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S.I. No. 6/2018 - European Union (Payment Services) Regulations 2018

Contents (145)
  1. Section 1
  2. Section 2
  3. Section 3
  4. Section 4
  5. Section 5
  6. Section 6
  7. Section 7
  8. Section 8
  9. Section 9
  10. Section 10
  11. Section 11
  12. Section 12
  13. Section 13
  14. Section 14
  15. Section 15
  16. Section 16
  17. Section 17
  18. Section 18
  19. Section 19
  20. Section 20
  21. Section 21
  22. Section 22
  23. Section 23
  24. Section 24
  25. Section 25
  26. Section 26
  27. Section 27
  28. Section 28
  29. Section 29
  30. Section 30
  31. Section 31
  32. Section 32
  33. Section 33
  34. Section 34
  35. Section 35
  36. Section 36
  37. Section 37
  38. Section 38
  39. Section 39
  40. Section 40
  41. Section 41
  42. Section 42
  43. Section 43
  44. Section 44
  45. Section 45
  46. Section 46
  47. Section 47
  48. Section 48
  49. Section 49
  50. Section 50
  51. Section 51
  52. Section 52
  53. Section 53
  54. Section 54
  55. Section 55
  56. Section 56
  57. Section 57
  58. Section 58
  59. Section 59
  60. Section 60
  61. Section 61
  62. Section 62
  63. Section 63
  64. Section 64
  65. Section 65
  66. Section 66
  67. Section 67
  68. Section 68
  69. Section 69
  70. Section 70
  71. Section 71
  72. Section 72
  73. Section 73
  74. Section 74
  75. Section 75
  76. Section 76
  77. Section 77
  78. Section 78
  79. Section 79
  80. Section 80
  81. Section 81
  82. Section 82
  83. Section 83
  84. Section 84
  85. Section 85
  86. Section 86
  87. Section 87
  88. Section 88
  89. Section 89
  90. Section 90
  91. Section 91
  92. Section 92
  93. Section 93
  94. Section 94
  95. Section 95
  96. Section 96
  97. Section 97
  98. Section 98
  99. Section 99
  100. Section 100
  101. Section 101
  102. Section 102
  103. Section 103
  104. Section 104
  105. Section 105
  106. Section 106
  107. Section 107
  108. Section 108
  109. Section 109
  110. Section 110
  111. Section 111
  112. Section 112
  113. Section 113
  114. Section 114
  115. Section 115
  116. Section 116
  117. Section 117
  118. Section 118
  119. Section 119
  120. Section 120
  121. Section 121
  122. Section 122
  123. Section 123
  124. Section 124
  125. Section 125
  126. Section 126
  127. Section 127
  128. Section 128
  129. Section 129
  130. Section 130
  131. Section 131
  132. Section 132
  133. Section 133
  134. Section 134
  135. Section 135
  136. Section 136
  137. Section 137
  138. Section 138
  139. Section 139
  140. Section 140
  141. Section 141
  142. Section 142
  143. Section 143
  144. Section 144
  145. Section 145

S.I. No. 6/2018 - European Union (Payment Services) Regulations 2018 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile Statutory InstrumentsIonstraimí Reachtúla 2018 S.I. No. 6/2018 - European Union (Payment Services) Regulations 2018 S.I. No. 6/2018 - European Union (Payment Services) Regulations 2018 AmendmentsLeasuithe Download PDF Íoslódáil PDF Notice of the making of this Statutory Instrument was published in “Iris Oifigiúil” of 12th January, 2018.

I, PASCHAL DONOHOE, Minister for Finance, in exercise of the powers conferred on me by section 3 of the European Communities Act 1972 (No. 27 of 1972) and for the purpose of giving effect to Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 20151 hereby make the following Regulations:

PART 1

Preliminary Citation and commencement

Section 1

1.(1) These Regulations may be cited as the European Union (Payment Services) Regulations 2018.
(2)Subject to paragraph (3), these Regulations come into operation on 13 January 2018.
(3)Regulations 89(2)(c), 90(4)(d) and (5)(a), 91(3)(c) and (4)(a) and 120 come into operation 18 months from the date the regulatory technical standards referred to in Article 98 of the Payment Services Directive enter into force.

Interpretation

Section 2

2.(1) In these Regulations, unless the context otherwise requires-— “Act of 1942” means the Central Bank Act 1942 (No. 22 of 1942); “applicant” means a person who applies for an authorisation under Regulation 7; “Bank” means the Central Bank of Ireland; “Commission Recommendation” means the Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises2 ; “competent authority of another Member State” means a competent authority of another Member State designated for the purposes of the Payment Services Directive under the law of that Member State; “court” means the High Court; “credit institution” has the same meaning as it has in the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 ); “credit union” has the same meaning as it has in the Credit Union Act 1997 (No. 15 of 1997); “Directive 2009/110/EC” means Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC3 ; “Directive 2013/36/EU” means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC4 ; “Directive (EU) 2015/849” means Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC5 ; “electronic money institution” has the same meaning as it has in the European Communities (Electronic Money) Regulations 2011 ( S.I. No. 183 of 2011 ); “Financial Services and Pensions Ombudsman” has the same meaning as it has in the Act of 1942; “General Data Protection Regulation” means Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC6 ; “insurance undertaking” has the same meaning as it has in the European Union (Insurance and Reinsurance) Regulations 2015 (

S.I. No. 485 of 2015 ); “investment firm” has the same meaning as it has in the European Union (Markets in Financial Instruments) Regulations 2017 ( S.I. No. 375 of 2017 ); “market operator of a regulated market” has the same meaning as it has in the European Union (Markets in Financial Instruments) Regulations 2017; “Member State” means Member State of the European Union and, where relevant, includes a contracting party to the Agreement on the European Economic Area signed at Oporto on 2 May 1992 (as adjusted by the Protocol signed at Brussels on 17 March 1993), as amended; “payment account” means an account held in the name of one or more payment service users that is used for the execution of payment transactions, where the holder of the account is entitled to place, transfer or withdraw funds without any restrictions; “Payment Services Directive” means Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC7 ; “payment institution” means a payment institution authorised by the Bank under Regulation 18; “payment services provider” means a person referred to in Regulation 6(1) ; “Register” has the meaning assigned to it by Regulation 25; “Regulation (EU) 2015/847” means Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/20068 ; “Regulation (EU) No 575/2013” means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/20129 ; “Regulation (EU) No 1093/2010” means Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC10 ; “Regulations of 2009” means the European Communities (Payment Services) Regulations 2009 ( S.I. No. 383 of 2009 ); “reinsurance undertaking” has the same meaning as it has in European Union (Insurance and Reinsurance) Regulations 2015; “UCITS management company” means a management company within the meaning of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (

S.I. No. 352 of 2011 ).

(2)A word or expression that is used in these Regulations and is also used in the Payment Services Directive has, unless the contrary intention appears, the same meaning in these Regulations that it has in the Payment Services Directive.

Application of certain provisions of these Regulations

Section 3

3.(1) Subject to the limitations with regard to the currency of a payment transaction specified in paragraphs (2), (3) and (4), Parts 3 and 4 apply— (a) in respect of a payment service provided by a payment service provider— (i) established in the State, or (ii) providing that payment service to a payment service user in the State— (I)in the exercise of the right of establishment, or (II)through an agent established in the State, or (b) in a case in which the provision concerned applies to or imposes an obligation on a payment service user, where that payment service user is resident in or established in the State.

(2)Parts 3 and 4 apply to payment transactions in the currency of a Member State where both the payer’s payment service provider and the payee’s payment service provider are, or the sole payment service provider in the payment transaction is, located in a Member State.
(3)Part 3, except Regulation 69(1) (b), Regulation 76(b) (v) and Regulation 80(a), and Part 4, except for Regulations 105 to 109, apply to payment transactions in a currency that is not the currency of a Member State where both the payer’s payment service provider and the payee’s payment service provider are, or the sole payment service provider in the payment transaction is, located within the Union, in respect to those parts of the payments transaction which are carried out in a Member State.
(4)Part 3, except for Regulation 69(1) (b), Regulation 76(b) (v), Regulation 76(e) (vii) and Regulation 80(a), and Part 4, except for Regulation 86(3) and (6), Regulations 100, 101, 105, 107(1) and (2), 112 and 115, apply to payment transactions in all currencies where only one of the payment service providers is located in a Member State, in respect to those parts of the payments transaction which are carried out in a Member State.

Payment transactions, etc., to which these Regulations do not apply

Section 4

4.(1) These Regulations do not apply to-— (a) payment transactions made exclusively in cash directly by a payer to a payee, without any intermediary intervention, (b) payment transactions from a payer to a payee through a commercial agent authorised under an agreement to negotiate or conclude the sale or purchase of goods or services on behalf of the payer only or the payee only, (c) professional physical transport of banknotes and coins, including their collection, processing and delivery, (d) payment transactions consisting of non-professional cash collection and delivery within the framework of a non-profit or charitable activity, (e) services where cash is provided by a payee to a payer as part of a payment transaction following an explicit request by the payment service user just before the execution of the payment transaction through a payment for the purchase of goods or services, (f) cash-to-cash currency exchange operations where the funds are not held on a payment account, (g) payment transactions based on any of the following classes of document drawn on a payment service provider with a view to placing funds at the disposal of a payee: (i) paper cheques governed by the Geneva Convention of 19 March 1931 providing a uniform law for cheques; (ii) paper cheques similar to those referred to in clause (i) and governed by the law of a Member State which is not a party to the Geneva Convention of 19 March 1931 providing a uniform law for cheques; (iii) paper-based drafts in accordance with the Geneva Convention of 7 June 1930 providing a uniform law for bills of exchange and promissory notes; (iv) paper-based drafts similar to those referred to in clause (iii) and governed by the law of a Member State which is not a party to the Geneva Convention of 7 June 1930 providing a uniform law for bills of exchange and promissory notes; (v) paper-based vouchers; (vi) paper-based traveller’s cheques; (vii) paper-based postal money orders, as defined by the Universal Postal Union, (h) without prejudice to Regulation 43, payment transactions carried out within a payment or securities settlement system between— (i) on the one hand, settlement agents, central counterparties, clearing houses or central banks and other participants of the system, and (ii) on the other hand, payment service providers, (i) payment transactions related to securities asset servicing, including dividends, income or other distributions, or redemption or sale, carried out by persons referred to in subparagraph (h) or by investment firms, credit institutions, collective investment undertakings or asset management companies providing investment services and any other entities allowed to have the custody of financial instruments,

(j) services provided by technical service providers, which support the provision of payment services, without them entering at any time into possession of the funds to be transferred, including processing and storage of data, trust and privacy protection services, data and entity authentication, information technology and communication network provision, provision and maintenance of terminals and devices used for payment services, with the exclusion of payment initiation services and account information services, (k) services based on specific payment instruments that can be used only in a limited way, that meet one of the following conditions: (i) instruments allowing the holder to acquire goods or services only in the premises of the issuer or within a limited network of service providers under direct commercial agreement with a professional issuer; (ii) instruments which can be used only to acquire a very limited range of goods or services; (iii) instruments valid only in a single Member State provided at the request of an undertaking or a public sector entity and regulated by a national or regional public authority for specific social or tax purposes to acquire specific goods or services from suppliers having a commercial agreement with the issuer, (l) payment transactions by a provider of electronic communications networks or services provided in addition to electronic communications services for a subscriber to the network or service— (i) for purchase of digital content and voice-based services, regardless of the device used for the purchase or consumption of the digital content and charged to the related bill, or (ii) performed from or via an electronic device and charged to the related bill within the framework of a charitable activity or for the purchase of tickets, provided that the value of any single payment transaction referred to in clauses (i) and (ii) does not exceed €50 and— (I) the cumulative value of payment transactions for an individual subscriber does not exceed €300 per month, or (II) where a subscriber pre-funds its account with the provider of the electronic communications network or service, the cumulative value of payment transactions does not exceed €300 per month, (m) payment transactions carried out between payment service providers, their agents or their branches for their own account, (n) payment transactions and related services between a parent undertaking and its subsidiary or between subsidiaries of the same parent undertaking, without any intermediary intervention by a payment service provider other than an undertaking belonging to the same group, and

(o) subject to paragraph (2), cash withdrawal services offered by means of an automated teller machine, where the provider— (i) acts on behalf of one or more card issuers, (ii) is not a party to a framework contract with a customer who withdraws money from a payment account, and (iii) does not conduct other payment services referred to in the Schedule.

