EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations are made pursuant to the United Kingdom’s obligations under Articles 9, 10 and 13 of Regulation (EC) No. 924/2009 of the European Parliament and of the Council (OJ No L 266, 9.10.2009, p11) (referred to in the Regulations as the “Community Regulation”), laying down rules on cross-border payments in euro, to ensure that compliance with the Community Regulation is guaranteed by effective, proportionate and deterrent sanctions.
Regulations 3 to 16 confer functions on the Financial Services Authority (“FSA”) in relation to the supervision and enforcement of the Community Regulation. These include the requirement to maintain arrangements for determining whether payment service providers are complying with the Community Regulation, powers to gather information, impose penalties or disciplinary measures, apply to court for an injunction and require restitution. The FSA is also required to maintain arrangements for dealing with complaints and has power to issue guidance and exchange information with other competent authorities in the European Union in order to resolve disputes. Provision is made for the FSA’s supervisory costs and exemption from liability in damages.
Regulation 17 makes provision for civil proceedings to be brought in cases where an institution breaches Article 3(1) or the second sentence of Article 4(3) of the Community Regulation.
Regulation 18 makes provision for the application of the Regulation to UK branches of Gibraltar-based firms.
Regulation 19 and the Schedule apply certain provisions of primary and secondary legislation (with modifications) in respect of the FSA’s functions under the Regulations.
Regulation 20 revokes the Cross-Border Payments in Euro Regulations 2003.
An impact assessment has not been produced for this instrument as no significant impact on the private or voluntary sectors is foreseen.