PSD Bond accepted for use in Lithuania
The Supervision Service of Bank of Lithuania has confirmed the acceptability and sufficiency of the PSD Bond insurance policy for use as a method of safeguarding clients' funds. This is required under the Payment Services Directive II (PSD2) and Electronic Money Directive (EMD) as adapted to the legal requirements laid down by the laws of the Republic of Lithuania.
PSD Bond was pioneered by Protean Risk and the insurance contract is underwritten by major insurers, including Lloyd's of London, all providing Standard & Poor’s or equivalent ‘A’ rated financial security. It is already used by a number of UK Authorised Payment Institutions (APIs) and Electronic Money Institutions (EMIs) as a complementary method of Safeguarding and has been proven to deliver significant capital efficiencies and alleviate the complex regulatory challenges of safeguarding client funds.
Tristan Sargent, Director, Fintech and Payment Services at Protean Risk, said: "We are delighted to receive this approval and would like to thank Donatas Šliora and the team at ADON Legal for helping us to adapt PSD Bond to meet Lithuanian laws. We now look forward to working with Lithuanian regulated APIs and EMIs to assess how PSD Bond can help them to improve their approach to safeguarding client funds. Lithuania is acknowledged as having a vibrant fintech and payments sector and we hope this will be one of many EU countries to accept PSD Bond."