(2)A customer referred to in subparagraph (o) of paragraph (1) shall be provided with the information on any withdrawal charges referred to in Regulations 69, 72, 73 and 83— (a) before making a withdrawal referred to in that subparagraph, and (b) on receipt of the cash at the end of the transaction after withdrawal.

Relationship with Consumer Credit Act 1995

Section 5

5.Nothing in these Regulations affects the operation of the Consumer Credit Act 1995 (No. 24 of 1995) or the European Communities (Consumer Credit Agreements) Regulations 2010 ( S.I. No. 281 of 2010 ).

PART 2

Payment Service Providers

Chapter 1

Right to Provide Payment Services Payment service providers

Section 6

6.(1) A person shall not provide a payment service in the State unless the person is— (a) a credit institution within the meaning of point (1) of Article 4(1) of Regulation (EU) No 575/2013, including branches of that credit institution within the meaning of point (17) Article 4(1) of that Regulation where such branches are located in the Union, whether the head offices of those branches are located within the Union or, in accordance with Article 47 of Directive 2013/36/EU and the law of the State, outside the Union, (b) an electronic money institution within the meaning of point (1) of Article 2 of Directive 2009/110/EC, including, in accordance with Article 8 of that Directive and with the law of the State, branches of that electronic money institution, where such branches are located within the Union and their head offices are located outside the Union, in as far as the payment services provided by those branches are linked to the issuance of electronic money, (c) An Post in its capacity as a provider of banking and giro services, or the postal authority of another Member State in its capacity as the provider of a giro service, (d) the Bank, the European Central Bank, or the central bank of another Member State, when not acting in its capacity as a monetary authority, (e) a Member State, or a regional or local authority of a Member State, when not acting in its capacity as a public authority, (f) a credit union, (g) a payment institution authorised under Chapter 2 or by Regulation 140 whose authorisation has not been revoked, (h) a person exempted by the Bank under Regulation 41 and entered by the Bank in the Register in accordance with Regulation 25(1) (b), (i) a person exempted in accordance with Regulation 42 and entered by the Bank in the Register in accordance with Regulation 25(1) (b), (j) a person permitted to provide payment services under Regulation 140, or (k) a payment institution authorised as such in another Member State pursuant to the law of that Member State giving effect to the Payment Services Directive.
(2)A payment institution referred to in paragraph (1) (k) shall not provide, in the State, a payment service unless the Bank has been given notice in accordance with Regulation 37.
(3)A payment institution authorised under Regulation 18 to provide a payment service shall not provide, in the State or in another Member State, a payment service that is not covered by its authorisation.
(4)A payment institution authorised by the law of another Member State to provide a payment service shall not provide, in the State, a payment service that is not covered by its authorisation.
(5)A person referred to in paragraph (1) (h) shall not provide a payment service other than those services referred to in paragraphs 1 to 6 of the Schedule.
(6)A person referred to in paragraph (1) (i) shall not provide a payment service other than those services referred to in paragraph 8 of the Schedule.
(7)A person referred to in paragraph (1) (j) shall not provide a payment service save to the extent and for the duration that it is permitted under Regulation 140 to provide.

Chapter 2

Payment Institutions Applications for authorisation

Section 7

7.(1) An application for authorisation as a payment institution may be made to the Bank where the State is the Member State in which the registered office of the applicant is situated.
(2)An application for authorisation as a payment institution made to the Bank shall be in the form directed by the Bank and shall contain or be accompanied by— (a) a programme of operations, setting out in particular the type of payment services envisaged, (b) a business plan including a forecast budget calculation for the first 3 financial years that demonstrates that the applicant is able to employ the appropriate and proportionate systems, resources and procedures to operate soundly, (c) evidence that the applicant holds initial capital in accordance with Regulation 8, (d) in the case of an applicant to which Regulation 17(2) applies, a description of the measures taken, in accordance with Regulation 17, to safeguard payment service users’ funds, (e) a description of the applicant’s governance arrangements and internal control mechanisms (including its administrative, risk-management and accounting procedures) that demonstrates that those governance arrangements, control mechanisms and procedures are proportionate, appropriate, sound and adequate, (f) a description of the procedure in place to monitor, handle and follow up a security incident and security related customer complaints, including an incidents reporting mechanism which takes account of the notification obligations of a payment institution under Regulation 119, (g) a description of the process in place to file, monitor, track and restrict access to sensitive payment data, (h) a description of business continuity arrangements including a clear identification of the critical operations, effective contingency plans and a procedure to regularly test and review the adequacy and efficiency of such plans, (i) a description of the principles and definitions applied for the collection of statistical data on performance, transactions and fraud, (j) a security policy document, including a detailed risk assessment in relation to the applicant’s payment services and a description of security control and mitigation measures taken to adequately protect payment service users against the risks identified, including fraud and illegal use of sensitive and personal data, (k) for applicants subject to the obligations in relation to money laundering and terrorist financing under Directive (EU) 2015/849 and Regulation (EU) 2015/847, a description of the internal control mechanisms which the applicant has established in order to comply with those obligations, (l) a description of the applicant’s structural organisation, including, where applicable, a description of the intended use of agents and branches and of the off-site and on-site checks that the applicant undertakes to perform on them at least annually, as well as a description of outsourcing arrangements, and of its participation in a national or international payment system,

(m) the identity of persons holding in the applicant, directly or indirectly, qualifying holdings within the meaning of point (36) of Article 4(1) of Regulation (EU) No 575/2013, the size of their holdings and evidence of their suitability taking into account the need to ensure the sound and prudent management of a payment institution, (n) the identity of directors and persons responsible for the management of the applicant and, where relevant, persons responsible for the management of the payment services activities of the applicant, as well as evidence that they are of good repute and possess appropriate knowledge and experience to perform payment services, as determined by the State, (o) where applicable, the identity of statutory auditors and audit firms as defined in the European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No 537/2014) Regulations 2016 ( S.I. No. 312 of 2016 ), (p) the applicant’s legal status and articles of association, and (q) the address of the applicant’s head office.

(3)For the purposes of subparagraphs (d), (e), (f) and (l) of paragraph (2), the applicant shall provide a description of its audit arrangements and the organisational arrangements it has set up with a view to taking all reasonable steps to protect the interests of its users and to ensure continuity and reliability in the performance of payment services.
(4)The security control and mitigation measures referred to in subparagraph (j) of paragraph (2) shall indicate how those measures ensure a high level of technical security and data protection, including for the software and information technology systems used by the applicant or the undertakings to which it outsources the whole or part of its operations.
(5)The measures referred to in paragraph (4) shall also include the security measures referred to in Regulation 118(1) and (2) and shall take into account the European Banking Authority’s guidelines on security measures where such guidelines have been issued under Article 95(3) of the Payment Services Directive.
(6)An applicant that applies for authorisation to provide the payment services referred to in paragraph 7 of the Schedule, shall as a condition of its authorisation, hold a professional indemnity insurance policy, covering the territories in which it offers services, or some other comparable guarantee against liability to ensure that it can cover its liabilities as specified in Regulations 97, 112, 113 and 115.
(7)An applicant that applies for authorisation or registration for the purposes of providing the payment services referred to in paragraph 8 of the Schedule, shall as a condition of its authorisation or registration, as the case may be, hold a professional indemnity insurance policy covering the territories in which it offers services, or some other comparable guarantee against its liability vis--vis an account servicing payment service provider or a payment service user resulting from non-authorised or fraudulent access to or non-authorised or fraudulent use of payment account information.
(8)The Bank may request from an applicant, by notice in writing, any further information that it requires for the purposes of considering an application.
(9)For the purposes of Regulation 23, an application shall be deemed to be incomplete until such time as the applicant concerned has provided the information requested by the Bank under paragraph (8).

Initial capital

Section 8

8.(1) The Bank shall not authorise an applicant as a payment institution unless the applicant holds initial capital of at least— (a) where the applicant proposes to provide only the payment service referred to in paragraph 6 of the Schedule, €20,000, (b) where the applicant proposes to provide the payment service referred to in paragraph 7 of the Schedule, €50,000, and (c) where the applicant proposes to provide a payment service referred to in any one or more of paragraphs 1 to 5 of the Schedule, €125,000.
(2)For the purposes of calculating an applicant’s initial capital, only the items referred to in Article 26(1) (a) to (e) of Regulation (EU) No 575/2013 shall be taken into account.

Own funds

Section 9

9.(1) Subject to paragraph (4), a payment institution’s own funds shall not fall below— (a) the higher of— (i) the amount of initial capital required under Regulation 8, and (ii) the own funds requirement of that payment institution calculated in accordance with a direction issued by the Bank under Regulation 11, or (b) where paragraph (2) or (3) applies, the amount of initial capital required under Regulation 8.
(2)This paragraph applies where the Bank is satisfied that a payment institution— (a) meets the conditions specified in Article 7 of Regulation (EU) No 575/2013, and (b) is included in the consolidated supervision of the parent credit institution in accordance with Directive 2013/36/EU.
(3)This paragraph applies where a payment institution offers— (a) only the services referred to in paragraph 7 of the Schedule, or (b) only the services referred to in paragraphs 7 and 8 of the Schedule.
(4)Where a payment institution offers only the payment service referred to in paragraph 8 of the Schedule, paragraph (1) shall not apply to the payment institution.

Basis for calculation of own funds

Section 10

10.In calculating own funds— (a) where a payment institution belongs to the same group as another payment institution, credit institution, investment firm, asset management company or insurance undertaking, the payment institution shall not take into account elements that also form part of a calculation of own funds for another member of the group, and (b) where a payment institution carries out activities other than providing payment services, the payment institution shall not, in calculating own funds, take into account elements that are properly attributable to any of those other activities.

Calculation of own funds — directions

Section 11

11.(1) The Bank shall, save where paragraph (2), (3) or (4) of Regulation 9 applies, direct a payment institution to calculate the amount of that institution’s own funds requirement in accordance with Regulation 12, 13 or 14.
(2)A payment institution shall be deemed to have been directed by the Bank to calculate its own funds requirement— (a) in accordance with Regulation 12, where the payment’s institution’s authorisation specifies that the payment institution is to calculate its own funds requirement in accordance with Regulation 12 or “Method A”, (b) in accordance with Regulation 13, where the payment’s institution’s authorisation specifies that the payment institution is to calculate its own funds requirement in accordance with Regulation 13 or “Method B”, and (c) in accordance with Regulation 14, where the payment’s institution’s authorisation specifies that the payment institution is to calculate its own funds requirement in accordance with Regulation 14 or “Method C”.

