Horizons of Law in Business and Finance
Horizons of Law in Business and Finance
Contributor(s): Nicole Grmelová (Editor), Petr Tomčiak (Editor)
Subject(s): Business Economy / Management, Law on Economics, Financial Markets, Socio-Economic Research, Sociology of Law
Published by: ADJURIS – International Academic Publisher
Keywords: Law in Business; Law; Business; Finance; Economy;
Summary/Abstract: These conference proceedings constitute a selection of the best papers submitted to the 15th International Scientific Conference "Law in Business of Selected Member States of the European Union" which was organized by the Department of Business and European Law, Faculty of International Relations, Prague University of Economics and Business, Czech Republic. The conference was held in the University ́s premises from 25 to 27 October 2023 and welcomed speakers and participants from abroad (Belgium Latvia, Netherlands, Poland, Romania, Slovakia, Spain, Turkiye, United States) and the Czech Republic. The conference was held hybrid format. Although the on-site participation was encouraged, the conference was streamed online for those who could not join the conference venue in person and to reach a wider audience. The selection of the papers for the conference volume was very rigorous. The papers were submitted and presented in English. All the papers included in this volume passed a rigorous double-blind peer review successfully and were checked for their originality using the iThenticate software kindly provided by the University. The participants ́ papers were presented in specialized sections which correspond to the subheadings of the present volume: 1. Section: Business and Corporate Law; 2. Section: European and International Aspects of Doing Business; 3. Section: Banking, Finance and Insurance Law. The conference has been supported by the Internal Grant Agency Project No. IG 43/2023 “Law in Business of Selected Member States of the European Union (15th annual conference)” of the Prague University of Economics and Business. All published papers successfully passed the double-blind peer-review process by at least 2 independent reviewers - experts with a PhD in the relevant field. The conference organizers will be happy to welcome the readers at the conference to be held next year. The date of the conference is to be announced in due course. For more information on the call for papers for the upcoming conference please check the conference webpage at https://lawinbusiness.vse.cz/. Wishing you a nice read.
- Page Count: 227
- Publication Year: 2023
- Language: English
The role and importance of effective compliance management systems in criminal law practice
The role and importance of effective compliance management systems in criminal law practice
(The role and importance of effective compliance management systems in criminal law practice)
- Author(s):Lucie Andreisová
- Language:English
- Subject(s):Law on Economics, Socio-Economic Research, Sociology of Law, Court case
- Page Range:11-26
- No. of Pages:16
- Keywords:compliance management system; criminal liability; exculpation; legal entity;
- Summary/Abstract:In April 2023, the Regional State Prosecutor's Office in Ústí nad Labem – Liberec, Czech Republic, decided to set aside the decision of the Czech Police, National Headquarters against Organized Crime. This resulted into termination of the criminal prosecution of one of the largest construction companies in the Czech Republic. The company, together with other legal entities, was accused of committing the crime of conspiracy to confer an advantage in the award of a public contract, a public tender and a public auction, as well as the crime of attempted damage to the financial interests of the European Union. The Supervising Prosecutor's Office assessed in detail the information and documents provided regarding the internal compliance management system of the accused companies and, in accordance with provisions of section 8(5) of the Act on Criminal Liability of Legal Entities, released them from their criminal liability. Since the practical impact of this decision is crucial, the author subjects it to a detailed analysis and subsequent comparison with the rules set out in relevant methodology of the Czech Supreme State Prosecutor's Office, which is a practical guide to the above-mentioned legislation. The result thus serves as a good inspiration for effective setting up and maintenance of compliance management systems in corporate practice (not only from the perspective of Czech law, as the presented conclusions are fully applicable internationally).
Belatedly, but still - will the 2022 amendment to the Czech Copyright Act improve copyright protection against illegal online sharing of content to the public from repositories?
Belatedly, but still - will the 2022 amendment to the Czech Copyright Act improve copyright protection against illegal online sharing of content to the public from repositories?
(Belatedly, but still - will the 2022 amendment to the Czech Copyright Act improve copyright protection against illegal online sharing of content to the public from repositories?)
