PART 3Amendment of the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018
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1
Schedule 3 to the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 20187 (transitional provisions) is amended as follows.
2
At the end of paragraph 12A, insert “and “PSR 2017” means the Payment Services Regulations 20178”.
3
In paragraph 12L9, after sub-paragraph (5) insert—
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Where a person (“A”) to whom this paragraph applies issues electronic money to a person (“B”) in pursuance of a pre-existing contract in reliance on the exemption in sub-paragraph (1), A must, as soon as it is reasonably practicable to do so, notify B—
a
that A is exempt from the prohibition in regulation 63(1) of EMR 2011 by virtue of sub-paragraph (1) and is not authorised by the FCA under EMR 2011;
b
that, as a result of the United Kingdom’s withdrawal from the European Union—
i
it is possible that B’s assets held by A in relation to the performance of the pre-existing contract no longer attract the same protection afforded to them immediately before exit day;
ii
it is possible that recourse to an alternative dispute resolution procedure or compensation scheme that was available to B under the pre-existing contract immediately before exit day is no longer available;
c
in so far as it is practicable to do so, of any changes arising as a result of the United Kingdom’s withdrawal from the European Union to—
i
the protection afforded to B’s assets held by A in relation to the performance of the pre-existing contract; or
ii
the availability to B of an alternative dispute resolution procedure or compensation scheme under the pre-existing contract.
7
If at any time after A has provided B with any information under sub-paragraph (6)—
a
there is, or is likely to be, a material change affecting that information; or
b
it becomes apparent to the applicant that the information is incomplete or contains a material inaccuracy,
A must provide B with details of the change, the complete information or a correction of the inaccuracy (as the case may be) as soon as it is reasonably practicable to do so.
8
The FCA may issue guidance in respect of compliance with an obligation under sub-paragraph (6) or (7).
4
After paragraph 20(1)(j) insert—
ja
in the case of a person carrying on account information services, the person does not hold professional indemnity insurance, or a comparable guarantee, of the kind mentioned in regulation 6(7)(f) of PSR 2017,
5
In paragraph 3610, after sub-paragraph (5) insert—
6
Where a person (“A”) to whom this paragraph applies provides payment services to a person (“B”) in pursuance of a pre-existing contract in reliance on the exemption in sub-paragraph (1), A must, as soon as it is reasonably practicable to do so, notify B—
a
that A is exempt from the prohibition in regulation 138(1) of PSR 2017 by virtue of sub-paragraph (1) and is not authorised by the FCA under PSR 2017;
b
that, as a result of the United Kingdom’s withdrawal from the European Union—
i
it is possible that B’s assets held by A in relation to the performance of the pre-existing contract no longer attract the same protection afforded to them immediately before exit day;
ii
it is possible that recourse to an alternative dispute resolution procedure or compensation scheme that was available to B under the pre-existing contract immediately before exit day is no longer available;
c
in so far as it is practicable to do so, of any changes arising as a result of the United Kingdom’s withdrawal from the European Union to—
i
the protection afforded to B’s assets held by A in relation to the performance of the pre-existing contract; or
ii
the availability to B of an alternative dispute resolution procedure or compensation scheme under the pre-existing contract.
7
If at any time after A has provided B with any information under sub-paragraph (6)—
a
there is, or is likely to be, a material change affecting that information; or
b
it becomes apparent to the applicant that the information is incomplete or contains a material inaccuracy,
A must provide B with details of the change, the complete information or a correction of the inaccuracy (as the case may be) as soon as it is reasonably practicable to do so.
8
The FCA may issue guidance in respect of compliance with an obligation under sub-paragraph (6) or (7).