FIN.

HM Treasury publishes response to consultation on Insolvency changes for payment and electronic money institutions

The Insolvency changes for payment and electronic money institutions consultation was launched on the 3 December 2020. The Government received 15 written responses to the consultation, and these responses have been published by HM Treasury as well as a summary of additional areas raised in the consultation responses.

Most responses expressed support for the proposal to introduce a Special Administration Regime for Electronic Money and Payment Institutions, noting that using the Investment Bank Special Administration Regime (IBSAR) as a model should help reduce the cost and time of returning funds to customers. The majority of respondents welcomed the framework for the distribution of customer funds and the proposed transfer provisions and the expansion of provisions of Part 24 of FSMA to PIs/EMIs was generally welcomed.

Hannah Frost