Method A

Section 12

12.Where a payment institution is directed by the Bank to calculate its own funds requirement in accordance with this Regulation, that payment institution’s own funds requirement shall be calculated as follows:

OFR = 0.1 * FO where— OFR is the own funds requirement, FO is— (a) where the payment institution has completed a full year’s business at the date of the calculation, the amount of the fixed overheads of the payment institution for the previous year, subject to any adjustment applied by the Bank where there has been a material change in the business of the payment institution since the preceding year, or (b) where the payment institution has not completed a full year’s business at the date of the calculation, the amount of the fixed overheads of the payment institution as projected in the business plan of the payment institution, subject to any adjustment to that business plan required by the Bank in accordance with Regulation 22.

Method B

Section 13

13.(1) Where a payment institution is directed by the Bank to calculate its own funds requirement in accordance with this Regulation, that payment institution’s own funds requirement shall be calculated as follows:

OFR = K*SE where— OFR is the own funds requirement, K is the scaling factor described in Regulation 15, SE is— (a) in a case in which the payment volume is less than or equal to €5,000,000, 4 per cent of the amount of the payment volume, (b) in a case in which the payment volume is greater than €5,000,000 and less than or equal to €10,000,000, €200,000 plus 2.5 per cent of the amount by which the payment volume exceeds €5,000,000, (c) in a case in which the payment volume is greater than €10,000,000 and less than or equal to €100,000,000, €325,000 plus one per cent of the amount by which the payment volume exceeds €10,000,000, (d) in a case in which the payment volume is greater than €100,000,000 and less than or equal to €250,000,000, €1,225,000 plus 0.5 per cent of the amount by which the payment volume exceeds €100,000,000, and (e) in a case in which the payment volume is greater than €250,000,000, €1,975,000 plus 0.25 per cent of the amount by which the payment volume exceeds €250,000,000.

(2)In this Regulation “payment volume” means one twelfth of the total amount of payment transactions executed by the payment institution concerned in the preceding year.

Method C

Section 14

14.(1) Where a payment institution is directed by the Bank to calculate its own funds requirement in accordance with this Regulation, that payment institution’s own funds requirement shall be calculated as follows:

OFR = K*RI*MF where— OFR is the own funds requirement, K is the scaling factor described in Regulation 15, RI is the relevant indicator calculated in accordance with paragraph (2), MF is the multiplication factor calculated in accordance with paragraph (3).

(2)(a) The relevant indicator is the sum of the following in respect of the payment institution concerned: (i) interest income; (ii) interest expenses; (iii) commissions and fees received; (iv) other operating income. (b) In calculating the relevant indicator— (i) an amount paid to the payment institution concerned shall be given a positive value, (ii) an amount paid by the payment institution concerned shall be given a negative value, (iii) income from extraordinary or irregular items shall not be used, and (iv) business estimates for the amounts referred to in subparagraph (a) may be used to calculate the relevant indicator where audited figures are not available. (c) Expenditure on the outsourcing of services rendered by third parties may be used to reduce the relevant indicator if the expenditure is incurred from an undertaking subject to supervision under these Regulations or the law of another Member State giving effect to the Payment Services Directive. (d) The relevant indicator is calculated over the previous financial year on the basis of the 12-monthly observation at the end of the previous financial year.
(3)The amount of the multiplication factor is as follows: (a) in a case in which the relevant indicator is less than or equal to €2,500,000, 10 per cent of the amount of the relevant indicator; (b) in a case in which the relevant indicator is greater than €2,500,000 and less than or equal to €5,000,000, €250,000 plus 8 per cent of the amount by which the relevant indicator exceeds €2,500,000; (c) in a case in which the relevant indicator is greater than €5,000,000 and less than or equal to €25,000,000, €450,000 plus 6 per cent of the amount by which the relevant indicator exceeds €5,000,000; (d) in a case in which the relevant indicator is greater than €25,000,000 and less than or equal to €50,000,000, €1,650,000 plus 3 per cent of the amount by which the relevant indicator exceeds €25,000,000; (e) in a case in which the relevant indicator is greater than €50,000,000, €2,400,000 plus 1.5 per cent of the amount by which the relevant indicator exceeds €50,000,000.
(4)Where the own funds requirement of a payment institution calculated in accordance with paragraph (1) for the previous financial year is less than 80 per cent of the average of the own funds requirements calculated in accordance with paragraph (1) for the previous 3 financial years, the own funds requirement of that financial institution is the amount of that average.

Scaling factor

Section 15

15.The scaling factor for the purposes of Regulations 13 and 14 is— (a) 0.5,where the payment institution provides only the payment service referred to in paragraph 6 of the Schedule, and (b) 1,where the payment institution provides any of the payment services referred to in paragraphs 1 to 5 of the Schedule.

Adjustment to own funds requirement

Section 16

16.The Bank may, based on an evaluation of the risk-management processes, risk loss data base and internal control mechanisms of a payment institution— (a) require the payment institution to hold an amount of own funds which is up to 20 per cent higher than the amount calculated in accordance with a direction issued to the payment institution under Regulation 11, or (b) permit the payment institution to hold an amount of own funds which is up to 20 per cent lower than the amount calculated in accordance with a direction issued to the payment institution under Regulation 11.

Safeguarding requirements

Section 17

17.(1) In this Regulation “user’s funds” means the funds that have been received by a payment institution from a payment service user or through another payment service provider for the execution of a payment transaction.
(2)A payment institution that provides payment services referred to in paragraphs 1 to 6 of the Schedule shall safeguard user’s funds in either of the following ways: (a) user’s funds— (i) shall not be mixed at any time with the funds of any person other than the payment service user on whose behalf the funds are held, and (ii) where the funds are still held by the payment institution and not yet delivered to the payee or transferred to another payment service provider by the end of the business day after the day of receipt, shall be deposited in a separate account in a credit institution or invested in assets designated or approved by the Bank for the purpose of these Regulations as secure, liquid and low-risk assets; (b) user’s funds shall be covered by an insurance policy or some other comparable guarantee issued by an insurance company or a credit institution, that does not belong to the same group as the payment institution, payable in the event that the payment institution is unable to meet its financial obligations, for an amount equal to that which would have been segregated if the method set out in subparagraph (a) had been used.
(3)No liquidator, receiver, administrator, examiner or creditor of a payment institution, nor the Official Assignee in Bankruptcy, has any recourse or right against user’s funds safeguarded in accordance with paragraph (2)(a) until all proper claims of payment service users or of their heirs, successors or assigns against user’s funds relating to the payment transaction concerned have been satisfied in full.
(4)Where a payment institution that is required to safeguard user’s funds in accordance with paragraph (2) receives funds from a payment service user and a part of those funds is to be used for future payment transactions and the remainder for non-payment services, the payment institution shall protect the part of the funds to be used for future payment transactions in accordance with paragraph (2).
(5)Where the part of the funds to be used for future payment transactions referred to in paragraph (4) is variable or not known in advance, the payment institution may safeguard a representative part likely to be used for payment services if such a representative part can be reasonably estimated on the basis of historical data to the satisfaction of the Bank.

Granting of authorisation

Section 18

18.(1) The Bank shall grant an authorisation to an applicant where— (a) the information and evidence accompanying the application for authorisation complies with all of the requirements specified in Regulation 7, (b) the Bank’s overall assessment, having scrutinised the application for authorisation, is favourable, (c) taking into account the need to ensure the sound and prudent management of a payment institution, the applicant has robust governance arrangements for its payment services business, which include— (i) a clear organisational structure with well-defined, transparent and consistent lines of responsibility, (ii) effective procedures to identify, manage, monitor and report the risks to which it is or might be exposed, and (iii) adequate internal control mechanisms, including sound administrative and accounting procedures, (d) taking into account the need to ensure the sound and prudent management of a payment institution, the Bank is satisfied as to the suitability of the shareholders or members that have qualifying holdings in the applicant, (e) if close links, as defined in point (38) of Article 4(1) of Regulation (EU) No 575/2013, exist between the applicant and other persons, those links do not prevent the effective exercise of the Bank’s supervisory functions, (f) if the applicant has close links, as defined in point (38) of Article 4(1) of Regulation (EU) No 575/2013, with persons in a third country, the laws, regulations or administrative provisions of the third country governing those persons or difficulties involved in the enforcement of those laws, regulations or administrative provisions, do not prevent the effective exercise of the Bank’s supervisory functions, and (g) the applicant is a legal person established in the State.
(2)Before granting an authorisation, the Bank may consult with relevant public authorities.
(3)If the Bank proposes to refuse to grant an authorisation, it shall give the applicant concerned written notice of its intention to refuse, setting out a statement of the reasons for the proposed refusal and specifying a period (not less than 21 calendar days) within which the applicant may make written submissions in relation to the proposed refusal.
(4)The Bank shall take into account any submissions made by an applicant under paragraph (3) when making its decision on an application for authorisation.
(5)The arrangements, procedures and mechanisms referred to in paragraph (1) (c) shall be comprehensive and proportionate to the nature, scale and complexity of the payment services proposed to be provided by the applicant.
(6)An authorisation granted under this Regulation shall be valid in all Member States and shall permit the payment institution concerned to carry on business in all Member States, by way of establishment and by way of the provision of services.

Conditions

Section 19

19.(1) Where the Bank grants an authorisation in accordance with Regulation 18, the authorisation may be granted subject to a specified condition or requirement.
(2)If the Bank proposes to grant an authorisation subject to a specified condition or requirement, it shall give the applicant concerned written notice of its intention to do so, setting out a statement of the reasons for the proposed condition or requirement and specifying a period (not less than 21 calendar days) within which the applicant may make written submissions in relation to the proposed condition or requirement.
(3)The Bank shall take into account any submissions made by an applicant under paragraph (2) when making its decision in relation to the imposition of a specified condition or requirement.

Separate entity

Section 20

20.Where a payment institution provides any of the payment services referred to in paragraphs 1 to 7 of the Schedule and, at the same time, is engaged in other business activities, the Bank may require the establishment of a separate entity for the payment services business, where the non-payment services activities of the payment institution impair or are likely to impair either the financial soundness of the payment institution or the ability of the Bank to monitor the payment institution’s compliance with these Regulations.

Head office

Section 21

21.Where a payment institution has its registered office in the State, it shall have its head office in the State and shall carry out at least part of its payment service business in the State.

Adjustments to business plan

Section 22

22.(1) The Bank may require an applicant to make a specified adjustment to a business plan submitted with its application.
(2)Where the Bank requires an adjustment to a business plan, a reference in these Regulations to a business plan shall be construed as a reference to the plan as adjusted.

Communication of decision

Section 23

23.(1) Within 3 months— (i) of the receipt of an application for authorisation, or (ii) where the application is incomplete, of all of the information required for the Bank to make a decision on the application, the Bank shall inform the applicant whether the authorisation has been granted or refused.
(2)The Bank shall give reasons to an applicant where it refuses to grant an authorisation.

