Every Authorised Payment Institution (PI) and Electronic Money Institution (EMI) in the European Union must comply with the safeguarding requirements as instructed in the Payment Services Directive 2 (PSD2).
Article 10 (points 1 to 6 of Annex I) in PSD2, it is indicated that PIs and EMIs must state and prove:
● the safeguarding method of client funds, either segregation or insurance
● protection from any third-party claim
● related systems and controls
● precautions for an insolvency event