- Author(s):Martin Boháček
- Language:English
- Subject(s):Media studies, Law on Economics, Socio-Economic Research, Sociology of Law
- Page Range:27-43
- No. of Pages:17
- Keywords:amendment to the Copyright Act; "blocking authority"; copyright; copyright enforceability related rights; court decisions; EU SDM Directive; online content sharing service; online storage;
- Summary/Abstract:At the end of 2022, the Czech Parliament adopted an amendment to the Copyright Act, implementing, inter alia, the EU Directive on copyright and related rights in the digital single market - the SDM Directive. The aim of this paper is to assess the possible improvement of copyright enforcement under this amendment in private law disputes between copyright holders and repositories that allow their users to communicate illegal content to the public. The paper compares the results of a micro-research of selected court decisions before and after the amendment. The question of establishing a special "blocking" authority that could effectively and quickly make illegal content in online platforms inaccessible, as it works in some EU countries, will also be considered. Other aspects of the amendment will not be discussed in the paper due to the necessary limitation of its scope. The author will rely on the method of qualitative analysis of the new legislation, case law and legal scholarship. The method of legal micro-comparison will be used for comparison with the existing practice.
Shares and non-monetary payment of interest of profit and of other resources of a joint stock company to shareholders
Shares and non-monetary payment of interest of profit and of other resources of a joint stock company to shareholders
(Shares and non-monetary payment of interest of profit and of other resources of a joint stock company to shareholders)
- Author(s):Radim Kříž
- Language:English
- Subject(s):Micro-Economics, Law on Economics, Socio-Economic Research, Sociology of Law
- Page Range:44-55
- No. of Pages:12
- Keywords:business share; general meeting; joint-stock company; other own resources; shares;
- Summary/Abstract:This paper deals with the non-monetary share of profit and other own resources and the shares associated with them. This topic has not received much attention in legal scholarship so far. The Act No. 90/2012 Coll., on commercial companies and cooperatives (Act on Commercial Corporations) allows the payment of interest of profit and other own resources in non-monetary form to shareholders, however, the experience of the author of this paper is that in reality this possibility is not used very often. It is therefore necessary to ask whether it is justified for the professional public to overlook this issue. The possibility of paying an interest of the profit and of other own resources through non-monetary payment is not purely theoretical and may have some practical significance. In principle, the legal regulation allows two options how to proceed to use shares generating profit in kind. Both options will be discussed and evaluated. The paper aims at answering pending questions regarding the non-monetary payment of interest of profit and of other own resources. With respect to the methods used for drafting this paper, the author has mainly relied on analysis, synthesis and comparison.
Debt discharge for insolvent Czech entrepreneurs under the EU Directive 2019/1023
Debt discharge for insolvent Czech entrepreneurs under the EU Directive 2019/1023
(Debt discharge for insolvent Czech entrepreneurs under the EU Directive 2019/1023)
- Author(s):David Machač
- Language:English
- Subject(s):National Economy, Business Economy / Management, Law on Economics, Financial Markets, Socio-Economic Research, Sociology of Law
- Page Range:57-67
- No. of Pages:12
- Keywords:creditor satisfaction; direct effect; discharge of debts;
- Summary/Abstract:The Directive (EU) 2019/1023 requires Member States to ensure that insolvent entrepreneurs have access to at least one procedure that can lead to a full discharge of debts in a period no longer than three years. The deadline for transposition of the Directive 2019/1023 expired on 17 July 2021. The payment schedule according to the Czech Insolvency Act generally lasts five years. It is shortened to three years for some vulnerable groups of debtors, such as disabled or elderly people, and also for those who repaid 60% of debts within the first three years. This paper shall examine the consequences of not meeting the deadline for transposition, and whether Directive 2019/1023 could have a direct effect, based on the judgments of the Court of Justice of the EU (CJEU). The approach taken by the government’s proposal for an amendment to the Insolvency Act which is currently pending in the legislative process shall also be addressed in this paper.
Limitations for the application of the hardship clause in the Czech Republic
Limitations for the application of the hardship clause in the Czech Republic
(Limitations for the application of the hardship clause in the Czech Republic)
- Author(s):Bára Mika
- Language:English
- Subject(s):National Economy, Law on Economics, Financial Markets, Socio-Economic Research
- Page Range:68-76
- No. of Pages:9
- Keywords:change of circumstances; hardship; gross disproportion;
- Summary/Abstract:Since 2020, partially triggered by the pressure of the Covid-19 pandemic, the Czech courts were presented with several dozens of cases concerning possible termination or adjustment of contracts due to changed circumstances under the hardship clause. Given the relative novelty of the general hardship clause in the Czech law, the first bundle of case law presents an opportunity to see how the courts handle the application of the concept in practice. This paper focuses on the analysis of the Czech case law between 2020 and 2023, targeting the first two considerations under the hardship. Firstly, it is the question of what constitutes a change of circumstances. The point was chosen as a starting point mostly because it is the only one addressed by the Czech Supreme Court in more detail. One of the conclusions here is that the courts tend to list specific (extreme) circumstances but omit development of more universal characteristics which would help support the rule. In its second part, the article debates the effects of the change, a gross disproportion created within the contract. In this regard the courts (and also the claimants) misinterpret what should be the subject of examination, focusing on the economic struggle of the claimants unrelated to the contracts instead of looking within the contract on its damaged equilibrium. The aim of the paper is to name these general shortcomings, showing how they manifest in individual cases.
