Control of the shareholding in non-bank payment service providers

Abstract

The purpose of this article is to outline the legal framework of the control exercised by the Bulgarian National Bank of the shareholding in non-bank payment service providers – electronic money institutions and payment institutions. In parallel with this fi rst objective is the identifi cation and clarifi cation of the different forms of control, taking place as independent proceedings before the competent authority, including the definition of these forms in view of their specific regime – notification or permission regime. The article also identifi es certain forms of control having the nature of coercive administrative measures aimed at ensuring the reliability or security of electronic money institutions and payment institutions or the services they provide. In the next place, attention is drawn to some of the imperfections of the legal framework at statutory level, noticeable primarily in the lighter of the two regimes, namely the notification regime, which shows signs of a regime of a mixed nature. Making a comparison between the legislation under the Payment Services and Payment Systems Act (PSPSA) and Directive (EU) 2015/2366, the author highlights the cases where the national legal framework builds on European legislation, raising the question of the maximum harmonization nature. In an attempt to add practical value, the text also dwells on the applicable requirements, including those arising from unforeseen acts of European Union law, to which a person subject to a form of control in relation to holding a shareholding in the capital of a non-bank payment service provider should comply with in order to obtain approval by the competent authority.