Response to consultation on the Guidelines on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance under PSD2
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The frequency of this review should be based on the speed of growth of the activity of the undertakings.
The additional amount added in case the undertaking provides its services outside the EU should be proportionate to the size of the activity performed outside of the EU.
For undertakings aiming to provide AIS and/or PIS as an additional service to a small base of customer, the proposed amount is out of proportions.
Question 1: Do you agree with the requirement that competent authorities require undertakings to review, and if necessary re-calculate, the minimum monetary amount of the PII or comparable guarantee, and that they do so at least on an annual basis, as proposed in Guideline 8?
For small undertakings, re-evaluating and re-calculating of the minimum amount of the PII on an annual basis is too frequent and too constraining.The frequency of this review should be based on the speed of growth of the activity of the undertakings.
Question 2: Do you agree with the formula to be used by competent authorities when calculating the minimum monetary amount of the PII or comparable guarantee as proposed in Guideline 3? Please explain your reasoning
We agree, the formula is easy to use for both the competent authorities and the undertakings.Question 3: Do you agree with the indicators under the risk profile criterion and how these should be calculated, as proposed in Guideline 5? Please explain your reasoning.
The geographical criterion is arbitrary and can be disproportionate to the size of the corresponding activity.The additional amount added in case the undertaking provides its services outside the EU should be proportionate to the size of the activity performed outside of the EU.
Question 4: Do you agree how the indicators under the type of activity criterion should be calculated, as proposed in Guideline 6? Please explain your reasoning.
The additional amount added in case the undertaking is engaged in other businesses should not be arbitrary, and should be proportionate to the size of the undertakings activity.For undertakings aiming to provide AIS and/or PIS as an additional service to a small base of customer, the proposed amount is out of proportions.