Whilst we do not have any significant issues with the critieria above, our biggest concern is the appoint of a CCP for electronic money issuers who may exceed the EUR 3 million criteria which could be considered small in the payment service provider market and may have a small number of employees. €3 million in electronic money is not large in today’s market and could be an issuer who passports into two or three companies through subsidiary companies rather than through formal arrangements with unconnected third parties.
We would therefore like to see a further criteria be considered that where a company issues electronic money through a closely connected company, a CCP does not need to be appointed. For example where an electronic money issuer that is regulated by the UK FCA, passports into another member state and distributes through a company in the same group of companies, we believe a CCP should not be a requirement. The ‘group’ function (whether that is for example compliance or legal) should be able to perform the function of a CCP. The host state regulator would still need to be notified of who the contact point is for information/communications. With electronic methods of communications, information can be sent to someone overseas as quick as it can be sent to individuals in the same jurisdiction.
We believe a Contact Point, whether based in one country or covering a number of firms cross border, would have the functions indicated and have the responsibility to ensure compliance with the host member states conduct of business rules. Therefore we do not see the need to legislate for this.
Whilst we do not have any significant issues with the functions indicated in Article 6, we are concerned that to appoint someone with the level of skills and knowledge to perform the role, which may not be seen as a fully time position, will incur potentially significant costs (salary etc.). Therefore, to justify the costs of the additional employee, the role could include other functions not related to compliance and thus could lead to potential Conflicts of Interest.
Appointing a CCP will significantly increase the overheads including salary, pensions, office space and for some firms could mean the difference between making a small profit to making no profit at all.