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EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made in exercise of the powers in section 8(1) of the European Union (Withdrawal) Act 2018 (c. 16) in order to address failures of retained EU law to operate effectively and other deficiencies (in particular under paragraphs (a), (b), (c), (e), (f) and (g) of section 8(2)) arising from the withdrawal of the United Kingdom from the European Union.

Regulation 2 and Schedule 1 amend primary legislation relating to payment systems.

Regulation 3(1) and Schedule 2 amend subordinate legislation relating to electronic money and payment services.

Regulation 3(2) and Schedule 3 makes provision for persons who before exit day are authorised to issue electronic money or provide payment services in the United Kingdom to continue to do so during a transition period if they notify the Financial Conduct Authority of their intention to do so.

An impact assessment of the effect that this instrument, and certain other instruments made by HM Treasury under the European Union (Withdrawal) Act 2018, will have on the costs of business, the voluntary sector and the public sector is available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is published alongside this instrument at www.legislation.gov.uk.