request, all relevant information and, on their own initiative, all essential information, including on the compliance of the payment institution with the conditions laid down in Article 13(3).

## Paragraph 4

4. Member States may require payment institutions operating on their territory through agents, the head office of which is situated in another Member State, to appoint a central contact point in their territory to ensure adequate communication and information reporting in compliance with Titles II and III of Regulation XXX [PSR], and to facilitate supervision by competent authorities of home Member State and host Member States, including by providing competent authorities with documents and information on request. {+Where a Member State decides to impose such a requirement, each payment institution shall appoint only one central contact point in that Member State.+}

## Paragraph 5

5. [-The EBA -]{+For the purposes of paragraph 4, payment institutions +}shall [-develop draft regulatory technical standards -]{+be required +}to [-specify -]{+appoint a central contact point only where one or more of +}the {+following +}criteria [-to be applied when determining, in accordance with -]{+is met: (a) +}the [-principle -]{+total number +}of [-proportionality, the circumstances under -]{+agents through +}which [-the appointment of -]a [-central contact point -]{+payment institution provides any of the payment services +}referred to in [-paragraph 4 is appropriate, and -]{+Annex I in a host Member State under +}the [-functions -]{+right +}of [-those contact points. Those draft regulatory technical standards shall, in particular, take account of: (a) -]{+establishment is equal to or exceeds 10; (b) +}the total [-volume and -]value of {+payment transactions, including payment +}transactions {+initiated when providing payment initiation services, +}carried out by [-the -]{+a +}payment institution in {+the +}host Member [-States; (b) -]{+State in +}the [-type -]{+last financial year through agents located in the host Member State and operating under either the right +}of {+establishment or the freedom to provide services, exceeds EUR 3 million and the +}payment [-services provided; -]{+institution has engaged at least two of those agents under the right of establishment; +}(c) the total number of {+payment transactions carried out by a payment institution in the host Member State in the last financial year through +}agents [-established -]{+located +}in the host Member [-State. The EBA shall submit those draft regulatory technical standards to -]{+State and operating under either +}the [-Commission by [ OP please insert -]{+right of establishment or +}the [-date= 18 months after -]{+freedom to provide services, including +}the [-date -]{+number +}of [-entry into force -]{+payment transactions initiated when providing payment initiation services, exceeds 100 000 and the payment institution has engaged at least two +}of [-this Directive]. Power -]{+those agents under the right of establishment. A central contact point that +}is [-delegated -]{+appointed pursuant +}to {+paragraph 4 shall carry out each of +}the [-Commission -]{+following functions: (a) it shall serve as single provider and single point of collection for the purposes of the reporting obligations of the appointing payment institution towards the competent authorities of the host Member State pursuant +}to [-adopt -]{+paragraph 2 in relation to services provided in +}the [-regulatory technical standards -]{+host Member State through agents under the right of establishment; (b) it shall serve as single point of contact of the appointing payment institution +}in [-accordance -]{+communications +}with [-Article 10 -]{+the competent authorities of the home and host Member States, in relation +}to [-14 -]{+the payment services provided in the host Member State through agents under the right +}of [-Regulation (EU) No 1093/2010. -]{+establishment, including by providing competent authorities with documents and information on request; (c) it shall facilitate the on-site inspections by competent authorities of the agents of the appointing payment institution operating in the host Member State under the right of establishment and the implementation of any supervisory measures adopted by the competent authorities of the home or host Member States pursuant to this directive.+}

## New paragraph 7

{+7. Payment institutions shall ensure that a central contact point possesses the necessary resources and has access to all the data necessary for the performance of the functions set out in in paragraph 6.+}