Changes from plenary report to adopted text

Jurisdiction and cooperation of competent authorities

1. In the event of infringement or suspected infringement of Titles II and III, the competent authorities shall be those of the home Member State of the payment service provider, except for agents and branches conducting business under the right of establishment, where the competent authorities shall be those of the host Member State.

2. In the event of infringements or suspected infringements of Titles II and III by technical service providers, payment system operators ATM deployers which do not service payment accounts, electronic communications services providers or by their agents or branches, the competent authorities shall be those of the Member State where the service concerned is provided.

3. In the exercise of their investigatory and sanctioning powers, including in cross border cases, competent authorities shall cooperate with each other and with other authorities from any sector concerned as applicable to each case and in accordance with Union and national law by exchanging information with each other and ensuring the mutual assistance to other competent authorities concerned as necessary for the effective enforcement of administrative sanctions and administrative measures.

4. The authorities from other sectors concerned, referred to in paragraph 3, shall cooperate with competent authorities for the effective enforcement of administrative sanctions and administrative measures.

Dispute resolution

1. Payment service providers shall put in place and apply adequate and effective complaint resolution procedures for the settlement of complaints of payment service users concerning the rights and obligations under Titles II and III. The competent authorities shall monitor the performance of those procedures.

Those procedures shall be applied in every Member State where the payment service provider offers the payment services and shall be available in an official language of the relevant Member State or in another language if agreed between the payment service provider and the payment service user.

2. Payment service providers shall ▐reply, on paper or, if agreed between the payment service provider and the payment service user, on another durable medium, to the payment service users’ complaints. Such a reply shall address all points raised, within an adequate timeframe and at the latest within 15 business days of receipt of the complaint. In exceptional situations, if the answer cannot be given within 15 business days for reasons beyond the control of the payment service provider, it shall send a holding reply, clearly indicating the reasons for a delay in answering to the complaint and specifying the deadline by which the payment service user will receive the final reply. In any event, the deadline for receiving the final reply shall not exceed 35 business days.

Member States may introduce or maintain rules on dispute resolution procedures that are more advantageous to the payment service user than that referred to in the first subparagraph. Where Member States do so, those rules shall apply.

3. The payment service provider shall inform the payment service user about at least one ADR entity which is competent to deal with disputes concerning the rights and obligations under Titles II and III.

4. The information referred to in paragraph 3 shall be mentioned in a clear, comprehensive and easily accessible way on the website of the payment service provider and on the respective mobile application, where they exist, at the branch, and in the general terms and conditions of the contract between the payment service provider and the payment service user. The payment service provider shall specify how further information on the ADR entity concerned and on the conditions for using it can be accessed.

ADR procedures

1. Member States shall establish adequate, independent, impartial, transparent and effective ADR procedures for the settlement of disputes between payment service users and payment service providers concerning the rights and obligations under Titles II and III according to the relevant Union and national law in accordance with the quality requirements laid down in Directive 2013/11/EU of the European Parliament and the Council, using existing competent bodies where appropriate. ADR procedures shall be applicable to payment service providers.

1a. The participation of payment service providers in ADR procedures for consumers shall be mandatory unless the Member State demonstrates to the Commission that other mechanisms are equally effective.

2. The bodies referred to in paragraph 1 of this Article shall cooperate effectively for the resolution of cross-border disputes concerning the rights and obligations under Titles II and III.

3. Member States shall designate a competent authority to accredit, monitor and publish the quality level of the ADR entity or entities on their territory to resolve disputes concerning rights and obligations under Titles II and III, in line with Article 18 of Directive 2013/11/EU.

4. Competent authorities, referred to in paragraph 3 shall notify ADR entity or entities in their territories to resolve disputes concerning rights and obligations under Titles II and III to the Commission, in line with Article 20 of Directive 2013/11/EU.

5. The Commission shall make publicly available a list of the ADR entities notified to it in accordance with paragraph 4 and update that list whenever changes are communicated.

Administrative sanctions and administrative measures

1. Without prejudice to the supervisory powers of competent authorities designated under Directive (EU) XXX (PSD3), in accordance with Title II, Chapter 1, section 3 of that Directive, and the right of Member States to lay down criminal sanctions, Member States shall lay down rules on administrative sanctions and administrative measures applicable to infringements of this Regulation and shall ensure that they are implemented. The administrative sanctions and administrative measures shall be effective, proportionate and dissuasive.

