EU Sets Out Rules For National Regulators On Passporting Under The Revised Payment Services Directive

On November 11, 2017, a Delegated Regulation was published in the Official Journal of the European Union setting out RTS for the cooperation and exchange of information between EU national regulators that are the home and host states for payment institutions using the "passport" provided by the revised Payment Services Directive. Under PSD2, payment institutions can make use of the passport either to establish a branch in another Member State, or to provide services cross-border into another Member State. PSD2 will extend the definition of a "payment institution" to include new categories of third-party payment providers. The RTS set out detailed rules on how national regulators are to assess passport applications and how they should deal with disagreements. The RTS also set out the information that must be obtained and/or transmitted or communicated on a branch, services or agent passport application.