Authorised electronic money institution (authorised EMI)

First published: 22/09/2017 Last updated: 22/09/2017

PSD2 introduces a number of changes to requirements applicable to authorised EMIs. The Treasury has implemented these through the PSRs 2017, which amend the EMRs 2011**. The FCA has also published its Policy Statement and Approach Document.

Authorised EMIs should make necessary changes to ensure compliance with PSD2 requirements, the majority of which are effective from 13 January 2018. The key changes for authorised EMIs include those relating to Conduct of business (Chapter 8 in our Approach Document), Complaints handling (Chapter 11 in our Approach Document) and Reporting and notifications (Chapter 13 in our Approach Document).

Please also familiarise yourself with the relevant parts of the FCA Handbook which are changing, including SUP 15,* SUP 16* and DISP*. The Handbook is amended by the Payment Services Instrument 2017 and you can see the revised Handbook on our Handbook website by setting the date to 13 January 2018.

Authorised EMIs wishing to issue e-money or provide payment services after 12 July 2018 must be re-authorised under PSD2. To do this they must provide us with new information and meet all authorisation conditions, including new authorisation conditions.

If you have any questions, you can contact us.

Answer the following questions to understand more about what you need to do to meet new PSD2 requirements:

Do you intend to issue e-money after 12 July 2018?
Please select:

1. Authorised EMIs can apply to be re-authorised from 13 October 2017 and must have submitted their applications before 13 April 2018. Authorised EMIs must be successfully re-authorised by 13 July 2018. There will be a fee of £750 for re-authorisation.

2. The FCA encourages applications to be correctly completed and submitted as early as possible. Authorised EMIs that have not successfully been re-authorised by 13 July 2018 will have to stop issuing e-money and providing payment services (and they will no longer be able to provide payment services through agents); the FCA will update the Financial Services Register to reflect that these businesses will no longer be authorised for these activities. You can find further information on our Authorisation pages.

3. All authorised EMIs which are account servicing payment service providers (ASPSPs) also need to comply with requirements relating to AIS and PIS providers seeking access to their customers’ online payment accounts (Chapter 17 in Our Approach Document).

1. You do not need apply to be re-authorised. If you do not apply for re-authorisation before 13 April 2018 this will automatically mean that you are unable to continue to provide payment services after 12 July 2018. Alternatively, you could submit the cancellation form.

2. Please note you still need to comply with the new PSD2 requirements from 13 January 2018 until you are no longer authorised.

Do you intend to offer account information services (AIS) or payment initiation services (PIS) from 13 January 2018?
Please select:

1. Authorised EMIs authorised before 13 January and relying on transitional arrangements will automatically have a requirement added to the Financial Services Register stating they are unable to provide AIS and PIS from 13 January 2018. They can apply from 13 October 2017 for a variation of permission to have this requirement removed. 

2. Authorised EMIs will need to have successfully applied for re-authorisation and separately a variation for the requirement imposed by regulation 78A(2)(b) of the EMRs to be removed. Businesses may apply to vary at the same time as they apply for re-authorisation.

3. Authorised EMIs providing AIS or PIS should familiarise themselves with the requirements which apply to all providers of AIS or PIS (Chapter 17 in our Approach Document)

4. Authorised EMIs that provided AIS or PIS in the UK before 12 January 2016 and continue to provide these services immediately before 13 January 2018 will be able to continue providing these services in the UK from 13 January 2018 without re-authorisation or variation of permission, but they will not benefit from the rights of access provided under PSD2. The ability for these businesses to continue providing AIS and PIS will continue until the date which is 18 months after the European Banking Authority (EBA) Regulatory Technical Standards on strong customer authentication and secure communication under PSD2 enter into force. After this date, all providers of AIS or PIS must be fully authorised or registered.

If you are unsure you can find guidance on whether you may be carrying out AIS or PIS in PERG*. PERG 3 and PERG 15 are amended by the Payment Services Instrument 2017 and you can see the revised PERG on our Handbook website by setting the date to 13 January 2018.

Do you intend to undertake payment services in another European Economic Area (EEA) country (or use an agent to carry out payment services in the EEA)?
Please select:

1. The requirement preventing authorised EMIs from providing AIS and PIS must be removed before those businesses can apply to passport these activities. This means that you can only apply to passport once your application for re-authorisation and variation of permissions has been processed if you wish to passport AIS or PIS.

2. The PSD2 passporting gateway will open for authorised EMIs on 13 October 2017. Notifications can be submitted using Connect from 2 January 2018.

3. PSD2 introduces important changes to the passporting process and to the procedure to appoint agents. The new process is set out in full in the PSRs 2017 and we have provided guidance in our Approach Document. Importantly, it may now take firms up to three months from the date they submit a complete notification of their intention to provide services in another EEA country, before they can start passporting (including through an agent) (Chapter 6 in our Approach Document).

4. If you are unsure about the territories in which you will be considered to be providing payment services, you should seek your own legal advice. 

1. You should note that if you do passport, PSD2 introduces important changes to the passporting process and to the procedure to appoint agents. The new process is set out in full in the PSRs 2017 and we have provided guidance in our Approach Document. Importantly, it may now take firms up to three months from the date they submit a complete notification of their intention to provide services in another EEA country, before they can start passporting (including through an agent).

2. If you are unsure about the territories in which you will be considered to be providing payment services, you should seek your own legal advice.