Authorisation of Payment Institutions and Electronic Money Institutions and Registration of Account Information Service Providers
The Central Bank is the competent authority in Ireland for:
- the authorisation of Payment Institutions under the European Union (Payment Services) Regulations 2018.
- the authorisation of Electronic Money Institutions under the European Communities (Electronic Money) Regulations 2011 (as amended).
- the registration of Account Information Service Providers under the European Union (Payment Services) Regulations 2018.
Applicants seeking authorisation/registration must clearly demonstrate that they can meet the applicable authorisation/registration requirements. The Central Bank adopts a robust, structured and risk-based process that seeks to ensure that only those applicants that demonstrate compliance with the authorisation/registration requirements are authorised. This process aligns with guidance issued by the European Banking Authority (EBA).
The Central Bank seeks to assess each application as expeditiously as possible while meeting its obligation to operate a rigorous and effective gatekeeper function.
Central Bank Expectations for Authorisation as a Payment Institution or Electronic Money Institution, or Registration as an Account Information Service Provider
Central Bank of Ireland Expectations for PIEMI Authorisation and AISP Registration | pdf 685 KB
Applicant firms seeking to operate in the Irish market and bring innovation to customers reasonably look to be authorised in a timely manner. The Central Bank’s intent is that there is clarity, transparency and predictability for applicant firms looking to be authorised/registered, while maintaining the high standards the public expects for regulated providers of financial services. It is the Central Bank’s objective to support applicant firms in understanding their obligations, resulting in applications which are more complete and can, in turn, be assessed more quickly by authorisations staff.
Please view Central Bank of Ireland Expectations for PIEMI Authorisation and AISP Registration (PDF 684.16KB)before engaging with the Central Bank, as applicants must satisfy themselves that they are capable of meeting these expectations.
Central Bank Assessment Process for Authorisation as a Payment Institution or Electronic Money Institution, or Registration as an Account Information Service Provider
As illustrated on Page 6 of the Central Bank’s expectations (PDF 684.16KB), the assessment process consists of the following three stages:
- Exploratory Stage. This consists of two phases:
- Initial meeting with the applicant firm; and
- Submission of required information (Key Information Check) and initial assessment;
- Assessment Stage; and
- Authorisation/Registration Decision Stage.
Phase 1 – Initial Meeting
Firms seeking to pursue an application for authorisation as a Payment Institution or Electronic Money Institution or seeking registration as an Account Information Service Provider should contact the Payments Authorisation Team ([email protected]) to arrange an initial meeting.
In advance of the initial meeting, the Pre-Application Key Facts Document (“KFD”) must be completed. The purpose of the KFD is to provide sufficient detail to the Central Bank on the applicant firm’s proposal for authorisation/registration in advance of the initial meeting. In order to provide sufficient detail to the Central Bank, it is expected that the KFD would consist of c.15-20 pages in MS Word format.
The completed KFD should be submitted at least 5 working days in advance of the initial meeting to [email protected].
The initial meeting provides an opportunity to discuss the contents of the KFD and enables the applicant to raise any questions it might have regarding the authorisation/registration process and the requirements pertaining to the proposed business model.
The meeting also provides the Central Bank with the opportunity to:
- provide greater clarity in relation to the assessment process, and the requirements for authorisation/registration;
- identify any initial matters with the proposal which, if not addressed, would preclude the application from proceeding; and
- highlight any issues/areas of focus which need to be specifically addressed in an application.
The initial meeting complements the early engagement route via the Central Bank Innovation Hub and the Innovation Sandbox Programme which are designed as resources to help innovators navigate the regulatory landscape.
Phase 2 – Key Information Check and Initial Assessment
In addition to ensuring that all required documentation has been provided, this phase encompasses an initial assessment of the submission.
At the end of this phase, the Central Bank will notify the firm of the outcome which is either:
Progression
The Central Bank considers that the application can progress to the Assessment Stage. A specific case manager is assigned who will lead the assessment, and will be the primary point of contact for the applicant firm during the assessment process.
Issues have been Identified Precluding Progression
The Central Bank considers that the application cannot progress to the Assessment Stage. The applicant will be advised as to the rationale for not progressing and will be provided with an opportunity to address the issues identified (through written submissions and/or meetings).
