How will payment institutions be required to safeguard customer funds in the future? This episode provides the answers – tune in now!
New rules for safeguarding customer funds
Those who handle other people’s money bear a significant responsibility – especially in times of crisis. The revised frameworks of PSD3 and PSR take this principle seriously and introduce new standards: not only do they set out how customer funds must be safeguarded going forward, but they also oblige banks to offer suitable accounts for this purpose.
In this episode, Peter Frey, Partner at Annerton, joins moderator Dana Wondra from Payment & Banking to explain the safeguarding methods that are being proposed. He discusses why trust accounts remain the prevailing model, why institutions will need to use multiple accounts in the future to reduce concentration risks, and what the potential implications are of allowing access to central bank accounts – including those offered by the Bundesbank, where available.
Progress in legal certainty and flexibility
A notable step forward: the insolvency protection of trust accounts will be legally recognised going forward. This change brings increased legal certainty and puts an end to long-standing uncertainties around shortfalls and account structures. Another key update: institutions will no longer be required to transfer customer funds to a separate account on the same day. Instead, they may do so by the next business day, allowing for greater operational flexibility.
This episode offers a clear and practical overview of what these developments mean for payment institutions, which challenges remain, and what actions should be taken now.
Tune in now – available wherever you get your podcasts.
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