LEGAL ASPECTS

On 1 November 2009 the new Payment Services Regulations (PSRs) came into effect. The PSRs require that non-bank payment service providers, such as MSBB Money Ltd, be either registered or authorised by the Financial Conduct Authority (FCA).

As of 1 November 2009, such businesses are known as Payment Institutions (PIs). Since 2009, MSBB Money Ltd is authorised and regulated by the Financial Conduct Authority for the provision of payment services.

The PSRs establish certain rules governing how authorized PIs provide payment services where both the payer and the payee are located within the European Economic Area (EEA). These rules are designed, in part, to ensure customer protection.

The PSRs impose safeguarding requirements to protect customer funds received for the execution of a payment transaction. Customer funds must remain segregated from other business funds at all times and, in addition, where customer funds are still being held by an API at the end of the business day following the day on which those funds were received, they must be safeguarded. On the insolvency of an API, claims of payment service users are paid from the asset pool formed from these funds in priority to all other creditors (other than in respect of the costs of distributing the asset pool).

They also have to meet stringent criteria set by the FCA in terms of capital levels, corporate governance, solvency and risk identification and management.

What does this mean for our customers?

The impact on our customers has been very limited as we have consistently operated under extremely tight self-imposed policies and procedures with regard to customer funds and services. Our systems and processes also undergo regular inspections by independent auditors.

Unfortunately, the PSRs do mean that we can no longer instruct overseas banks in the EEA to charge any beneficiary bank fees to us, the payer, when we send payments in an EEA currency. Therefore, whilst we will continue to guarantee that the full amount will be transferred by us, we cannot guarantee that the beneficiary bank will not then make a subsequent charge and we would recommend that our customers contact their beneficiary bank for clarification on such charges.

MSBB Money Ltd LTD is authorized and regulated by the Financial Conduct Authority
FRN No: 504611

HMRC
MSBB Money Ltd is registered with HRMC for Money Laundering Regulations under Registration Number 12279156