European Union:
Telcos And The PSD2 Exclusion – What Next?
27 February 2018
Deloitte
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While businesses around the world are busy getting ready for
GDPR, another wide-reaching EU regulation crept up and took many
outside the Financial Services industry by surprise in January 2018
– the Payment Services Directive 2 (PSD2).
PSD2 removes the previous easy-to-use exemption for electronic
communications providers. Instead, it introduces a much more
limited exclusion – and if they want to exercise it, they
must provide an annual independent audit opinion relating to it. If
they are unable to use the new exemption, they may need a full
Financial Conduct Authority (FCA) licence as a payment
institution.
Most telcos seem to have concluded that the application and
compliance costs of a full licence outweigh the benefits, as many
have opted for the electronic communications exclusion (ECE) for
now. There is recognition, however, that this may be a holding
position until there is greater clarity around what will be covered
in practice and what the FCA will expect.
Read more about PSD2 and next steps in our briefing
here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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