Proceedings for authorization to provide payment services as a national payment institution
We are representing our client, a leading lending institution and a small payment institution (SME) in proceedings before Polish Supervisory Authority for authorisation to provide payment services as a national payment institution (NPI).
Due to the dynamic growth of our client’s business, the client has decided to apply for an authorisation to provide services as a national payment institution (acting without such permission is punishable by a fine of over 1 million EUR).
Obtaining such an authorisation would allow the client to increase the size of its payment services business and to provide services also cross border. The client instructed us to draft all necessary documentation for the application for a license to provide services as a national payment institution and to carry out the necessary modifications to internal compliance procedures and also to create new ones dedicated to the national payment institution.
Due to the complexity of the documentation work, we created project teams with the client in which the documentation work was carried out. One of the teams, under the leadership of attorney-at-law Michał Barwicki, prepared amendments to the financial plan and business plan. During this projects we demonstrated interdisciplinary knowledge and practice in the drafting of such documents.
The firm, in cooperation with the client, has also developed internal documentation such as the Internal Risk Management Procedure, Security Policy and Business Continuity Policy.
These documents, especially the Security Policy, considered also the requirements of Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on the operational digital resilience of the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 (hereinafter “DORA”) imposed on a payment service providers.
At the same time, as preparing the internal documentation, the firm was also drafting amendments to the agreement on the issuance of a credit card and the granting of payment credit, which the client had been using in relation with clients. The amendments to the agreement resulted from the entry into force of the Act amending the Payment Services Act as well as the position of the Financial Supervision Authority, which clarified the new rules for calculating fees and commissions for granting payment credit and for the customer’s use of the credit card.
Throughout the process, we work with numerous client departments IT marketing, customer service, finance, legal.
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We provide ongoing legal services to our client who provides consumer credit as a lending institution. The legal services include performing compliance functions in areas of the company’s operations, including legal advice on personal data protection and anti-money laundering and terrorist financing.
We began our cooperation with the client with establishing a limited liability company in accordance with the regulatory requirements for operating as a lending institution and obtaining registration in the register of lending institutions.