On Application of the Law on Payment Services and Electronic Money

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On Application of the Law on Payment Services and Electronic Money

To ensure common understanding of the scope of the Law on Payment Services and Electronic Money (hereinafter – the LPSEM) and its application to the persons engaged in collecting public utilities payments the Financial and Capital Market Commission points out that in accordance with the LPSEM a service cannot be regarded as a payment service in case a residential house administrator has entered into a supply contract with public utilities service providers under authorization of an owner of apartments and issues bills collecting money from the users of public utilities services respectively, as well as if a property management and maintenance administrator provides services to a limited range of clients – only to tenants of residential houses under his/her management.

If a company collects payments as a representative of an issuer of public utilities service invoice and operates as a commercial agent (as defined in the Commercial Law, Chapter VI) of public utilities service provider, then in accordance with Article 3, Paragraph 2 of the LPSEM such a company is not subject to the LPSEM.

Whereas companies that do not operate as residential house administrators, as well as residential house administrators that provide services also to other clients that have not authorized administrators to carry out management of their residential houses, by ensuring transfer of received money to the relevant issuer of public utilities service and operating as intermediaries, provide payment services as defined in the LPSEM and therefore they have to be entered into the register of institutions maintained by the Financial and Capital Market Commission or have to obtain a licence under the procedure laid down in the LPSEM. 

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