2. Member States may decide not to lay down rules on administrative sanctions and administrative measures applicable to breaches of this Regulation which are subject to sanctions under national criminal law. In such a case, Member States shall notify the Commission of the relevant criminal law provisions and any subsequent amendments thereto in accordance with Article 103.

3. Where the national rules referred to in paragraph 1 apply to payment service providers and other legal persons, in case of infringements and subject to the conditions laid down in national law, administrative sanctions and administrative measures shall be applicable to the members of the management body of such payment services providers and legal persons and to other natural persons found to be responsible for a breach of this Regulation.

4. Member States may lay down rules, in accordance with their national law, enabling their competent authorities to close an investigation concerning an alleged infringement of this Regulation, following a settlement agreement or an expedited enforcement procedure.

The empowerment of competent authorities to settle or open expedite enforcement procedures does not affect the obligations upon Member States under paragraph 1.

Administrative sanctions and other administrative measures for specific infringements

1. Without prejudice to Article 96(2), national laws, regulations and administrative provisions shall lay down the administrative sanctions and other administrative measures referred to in paragraph 2 of this Article in respect of the breaching or circumvention of the following provisions:

(a) the rules on access to accounts maintained with a credit institution laid down in Article 32;

(b) the secure data access rules by either account servicing payment service provider or by account information service providers and payment initiation service providers laid down in of Title III, Chapter 3, without prejudice to Article 45;

(c) the obligation to organise or perform fraud prevention mechanisms including strong customer authentication as set out in Articles 85, 86 and 87;

(d) the duty to comply with the requirements for transparency on fees by ATM operators or other cash distributors, in accordance with Article 20(c) point (ii);

(e) failure of payment service providers to respect the period for compensation of payment service users as set out in Article 56(2), Article 57(2) and Article 59(2).

2. In the cases referred to in paragraph 1, the applicable administrative sanctions and administrative measures shall be effective, proportionate and dissuasive and shall include the following:

(a) administrative fines;

(i) in the case of a legal person, a maximum administrative fine of at least 7,5 % of its total annual turnover as defined under paragraph 3;

(ii) in the case of a natural person, a maximum administrative fine of at least EUR 2 750 000, or in the Member States whose currency is not the euro, the corresponding value in the national currency on the date of entry into force of this Regulation;

(iii) a maximum administrative fine of at least twice the amount of the profits gained from the breach, where that profit can be determined.

(b) a public statement indicating the legal or natural person responsible for the breach and the nature of the breach;

(c) an order requiring the legal or natural person responsible for the breach to cease the unlawful conduct and to desist from repeating it;

(d) a temporary ban preventing a member of the management body of the legal person, or any other natural person who is held responsible for the breach, from exercising managing functions.

3. The total annual turnover referred to in paragraph 2, point (a)(i) of this Article and in Article 98(1) of this Regulation shall be equal to the net turnover as defined in Article 2, point (5), of Directive 2013/34/EU according to the annual financial statements available for the latest balance sheet date, for which the members of the administrative, management and supervisory bodies of the legal person have responsibility.

Where the legal person is a parent undertaking or a subsidiary of a parent undertaking which is required to prepare consolidated financial statements in accordance with Article 22 of Directive 2013/34/EU, the relevant total annual turnover shall be the net turnover or the revenue to be determined in accordance with the relevant accounting standards, according to the consolidated financial statements of the ultimate parent undertaking available for the latest balance sheet date, for which the members of the administrative, management and supervisory body of the ultimate undertaking have responsibility.

4. Member States may empower competent authorities, in accordance with national law, to impose other types of sanctions and other type of sanctioning powers in addition to those referred to in paragraph 2 of this Article and Article 98 on periodic penalty payments.

Periodic penalty payments

1. Competent authorities shall be entitled to impose periodic penalty payments on legal or natural persons for failure to comply with any decision, order, interim measure, request, obligation or other measure adopted in accordance with this Regulation.

Periodic penalty payment referred to in the first subparagraph shall be effective and proportionate and shall consist of a daily amount to be paid until compliance is restored. They shall be imposed for a period not exceeding 6 months from the date indicated in the decision imposing the periodic penalty payments.

Competent authorities shall be entitled to impose maximum periodic penalty payments of at least:

(a) 3% of the average daily turnover in the case of a legal person;

(b) EUR 30.000 in the case of a natural person.

The average daily turnover shall be the total annual turnover referred to in Article 97(3), divided by 365.

2. Member States may provide for higher amounts of pecuniary penalty payments than those laid down in paragraph 1.