---
instrument_id: psr
chunk_id: psr_t03_ch09
chunk_title: Product intervention powers by EBA
path: "Title III RIGHTS AND OBLIGATIONS IN RELATION TO THE PROVISION AND USE OF PAYMENT SERVICES > Chapter 9"
source_class: operative_text
document_type: proposal
normative_weight: non_binding
legal_status: council_position
jurisdiction: EU
effective_period:
  from: null
  to: null
articles_contained:
  - 114
topics:
  - payments
  - payment_services
  - product_intervention
---

# Chapter 9 - Product intervention powers by EBA

## Article 114 - EBA temporary intervention powers

1. In accordance with Article 9(5) of Regulation (EU) No 1093/2010, EBA may, where the conditions in paragraphs 2 and 3 of this Article are fulfilled, temporarily prohibit or restrict in the Union a certain type or a specific feature of a payment service or instrument. Such prohibition or restriction may apply in circumstances, or be subject to exceptions, specified by EBA.

2. EBA shall take a decision under paragraph 1 only if all of the following conditions are fulfilled:

   (a) the proposed action addresses a significant number of payment service users or a threat to the orderly functioning or integrity of the payment or electronic money markets, or to the stability of the whole or part of those markets, in the Union;

   (b) regulatory requirements under Union law that are applicable to the relevant payment service do not address the threat;

   (c) a competent authority or competent authorities have not taken action to address the threat or the actions that have been taken do not adequately address the threat.

Where the conditions set out in the first subparagraph of this paragraph are fulfilled, EBA may impose the prohibition or restriction referred to in paragraph 1 on a precautionary basis before a payment service has been offered or distributed to payment service users.

3. When taking action under this Article, EBA shall ensure the following:

   (a) the action does not have a detrimental effect on the efficiency of the payments market or electronic money market or on payment service providers that is disproportionate to the benefits of the action;

   (b) the action does not create a risk of regulatory arbitrage; and

   (c) the action has been taken after consulting the relevant national competent authority.

4. Before deciding to take any action under this Article, EBA shall notify the relevant competent authorities of the action it proposes.

5. EBA shall publish on its website a notice of any decision to take any action under this Article. The notice shall specify details of the prohibition or restriction and specify a time after the publication of the notice from which the measures will take effect, while also ensuring that notices on such decisions on natural persons are published only in an anonymised version. A prohibition or restriction shall only apply to an action taken after the measures take effect.

6. EBA shall review a prohibition or restriction imposed under paragraph 1 at appropriate intervals and at least every three months. If the prohibition or restriction is not renewed every three months, it shall expire.

7. Action adopted by EBA under this Article shall prevail over any previous action taken by a competent authority.

8. The Commission is empowered to adopt delegated acts in accordance with Article 115 to supplement this Regulation by specifying criteria and factors to be taken into account by EBA in determining when there is a significant number of payment service users or a threat to the orderly functioning or integrity of the payment or electronic money markets, or to the stability of the whole or part of those markets, in the Union.

The criteria and factors specified in delegated acts adopted by the Commission shall include:

   (a) the degree of complexity of a payment service or instrument and how they relate to the type of users, including consumers, to whom they are offered;

   (b) the degree of riskiness, for consumers, of a payment service or instrument;

   (c) the possible use by fraudsters of the payment service or instrument;

   (d) the size or the level of uptake of the payment service or instrument;

   (e) the degree of innovation of a payment service or instrument.