Immigration law

The regulation on notification requirements for KIP soon to be implemented

Let us remind you that on December 20, 2018, the previous Regulation issued on the basis of art. 61 section 3 of the Payment Services Act, which was a kind of signpost for future KIPs applying for a business permit.

From this moment, there is no act that would implement the requirements of the PSD2 Directive in this respect. This is a significant impediment for future KIPs, which, in order to meet statutory requirements, must follow the guidelines of the European Banking Authority and the so-called KNF checklist.

This uncertainty should come to an end with the new regulation’s entry into force, although it is still unclear when. For now, the draft was sent for public consultation.

The explanatory memorandum states that the new regulation is primarily about analyzing the KIP business program and its assessment in terms of credibility and effectiveness, assessing data allowing to determine the identity and qualifications of persons involved in the activities of a payment institution, and documents confirming the warranty of prudent and stable management of the payment institution by these people. The regulation assumes that the KIP activity program should include the strategy assumptions, marketing plan, operational activity plan, organization and management plan, as well as a schedule specifying the planned dates of implementation of individual stages of KIP’s activities and strategic goals. The program of activities will be extended to include a financial plan and draft contracts between all parties involved in the provision of payment services and a draft framework contract referred to in Art. 2 point 3 of the Act on UP, as well as draft outsourcing contracts in the field of payment services.

The applicant will also show, among others the amount of own funds, the source of financial resources and the possibility of using them. Subsequent parts of the regulation will include the requirement to have a risk management system and internal control as well as elements that should be included in the description of close links between the applicant and other entities referred to in the Act on UP. The regulation will also indicate how to comply with the statutory requirement to establish the identity of persons directly or indirectly possessing a significant block of shares or stocks of the applicant and persons managing the payment institution.

The Regulation will also contain a catalog of documents and information to be submitted by the applicant in order to confirm compliance with the requirement of providing a warranty of prudent and stable management of the payment institution by the persons involved, among others information that the applicant will have to provide to the PFSA in order to demonstrate relevant education and professional experience of persons managing the future KIP.

Although the date of entry into force of the regulations is not known, future applicants are probably hoping that this will happen soon. Applicants will finally be sure which documents they must prepare and attach to the application. At the same time, the application verification procedure should be streamlined.

Author team leader DKP Legal Piotr Glapiński
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