# PSD3 Article 46 — Amendments to Directive 98/26/EC

Textual state: amended_substantial. 148 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- Compared against: COM(2023) 366 final — superseded.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 0

Article 2 of Directive 98/26/EC is amended as follows: (1) point (b) is replaced by the following: ‘(b) ‘institution’ shall [-mean any of the following: -]{+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* ; -]{+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 , -]{+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] , -]{+indent], +}which participates in a system and which is responsible for discharging the financial obligations arising from transfer orders within that [-system ; -]{+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 [-that -]{+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; [-’; (2) point (f) is replaced by the following: ‘(f) “participant” shall mean an institution, a central counterparty, a settlement agent, a clearing house, a payment system operator or a clearing member of a CCP authorised pursuant to Article 17 of Regulation (EU) No 648/2012. According to the rules of the system, the same participant may act as a central counterparty, a settlement agent or a clearing house or carry out part or all of those tasks. A Member State may, for the purposes of this Directive, consider an indirect participant to be a participant where that is justified on the grounds of systemic risk, which shall, however, not limit the responsibility of the participant through which the indirect participant passes transfer orders to the system;’. -]{+’.’+}