During this stage the Central Bank conducts its assessment of the application. The Central Bank may request additional information, and detailed assessment meetings in relation to one or more areas of the application will be undertaken with the applicant. High quality applications with comprehensive and complete information and explanations reduce the need for additional information requests. Individuals proposed for certain key roles (Pre-Approval Controlled Function roles) may be invited for interview as part of the assessment of their Fitness and Probity for the role for which they are applying.
At the end of the assessment process, the Central Bank will notify the firm of the outcome of its assessment. There are two possible outcomes:
Positive Outcome (“Minded To Authorise/Register” letter)
Where the applicant firm has positively demonstrated that it will meet all authorisation/ registration requirements and expectations, the Central Bank will issue a “Minded to Authorise/Register” letter which will include, inter alia, requirements to be addressed prior to authorisation/registration, conditions to be addressed post-authorisation, and the proposed level of capital to be held (neither conditions nor capital are applicable to Account Information Service Providers).
or
Negative Outcome(“Minded to Refuse” letter)
In the event that the Central Bank is not satisfied following the conclusion of its assessment phase that it can authorise/register the firm, a “Minded to Refuse” letter will be issued. This will include the reason(s) for the Central Bank’s proposed decision. The letter will specify the period within which the applicant firm may make submissions in writing in relation to the proposed refusal. Any submissions made will be considered by the Central Bank before making a decision on the matter.
This is the stage in which the final decision as to authorisation/registration is made. There are two possible outcomes:
Positive Outcome (Letter Granting Authorisation/Registration)
Subject to the pre-authorisation/registration requirements in the “Minded to Authorise” letter having been addressed, no new adverse information coming to the Central Bank’s attention in the interim, and agreement from the applicant firm as to the proposed conditions and capital (not applicable to Account Information Service Providers), a letter granting authorisation/registration will be issued, and the applicant firm will then be able to commence its regulated activities.
or
Negative Outcome (Letter of Refusal)
Where a “Minded to Refuse” letter has issued, the Central Bank will review any submissions made by the applicant firm. If the Central Bank is still not satisfied to approve an application following the review of any submissions to a ‘Minded to Refuse’ letter, it will issue a letter of refusal.
Central Bank Service Standards
The Central Bank has published service standards in respect of the processing of applications for authorisation of Payment and Electronic Money Institutions and registration of Account Information Service Providers as follows:
| Standard | Target |
|---|
Exploratory Stage: Phase 1
To acknowledge receipt of application (initial contact)
| 95% within 3 business days of initial contact |
Exploratory Stage: Phase 2
To complete key information check | 95% within 10 business days of receipt of application |
Assessment Stage
To complete the assessment phase
and notify applicant of outcome |
90% within 90 business days of commencement of the assessment phase
|
Authorisation/Registration Decision
To complete the notification of decision phase and notify applicant of outcome | 90% within 10 business days of receipt of a satisfactory response to matters detailed in the “Minded to Authorise/Register” letter |
Please note that the 90 day Service Standard clock for the Assessment Stage will be paused where an information request has been issued to the applicant until such time as a satisfactory response has been provided. In addition, the clock can be switched off entirely where any of the following arise:
- Another regulatory authority has to be contacted;
- Persons are subject to interview;
- Significant legal issues arise;
- Significant fitness and probity issues arise;
- The business model is complex or novel in nature;
- Significant changes to the business model, the applicant’s shareholder structure or other key aspects of an application arise during the review process, or where the application becomes dormant; or
- The Central Bank is minded to refuse an application.
Central Bank Dormancy Policy
The Central Bank’s dormancy policy applies when an applicant has not provided an adequate response within 60 working days following the issuance of comments. A “Minded to Deem Withdrawn” letter is sent to the applicant after 50 working days of comments issued, notifying the applicant that it has 10 working days to provide all outstanding documentation or the application will be considered withdrawn. If the applicant does not respond within the 10 working days, a “Deemed Withdrawn” letter is sent and the application is not considered further by the Central Bank.