Withdrawal of authorisation

Section 24

24.(1) The Bank may only withdraw an authorisation issued to a payment institution where the institution— (a) does not make use of the authorisation within 12 months, (b) expressly renounces the authorisation, (c) has ceased to engage in business for more than 6 months, (d) has obtained the authorisation through false statements or any other irregular means, (e) no longer meets the conditions for the granting of the authorisation or fails to inform the Bank of major developments in this respect, (f) would constitute a threat to the stability of, or the trust in, the payment system by continuing its payment services business, or (g) may have its authorisation withdrawn in accordance with another law of the State.
(2)Before withdrawing an authorisation, the Bank shall— (a) give written notice of the proposed withdrawal to the payment institution concerned— (i) setting out a summary of the relevant evidence, (ii) setting out the reasons for the proposed withdrawal, and (iii) specifying a reasonable period (not less than 21 calendar days from the date of the notice) within which the institution may make written representations concerning the proposed withdrawal, and (b) consider any representations made by the payment institution within the period specified in the notice referred to in subparagraph (a) .
(3)Where the Bank decides to withdraw an authorisation, it shall notify the payment institution concerned in writing of the withdrawal, setting out the reasons for the withdrawal.
(4)The Bank shall give public notice of the withdrawal of an authorisation and shall also notify the European Banking Authority.
(5)Withdrawal of an authorisation under this Regulation takes effect on and from the date of the notice of withdrawal or, if a later date is specified in the notice, on and from that date, irrespective of whether an appeal against the withdrawal is made under Part VIIA of the Act of 1942.

Register

Section 25

25.(1) The Bank shall maintain a public register (in these Regulations referred to as the “Register”) of— (a) payment institutions and their agents, (b) persons benefitting from an exemption pursuant to Regulation 41 or 42 and their agents, (c) credit unions, and (d) descriptions of activities notified under Regulation 45(6) or Regulation 46(6) and the names of the service providers concerned.
(2)Where a branch of a payment institution for which the State is the home Member State provides services in another Member State, the Bank shall list the branch in the Register.
(3)The Register shall specify the payment services for which a payment institution is authorised or in respect of which a person referred to in paragraph (1) (b) has been registered.
(4)Authorised payment institutions shall be listed separately in the Register to persons benefitting from an exemption pursuant to Regulation 41 or 42.
(5)The Bank shall ensure that the Register is publicly available for consultation, accessible online, and up-to-date.
(6)The Bank shall enter in the Register any withdrawal of an authorisation and any withdrawal of an exemption pursuant to Regulation 41 or 42.
(7)The Bank shall notify the European Banking Authority of the reasons for the withdrawal of— (a) any authorisation, and (b) any exemption pursuant to Regulation 41 or 42.

European Banking Authority Register

Section 26

26.(1) Where information is entered in the Register, the Bank shall, without delay and in a language customary in the field of finance, send a notification to the European Banking Authority informing it of the information so entered.
(2)The Bank shall ensure that the information provided to the European Banking Authority under paragraph (1) is accurate and up-to-date.

Maintenance of authorisation

Section 27

27.Where— (a) any change affects the accuracy of information or evidence provided by a payment institution under Regulation 7, and (b) the State is the home Member State of the payment institution, the payment institution shall, without undue delay, inform the Bank accordingly.

Accounting and statutory audit

Section 28

28.(1) The European Union (Credit Institutions: Financial Statements) Regulations 2015 ( S.I. No. 266 of 2015 ) and Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 200211 shall apply to a payment institution, subject to the modification that a reference in the European Union (Credit Institutions: Financial Statements) Regulations 2015 to a credit institution shall be construed as a reference to a payment institution.

(2)Part 6 of the Companies Act 2014 (No. 38 of 2014) shall apply mutatis mutandis to a payment institution to which that Act does not otherwise apply.
(3)Unless exempted under the Companies Act 2014 (including as applied in accordance with paragraph (2)) and, where applicable, the European Union (Credit Institutions: Financial Statements) Regulations 2015, the annual accounts and consolidated accounts of a payment institution shall be audited by a statutory auditor or audit firm within the meaning of the European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No 537/2014) Regulations 2016 ( S.I. No. 312 of 2016 ).
(4)For supervisory purposes, a payment institution shall provide separate accounting information for payment services and activities referred to in Regulation 29(1), which shall be subject to an auditor’s report prepared, where applicable, by the statutory auditors or an audit firm.
(5)Regulation 52 of the European Union (Capital Requirements) Regulations 2014 shall apply to the statutory auditor or audit firm of a payment institution in respect of payment services activities, subject to the modification that a reference in those Regulations to a credit institution shall be construed as a reference to a payment institution.

Activities

Section 29

29.(1) In addition to the provision of payment services, a payment institution may engage in the following activities: (a) the provision of operational and closely related ancillary services such as ensuring the execution of payment transactions, foreign exchange services, safekeeping activities, and the storage and processing of data; (b) without prejudice to Regulation 43, the operation of payment systems; (c) business activities other than the provision of payment services, subject to any law of the State or of the Union applicable to such activities.

(2)Where a payment institution engages in the provision of one or more payment services, it may hold only payment accounts which are used exclusively for payment transactions.
(3)Funds received by a payment institution from a payment service user with a view to the provision of payment services shall not constitute— (a) a deposit or other repayable funds, within the meaning of Article 9 of Directive 2013/36/EU, or (b) electronic money, within the meaning of the European Communities (Electronic Money) Regulations 2011.
(4)A payment institution may only grant credit relating to payment services referred to in paragraph 4 or 5 of the Schedule where all of the following conditions are met: (a) the credit is ancillary and granted exclusively in connection with the execution of a payment transaction; (b) notwithstanding any law in relation to the provision of credit by means of a credit card, credit granted in connection with a payment and executed in accordance with Regulations 18(6) and 37 is repaid within a short period which shall in no case exceed 12 months; (c) the credit is not granted from the funds received or held for the purpose of executing a payment transaction; (d) the own funds of the payment institution are, at all times and to the satisfaction of the Bank, appropriate in view of the overall amount of credit granted.
(5)A payment institution shall not conduct the business of taking deposits or other repayable funds, within the meaning of Article 9 of Directive 2013/36/EU.
(6)Nothing in these Regulations affects the operation of Union law or the law of the State regarding conditions for granting credit to consumers, where that law of the State is not harmonised by the Payment Services Directive and complies with Union law.

Use of agents, branches or entities to which activities are outsourced

Section 30

30.(1) Where a payment institution whose home Member State is the State intends to provide payment services through an agent it shall communicate the following information to the Bank: (a) the name and address of the agent; (b) a description of the internal control mechanisms that will be used by the agent in order to comply with the obligations in relation to money laundering and terrorist financing under the law of the State giving effect to Directive (EU) 2015/849, to be updated without delay in the event of material changes to the particulars communicated at the initial notification; (c) the identity of directors and persons responsible for the management of the agent to be used in the provision of payment services and, for agents other than payment service providers, evidence that they are fit and proper persons; (d) the payment services of the payment institution for which the agent is mandated; (e) where applicable, the unique identification code or number of the agent.

(2)Within 2 months of receipt of the information referred to in paragraph (1), the Bank shall inform the payment institution whether the details of the agent concerned have been entered in the Register.
(3)An agent shall not commence provision of payment services prior to the entry of its details in the Register.
(4)Before listing an agent in the Register, the Bank shall, if it considers that the information provided to it pursuant to paragraph (1) is incorrect, take further action to verify the information.
(5)Where, after taking action to verify the information, the Bank is not satisfied that the information provided to it pursuant to paragraph (1) is correct, it shall not list the agent in the Register and shall inform the payment institution accordingly without undue delay.
(6)Where a payment institution proposes to provide payment services in another Member State by engaging an agent or establishing a branch, it shall follow the procedures set out in Regulation 37.
(7)Where a payment institution whose home Member State is the State proposes to outsource an operational function relating to payment services, it shall inform the Bank accordingly not less than 30 days prior to the date on which it proposes to commence such outsourcing.
(8)Outsourcing of important operational functions, including information technology systems, shall not be undertaken in a manner that materially impairs the quality of the payment institution’s internal control and the ability of the Bank to monitor and review the payment institution’s compliance with these Regulations.
(9)For the purposes of paragraph (8), an operational function shall be regarded as important if a defect or failure in its performance would materially impair the continuing compliance of a payment institution with the requirements of its authorisation under this Part, its other obligations under these Regulations, its financial performance, or the soundness or the continuity of its payment services.
(10)A payment institution may only outsource an important operational function where it meets the following requirements: (a) the outsourcing will not result in the delegation by senior management of its responsibility; (b) the relationship and obligations of the payment institution towards its payment service users under these Regulations will not be altered; (c) the conditions with which the payment institution is to comply in order to be authorised and remain so in accordance with this Part will not be breached; (d) none of the other conditions subject to which the payment institution’s authorisation was granted will be removed or modified.
(11)A payment institution shall ensure that agents or branches acting on its behalf inform payment service users of this fact.
(12)A payment institution whose home Member State is the State shall communicate to the Bank without undue delay any change regarding the use of— (a) entities to which activities are outsourced, and (b) in accordance with the procedure provided for in paragraphs (2), (3), (4) and (5), agents, including additional agents.

Liability

Section 31

31.(1) Where a payment institution relies on a third party for the performance of operational functions, the payment institution shall take reasonable steps to ensure that the third party complies with the requirements of these Regulations in so far as those requirements apply to the third party.

(2)A payment institution remains fully liable for any acts of its employees, and any agent, branch or entity to which activities are outsourced.

Record-keeping

Section 32

32.(1) A payment institution shall keep all appropriate records for the purpose of this Part for at least 5 years.

(2)Paragraph (1) does not affect the operation of the law of the State giving effect to Directive (EU) 2015/849 or other relevant European law.

Competent authority

Section 33

33.(1) The Bank is the competent authority in the State for the purposes of the Payment Services Directive.

(2)Paragraph (1) shall not be construed as implying that the Bank is required to supervise any business activity of a payment institution other than the provision of payment services and the activities referred to in Regulation 29(1) .

Supervision

Section 34

34.(1) Without prejudice to the Bank’s powers under the Central Bank (Supervision and Enforcement) Act 2013 (No. 26 of 2013), the Bank may, for the purposes of confirming compliance with this Part, take the following steps: (a) require a payment institution to provide any information needed to monitor compliance, specifying the purpose of the request, as appropriate, and the time limit by which the information is to be provided; (b) carry out on-site inspections at the payment institution, at any agent or branch providing payment services under the responsibility of the payment institution, or at any entity to which activities are outsourced; (c) issue recommendations and guidelines; (d) withdraw an authorisation pursuant to Regulation 24.

(2)The Bank may use the powers referred to in paragraph (1) to ensure that a payment institution has sufficient capital for payment services, in particular where the non-payment services activities of the payment institution impair or are likely to impair the financial soundness of the payment institution.

Appealable decisions

Section 35

35.The following decisions of the Bank are appealable decisions for the purposes of Part VIIA of the Act of 1942: (a) a decision of the Bank in relation to the granting of an authorisation under Regulation 18; (b) a decision under Regulation 24 to withdraw such an authorisation; (c) a decision under Regulation 41(4) to require a person exempted under Regulation 41(1) to engage only in a specified activity; (d) a decision under Regulation 56 to impose a condition or requirement or to vary a condition or requirement; (e) a decision under Regulation 57 to oppose a proposed acquisition; (f) a decision under Regulation 123 to give a direction to a person.

