European Union (Payment Services) (Amendment) Regulations 2019

• Jurisdiction: Ireland
• Citation: IR SI 255/2019

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 14th June, 2019.

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 further effect to Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 20151 , hereby make the following Regulations:

Citation

1. These Regulations may be cited as the European Union (Payment Services) (Amendment) Regulations 2019.

Amendment of European Union (Payment Services) Regulations 2018

2. The European Union (Payment Services) Regulations 2018 (S.I. No. 6 of 2018) are amended—

(a) in Regulation 7(6), by the substitution of “Regulations 97, 113 and 115” for “Regulations 97, 112, 113 and 115”,

(b) by the substitution of the following for Regulation 14:

“Method C

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 = MF * K

where—

OFR is the own funds requirement,

MF is the multiplication factor calculated in accordance with paragraph (3),

K is the scaling factor described in Regulation 15.

(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.”,

(c) by the substitution of the following for Regulation 33:

“Competent authority

33. (1) Subject to paragraph (2), the Bank is the competent authority in the State for the purposes of the Payment Services Directive.

(2) As respects a case under Regulation 86(6) where—

(a) the payee is a trader (within the meaning of the Consumer Protection Act 2007 (No. 19 of 2007)) that is not a regulated financial service provider (within the meaning of the Act of 1942), and

(b) the payer is a consumer (within the meaning of the Consumer Protection Act 2007 ),

the Competition and Consumer Protection Commission is the competent authority in the State for the purposes of the Payment Services Directive in so far as it relates to Article 62(4) of that Directive.

(3) 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).

(4) Save as provided for in paragraph (5), the Bank shall monitor compliance with these Regulations and take all necessary measures to ensure compliance.

(5) As respects a case specified in paragraph (2), the Competition and Consumer Protection Commission shall monitor compliance with Regulation 86(6) and take all necessary measures to ensure compliance.

(6) The Bank and the Competition and Consumer Protection Commission shall collaborate so that they can discharge their respective duties under these Regulations effectively.”,

(d) in Regulation 42(1), by the substitution of the following paragraph for paragraph (a):

“(a) exempt from the application of the procedure and conditions set out in Regulations 7 to 32, with the exception of Regulation 7(1), subparagraphs (a), (b), (e) to (h), (j), (l), (n), (p) and (q) of Regulation 7(2), Regulation 7(7), Regulation 25 and Regulation 26, and”,

(e) in Regulation 76(e)(vi), by the substitution of “Regulations 112 and 113” for “Regulation 112”,

(f) in Regulation 85(1)(a), by the substitution of “Regulations 96, 98, 100, 101, 104, 112 and 113”...