The legal issues of influencer marketing
The legal issues of influencer marketing
(The legal issues of influencer marketing)
- Author(s):Jana Strémy
- Language:English
- Subject(s):Media studies, Business Economy / Management, Law on Economics, Marketing / Advertising, Socio-Economic Research, Sociology of Law
- Page Range:77-87
- No. of Pages:11
- Keywords:advertising; competitor; consumer; influence marketing; unfair business practices; unfair competition;
- Summary/Abstract:The proliferation of social networks brings entrepreneurs (competitors) more ways of interaction with consumers. Marketing strategies of social networks are coming to the fore, developing new methods of influence(r) marketing. In the article, we deal with the issue of regulation of this phenomenon, questions of competition law and (non)transparent marketing practices of influencers, potentially harmful to consumers. The aim of this article is to demonstrate correlation between influencer’s practices and unfair competition in the legislation of Slovak Republic by using common scientific methods - analysis and synthesis.
Alternative dispute resolution and artificial intelligence in the context of the new "EU AI act”
Alternative dispute resolution and artificial intelligence in the context of the new "EU AI act”
(Alternative dispute resolution and artificial intelligence in the context of the new "EU AI act”)
- Author(s):Jana Cihanová
- Language:English
- Subject(s):ICT Information and Communications Technologies, Socio-Economic Research, EU-Legislation, Sociology of Law
- Page Range:89-103
- No. of Pages:15
- Keywords:Alternative Dispute Resolution; AI; Artificial Intelligence Act;
- Summary/Abstract:The use of artificial intelligence (AI) in alternative dispute resolution (ADR) can represent several potential advantages, especially in terms of the effectiveness of the process and reducing its costs. However, it also faces various challenges and concerns, mainly legal and ethical. There is no uniform guidance on how to use AI in ADR to solve the issue of transparency or potential risks. The currently discussed and prepared Artificial Intelligence Act, proposed by the European Commission (EU AI Act), can be helpful in this area. The Artificial Intelligence Act follows a risk-based approach, classifying artificial intelligence systems according to the degree of risk. As the risks increase, so do the measures to be taken. This article focuses on exploring the use of AI in ADR in the context of the draft of the new EU AI Act and the potential implications for the possible implementation of AI in ADR.
The scope of the United Nations convention on contracts for the international sale of goods in the face of technological inventions
The scope of the United Nations convention on contracts for the international sale of goods in the face of technological inventions
(The scope of the United Nations convention on contracts for the international sale of goods in the face of technological inventions)
- Author(s):Anna Kretková
- Language:English
- Subject(s):International Law, Law on Economics, Socio-Economic Research, Sociology of Law
- Page Range:104-117
- No. of Pages:14
- Keywords:Aging of the CISG; international sale of goods; scope of CISG; technological inventions; United Nations Convention on Contracts for the International Sale of Goods (CISG);
- Summary/Abstract:The article deals with the scope of the UN Convention on Contracts for the International Sale of Goods (CISG) facing technological inventions. The paper aims to answer the question of the application of the CISG to these technological inventions (e.g. drones). It will examine if drones can be considered as ships, vessels, hovercraft, or aircraft under Article 2(e) CISG and can therefore be excluded from the application of the CISG. The issue is analysed based on published court decisions with references to legal scholarship. The author concludes by commenting on the application of the criteria formulated in case law and by legal scholarship and provides a recommended solution as to whether the scope of the Convention should be modified in light of recent technical progress.
