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While businesses around the world are busy getting ready for GDPR, another wide-reaching EU regulation crept up and took many outside the Financial Services industry by surprise in January 2018 – the Payment Services Directive 2 (PSD2). 

PSD2 removes the previous easy-to-use exemption for electronic communications providers. Instead, it introduces a much more limited exclusion – and if they want to exercise it, they must provide an annual independent audit opinion relating to it. If they are unable to use the new exemption, they may need a full Financial Conduct Authority (FCA) licence as a payment institution.

Most telcos seem to have concluded that the application and compliance costs of a full licence outweigh the benefits, as many have opted for the electronic communications exclusion (ECE) for now. There is recognition, however, that this may be a holding position until there is greater clarity around what will be covered in practice and what the FCA will expect.

Read more about PSD2 and next steps in our briefing  here.


  Ros Baston 7Ros Baston

Ros, a former solicitor, leads the Deloitte Centre for Corporate Regulatory Insight. She has over 15 years’ experience, including City firms, working in-house at a FTSE 250 company and leading an advice and guidance team at a regulator.  She helps clients navigate the complex web of regulation, turning legal requirements into plain English commercial advice.


Thuong photo





Thuong Nguyen

Thuong's experience includes a unique combination of technical enablement, regulatory compliance monitoring and working with various alternative delivery models.



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