Settlement of disagreements between competent authorities of different Member States

Section 36

36.(1) Where the Bank considers that, in a particular matter, cross-border cooperation with competent authorities of another Member State referred to in Regulations 37, 38, 39 or 40 does not comply with the relevant conditions set out in those provisions, it may refer the matter to the European Banking Authority and request its assistance in accordance with Article 19 of Regulation (EU) No 1093/2010.

(2)Where the European Banking Authority has been requested to assist in accordance with Article 19 of Regulation (EU) No 1093/2010 or the European Banking Authority, on its own initiative, is assisting the Bank and competent authorities of other Member States in reaching an agreement in accordance with the second subparagraph of Article 19(1) of that Regulation, the Bank shall defer its decision on the matter concerned pending resolution under Article 19 of that Regulation.

Application to exercise the right of establishment and freedom to provide services

Section 37

37.(1) A payment institution authorised under Regulation 18 which proposes to provide payment services for the first time in another Member State, in the exercise of the right of establishment or the freedom to provide services, shall communicate the following information to the Bank not less than 3 months prior to the date on which it proposes to commence provision of those payment services: (a) the name, address and, where applicable, authorisation number of the payment institution; (b) the Member State or Member States, as the case may be, in which it intends to operate; (c) the payment services to be provided; (d) where the payment institution intends to make use of an agent, the information referred to in Regulation 30(1) ; (e) where the payment institution intends to make use of a branch, the information referred to in Regulation 7(2)(b) and (e) with regard to the payment service business in the host Member State, a description of the organisational structure of the branch and the identity of those responsible for the management of the branch; (f) where the payment institution proposes to outsource operational functions of payment services to other entities in the host Member State, that it proposes to do so.

(2)Where a payment institution becomes aware of any relevant change regarding the information communicated in accordance with paragraph (1), including as regards additional agents, branches or entities to which activities are outsourced in the host Member States in which it operates, it shall communicate any such change to the Bank without undue delay.
(3)Within 1 month of receipt of all of the information referred to in paragraph (1), or change regarding such information received in accordance with paragraph (2), as the case may be, the Bank shall send the information to the competent authority of the host Member State.
(4)Where the Bank receives information from a competent authority of another Member State in accordance with the law of that Member State equivalent to paragraph (3), the Bank shall, within 1 month of receipt of the information assess that information and provide that competent authority with relevant information in connection with the proposed provision of payment services by the payment institution, authorised by that competent authority, in the exercise of the freedom of establishment or the freedom to provide services.
(5)The Bank shall, when providing relevant information in accordance with paragraph (4), inform the competent authority concerned in particular of any reasonable grounds for concern in connection with the intended engagement of an agent or establishment of a branch with regard to money laundering or terrorist financing within the meaning of Directive (EU) 2015/849.
(6)Where the Bank does not agree with an assessment provided by the competent authority of a host Member State, provided by that competent authority in accordance with the law of that Member State equivalent to paragraphs (4) and (5), it shall provide that competent authority with the reasons for the Bank’s disagreement with that assessment.
(7)If the assessment of the Bank, in particular in light of the information received from the competent authority of the host Member State provided by that competent authority in accordance with the law of that Member State equivalent to paragraphs (4) and (5), is not favourable, the Bank shall refuse to register the agent or branch or shall withdraw the registration if already made.
(8)If the assessment of the Bank, in particular in light of the information received from the competent authority of the host Member State provided by that competent authority in accordance with the law of that Member State equivalent to paragraphs (4) and (5), is favourable, the Bank shall enter the agent or branch in the Register.
(9)Within 3 months of receipt of the information referred to in paragraph (1) or, where a change to that information has been provided in accordance with paragraph (2), receipt of the most recently received of such information, the Bank shall communicate its decision to the competent authority of the host Member State and to the payment institution.
(10)Upon entry in the Register, the agent or branch, as the case may be, of the payment institution concerned may commence its activities in the host Member State.
(11)The payment institution concerned shall notify the Bank of the date from which it commences its activities through the agent or branch, as the case may be, in the relevant host Member State.
(12)The Bank shall inform the competent authority of the host Member State concerned of the information provided by the payment institution concerned in accordance with paragraph (11).

Supervision of payment institutions exercising the right of establishment and freedom to provide services

Section 38

38.(1) In order to carry out the controls and take the necessary steps provided for in this Part and in Parts 3 and 4 in respect of the agent or branch of a payment institution, where that agent or branch is located in the territory of another Member State, the Bank shall cooperate with the competent authorities of the host Member State of that agent or branch.
(2)The Bank shall notify the competent authority of the host Member State concerned where the Bank intends to carry out an on-site inspection in that Member State.
(3)The Bank may delegate to the competent authority of the host Member State concerned the task of carrying out on-site inspections of the agent or branch concerned.
(4)The Bank may require a payment institution authorised in another Member State having an agent or branch in the State to report to the Bank periodically on the activities carried out in the State.
(5)A report referred to in paragraph (4) shall be required for information or statistical purposes and, as far as the agent or branch concerned conducts the payment service business under the right of establishment, to monitor compliance with Parts 3 and 4.
(6)The Bank shall provide the competent authority of a host Member State of the agent or branch of a payment institution authorised under Regulation 18 with all essential and relevant information, in particular in the case of infringements or suspected infringements of these Regulations by an agent or a branch, and where such infringements occurred in the context of the exercise of the freedom to provide services.
(7)The Bank shall, for the purposes of compliance with paragraph (6), communicate, upon request, all relevant information and, on its own initiative, all essential information, including on the compliance of the payment institution with Regulation 21.
(8)The Bank may require a payment institution operating in the State through an agent under the right of establishment, the head office of which is situated in another Member State, to appoint a central contact point in the State to— (a) ensure adequate communication and information reporting on compliance with Parts 3 and 4, without prejudice to any obligations under anti-money laundering law or counter terrorist financing law, and (b) facilitate supervision by the competent authority of the home Member State and any other host Member States of the payment institution concerned, including by providing such competent authorities with documents and information on request.

Measures in case of non-compliance, including precautionary measures

Section 39

39.(1) Where the Bank ascertains that a payment institution authorised in another Member State having agents or branches in the State contravenes this Part or Part 3 or 4, it shall inform the competent authority of the home Member State of the payment institution concerned without delay.
(2)Where the Bank receives information from a competent authority in another Member State pursuant to the law of that Member State equivalent to paragraph (1), the Bank shall, after having evaluated the information received, without undue delay, take all appropriate measures, available to it under this or any other law of the State, to ensure that the payment institution concerned ceases its contravention.
(3)Where the Bank takes measures under paragraph (2), it shall communicate those measures without delay to the competent authority of the host Member State of the payment institution concerned and to the competent authorities of any other Member State concerned.
(4)In an emergency situation, where immediate action is necessary to address a serious threat to the collective interests of the payment service users in the State, where the State is the host Member State, the Bank may, in parallel with the cross-border cooperation between competent authorities and pending measures by the competent authorities of the home Member State of the payment institution concerned, as provided by Regulation 38, take such precautionary measures, available to it under this or any other law of the State, as it considers appropriate in the circumstances.
(5)A precautionary measure taken under paragraph (4) shall— (a) be appropriate and proportionate to its purpose to protect against a serious threat to the collective interests of the payment service users in the State, (b) not result in a preference for payment service users of the payment institution concerned in the State over payment service users of the payment institution in other Member States, (c) be temporary, and (d) be terminated when the serious threats identified are addressed, including with the assistance of or in cooperation with the home Member State’s competent authority or with the European Banking Authority in accordance with Regulation 36(1) .
(6)Where compatible with the emergency situation referred to in paragraph (4), the Bank shall inform— (a) the competent authorities of the home Member State of the payment institution concerned and those of any other Member State concerned, (b) the Commission, and (c) the European Banking Authority, in advance and in any case without undue delay, of the precautionary measures taken under paragraph (4) and of their justification.

Reasons and communication

Section 40

40.(1) The Bank shall only take a decision pursuant to Regulation 34, 37, 38 or 39 involving penalties or restrictions on the exercise of the freedom to provide services or the freedom of establishment where that decision is justified in the circumstances relating to the decision.
(2)Where the Bank takes a decision pursuant to Regulation 34, 37, 38 or 39 involving penalties or restrictions on the exercise of the freedom to provide services or the freedom of establishment, it shall communicate the reasons for its decision to the payment institution concerned.
(3)Regulations 37, 38 and 39 shall be without prejudice to the obligation under the law of the State giving effect to Directive (EU) 2015/849 and Regulation (EU) 2015/847 of the competent authorities designated in the State for the purposes of Directive (EU) 2015/849 and Regulation (EU) 2015/847, in particular under the law of the State giving effect to Article 48(1) of Directive (EU) 2015/849 and Article 22(1) of Regulation (EU) 2015/847, to supervise or monitor the compliance with the requirements laid down in those enactments.

Conditions (small payment institutions)

Section 41

41.(1) The Bank may exempt a person providing payment services referred to in paragraphs 1 to 6 of the Schedule from the application of all or part of the procedure and conditions set out in Regulations 7 to 40, with the exception of Regulations 25, 26, 33 and 35, where the following conditions are satisfied: (a) the monthly average of the preceding 12 months’ total value of payment transactions executed by the person concerned, including any agent for which it assumes full responsibility, does not exceed €3,000,000; (b) none of the natural persons responsible for the management or operation of the business has been convicted of offences relating to money laundering or terrorist financing or other financial crimes; (c) (i)where the person is a legal person, it has its head office in the State, or (ii) where the person is a natural person, he or she has his or her place of residence in the State.

(2)The requirement in paragraph (1) (a) shall be assessed on the projected total amount of payment transactions in the business plan of the person concerned, unless an adjustment to that plan is required by the Bank.
(3)A person exempted under paragraph (1) shall be treated as a payment institution, save that Regulations 18(6), 37, 38 and 39 shall not apply to the person.
(4)The Bank may direct that a person exempted under paragraph (1) may engage only in a specific activity referred to in Regulation 29(1) .
(5)A person exempted under paragraph (1) shall notify the Bank of any change which results in the person no longer satisfying a condition specified in that paragraph.
(6)Where a person exempted under paragraph (1) — (a) ceases to satisfy a condition specified in that paragraph or, (b) where a direction has been issued under paragraph (4), engages in an activity other than that to which the direction relates, the person concerned shall apply for an authorisation under Regulation 18 within 30 days from the date the condition concerned is no longer satisfied or the activity concerned is commenced, as the case may be.
(7)Subject to paragraph (10), where a person referred to in paragraph (6) applies for authorisation in accordance with that paragraph within the period referred to in that paragraph, it may continue providing payment services until the Bank notifies the person of the Bank’s decision on the application for authorisation.
(8)Subject to paragraph (11), where a person referred to in paragraph (6) does not apply for authorisation in accordance with that paragraph within the period referred to in that paragraph, it shall cease to provide payment services at the end of that period.
(9)Paragraphs (1) to (8) shall not affect the operation of the law of the State giving effect to Directive (EU) 2015/849 or any other anti-money-laundering law of the State.
(10)Paragraph (7) shall not apply where the application for authorisation in accordance with paragraph (6) is consequent upon the condition referred to in paragraph (1) (b) no longer being satisfied.
(11)Where the application for authorisation in accordance with paragraph (6) is consequent upon the condition referred to in paragraph (1) (b) no longer being satisfied, the person referred to in paragraph (6) shall cease to provide payment services from the date on which that condition is no longer satisfied.