The conceptual understanding of taxonomic criteria and objectives for environmentally sustainable economic activities
The conceptual understanding of taxonomic criteria and objectives for environmentally sustainable economic activities
(The conceptual understanding of taxonomic criteria and objectives for environmentally sustainable economic activities)
- Author(s):Robert Kenyon MacGregor
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Socio-Economic Research, EU-Legislation, Sociology of Law
- Page Range:118-131
- No. of Pages:14
- Keywords:EU; environmental sustainability; greenwashing; Taxonomy Regulation;
- Summary/Abstract:The UN 2030 Agenda and the Political guidelines with six priorities of the current EU Commission, including the European Green Deal, vigorously and systematically advance sustainability, particularly its environmental pillar. The EU strategies, policies and law have engaged in promoting a genuine corporate social responsibility and the reporting about it and in fighting against greenwashing. After a sectorial regulation (Sustainable Finance Disclosures Regulation in 2018), a general regulation came to standardize the information about environmentally sustainable activities (the Taxonomy Regulation in 2019). Considering the dramatic expansion of the pool of subjects of the non-financial reporting duty, European businesses need to consider their social responsibility pursuant to criteria and objectives of environmentally sustainable economic activities set forth by the Taxonomy Regulation. Consequently, the interpretation and application of these criteria and objectives is not only challenging but also important on theoretical as well as practical levels. The goal of this paper is to contribute to their deeper conceptual understanding (i) by identifying them, (ii) by exploring them and their roots, in the context and while considering mischief, purposive and teleological rules, and (iii) by engaging with a critical and comparative juxtaposition. This reveals selective preferences and trends which are to be reflected on while balancing the six priorities of the European Commission for 2019-2024.
EU strategic autonomy and state aid control. Case-study on the important projects of common European interest
EU strategic autonomy and state aid control. Case-study on the important projects of common European interest
(EU strategic autonomy and state aid control. Case-study on the important projects of common European interest)
- Author(s):Mónika Papp, Robert Szalay
- Language:English
- Subject(s):National Economy, Business Economy / Management, Economic policy, Socio-Economic Research, EU-Legislation, Sociology of Law
- Page Range:132-141
- No. of Pages:10
- Keywords:EU strategic autonomy; industrial policy; IPCEI; state aid;
- Summary/Abstract:From the mid-2010s, strategic autonomy appeared in the political and economic narrative of several EU policies. EU industrial policy is also linked to the capacity of the EU to improve its competitiveness, invest in human capital, and R&D, and address market failures. On the other hand, EU State aid rules have often been perceived as too stringent on Member States' competence to support national industries. The changing geopolitical and economic environment and later the COVID-19 triggered a more assertive EU to defend its market against third-country competitors and to tackle the vulnerability of sectors dependent on supply chains. Consequentially, the implementation of projects of common European interest has been accelerated. The paper investigates Article 107(3) Treaty on the Functioning of the EU (TFEU) as a broad mandate to contribute to the strategic autonomy of the EU, which will reveal that the category of important projects of common European interest (IPCEI) is a tool to authorise pan-European R&D and industrial projects. These projects were steered by the Commission and the Member States together to achieve EU objectives, as set out in various EU policy documents (e.g. European Green Deal). We have applied desk research by analysing the relevant policy documents and Commission decisions to conduct our research. IPCEI, as a broad undefined TFEU exception, is, in our view, apt to accommodate diverse EU policy goals.
Corporate transparency in the EU after the Wm and Sovim SA v. Luxembourg business registers judgment
Corporate transparency in the EU after the Wm and Sovim SA v. Luxembourg business registers judgment
(Corporate transparency in the EU after the Wm and Sovim SA v. Luxembourg business registers judgment)
- Author(s):Daniel Zigo
- Language:English
- Subject(s):National Economy, Socio-Economic Research, Sociology of Law, Court case
- Page Range:142-158
- No. of Pages:17
- Keywords:AML; beneficial ownership; corporate transparency; register of ultimate beneficial owners; right to privacy; Sovim case;
- Summary/Abstract:For many years, the European Union has been a pioneer of legislation that prevents the abuse of corporate structures to conceal the flow of illegal funds or the financing of criminal activity and terrorism. Several anti-money laundering (AML) directives have also been adopted in recent years, harmonizing the laws of Member States and increasing the resilience of the entire bloc. The transparency of companies' ownership structures in the EU gradually increased, as they first had to collect data on their beneficial owners and later register them in central registers so that this data was available to the relevant authorities. Finally, these registers were made available to the general public. The decision of the Court of Justice of the European Union in the case WM and Sovim SA v. Luxembourg Business Registers brought about a reversal of this situation when the Court annulled the provision of the 4th AML Directive that allowed the general public access to the data on beneficial owners due to the violation of the right to privacy and protection of personal data. With this decision, the Court also set criteria for the publication of data on private entities by states. The article deals with the Court's decision, its reasoning, and the Court's considerations concerning the method of publishing beneficial ownership data. The author analyzes the direction in which corporate transparency in the EU will most likely develop in the near future based on the judgment, the Opinion of the Advocate General and current developments in the EU institutions.
