On 26 April 2021, there was published on the legislation.gov.uk website a draft of the Payment and Electronic Money Institution Insolvency Regulations 2021 together with a draft explanatory memorandum.
The draft statutory instrument creates a new special administration regime for payment and electronic money institutions (pSAR). The existing special administration regime for investment banks has been utilised as a model for the pSAR, with appropriate amendments to reflect the operational and regulatory differences between the sectors. The draft statutory instrument also extends the full suite of Financial Services and Markets Act 2000 Part 24 provisions to all payment and electronic money institutions entering the standard insolvency process. This will provide the FCA with specific powers to participate and protect consumers in the event of an insolvency of a payment or electronic money institution as it does for other FCA supervised firms.
HM Treasury has also published its response to its earlier consultation on the pSAR.