PSR receives first application under section 57 FSBRA

Update

Following receipt of an application under Section 57 of FSBRA we can confirm that the parties involved have reached a commercial agreement and the applicant has withdrawn its application. On this basis, we have closed our case on this matter.

Background

We received our first application under section 57 of the Financial Services (Banking Reform) Act, 2013 (FSBRA), which gives us the power to vary the terms of agreements relating to access to payment systems (see below).

In its application, a payment services provider (PSP) asked us to use our powers to vary the agreement it has with an indirect access provider (IAP).

The IAP decided to terminate its access agreement with the PSP. The PSP subsequently asked us to extend the deadline for termination of its indirect access to payment systems while it transitions to alternative access arrangements. The PSP also requested that we take urgent, interim action to ensure the maintenance of its indirect access service in the short-term.

We took a decision to proceed to a detailed assessment of the application, during which we collected and analysed more evidence and information to enable us to reach a reasoned decision. 

Based on the information we had at the time, we anticipated that it would take us up to six months (until the end of June 2017) to complete our inquiries and determine the application. Our draft guidance details the phases for the determination of the application.

Under section 57 FSBRA we have the power to vary the terms of an agreement between an indirect access provider which has direct access to a regulated payment system and another person for the purpose of enabling that other person to become a payment service provider in relation to the system.