Featured Product

    EBA Revises Guidelines on Major Incident Reporting Under PSD2

    June 10, 2021

    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 Depending on the outcome of these negotiations, EBA guidelines may eventually be repealed when the DORA regulation applies, which is currently estimated to be in 2024 or later.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
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582