Managing Finances through Third-Party Providers
The Bill entitled ‘Various Financial Services Laws (Amendment) Act, 2019’ makes amendments to financial services in Malta.
Bill 89 of 2019, titled the ‘Various Financial Services Laws (Amendment) Act, 2019’ has been tabled before the Maltese Parliament. The Bill presents significant amendments to Malta’s financial services legal and regulatory framework, transposing the provisions of Directive (EU) 2015/2366 on Payment Services in the Internal Market, known as PSD2, Articles 10 and 25 of Directive 2014/92/EU (the Payment Accounts Directive), and Article 124 of Directive 2014/59/EU (the Bank Recovery and Resolution Directive).
Revised Payment Services Directive PSD 2
The revised Payment Services Directive (PSD2) is a landmark EU Directive which regulates payment services within the European Union. Through the Directive, bank customers, including both consumers as well as businesses, may manage their finances through third-party providers. Significant amendments emerging from the Directive include:
1. Third-Party Providers
The regulation of Third-Party Providers (TPPs); either Account Information Service Providers (AISPs) and Payment Initiation Service Providers (PISPs). AISPs will provide online information on the accounts held by the payment service user with other or multiple payment service providers, while PISPs will see payment service users being able to initiate a payment order related to a payment account held with another payment service provider;
2. Improved Security
Stronger customer authentication for banks and credit institutions; which will see European banks updating their card technology for improved security;
3. Bank Charges
Provisions relating to bank charges: transfers between banks located in EEA countries will see the sharing of charges between payer and payee, irrespective of the currency of the transfer. Furthermore, merchants cannot impose additional fees to those opting to pay with electronic instruments such as cards.
PSD2 will see greater standards for consumer protection and bank transparency being implemented across the EU, and enhanced business opportunities for Payment Service Providers (PSPs) within the internal market.
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