Payment Services Regulations
Are you ready for the Payment Services Regulations? We can help
The major news for all payment institutions for 2009 will be the implementation across the EEA of the Payment Service Directive from 1st November 2009. The new law will establish a single payments area across the EEA and aims to establish consistent consumer protection and improved transparency for all payment transactions.
The PSD is being implemented into UK law through the Payment Services Regulations. The new statute will mean significant changes – and all UK money transfer companies will either need to comply with the new law or stop trading. Firms which are not properly regulated may face criminal sanctions.
Seven key impacts for money transmitters arising out of the PSR:
•The PSR will create a new type of non bank financial entity, known as a ‘payments institution’ - all money transfer companies are ‘payment institutions’
•Money transfer firms processing transactions of more than 3 million Euros a month (or equivilant) will have to seek authorisation as a PI under the PSR’s – and will have to satisfy ‘prudential supervision’ and ‘safeguarding’ requirements
•Authorised firms can apply for a ‘European passport‘ (and will be able to offer services anywhere in the EEA)
•Smaller money transfer companies can apply for an ‘authorisation waiver’ (but will still need to register)
•All firms will be subject to new ‘Conduct of Business’ obligations including, for example, greater transparency around transaction information, new obligations to provide ‘terms and conditions’ to customers, etc
•The Financial Services Authority will become the UK regulator of the non-bank payments industry
•Companies offering payment services will need to put in place procedures for dealing with customer complaints – and customers who are not satisfied will have the right to refer their complaint to the Financial Ombudsman Service (FOS) for adjudication
The FSA is now accepting applications under the PSR's – firms which wish to be regulated from 1st November will need to submit application forms before 31st July. For more information, see: www.fsa.gov.uk/paymentservices.
To get ready for the PSR’s, there are many things money transfer companies will need to think about now. Likely questions might include:
‘Should our company be authorised?’ Or can we seek a waiver?’
‘How do we complete the application form – and what should we include in the business plan?’
‘What amounts of initial and ongoing capital will we need?’
‘Do we still need to be registered with HMRC for AML compliance?’
‘How do we put in place a process for dealing with customer complaints?’
‘What will it all cost?’
And many more...
Whatever your questions about the PSR, ask us today – I-Compliance can advise you – and if you want to seek authorisation or registration under the PSR, we can help with all aspects of your application. Contact us at info@i-compliance.co.uk or call +44 (0)207 808 7120
FAQ
‘Should our company be authorised?’ Or can we seek a waiver?’
‘How do we complete the application form – and what should we include in the business plan?’
‘What amounts of initial and ongoing capital will we need?’
‘Do we still need to be registered with HMRC for AML compliance?’
‘How do we put in place a process for dealing with customer complaints?’
‘What will it all cost?’