--- instrument_id: psd-3 chunk_id: psd-3_t04 chunk_title: FINAL PROVISIONS path: Title IV source_class: operative_text document_type: proposal normative_weight: non_binding legal_status: council_compromise_text jurisdiction: EU effective_period: from: null to: null articles_contained: - 42 - 43 - 44 - 45 - 45a - 46 - 48 - 49 - 50 - 51 topics: - payments - payment_services - final_provisions - authorisation - competent_authorities recitals: - number: 6 text: "As evidenced in the review conducted by the Commission and given the evolution of the respective markets, businesses and risks, it is necessary to update the prudential regime for payment institutions, including those issuing electronic money as a payment service, by requiring a single authorisation for providers of payment services which do not take deposits. The authorisation regime for payment institutions, which will replace the regime applicable to electronic money institutions, should also apply to issuers of electronic money tokens that are not credit institutions and references in Regulation (EU) 2023/1114 to electronic money institutions issuing electronic money tokens should be read as references to payment institutions issuing electronic money tokens. However, the specificities of the regime established by Regulation (EU) 2023/1114 as regards electronic money institutions issuing electronic money tokens should be maintained taking into account Article 48(3) of that Regulation. The prudential regime applicable to payment institutions should be based on an authorisation, subject to a set of strict and comprehensive conditions, for legal persons offering payment services when not taking deposits. The prudential regime applicable to payment institutions should ensure that the same conditions apply Union-wide to the activity of providing payment services." - number: 77 text: The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/1725 and delivered an opinion on 22 August 2023. --- # Title IV - FINAL PROVISIONS ## Article 42 - Full harmonisation 1. Without prejudice to Articles 6(3), 34, 37 and 39, insofar as this Directive contains harmonised provisions, Member States shall not maintain or introduce provisions other than those laid down in this Directive. 2. A Member State that uses any of the options referred to in Articles 6(3), 34, 37 or 39, shall inform the Commission thereof and of any subsequent changes. The Commission shall make the information public on a website or other easily accessible means. 3. Member States shall ensure that payment service providers do not derogate, to the detriment of payment service users, from the provisions of national law transposing this Directive except where explicitly provided for therein. However, payment service providers may decide to grant more favourable terms to payment service users. ## Article 43 - Review clause 1. The Commission shall, by [ OP please insert the date = 7 years after entry into force of this Directive], submit to the European Parliament, the Council, the ECB and the European Economic and Social Committee, a report on the application and impact of this Directive, and in particular on: (a) the appropriateness of the scope of this Directive, in particular regarding the possibility of extending it to certain services, including the operation of payment systems and the provision of technical services, which are not covered in the scope; (b) the impact of the revision of Directive 2014/49/EU on the safeguarding of customer funds by payment institutions; (ba) the provisions on services whereby cash is provided in retail stores without a purchase, especially on the need of further harmonisation of these provisions; (bb) the total number and market share of payment service providers authorised under this Directive, classified per each Member State. Where appropriate, the Commission shall submit a legislative proposal together with its report. 2. The Commission shall by [ OP please insert the date = three years after entry into force of this Directive], submit to the European Parliament, the Council, the ECB and the European Economic and Social Committee, a report on the scope of this Directive, with regard in particular to payment systems, payment schemes and technical service providers. The report shall also cover the current applications of the payment service referred to in Annex I, point (8), and its key features, including in particular the distinction between accounts used to store electronic money and traditional payment accounts. Where appropriate, the Commission shall submit a legislative proposal together with its report. 2a. The Commission shall by [ OP please insert the date = 18 months after entry into force of this Directive], submit to the European Parliament, the Council, the ECB and the European Economic and Social Committee, a report on the possibility of extending the scope of this Directive to the processing or the operating of digital wallets. Where appropriate, the Commission shall submit a legislative proposal together with its report. ## Article 44 - Transitional provisions 1. Member States shall allow payment institutions that have been authorised pursuant to Article 11 of Directive (EU) 2015/2366 by ... [21 months after the date of entry into force of this Directive] to continue to provide and execute the payment services for which they have been authorised, 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 ... [27] months after the date of entry into force of this Directive]. Member States shall require such payment institutions as referred to in the first subparagraph to submit to the competent authorities the information necessary for those competent authorities to assess, by ... [27] months after the date of entry into force of this Directive], either of the following: (a) whether those payment institutions comply with Article 3(3), points (c), (d), (e), (f), (h), (r) and (s), and, where not, which measures need to be taken to ensure compliance; (b) whether the authorisation should be withdrawn. Payment institutions as referred to in the first subparagraph which upon verification by the competent authorities comply with Title II shall be deemed to be 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 ... [27 months after the date of entry into force of this Directive], they shall be suspended from providing payment services until they provide to the relevant competent authority the necessary information which ensures their compliance with Title II and competent authority has verified and confirmed the accuracy of that information. 2. By way of derogation from paragraph 1, second subparagraph, Member States shall provide for payment institutions as referred to in paragraph 1 to be authorised automatically and be entered in the register referred to in Article 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. 3. Member States shall allow natural or legal persons who benefited from an exemption pursuant to Article 32 of Directive (EU) 2015/2366 by ... [21 months after the date of entry into force of this Directive], and provided payment services as referred to in Annex I to that Directive, to do any of the following: (a) to continue to provide those services within the Member State concerned until ... [27 months after the date of entry into force of this Directive]; (b) to obtain an exemption pursuant to Article 34 of this Directive or, (c) to comply with the other provisions laid down or referred to in Title II of this Directive. Any person as referred to in the first subparagraph who has not, by ... [21 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 that person provides to the relevant competent authority the necessary information and that competent authority has verified and confirmed the accuracy of that information. Article 34(7) shall apply. 