PART 6THE AUTHORITY

The functions of the Authority

Functions of the Authority47.

(1)

The Authority is to have the functions conferred on it by these Regulations.

(2)

In discharging its function of determining the general policy and principles by reference to which it performs particular functions under these Regulations, the Authority must have regard to—

(a)

the need to use its resources in the most efficient and economic way;

(b)

the responsibilities of those who manage the affairs of electronic money issuers;

(c)

the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;

F1(ca)

the desirability of sustainable growth in the economy of the United Kingdom in the medium or long term, including in a way consistent with contributing towards achieving compliance by the Secretary of State with—

(i)

section 1 (target for 2050) of the Climate Change Act 2008, and

(ii)

section 5 (environmental targets: effect) of the Environment Act 2021,

where the Authority considers the exercise of its functions to be relevant to the making of such a contribution;

(d)

the desirability of facilitating innovation in connection with the issuance of electronic money and the provision of payment services;

(e)

the international character of financial services and markets and the desirability of maintaining the competitive position of the United Kingdom;

(f)

the need to minimise the adverse effects on competition that may arise from anything done in the discharge of those functions;

(g)

the desirability of facilitating competition in relation to the issuance of electronic money and the provision of payment services; and

(h)

the desirability of enhancing the understanding and knowledge of members of the public of financial matters (including the United Kingdom financial system).

F2(3)

The Treasury may at any time by notice in writing to the Authority make recommendations to the Authority about aspects of the economic policy of His Majesty’s Government to which the Authority should have regard when considering the application of the principles in paragraph (2).

(4)

Section 1JA of the 2000 Act applies in relation to any recommendation made under paragraph (3) as if—

(a)

that recommendation were made under section 1JA(1)(d);

(b)

the reference in subsection (1)(d) to “the regulatory principles in section 3B” were a reference to the principles set out in regulation 47(2) of these Regulations.