On September 22, 2016, the European Banking Authority (EBA) published a consultation paper (EBA/CP/2016/12) on draft guidelines in relation to professional indemnity insurance (PII) and the criteria competent authorities should follow when stipulating the minimum monetary amount of the PII or comparable guarantees for undertakings that apply to provide payment initiation services or account information services under PSD2 (the Directive on payment services in the internal market ((EU) 2015/2366)). The EBA was mandated to produce the guidelines under Article 5(4) of PSD2. The consultation on the draft guidelines closes on November 30, 2016.

As well as setting out the proposed criteria, the EBA also:

• Sets out with explanations its proposal to use a formula for the calculation of the minimum monetary amounts.
• Provides details on indicators for the criteria set out in PSD2 along with the calculation method proposed for some of those indicators.
• Provides circumstances in which the lowest tier, or default value, should be used.

The EBA also provided practical examples to assist in the calculation of the minimum amount of PII or comparable guarantee.