Directive (EU) 2015/2366 on payment services (“PSD2”) entered into force on January 12th 2016 and should have been transposed by all Member States, including Luxembourg, by January 13th 2018. PSD2 repeals Directive 2007/64/EC on payment services in the internal market (“PSD1”) and introduces considerable changes to the current framework on payment services in order to regulate diverse types of payment services, adapting the legislation to modern innovations.
One of the aims of the new law is to secure a “level playing field” for credit institutions and fintech companies, better manage the macrosystemic risk in the financial market, and protect consumers.
We refer you to our September 2013 Newsletter where we discussed the initial proposal for PSD2 put forward by the European Commission.
As regards transposition of PSD2 into Luxembourg Law, draft bill No. 7195 (the “Draft Law”) (which will substantially amend the Luxembourg Law of November 10th 2009 on payment services (the “Payments Services Law”)) was submitted to the Luxembourg Parliament on November 10th 2017. On December 14th the Luxembourg Chamber of Commerce (“LCC”) issued its opinion on the Draft Law. The Luxembourg regulator had indicated that Luxembourg would transpose PSD2 prior to the January 13th deadline and therefore, it is anticipated that the Draft Law will be finalised and approved very soon.
On the other hand, guidelines issued by the European Banking Authority (EBA) in respect of PSD2 are already applicable in Luxembourg. The EBA published (i) guidelines on the information to be provided for the authorisation of payment institutions and electronic money institutions and for the registration of account information service providers under Article 5(5) of PSD2 (the “Guidelines on Required Information for Authorisation”) and (ii) guidelines on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance or other comparable guarantee under Article 5(4) of PSD2 (the “Guidelines on Insurance/Guarantee Minimum Amount”). On January 12th 2018, the CSSF published CSSF Circular 18/677 by which it adopted the Guidelines on Required Information for Authorisation that apply from January 13th 2018 (except for section 4.4. of those guidelines regarding the assessment of completeness of the application for authorisation and registration under PSD2, that will apply as from the date of entry into force of the Draft Law in its final form). Most recently, on January 24th 2018, the CSSF published CSSF Circular 18/681 by which it adopted the Guidelines on Insurance/Guarantee Minimum Amount that also apply from January 13th 2018.
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