Exemption from PSD2 contingency mechanism

Providers of online payment accounts are required to have a contingency mechanism for account access in place by 14 September 2019. This page explains how account providers can request that we exempt them from this requirement.

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PSD2 encourages competition and innovation by supporting and regulating businesses that use customer account data to provide value add services (e.g. account dashboards, budgeting tools), and businesses that use the payment functionality of customer accounts to provide services (e.g. paying online without the use of payment cards).

Regulatory technical standards (SCA-RTS) under PSD2 set out how the secure communication between these newly regulated businesses and providers of payment accounts which are accessible online (account providers) should happen.

We have encouraged account providers to enable the access required by PSD2 by implementing dedicated interfaces based on secure application programming interfaces (APIs). A number of account providers are using APIs developed by the Open Banking Implementation Entity.

The SCA-RTS contain a requirement for account providers to build a back-up system to the dedicated interface – the contingency mechanism. However, account providers can request that we exempt them from this requirement. We will assess account providers’ dedicated interfaces to decide whether to give an exemption. EBA Guidelines set out how we should make this assessment.

We set out the information account providers should provide to us as part of an exemption request in Chapter 17 of the Payment Services and E-money Approach Document.

Requesting an exemption

We will be open to receive exemption requests from 14 January 2019. From this date account providers should:

  • email [email protected] to let us know you are considering seeking exemption
  • once you have discussed your exemption request with us, submit the exemption request form using Connect

You should aim to submit your exemption request by 14 June 2019. If we refuse your exemption request, your firm will need enough time to implement the contingency mechanism in order to comply with the SCA-RTS by 14 September 2019.

Assessing exemption requests

Once we deem an exemption request to have been submitted and complete, we aim to issue a decision within 1 calendar month. This month will only start once we are satisfied that we have all the information necessary to make a decision.

If your firm is submitting a request, we encourage you to discuss this with us first by emailing [email protected].

Submitting an exemption request on Connect

Please log in to Connect and follow these steps:

1 Start an application
2 Payment Services Firms
3 PSD2 Notifications Forms
4 Requests from exemption from the contingency mechanism
5 Complete the form
6 Attach supporting documents
7 Submit