PSD 3 / FIDA

The regulatory package published on 28 June 2023 by the European Commission covers essentially three areas: payment services, the digital Euro and open finance. In terms of regulating payment services,, the package includes the draft PSD3 Directive, which will replace the PSD2 Directive, as well as the draft Payment Services Regulation (PSR). The proposed changes in the payment services regulations are evolutionary in nature, but will require providers to adapt to the new solutions, especially in the area of SCA or consumer protection.

The draft Financial Data Access (FIDA) regulation, the European Commission's flagship EU Digital Platform initiative, grants consumers and SMEs the right to authorise third parties to access data about themselves held by financial institutions. This will allow the emergence of many new business models.

The adoption of the above regulations is likely to take place within approximately 2-3 years from the publication of the drafts (2025-2026). When designing the new solutions, it is worth bearing in mind the regulations under way at the EU level - the PSR and FIDA are EU regulations, will be directly applicable and will not require implementation into national law.

 

Why us?

As a leading financial regulation law firm, we support our clients operating in the payment services sector at every stage - from legal support for product design, through implementation, to ongoing regulatory support. Our experience includes conducting bespoke PSD 2 implementation projects for some of the largest players in the market. On a day-to-day basis, we support payment service providers in cross-border regulatory projects, combining experience from several European jurisdictions.

 

Who are we helping?

Banks, payment institutions, providers of services and solutions for payment institutions.

 

How can we help?
  • Analyse the application of PSD3, PSR, FIDA within the organisation, with a particular focus on whether solutions are in place to enable data sharing for Open Finance;
  • Support in the development, adaptation and implementation of policies, procedures and other internal documentation from PSD3, PSR or FIDA;
  • Support in the development, adaptation and implementation of new products compliant with PSD3, PSR or FIDA;
  • assistance in determining whether new licenses are required or whether existing licenses need to be extended;
  • Provide training to clients and their staff to ensure a comprehensive understanding of PSD3, PSR or FIDA regulations;
  • Provide guidance on the identification and management of PSD3, PSR and FIDA risks;
  • Conduct audits and due diligence to assess the client's current state of compliance and identify areas for improvement once the relevant national and EU legislation comes into force;
  • Supporting clients in navigating the complexities of cross-border payment service provision while ensuring compliance with PSD 3, PSR or FIDA regulations;
  • Establish systems to monitor regulatory changes and provide timely updates to ensure ongoing compliance;