Regulatory Alerts2018-04-20
Added · Updated
Alternative for professional indemnity insurance
Payment institutions and electronic money institutions may satisfy professional indemnity insurance requirements under Article 5(2) of PSD2 by providing a bank guarantee from a non-group bank or by maintaining an amount of own funds. The bank guarantee must match the insurance amount and calculation criteria specified in EBA/GL/2017/08. Alternatively, entities may use own funds at a conversion rate of EUR 1 for every EUR 20 of insurance coverage, or a combination of own funds and insurance. This option aligns with the protection requirements for funds received from payment service users under Articles 40a and 40b of the Decree on Prudential Rules for Financial Undertakings.