Scope of licence requirement for payment services

News
Datum 28 februari 2019

DNB explains the scope of the licence requirement for companies that provide payment services as an ancillary service.

DNB gevel

Under the new PSD2 legislation, trading platforms that settle payment transactions between buyer and seller must as a rule hold a PSD2 licence.

Scope

We have explained the scope of this licence requirement to prevent certain activities, such as the temporary management of funds on behalf of third parties, from falling under it. We have decided to adopt the following policy with respect to the scope of the term "payment service provider“: “A party only pursues the business of a payment service provider if it provides a payment service for a payor's or payee's expense as a separately identifiable activity. This means the activity must be separate and not indissolubly linked to another activity unrelated to payment services.

No payment service providers

The following non-exhaustive list gives examples that do not qualify as pursuing the business of a payment service provider as a separately identifiable activity:

  • Civil-law notaries: civil-law notaries within the meaning of Section 1(1), opening words and under a, of the Civil-Law Notaries Act, if they hold funds in an account within the meaning of Section 25 of the Civil-Law Notaries Act
  • Bailiffs: bailiffs within the meaning of Section 1(1), opening words and under d, of the Bailiffs Act, if they hold funds in an account within the meaning of Section 19 of the Bailiffs Act
  • Attorneys-at-law: customer accounts foundations whose sole activity is the temporary management of funds for beneficiaries and that only work for attorneys-at-law who have no entitlement to the funds, which fact must be evidenced by written agreements between the foundations and the relevant attorneys-at-law
  • Specific crowdfunding platforms: crowdfunding platforms that on a temporary basis manage funds of parties to which loans are provided with the platforms as intermediaries or funds of parties that offer or have provided funds, if such management is not a separate activity
  • Tax representatives: Tax representatives operating under a general or limited licence within the meaning of Section 24c(4) and (5) of the Decree implementing the 1968 VAT Act if they hold funds in their capacity of a tax withholding agent.

More information

Q&A document and notes to the policy can be found on our Open Book on Supervision web pages.

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