Asymmetrical business-to-consumer terms in insurance contracts and enforceability deprivation for non-disclosure
Asymmetrical business-to-consumer terms in insurance contracts and enforceability deprivation for non-disclosure
(Asymmetrical business-to-consumer terms in insurance contracts and enforceability deprivation for non-disclosure)
- Author(s):Juanita Goicovici
- Language:English
- Subject(s):Law on Economics, Socio-Economic Research, Sociology of Law
- Page Range:160-173
- No. of Pages:14
- Keywords:asymmetrical terms; consumer; duty of disclosure; enforceability; insurance contract;
- Summary/Abstract:The paper approaches the problematics of assessing the unfairness of asymmetrical terms in B2C insurance contracts and the enforceability deprivation for nondisclosure at the pre-contractual stage, as reflected in recent case law of the Court of Justice of the EU (CJEU), particularly in the CJUE’s decision pronounced in the Ocidental – Companhia Portuguesa de Seguros de Vida case (C-263/22), which permits the courts to assess the unbalanced nature of adhesion terms relating to the exemptions from professionals’ liability, based on the transparency criteria. Saliently, in hypotheses where the consumer requested eliminating the asymmetrical terms of B2C insurance contracts, related to the excluding of specific risks or the restricting of the insured risks coverage, the unfairness of litigious terms would be interconnected to the (in)opposability of the non-disclosed terms, at the pre-contractual stage. The paper addresses the unenforceability of B2C contractual terms classified as unfair or unbalanced when depriving the consumer from the possibility of invoking the professional insurer’s liability, seen through the lens of the transparency criteria. Congruently, the significant imbalance in the mutual obligations of the parties may arise from the depriving the consumer of the rights to become acquainted to the contractual terms addressing the exclusion of specific risks from the sphere of B2C insurance clauses, prior to concluding the litigious contract.
Retail investment strategy proposal – overcoming cross-border business challenges through legislative process
Retail investment strategy proposal – overcoming cross-border business challenges through legislative process
(Retail investment strategy proposal – overcoming cross-border business challenges through legislative process)
- Author(s):Alexander Kult, Jana Lix Andraščiková
- Language:English
- Subject(s):National Economy, Business Economy / Management, Law on Economics, Socio-Economic Research, Sociology of Law
- Page Range:174-183
- No. of Pages:10
- Keywords:Financial Regulation; IDD; Choice of Law; MiFID II; Mifidization; Retail Investment Strategy; RIS;
- Summary/Abstract:This article provides a comparative analysis of the changes brought forward by the Retail Investment Strategy (RIS) proposal within the European Union and a critical discussion of its potential impacts. Given the limited scope of this article, the authors intend to deal mostly with cross-border business relations. The purpose of our research was to assess the impact of the current wording of the RIS proposal on existing legislative framework (MiFID, IDD, PRIIPs, and others) and to highlight potentially problematic or even counterproductive provisions. The RIS proposal impacts a wide spectrum of financial products and represents a further stage of so-called "Mifidization process". Talking about a strategy that will result in a framework amending several areas of financial services, one would reasonably expect to see unification and simplification tendencies, e.g. in information disclosure requirements. Last but not least it is rational to assume compatibility with existing legal framework, e.g. Rome I Regulation. But is this really the case? And will it lead to higher consumer protection and financial literacy standards? As we see it, the European Commission's proposal raises many hidden challenges that may prove problematic in practice and should therefore be further considered by the European Parliament and Council as a part of the upcoming European legislative process.
