Obligations of PLS Operators

When the PLSO is enabled through Nexus, the PLSO needs to fulfil the following obligations:

Availability

• The PLSO should have the ability to process proxy lookup requests, with the required availability (in principle 24/7/365), and with business continuity arrangements.

Accuracy

• The PLSO should verify, before a proxy is shared through Nexus, that the proxy is in control of the account holder (i.e. payee), or otherwise authorized by the possessor of the proxy to link it to the Recipient’s account. The PLSO guarantees that the proxy database will be kept current and changes made by proxy holders will be processed immediately.

• The PLSO is obligated to verify that the account holder name provided by the service is accurate (for example, by only allowing changes to the name associated to the proxy to be made by the PSP providing that account, rather than by the person controlling the proxy itself).

Data privacy and consent

• The PLSO needs to ensure that all required consents have been collected for any information disclosed via Nexus. The method to do this should be compliant with local standards where the information is collected.

• The PLSO will ensure that (contractual and implicit) privacy expectations of end users (both on the sending and receiving end of transactions) are met

Compliance

• The PLSO will keep track of queries processed for the purpose of providing an audit trail to relevant parties involved

• The PLSO establishes a secure channel with the Nexus Gateway for the protection of sensitive data

Obligations of PSPs when using the Proxy Lookup Service

PSPs have a number of obligations when using the proxy lookup service. These obligations are outlined in Obligations of PSPs.

Liability

As the proxy lookup service sits outside of the Nexus Scheme, the liability of either the IPSO or the PLSO must be agreed with in the bilateral contract between the IPSO and the PLSO. However, in general the following principles apply:

• The PLSO shall not be liable for any failure, hindrance or delay in performance in whole or in part of its obligations if such failure, hindrance or delay arises out of circumstances beyond its control. Such circumstances may include, but are not limited to, acts of god, criminal action, fire, flood and unavailability of energy supplies

• A cap on liability does not apply if there has been gross negligence by either the PLSO or the liable Nexus Participant or its employees or agents.

• A cap on liability does not apply in the event of willful intent by either the PLSO or the liable Nexus Participant's employees or agents

Disputes

The Nexus Scheme has no remit in disputes related to the local proxy lookup service.

If such a dispute between the Participants emerges, the parties shall use reasonable endeavors to solve the matter amicably. If the Participants fail to solve the dispute amicably, and the dispute affects other participants than the members of a single IPSO, the Nexus Scheme is to be notified by the IPSO and will be involved in the process of resolution of the dispute. The IPSO of the PLSO impacted by the incident will act as the coordinating party.

The responsibility to resolve the incident remains at the IPSOs and the PLSO, but the Nexus Scheme can act as a facilitator to the resolution process. The Nexus Scheme will assess whether the dispute has potential impact on the overall Nexus Scheme, and/or can occur in other Nexus links.

Termination

A PLSO may terminate its status as a PLSO by giving the agreed upon notice to is IPSO as part of the bilateral contract between the IPSO and the PLSO. However, this notice cannot be less than six (6) months.

Fees

As the PLSO is not a member of the Nexus Scheme, no scheme fees will be charged by Nexus towards the PLSO, and no fees will be charged by the PLSO to Nexus.

Any renumeration between the IPSO and the PLSO (in either direction) is subject to the bilateral agreement between the IPSO and the PLSO.