4. By way of derogation from paragraph 3, first subparagraph, point (b), Member States may provide for natural and legal persons who benefited from an exemption pursuant to Article 32 of Directive (EU) 2015/2366 to be exempted pursuant to Article 34 of this Directive and to be entered in the registers referred to in Articles 17 and 18 of this Directive where the competent authorities have evidence that the requirements laid down in Article 34 of this Directive are complied with. The competent authorities shall inform the payment institutions concerned thereof. 4a. Member States shall ensure that ATM deployers not servicing payment accounts that are operating in the market pursuant to Article 3, point (o) of Directive (EU) 2015/2366 by ... [21 months after the date of entry into force of this Directive] may continue to provide this service without having to seek registration in accordance with Article 38 or to comply with the other provisions laid down or referred to in Title II until ... [27 months after the date of entry into force of this Directive]. 4b. Member States shall ensure that in relation to the institutions mentioned in paragraphs 1 to 4, the register referred to in Article 17 is updated [one week after ... [27 months after the date of entry into force of this Directive]. 4c. Pursuant to Article 18, competent authorities shall provide the EBA, in relation to the institutions referred to in paragraph 4b of this Article, with the information entered in their register referred to in Article 17, immediately after the update of that register pursuant to paragraph 4b of this Article. ## Article 45 - Transitional provision – electronic money institutions authorised under Directive 2009/110/EC 1. Member States shall allow electronic money institutions as defined in Article 2, point (1), of Directive 2009/110/EC that have taken up, before ... [21 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 ... [27 months from the date of entry into force of this Directive]. 2. Member States shall require the electronic money institutions referred in paragraph 1 to submit to the competent authorities all information necessary for those competent authorities to assess, by ... [27 months after the date of entry into force of this Directive], whether those electronic money institutions comply with Article 3(3), points (c), (d), (e), (f), (h), (r) and (s). 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. Electronic money institutions as referred to in the first subparagraph which upon verification by the competent authorities comply with Title II shall be deemed to 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 ... [27 months after the date of entry into force of this Directive], they shall be suspended from providing payment services until they provide to the relevant competent authority the necessary information and that competent authority has verified and confirmed the accuracy of that information. Article 34(7) shall apply. 3. By way of derogation from paragraph 2, first subparagraph, Member States shall allow electronic money institutions as referred to in paragraph 1 to be authorised automatically as payment institutions and entered in the register referred to in Article 17 where the competent authorities have evidence that the electronic money institutions concerned comply with this Directive. The competent authorities shall inform the electronic money institutions concerned thereof before such automatic authorisation is granted. 4. Member States shall allow legal persons that have taken up, before ... [21 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 ... [27 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 suspended from providing payment services, until they provide to the relevant competent authority the necessary information and that competent authority has verified and confirmed the accuracy of that information. Article 34(7) shall apply. ## Article 45a - Extension period Competent authorities may exceptionally decide to extend, by no longer than 3 months, the period before specific payment institutions and electronic money institutions are prohibited from providing services when those institutions provided the information required pursuant to Articles 44 and 45 and the competent authority has not been able to process it within the applicable deadline. ## Article 46 - Amendments to Directive 98/26/EC Article 2 of Directive 98/26/EC is amended as follows: (1) point (b) is replaced by the following: ‘(b) ‘institution’ shall mean: - a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 of the European Parliament and of the Council*, including the entities listed in Article 2(5) of Directive 2013/36/EU; - an investment firm as defined in Article 4(1), point (1), of Directive 2014/65/EU of the European Parliament and of the Council**), excluding the institutions set out in Article 2(1) thereof, - public authorities and publicly guaranteed undertakings, or - any undertaking whose head office is outside the Union and whose functions correspond to those of the Union credit institutions or investment firms [as defined in the first and second indent], which participates in a system and which is responsible for discharging the financial obligations arising from transfer orders within that system; - a payment institution as defined in Article 2, point (4), of Directive XXX [PSD3], with the exception of payment institutions benefitting from an exemption pursuant to Articles 34, 36 and 38 of that Directive, which participates in a system whose business consists of the execution of transfer orders as defined in point (i), first indent, and which is responsible for discharging the financial obligations arising from such transfer orders within that system. If a system is supervised in accordance with national legislation and only executes transfer orders as defined in point (i), second indent, as well as payments resulting from such orders, a Member State may decide that undertakings which participate in such a system and which have responsibility for discharging the financial obligations arising from transfer orders within this system, can be considered institutions, provided that at least three participants of this system are covered by the categories referred to in the first subparagraph of this point and that such a decision is warranted on grounds of systemic risk; ’.’ ## Article 48 - Repeal Directive (EU) 2015/2366 is repealed with effect from ... [21 months after entry into force of this Directive]. Directive 2009/110/EC is repealed with effect from ... [21 months after entry into force of this Directive. All references made to Directive (EU) 2015/2366 and to Directive 2009/110/EC in legal acts that are in force at the time this Directive enters into force shall be construed as references to this Directive or Regulation XXX [PSR] and shall be read in accordance with the correlation table in Annex III to this Directive. ## Article 49 - Transposition 1. Member States shall adopt and publish, by ... [21 months after entry into force of this Directive] at the latest the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions. 2. They shall apply those measures from ... [21 months after entry into force of this Directive]. When Member States adopt those measures, they shall contain a reference to this Directive or be accompanied by such reference on the occasion of their official publication. Member States shall determine how such reference is to be made. 3. Member States shall communicate to the Commission the text of the main measures of national law which they adopt in the field covered by this Directive. ## Article 50 - Entry into force This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. ## Article 51 - Addresses This Directive is addressed to the Member States.