The following Anti-Money Laundering, Counter-Terrorist Financing and Financial Sanctions Pre-Authorisation Risk Evaluation should be completed in respect of Payment Institutions and Electronic Money Institutions:
Questionnaire for Payment Institution and Electronic Money Institution Applicants
The Questionnaire will only apply post-registration to those Account Information Service Providers that come within the definition of a ‘designated person’ under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (“CJA 2010”). Firms that are classed as a ‘designated person’ under the CJA 2010 are subject to all of the AML/CFT obligations contained under Part 4 of the legislation.
Small Electronic Money Institutions
Firms intending to seek registration as a Small Electronic Money Institution, as defined in Regulation 33 of the European Communities (Electronic Money) Regulations 2011 (as amended), should contact the Payments Authorisation Team ([email protected]).
Small Payment Institutions
There is no small payment institution regime in place in Ireland, and firms wishing to provide payment services are required to apply for authorisation as a payment institution.
Excluded Firms Notifications
- Limited Network Exclusion (provided for by Regulation 4(k)(i) and (ii) of the PSR) refers to
services based on specific payment instruments that can be used only in a limited way (subject to certain conditions); and
- Electronic Communications Exclusion (provided for by Regulation 4(I) of the PSR)- certain 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.
Regulation 4 of the European Union (Payment Services) Regulations 2018 (PSR) provides for a number of exclusions from the scope of the PSR, i.e. certain services and payment transactions to which the PSR does not apply. Regulations 45 and 46 of the PSR provides that, in the case of the two exclusions referred to below, the relevant service provider is subject to certain notification requirements and other obligations.
- Limited Network Exclusion (provided for by Regulation 4(k)(i) and (ii) of the PSR) - services based on specific payment instruments that can be used only in a limited way (subject to certain conditions); and
- Electronic Communications Exclusion (provided for by Regulation 4(l) of the PSR) - certain 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.
Further information in respect of these exclusions, the relevant notification requirements and other obligations imposed on service providers falling within the scope of these exclusions, can be found in Regulations 4(k)(i) and (ii), 4(l), 45 and 46 of the PSR .
The onus is on any firm availing of an exclusion provided for under the PSR to satisfy itself that any such services and/or payment transactions qualify for exclusion and to ensure that it adheres to the relevant notification requirements and other obligations. The Central Bank has published forms to enable firms to make notifications relating to these exclusions.
Both the Limited Network Exclusion and the Electronic Communications Exclusion Notification Forms contain information and guidance to support firms in completing the forms. They also contain details of when, and in what circumstances, notifications are required.
The Central Bank will maintain a public register on its website of service providers that fall within the scope of the Limited Network and Electronic Communications Exclusions and who have submitted a notification pursuant to Regulations 45 and 46 of the PSR. The European Banking Authority will also maintain a public register that will include the information covered in the Central Bank register as well as information provided by the relevant competent authorities in other Member States.
Limited Network Exclusion and Electronic Communications Exclusion Forms can be sent electronically to [email protected].
Furthermore any queries in relation to the above may be sent to:
[email protected].
Please note that the Central Bank does not give advice on whether or not a service and/or payment transaction falls for exclusion under the PSR. The Central Bank recommends that firms seek legal advice if they are unsure as to whether their proposed activities fall with the scope of the above-mentioned exclusions or if they are unsure as to how to comply with their notification and other obligations under the PSR.
What to Read Before Engaging with the Central Bank
In advance of contacting the Central Bank you should be familiar with the following documents:
Letters to the PIEMI sub-sector
Frequently Asked Questions
There is currently no fee for submitting an application. Once authorised, a firm is subject to an annual Industry Funding levy. For further information on the levy see here.
Applications must be submitted via Kiteworks. Please contact [email protected] to obtain access.
The time taken to receive an authorisation decision is primarily dependent on the preparedness of an applicant firm to undertake the assessment process, and on the quality and timeliness of submissions. The Central Bank will, in accordance with relevant legislation complete its assessment within 3 months of the receipt of the application, or if the information is incomplete, within three months of receiving all of the information required for the Central Bank to make a decision on the application. Experience suggests that it can take over 12 months for firms to provide all of the information necessary to enable a decision to be made. See above for further information on Service Standards.
Yes, see above for details of the Initial Meeting which forms part of the Exploratory Stage.
For any authorisation related queries, please contact the Payments Authorisation Team ([email protected]). If your query is in relation to new technologies, please email [email protected].