Account information service providers

Section 42

42.(1) A person providing only the payment service referred to in paragraph 8 of the Schedule shall be— (a) exempt from the application of the procedure and conditions set out in Regulations 7 to 32, with the exception of subparagraphs (a), (b), (e) to (h), (j), (l), (n), (p) and (q) of Regulation 7(2), Regulation 7(6), Regulation 25, Regulation 26, and (b) subject to Regulations 33 to 40, with the exception of Regulation 34(2).

(2)A person referred to in paragraph (1) of this Regulation shall be treated as a payment institution, save that Parts 3 and 4 shall not apply to them, with the exception of Regulations 65, 69 and 76, where applicable, and of Regulations 91, 93 and 118 to 120.

Chapter 3

Common Provisions Access to payment systems

Section 43

43.(1) The rules on access of an authorised or registered payment service provider that is a legal person to a payment system shall— (a) be objective, non-discriminatory and proportionate, and (b) not inhibit access more than is necessary— (i) to safeguard against specific risks, such as settlement risk, operational risk and business risk, and (ii) to protect the financial and operational stability of the payment system.
(2)A payment system shall not impose on a payment service provider, a payment service user or other payment systems any of the following requirements: (a) restrictive rules on effective participation in other payment systems; (b) rules which discriminate between authorised payment service providers or between registered payment service providers in relation to the rights, obligations and entitlements of participants; (c) restrictions on the basis of institutional status.
(3)Paragraphs (1) and (2) shall not apply to: (a) a payment system designated under the European Communities (Settlement Finality) Regulations 2010 ( S.I. No. 624 of 2010 ), or (b) a payment system composed exclusively of payment service providers belonging to a group.
(4)Where a participant (in this paragraph referred to as the “first-mentioned participant”) in a payment system designated under the European Communities (Settlement Finality) Regulations 2010 allows an authorised or registered payment service provider that is not a participant in the system to pass transfer orders through the system, the first-mentioned participant shall, when requested, give the same opportunity in an objective, proportionate and non-discriminatory manner to other authorised or registered payment service providers.
(5)Where a participant refuses a request referred to in paragraph (4), it shall provide the requesting payment service provider with the reasons for any rejection.
(6)Where the Bank considers that a rule of a payment system contravenes paragraph (1) or (2), the Bank may direct the operator of the payment system by notice in writing to make a specified modification to the rules of the payment system within a specified period.
(7)Where the operator of a payment system to which a direction is given under paragraph (6) does not comply with the direction within the period specified in the notice, the Bank may apply to the court for an order directing the operator of the payment system to comply with the direction.
(8)A payment service provider may apply to the court for a declaration that a rule of a payment system contravenes paragraph (1) or (2).

Access to accounts maintained with a credit institution

Section 44

44.(1) A credit institution shall permit a payment institution to have access to the credit institution’s payment accounts services on an objective, non-discriminatory and proportionate basis.
(2)The access referred to in paragraph (1) shall be sufficiently extensive as to allow payment institutions to provide payment services in an unhindered and efficient manner.
(3)Where a credit institution rejects a request for access to its payment accounts services from a payment institution, the credit institution shall provide the Bank without delay with duly motivated reasons for the rejection.

Notification of use of limited network exclusion

Section 45

45.(1) Where a service provider— (a) provides services of a type referred to in either or both of subparagraphs (i) and (ii) of paragraph (k) of Regulation 4, and (b) the total value of payment transactions executed in providing those services over the preceding 12 months exceeds €1,000,000, the service provider shall send a notification to the Bank.
(2)A notification under paragraph (1) shall— (a) contain a description of the services provided by the service provider, (b) specify which of the conditions referred to in subparagraphs (i) and (ii) of paragraph (k) of Regulation 4 is considered by the service provider to be satisfied, (c) be sent within such period of time, as the Bank may direct, after the end of the period of 12 months referred to in paragraph (1), and (d) be in such form or verified in such manner as the Bank may direct.
(3)The period of 12 months referred to in paragraph (1) does not include any period in respect of which a notification has already been made under paragraph (1) .
(4)Upon receipt of a notification under paragraph (1), the Bank shall decide in a duly motivated manner, on the basis of the contents of the notification and the conditions referred to in paragraph (k) of Regulation 4, whether or not those conditions are satisfied, and inform the service provider concerned accordingly.
(5)The Bank shall inform the European Banking Authority of the services notified under paragraph (1), specifying the exclusion applicable.
(6)The Bank shall enter a description of any services notified under paragraph (1) and the name of the service provider concerned in the Register.

Notification of use of electronic communications exclusion

Section 46

46.(1) Where a service provider provides a payment transaction service referred to in paragraph (l) of Regulation 4, the service provider shall send a notification to the Bank.
(2)A notification under paragraph (1) shall— (a) contain a description of the services being provided by the service provider, (b) specify to which of the transaction types referred to in subparagraphs (i) and (ii) of paragraph (l) of Regulation 4 the services being provided relate.
(3)Where a service provider has, in a financial year of the service provider, provided services in respect of which a notification has been sent under paragraph (1), the service provider shall, within such period after the end of that financial year as the Bank may direct, provide an audit opinion in respect of that financial year to the effect that the transactions in respect of which the services were provided comply with the limits set out in paragraph (l) of Regulation 4.
(4)Information provided to the Bank under this Regulation shall be in such form or verified in such manner as the Bank may direct.
(5)The Bank shall inform the European Banking Authority of the services notified under paragraph (1), specifying the exclusion applicable.
(6)The Bank shall enter a description of any services notified under paragraph (1) and the name of the service provider concerned in the Register.

Chapter 4

Control of Shareholding Control of shareholding — Interpretation

Section 47

47.In this Chapter— “prescribed percentage” means 20%, 30% or 50%; “proposed acquirer” means a person who proposes to acquire or increase a qualifying holding in a payment institution, and includes a group of persons acting in concert to acquire or increase such a holding; “proposed acquisition” means— (a) the proposed acquisition of a qualifying holding in a payment institution, or (b) a proposed increase in a qualifying holding in such an institution that results in the size of the holding reaching or exceeding a prescribed percentage; “qualifying holding”, in relation to a payment institution, means a direct or indirect holding— (a) that represents 10% or more of the capital of, or the voting rights in, the payment institution, or (b) that makes it possible to exercise a significant influence over the management of the payment institution.

Restrictions on acquiring and disposing of qualifying holdings in payment institutions

Section 48

48.(1) A proposed acquirer shall not, directly or indirectly, acquire a qualifying holding in a payment institution without having previously notified the Bank in writing of the intended size of the holding.
(2)A proposed acquirer who has a qualifying holding in a payment institution shall not, directly or indirectly, increase the size of the holding without having previously notified the Bank in writing of the intended size of the holding if, as a result of the increase— (a) the percentage of the capital of, or the voting rights in, the payment institution that the proposed acquirer holds would reach or exceed a prescribed percentage, or (b) in the case of a proposed acquirer that is a company or other body corporate, the payment institution would become the proposed acquirer’s subsidiary.
(3)A person shall not, directly or indirectly, dispose of a qualifying holding in a payment institution without having previously notified the Bank in writing of the intended size of the holding.
(4)A person shall not, directly or indirectly, dispose of part of a qualifying holding in a payment institution without having previously notified the Bank in writing of the intended size of the holding if, as a result of the disposal— (a) the percentage of the capital of, or the voting rights in, the payment institution that the person holds would fall to or below a prescribed percentage, or (b) in the case of a person that is a company or other body corporate, the payment institution would cease to be the person’s subsidiary.
(5)A notification under this Regulation shall be made by completing and submitting to the Bank— (a) the form of notification specified by the Bank for the purpose of this provision and made available on the official website of the Bank, and (b) such documentation in relation to the proposed acquisition or disposal, as the case may be, as is specified in that form as being required to be submitted to the Bank with the form.

Application to court where no notification given

Section 49

49.(1) A person who concludes an acquisition to which Regulation 48 applies without having notified the Bank in accordance with that Regulation may make an application to the court under this Regulation and the court may, if it is satisfied that the failure was inadvertent and that it is in the interests of justice to do so, make an order— (a) requiring the person to provide the Bank with the information required under Regulation 50, and (b) requiring the Bank to carry out an assessment in accordance with Regulations 51, 52 and 53.
(2)An application under paragraph (1) shall be on notice to the Bank and the Bank shall be entitled to appear, be heard and adduce evidence at the hearing of the application.
(3)Notice of an application under paragraph (1) shall be served on the Bank at least 14 days before the date of hearing of the application.
(4)An affidavit giving the names and addresses of, and the places and dates of service on, all persons who have been served with the notice of application, grounding affidavit and exhibits (if any) shall be filed by the applicant at least 4 days before the application is heard.
(5)Where any person who ought under this Regulation to have been served has not been so served, the affidavit shall state that fact and the reason for it.
(6)Where the Bank carries out an assessment on foot of an order under paragraph (1) and it is satisfied that no grounds exist to oppose the application in accordance with Regulation 57 it may— (a) lift a suspension of voting rights under Regulation 61, and (b) retrospectively validate the exercise of voting rights during such a suspension.

Payment institution to provide information in relation to certain acquisitions and disposals

Section 50

50.(1) If a payment institution becomes aware of the acquisition of a qualifying holding in it, or an increase in the size of such a holding that results in the holding reaching or exceeding a prescribed percentage, the institution shall inform the Bank in writing of the acquisition or increase without delay.
(2)If a payment institution becomes aware of a disposal of, or a reduction in the size of, a holding in it that results in the holding ceasing to be a qualifying holding or falling to or below a prescribed percentage, the institution shall inform the Bank in writing of the disposal or reduction without delay.

Period for assessment of proposed acquisition

Section 51

51.(1) Within 2 working days after receiving a completed notification under Regulation 48 or in accordance with an order made under Regulation 49(1) (a), as the case may be, from a proposed acquirer, the Bank shall acknowledge receipt of the notification in writing.
(2)For the purposes of paragraph (1), a notification is completed if it gives all the information (whether in the notification itself or as an attachment) required by Regulation 48 to be provided for the assessment of the proposed acquisition concerned.
(3)Within 60 working days after the date of the written acknowledgement referred to in paragraph (1), the Bank shall carry out the assessment of the proposed acquisition concerned in accordance with Regulation 52.
(4)In its acknowledgement of receipt of a notification referred to in paragraph (1), the Bank shall inform the proposed acquirer concerned of the date on which the assessment period will end.
(5)During the assessment period in relation to a proposed acquisition, but no later than the 50th working day of that period, the Bank may request any further information necessary to complete the assessment of the acquisition.
(6)If the Bank makes a request under paragraph (5), it shall acknowledge the receipt of any information received in response to the request.
(7)A request made under paragraph (5) shall be made in writing and shall specify or describe the additional information needed.
(8)Subject to paragraph (10), if the Bank makes a request under paragraph (5) the assessment period is to be taken to be interrupted for the shorter of— (a) the period between the date of the request and the date of the receipt of a response from the proposed acquirer concerned, and (b) 20 working days.
(9)The Bank may request still further information for completion or clarification of information already supplied but such a request does not interrupt the assessment period.
(10)The Bank may, by notice in writing to a proposed acquirer, extend the interruption referred to in paragraph (8) in relation to a proposed acquisition to 30 working days if the proposed acquirer concerned— (a) is situated or regulated in a country that is not a Member State, or (b) is not subject to supervision under a law of a Member State that transposes Directive 2009/65/EC of the European Parliament and of the Council of 13 July 200912 , Directive 2009/138/EC of the European Parliament and of the Council of 25 November 200913 , or Directive 2014/65/EU of the European Parliament and of the Council of 15 May 201414 .

