Featured Product

    EBA Proposes to Revise Guidelines on Incident Reporting Under PSD2

    October 14, 2020

    EBA proposed revisions to the guidelines on major incident reporting under the second Payment Service Directive (PSD2). The revisions aim to optimize and simplify the reporting process, decrease the reporting burden on payment service providers, and improve meaningfulness of the incident reports received. The comment period for the proposal ends on December 14, 2020 while the revised guidelines are expected to become applicable in the fourth quarter of 2021.

    The existing guidelines on major incident reporting set out, among others, the criteria, thresholds, and methodology to be used by the payment service providers to determine whether or not an operational or security incident should be considered major and how the said incident should be notified to the competent authorities in the home member state. The consultation paper proposes the following:

    • Introduction of the new incident classification criterion "breach of security measures" to capture security incidents when a breach of the security measures of the payment service provider has an impact on the availability, integrity, confidentiality, and/or authenticity of the payment services data, processes, and/or systems.
    • Introduction of changes to the thresholds for calculation of the criteria "transactions affected" and "payment service users affected"
    • Use of a standardized file for reporting major incident reports, streamlining the reporting template, and adding further granularity to the reported causes of incidents and aligning those incidents to other incident reporting frameworks in EU, to improve quality of the collected reports
    • Removal of the regular updates on the intermediate report from payment service providers to the competent authorities, extension of deadline for submission of the final report, and significant reduction in the fields in the reporting template, with the goal of reducing the reporting burden to payment service providers

    EBA has aligned the taxonomy on the causes of the major incidents to other incident reporting frameworks that had been developed by the European Union Agency for Cybersecurity and the Single Supervisory Mechanism of the Eurozone and has added further granularity to some causes of incidents. EBA mentions that EC has published, on September 24, 2020, a new EU legislative proposal for the EU regulatory framework on digital operational resilience, which contains a proposal for incident reporting that is inspired by PSD2 but goes beyond the payments-related incidents. The final details of that framework will not be known for several years, after which further time is expected to pass before they become legally applicable. However, the revised guidelines proposed in this consultation paper are expected to become applicable in the fourth quarter of 2021. These revised guidelines will remain in force at least until the EU regulatory framework on digital operational resilience requirements enters into force. 

     

    Related Links

    Comment Due Date: December 14, 2020

    Effective Date (expected): Q4 2021

    Keywords: Europe, EU, Banking, PSD2, Reporting, Payment Service Providers, Incident Reporting, Cyber Risk, Operational Resilience, Operational Resilience, Operational Risk, EBA 

    Featured Experts
    Related Articles
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    MAS Amends Notice on Related Party Transactions of Banks

    MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.

    April 08, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Euro Short-Term Rate

    ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.

    April 07, 2021 WebPage Regulatory News
    News

    EBA Consults on Standards Related to FRTB-SA

    EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).

    April 07, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules Related to IRB Approach for Credit Risk

    PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.

    April 07, 2021 WebPage Regulatory News
    News

    BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK

    The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks

    FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks

    OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.

    April 06, 2021 WebPage Regulatory News
    News

    EU Amends CRR and Securitization Regulation in Response to Pandemic

    To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).

    April 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6826