EBA Revises Guidelines on Major Incident Reporting Under PSD2
EBA published revised guidelines on major incident reporting under the Payment Service Directive (PSD2). The revised guidelines are estimated to reduce the reporting burden for payment service providers and will apply as of January 01, 2022. EBA acknowledged the ongoing negotiations on the EC proposal for an EU regulatory framework on digital operational resilience (DORA), which contains a proposal to harmonize and streamline the reporting of information and communication technologies (ICT)‐related incidents across financial sector in EU. Depending on the outcome of these negotiations, EBA guidelines may eventually be repealed when the DORA regulation applies, which is currently estimated to be in 2024 or later.
The revised guidelines optimize and simplify the reporting process and templates, focus on incidents with significant impact on payment service providers, and improve the meaningfulness of information to be reported. In light of the comments received on the consultation on these guidelines (published on October 14, 2020), EBA agreed with some of the proposals and their underlying arguments and introduced the following changes to the guidelines:
- The classification criterion was changed from "Breach of security measures" to "Breach of security of network or information systems." This change, which is the most substantive, is aimed at narrowing down the scope of the criterion, avoiding any overlap with other classification criteria, and providing a more tangible criterion that does not require complex assessment and implementation.
- Unnecessary steps were removed from the reporting process, allowing more time for the submission of final report to reduce the reporting burden on payment service providers.
- EBA further simplified and optimized the standardized reporting template, with these changes expected to lead to a reduction of reportable incidents by more than 10% and to facilitate payment service providers in their reporting of major incidents.
- EBA clarified the process and timeline for classification of major incidents, the meaning of the term duration of an incident, and other aspects in the guidelines, mainly in the instructions on how to fill out the incident reporting template.
The revised guidelines apply in relation to the classification and reporting of major operational or security incidents in accordance with Article 96 of PSD2 and are addressed to payment service providers and the competent authorities under PSD2. The original guidelines on major incident reporting were developed in 2017 in close cooperation with ECB and have applied since January 2018.
Related Links
Effective Date: January 01, 2022
Keywords: Europe, EU, Banking, PSD2, Reporting, Payment Service Providers, Incident Reporting, Cyber Risk, DORA, Operational Resilience, Operational Risk, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
Danish FSA to Implement Net Stable Funding Ratio in DenmarkNext Article
EBA Revises List of Validation Rules for ReportingRelated Articles
OSFI Issues Results of Pilot on Climate Risk Scenario Analysis
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
ECB Issues Opinions on Green Bonds Standard and CRR Proposals
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
ESRB Explores Policy Response to Risks Arising from Digitalization
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
HKMA Consults on FIRO Code, Revises Policy on Foreign Exchange Risk
The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.
FI Publishes Multiple Regulatory and Reporting Updates
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