Assessment of proposed acquisitions

Section 52

52.(1) The objective of the assessment of a proposed acquisition is to ensure the sound and prudent management of the payment institution concerned.
(2)In assessing a proposed acquisition, the Bank shall— (a) have regard to the likely influence of the proposed acquirer concerned on the payment institution concerned, and (b) appraise the suitability of the proposed acquirer and the financial soundness of the proposed acquisition concerned against all of the following criteria: (i) the reputation of the proposed acquirer; (ii) the reputation and experience of the individuals who will direct the business of the payment institution as a result of the proposed acquisition; (iii) the financial soundness of the proposed acquirer, in particular in relation to the type of business pursued and envisaged in the payment institution; (iv) whether the payment institution will be able to comply and continue to comply with the prudential requirements of existing legislation; (v) whether the group of which it will become a part has a structure that makes it possible to exercise effective supervision, effectively exchange information among the competent authorities and determine the allocation of responsibilities among the competent authorities; (vi) whether there are reasonable grounds to suspect that, in connection with the proposed acquisition, money laundering or terrorist financing (within the meaning of Article 1 of Directive (EU) 2015/849) is being or has been committed or attempted, or that the proposed acquisition could increase the risk of money laundering or terrorist financing.
(3)The Bank shall not examine a proposed acquisition in terms of the economic needs of the market.
(4)Where 2 or more proposals to acquire or increase qualifying holdings in the same payment institution have been notified to the Bank, the Bank shall treat the proposed acquirers concerned in a non-discriminatory manner.

Bank to cooperate with competent authorities of other Member States in certain cases

Section 53

53.(1) In carrying out its assessment of a proposed acquisition, the Bank may work in full consultation with the relevant competent authorities of other Member States if the proposed acquirer concerned is— (a) an insurance undertaking, reinsurance undertaking, electronic money institution, credit institution, investment firm or UCITS management company, or the market operator of a regulated market, authorised by a competent authority of another Member State, (b) the parent undertaking of such an undertaking, institution, firm, company or market operator, or (c) a person that controls such an undertaking, institution, firm, company or market operator.
(2)In a case to which paragraph (1) applies, the Bank shall, without undue delay, provide any other competent authority concerned with any information that is essential or relevant for the assessment of a proposed acquisition.
(3)The Bank shall communicate to each other competent authority referred to in paragraph (2) all relevant information upon request and all essential information on its own initiative.
(4)A decision by the Bank, in the case of a proposed acquisition in a payment institution authorised by the Bank, shall indicate any views or reservations expressed by the competent authority responsible for the proposed acquirer concerned.

Notice of Bank’s decision

Section 54

54.(1) If, on completing the assessment of a proposed acquisition, the Bank decides— (a) to oppose it, or (b) not to oppose it, the Bank shall, within 2 business days, but before the end of the assessment period, so inform the proposed acquirer concerned in writing and give reasons for that decision.
(2)Subject to any other law, the Bank shall publish an appropriate statement of the reasons for its decision if the proposed acquirer concerned so requests.
(3)The Bank may in its discretion publish a statement referred to in paragraph (2) where a proposed acquirer has not so requested.
(4)If the Bank does not give notice in writing within the assessment period in relation to the proposed acquisition that it opposes or does not oppose the acquisition, the acquisition is deemed, for the purposes of any other law that requires the acquisition to be approved by the Bank, to have been so approved at the end of the assessment period.

Bank may fix period for completion of acquisition

Section 55

55.The Bank may, where the Bank does not oppose a proposed acquisition or a proposed acquisition is deemed to be approved, fix a maximum period within which the proposed acquisition shall be completed, and may extend any period so fixed.

Bank may impose conditions

Section 56

56.Where the Bank has given notice in relation to a proposed acquisition that the Bank does not oppose the acquisition or a proposed acquisition is deemed to be approved, the Bank may impose a condition or a requirement, or both, being a condition or a requirement that the Bank considers necessary for the proper and orderly regulation and supervision of payment institutions, and may at any time revoke or vary any condition or requirement so imposed.

Bank may oppose certain acquisitions

Section 57

57.The Bank may oppose a proposed acquisition only if— (a) there are reasonable grounds for doing so on the basis of the criteria in paragraph (1) or (2) of Regulation 52, or (b) the information provided by the proposed acquirer in its notification under Regulation 48 or in accordance with an order made under Regulation 49(1) (a), as the case may be, is incomplete, or the proposed acquirer has not provided information in response to a request under paragraph (5) or (9) of Regulation 51.

Circumstances in which proposed acquisition may be completed

Section 58

58.(1) The proposed acquirer in relation to a proposed acquisition may complete the acquisition only if— (a) the proposed acquirer has notified the Bank of the acquisition in accordance with Regulation 48 or in accordance with an order made under Regulation 49(1) (a), as the case may be, (b) the Bank has acknowledged that notification in accordance with Regulation 51(1), and (c) either— (i) the assessment period in relation to the acquisition has ended and the Bank has not notified the proposed acquirer that it opposes the acquisition, or (ii) the Bank has notified the proposed acquirer that it does not oppose the acquisition.
(2)If a proposed acquirer purports to complete a proposed acquisition in contravention of paragraph (1) — (a) the purported acquisition is of no effect to pass title to any share or any other interest, and (b) any exercise of powers based on the purported acquisition of the holding concerned is void.

Effect of section 450 of Companies Act 2014

Section 59

59.If a transaction is both a proposed acquisition and a compromise or arrangement for the purposes of section 450 of the Companies Act 2014 , the court shall not make an order under that section in relation to the transaction until after the end of the assessment period in relation to the transaction.

Payment institutions to provide information about shareholdings, etc.

Section 60

60.A payment institution shall, at least once a year in the manner and at the time specified by the Bank, notify the Bank of the names of shareholders or members who have qualifying holdings and the size of each such holding.

Power of court to make certain orders

Section 61

61.(1) If the Bank reasonably believes that the control exercised by a person who has a qualifying holding in a payment institution is inconsistent with the prudent and sound management of the institution, it may apply to the court for an order under paragraph (4).
(2)On making an application under paragraph (1), the Bank shall serve a copy of the application on the person to whom the application relates.
(3)On being served in accordance with paragraph (2), the person concerned becomes the respondent to the application.
(4)On the hearing of an application under paragraph (1), the court may, on being satisfied that the Bank’s belief is substantiated, make all or any of the following orders: (a) an order directing the respondent to dispose of the holding or a specified part of it; (b) an order suspending the exercise of the voting rights attached to the relevant shares; (c) an order invalidating votes already exercised by holders of those shares.

PART 3

Transparency of Conditions and Information Requirements for Payment Services

Chapter 1

General Rules Scope

Section 62

62.(1) Subject to paragraph (2), this Part applies to single payment transactions, framework contracts and payment transactions covered by them.
(2)The parties to a payment transaction or a framework contract may agree that this Part does not, or particular provisions of this Part do not, apply to the transaction or contract where the payment service user is not a consumer.
(3)This Part applies to a micro enterprise as it applies to a consumer.
(4)For the purposes of this Part, an undertaking shall be taken to be a micro enterprise— (a) for the purposes of a payment transaction, where it satisfies the definition of a micro enterprise in the Commission Recommendation at the time of initiation of the transaction, and (b) for the purposes of a framework contract, where it satisfies the definition of a micro enterprise in the Commission Recommendation at the time of entering into the framework contract.
(5)Nothing in these Regulations shall prevent a payment service provider proposing a new framework contract or amendments to an existing framework contract with a payment service user where that payment service user, having satisfied the definition of a micro enterprise in the Commission Recommendation at the time of entering into the existing framework contract, ceases to satisfy that definition prior to the expiry of that framework contract.

Operation of other legislative provisions

Section 63

63.(1) Subject to paragraph (2), nothing in this Part affects the operation of any other law giving effect to an Act of the European Union that imposes additional requirements in relation to the giving of prior information.
(2)Where both this Part and the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004 ( S.I. No. 853 of 2004 ) apply in relation to a payment transaction or framework contract, the requirements of Regulation 6 of those Regulations (to the extent that that Regulation requires the supply of the information specified in points (a) to (i), (p), (q) and (t) to (w) of Schedule 1 to those Regulations) are superseded by the requirements of— (a) in a case to which Chapter 2 of this Part applies, Regulations 68 and 69, or (b) in a case to which Chapter 3 of this Part applies, Regulations 75 and 76.

Charges for information

Section 64

64.(1) A payment service provider shall not charge a payment service user for providing information under this Part.
(2)Where provided at a payment service user’s request, a payment service provider and a payment service user may agree on charges for— (a) the provision of information additional to that to be provided under this Part, (b) the provision of information on a more frequent basis than is provided under this Part, or (c) the transmission of information by a means of communication other than that specified in the framework contract between the payment service user and the payment service provider.
(3)Where a payment service provider imposes charges in accordance with paragraph (2), those charges shall be reasonable and in line with the payment service provider’s actual costs.

Burden of proof on information requirements

Section 65

65.Where in proceedings in relation to these Regulations a dispute arises as to whether or not the information requirements set out in this Part have been complied with, the burden of proof rests with the payment service provider.

Derogation from information requirements for low-value payment instruments and electronic money

Section 66

66.(1) In this Regulation, “low-value payment instrument” means a payment instrument that, in accordance with the relevant framework contract— (a) (i) is not prepaid, (ii) relates to payment transactions not wholly within the State, and (iii)(I) concerns only payment transactions none of which exceeds €30, (II) has a spending limit of €150, or (III) does not store more than €150 at any time, (b) (i) is not prepaid, (ii) relates to payment transactions wholly within the State, and (iii) (I) concerns only payment transactions none of which exceeds €60, (II)has a spending limit of €300, or (III)does not store more than €300 at any time, or (c) (i) is prepaid, and (ii) (I) concerns only payment transactions none of which exceeds €500, (II) has a spending limit of €500, or (III) does not store more than €500 at any time.

(2)Where a payment instrument is a low-value payment instrument— (a) notwithstanding Regulations 75, 76 and 80, the payment service provider need provide the payer only with information on the main characteristics of the payment service, including the way in which the payment instrument can be used, liability, charges levied and other material information needed to make an informed decision and an indication of where any other information specified in Regulation 76 are made available in an easily accessible manner, (b) notwithstanding Regulation 78, the payment service provider and payer may agree that the payment service provider is not required to propose changes to the conditions of the framework contract in the manner provided for in Regulation 75(1) and (2), and (c) notwithstanding Regulations 81 and 82, the payment service provider and payer may agree that after the execution of a payment transaction— (i) the payment service provider need provide or make available only a reference enabling the payment service user to identify the payment transaction, the amount of the payment transaction and any charges (or, in the case of several payment transactions of the same kind to the same payee, information on the total amount and charges for those transactions), and (ii) the payment service provider is not required to provide or make available information referred to in subparagraph (i) if the payment instrument is used anonymously or if the payment service provider is not otherwise technically able to provide it, but the payment service provider shall provide the payer with a way of verifying the amount of funds stored.

