GEN 2.6.1 Guidance
Past version: effective from 01/04/2020 - 31/03/2020
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1. The following diagram illustrates the different types of Money Services:
2. A particular service provided by an Authorised Firm may involve only one of the above activities e.g. Money Transmission, or a combination of activities e.g. issuing Stored Value, issuing Payment Instruments and operating a Payment Account.
3. The term “Payment Service” is used to describe all or any of the activities in GEN Rule 2.6.1(1) other than providing currency exchange or issuing Stored Value.
4. A Payment Account is an account that is used to execute Payment Transactions. Funds are usually expected to remain in a Payment Account only for a short period. A provider of such an account is prohibited from paying any interest or other return on funds in the account (COB Rule A7.2.16). This is because paying interest or any other return on the account is likely to result in the account being a Deposit or a Profit Sharing Investment Account (PSIA).
5. A “User” means a user of a Money Service and, in relation to a Payment Service, includes a person acting in the capacity of payer, payee or both (see the definition in GLO).
6. The reference in the “Stored Value” definition in GEN Rule 2.6.1(2)(h) to receipt of “other assets” includes, for example, the receipt of digital currencies or any other form of assets that may be accepted by an issuer of stored value. Stored Value does not, however, include a loyalty programme where a person earns points that can be redeemed directly for goods or services of the loyalty programme provider.
7. COB Rule A7.3.3 limits the total amount of Stored Value that may be issued to an individual User at any point in time to $5,000 and the total value of a single Payment Transaction to $1,000.
Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]