Selected aspects of the transposition of the new EU regulatory framework for credit purchasers into the Czech law
Selected aspects of the transposition of the new EU regulatory framework for credit purchasers into the Czech law
(Selected aspects of the transposition of the new EU regulatory framework for credit purchasers into the Czech law)
- Author(s):Martin Mikulka
- Language:English
- Subject(s):National Economy, Law on Economics, Financial Markets, Socio-Economic Research, EU-Legislation, Sociology of Law
- Page Range:184-199
- No. of Pages:16
- Keywords:non-performing loan; credit purchaser; credit servicer; secondary market; European Union;
- Summary/Abstract:Following the relatively comprehensive regulatory framework of the prudential regulation after the financial crisis and the banking crisis that hit the European Union in the past, the EU legislation has in recent years become more specific in setting rules in sub-fields such as non-performing loans. In particular, regulatory efforts have been being driven by the aim of developing the secondary market for non-performing loans on the one hand and harmonising the rules for the participants in that market and for trading on it on the other. One of the cornerstones of such regulation is the Directive (EU) 2021/2167 of the European Parliament and of the Council of 24 November 2021 on credit servicers and credit purchasers and amending Directives 2008/48/EC and 2014/17/EU. The article discusses the new EU regulatory framework for credit purchasers as one of the participants in the secondary market for non-performing loans. At first, the new EU regulatory provisions harmonising the rules applicable to credit purchasers are reviewed. Subsequently, the article compares the new EU regulatory scheme with the current Czech regulatory framework regulating the activities of credit purchasers and analyses the intended transposition of the EU provisions harmonising the conduct of business of credit purchasers into the Czech law. Finally, conclusions regarding the possible impact of such transposition are reached.
De Lege Ferenda Considerations on Potential Institutes Increasing Participation in Supplementary Pension Savings
De Lege Ferenda Considerations on Potential Institutes Increasing Participation in Supplementary Pension Savings
(De Lege Ferenda Considerations on Potential Institutes Increasing Participation in Supplementary Pension Savings)
- Author(s):Andrea Slezáková, Martin Višňovský
- Language:English
- Subject(s):National Economy, Law on Economics, Financial Markets, Socio-Economic Research, Sociology of Law
- Page Range:200-216
- No. of Pages:17
- Keywords:participant; supplementary pension savings; supplementary pension savings asset; Management Company;
- Summary/Abstract:Supplementary pension savings represent one of the results of the diversification of the pension system in the Slovak Republic. For the majority of the population, with the exception of selected types of professions, participation in supplementary pension savings is voluntary. In order to ensure and improve the standard of living of individuals in the post-productive age, the legislator has introduced in the legal order regulations that should motivate to participation in supplementary pension savings, such as the possibility to inherit the value of a personal account, tax benefits or employer contributions. The paper contains a set of proposals and reflections of the authors on what other possible mechanisms should be introduced in order to increase interest in saving the so-caller third pillar both on the part of the participant and on the part of their employer.
Modernising payment services and enhancing open banking: a comparison of recent EU proposals of payment services directive 3 (PSD3) and payment services regulation (PSR) with current PSD2
Modernising payment services and enhancing open banking: a comparison of recent EU proposals of payment services directive 3 (PSD3) and payment services regulation (PSR) with current PSD2
(Modernising payment services and enhancing open banking: a comparison of recent EU proposals of payment services directive 3 (PSD3) and payment services regulation (PSR) with current PSD2)
- Author(s):Jan Skrabka
- Language:English
- Subject(s):National Economy, Law on Economics, Financial Markets, Socio-Economic Research, Sociology of Law
- Page Range:217-226
- No. of Pages:10
- Keywords:consumer protection; open banking; open finance; payment services; PSD3; PSR;
- Summary/Abstract:The article provides a comparative analysis of the fundamental developments of the recently published EU Financial Data Access and Payments Package. It focuses on the comparison of the proposal of the Payment Services Directive 3 (PSD 3) and a new Payment Services Regulation (PSR) with the current PSD2. Among the main features, the European Commission promises improvements mainly in the protection of Payment Services Users and also in the area of competitiveness in the financial sector. Besides PSD3, the new PSR, which will be directly applicable in the whole EU, will tackle forum shopping by increasing the harmonisation in different Member States. Regarding competitiveness, the proposed framework aims to increase competitiveness by further enhancing open banking with a dedicated interface (API) for exchanging information between market players and providing users with dashboards to monitor and manage their consent with data sharing easily. However, the proposed framework repeals some PSD2 exceptions and imposes unnecessary administrative burden on specific types of businesses, such as foreign exchange services or limited networks, or fails to include sufficient temporary provisions allowing for uninterrupted operations. The article presents a critical discussion of proposed changes and their potential impact on practice. The new framework is just at the beginning of the legislative process, and the finally approved PSD3 and PSR are expected to be applicable in 2026 at the earliest.