Chapter 2

Single Payment Transactions Scope

Section 67

67.(1) This Chapter applies to a single payment transaction not covered by a framework contract.
(2)Where a payment order for a single payment transaction is transmitted by means of a payment instrument covered by a framework contract, the payment service provider is not obliged to provide or make available information which has already been given or which will be given to the payment service user by another payment service provider under that framework contract.

Prior general information

Section 68

68.(1) A payment service user shall not be bound by a single payment service contract or offer until such time as the payment service provider makes available to the payment service user, in an easily accessible manner, the information specified in Regulation 69 with regard to the payment service provider’s services.
(2)Where the payment service user concerned so requests, the payment service provider shall provide the information referred to in paragraph (1) on paper or on another durable medium.
(3)The information referred to in paragraph (1) shall be given to the payment service user concerned in— (a) easily understandable words, (b) a clear and comprehensible form, and (c) an official language of the Member State where the payment service is offered or in any other language agreed between the parties.
(4)Where a single payment service contract has been concluded at the request of a payment service user using a means of distance communication which does not enable the payment service provider concerned to comply with paragraphs (1) to (3), the payment service provider shall fulfil its obligations under those paragraphs immediately after the execution of the payment transaction.
(5)Where a payment service provider supplies the payment service user concerned with a copy of the draft single payment service contract or the draft payment order which includes the information specified in Regulation 69, the payment service provider shall be deemed to have complied with paragraphs (1) to (3).

Information

Section 69

69.(1) A payment service provider shall provide or make available to a payment service user the following information: (a) a specification of the information or unique identifier to be provided by the payment service user in order for a payment order to be properly initiated or executed; (b) the maximum execution time for a payment service to be provided; (c) all charges payable by the payment service user to the payment service provider and, where applicable, a breakdown of those charges; (d) where applicable, the actual or reference exchange rate to be applied to a payment transaction.
(2)A payment initiation service provider shall, in addition to the information referred to in paragraph (1), prior to initiation, provide the payer with, or make available to the payer, the following information in a clear and comprehensive manner: (a) the name of the payment initiation service provider; (b) the geographical address of its head office; (c) where applicable, the geographical address of its agent or branch established in the Member State where the payment service is offered; (d) any other contact details, including electronic mail address, relevant for communication with the payment initiation service provider; (e) the contact details of the Bank.
(3)A payment service provider shall, where applicable, make available to a payment service user in an easily accessible manner any other relevant information specified in Regulation 76.

Information for the payer and payee after the initiation of a payment order

Section 70

70.In addition to the information specified in Regulation 69, where a payment order is initiated through a payment initiation service provider, the payment initiation service provider shall, immediately after initiation, provide or make available all of the following information to the payer and, where applicable, the payee: (a) confirmation of the successful initiation of the payment order with the payer’s account servicing payment service provider; (b) a reference enabling the payer and the payee to identify the payment transaction and, where appropriate, the payee to identify the payer, and any information transferred with the payment transaction; (c) the amount of the payment transaction; (d) where applicable, the amount of any charges payable to the payment initiation service provider for the transaction and, where applicable, a breakdown of the amounts of such charges.

Information for payer’s account servicing payment service provider

Section 71

71.Where a payment order is initiated through a payment initiation service provider, the payment initiation service provider shall make available to the payer’s account servicing payment service provider the reference of the payment transaction.

Information for the payer after receipt of the payment order

Section 72

72.Immediately after receipt of a payment order, a payer’s payment service provider shall provide the payer with or make available to the payer, in the same manner as information is to be provided in accordance with Regulation 68(1) to (3), all of the following information with regard to the payment service provider’s services: (a) a reference enabling the payer to identify the payment transaction and, where appropriate, information relating to the payee; (b) the amount of the payment transaction in the currency used in the payment order; (c) the amount of any charges for the payment transaction payable by the payer and, where applicable, a breakdown of the amounts of such charges; (d) where applicable, the exchange rate used in the payment transaction by the payer’s payment service provider or a reference thereto, when different from the rate provided in accordance with Regulation 69(1) (d), and the amount of the payment transaction after that currency conversion; (e) the date of receipt of the payment order.

Information for the payee after execution

Section 73

73.Immediately after the execution of a payment transaction, a payee’s payment service provider shall provide the payee with, or make available to, the payee, in the same manner as information is to be provided in accordance with Regulation 68(1) to (3), all of the following information with regard to the payment service provider’s services: (a) a reference enabling the payee to identify the payment transaction and, where appropriate, the payer and any information transferred with the payment transaction; (b) the amount of the payment transaction in the currency in which the funds are at the payee’s disposal; (c) the amount of any charges for the payment transaction payable by the payee and, where applicable, a breakdown of the amounts of such charges; (d) where applicable, the exchange rate used in the payment transaction by the payee’s payment service provider and the amount of the payment transaction before that currency conversion; (e) the credit value date.

Chapter 3

Framework Contracts Scope

Section 74

74.This Chapter applies to payment transactions covered by a framework contract.

Prior general information

Section 75

75.(1) In good time before a payment service user is bound by a framework contract or offer, the payment service provider concerned shall provide the payment service user on paper or on another durable medium with the information specified in Regulation 76.
(2)The information referred to in paragraph (1) shall be given in— (a) easily understandable words, (b) a clear and comprehensible form, and (c) an official language of the Member State where the payment service is offered or in any other language agreed between the parties.
(3)Where a framework contract has been concluded at the request of a payment service user using a means of distance communication which does not enable the payment service provider concerned to comply with paragraphs (1) and (2), the payment service provider shall fulfil its obligations under those paragraphs immediately after conclusion of the framework contract.
(4)Where a payment service provider supplies the payment service user concerned with a copy of a draft framework contract which includes the information specified in Regulation 76, the payment service provider shall be deemed to have complied with paragraphs (1) and (2).

Information

Section 76

76.A payment service provider shall provide the following information to a payment service user: (a) on the payment service provider: (i) the name of the payment service provider; (ii) the geographical address of its head office; (iii) where applicable, the geographical address of its agent or branch established in the Member State where the payment service is offered; (iv) any other address, including electronic mail address, relevant for communication with the payment service provider; (v) the particulars of the Bank and of the Register or of any other relevant public register of authorisation of the payment service provider and the registration number or equivalent means of identification in that register; (b) on the use of the payment service: (i) a description of the main characteristics of the payment service to be provided; (ii) a specification of the information or unique identifier that has to be provided by the payment service user in order for a payment order to be properly initiated or executed; (iii) the form of and procedure for giving consent to initiate a payment order or execute a payment transaction and withdrawal of such consent in accordance with Regulations 88 and 104; (iv) a reference to the time of receipt of a payment order in accordance with Regulation 102 and the cut-off time, if any, established by the payment service provider; (v) the maximum execution time for the payment services to be provided; (vi) whether there is a possibility to agree on spending limits for the use of the payment instrument in accordance with Regulation 92(1) ; (vii) in the case of co-badged, card-based payment instruments, the payment service user’s rights under Article 8 of Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 201515 ; (c) on charges, interest and exchange rates: (i) all charges payable by the payment service user to the payment service provider including those connected to the manner in and frequency with which information under these Regulations is provided or made available and, where applicable, the breakdown of the amounts of such charges; (ii) where applicable, the interest and exchange rates to be applied or, if reference interest and exchange rates are to be used, the method of calculating the actual interest, and the relevant date and index or base for determining such reference interest or exchange rate; (iii) if agreed, the immediate application of changes in reference interest or exchange rate and information requirements relating to the changes in accordance with Regulation 78(5);

(d) on communication: (i) where applicable, the means of communication, including the technical requirements for the payment service user’s equipment and software, agreed between the parties for the transmission of information or notifications under these Regulations; (ii) the manner in, and frequency with which, information under these Regulations is to be provided or made available; (iii) the language or languages in which the framework contract will be concluded and communication during this contractual relationship undertaken; (iv) the payment service user’s right to receive the contractual terms of the framework contract and information in accordance with Regulation 77; (e) on safeguards and corrective measures: (i) where applicable, a description of the steps that the payment service user is to take in order to keep a payment instrument safe and how to notify the payment service provider for the purposes of Regulation 93(1) (b) ; (ii) the secure procedure for notification of the payment service user by the payment service provider in the event of suspected or actual fraud or security threats; (iii) if agreed, the conditions under which the payment service provider reserves the right to block a payment instrument in accordance with Regulation 92; (iv) the liability of the payer in accordance with Regulation 98, including information on the relevant amount; (v) how and within what period of time the payment service user is to notify the payment service provider of any unauthorised or incorrectly initiated or executed payment transaction in accordance with Regulation 95 as well as the payment service provider’s liability for unauthorised payment transactions in accordance with Regulation 97; (vi) the liability of the payment service provider for the initiation or execution of payment transactions in accordance with Regulation 112; (vii) the conditions for refund in accordance with Regulation 100 and 101; (f) on changes to, and termination of, the framework contract: (i) if agreed, that the payment service user will be deemed to have accepted changes in the conditions in accordance with Regulation 78, unless the payment service user notifies the payment service provider before the date of their proposed date of entry into force that the changes are not accepted; (ii) the duration of the framework contract; (iii) the right of the payment service user to terminate the framework contract and any agreements relating to termination in accordance with Regulation 78(4) and 79; (g) on redress:

(i) any contractual clause on the law applicable to the framework contract or the competent courts; (ii) the alternative dispute resolution procedures available to the payment service user in accordance with Regulations 124 and 125.

Accessibility of information and conditions of the framework contract

Section 77

77.At any time during the contractual relationship the payment service user shall have a right to receive, on request, the contractual terms of the framework contract as well as the information specified in Regulation 76 on paper or on another durable medium.

Changes in conditions of the framework contract

Section 78

78.(1) Any changes in a framework contract or in the information specified in Regulation 76 shall be proposed by a payment service provider in the same manner as information is to be provided in accordance with Regulation 75(1) and (2) and no later than 2 months before the proposed date of application of the changes.
(2)A payment service user can either accept or reject changes proposed in accordance with paragraph (1) before the date of their proposed entry into force.
(3)Where a framework contract provides for such deemed acceptance, the payment service provider concerned shall inform the payment service user concerned that the payment service user is deemed to have accepted changes proposed in accordance with paragraph (1) if the payment service user does not notify the payment service provider before the proposed date of their entry into force that those changes are not accepted.
(4)Where paragraph (3) applies, the payment service provider shall also inform the payment service user that, in the event that the payment service user rejects the changes concerned, the payment service user has the right to terminate the framework contract free of charge and with effect at any time before the date when the changes would have applied had the payment service user not rejected the changes.
(5)A payment service provider may apply a change in an interest or exchange rate immediately and without notice where— (a) the framework contract concerned provides for the application of changes in an interest or exchange rate immediately and without notice, and (b) the change in the interest or exchange rate is based on an agreed reference interest or exchange rate.
(6)Subject to paragraph (7), where a change in an interest rate is applied in accordance with paragraph (5), the payment service user concerned shall be informed of the change in the interest rate at the earliest opportunity in the same manner as information is to be provided in accordance with Regulation 75(1) and (2), unless the parties to the framework contract concerned have agreed on a specific frequency or manner in which the information is to be provided or made available.
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Disputing an unauthorised bank payment in Ireland: refund and FSPO

AI explanation based on the official legal text. Indicative, not a substitute for legal advice.