AI Summary of Article 5 Applications for authorisation
To secure authorisation as a payment institution, applicants must submit a comprehensive application to the competent authorities of their home Member State, detailing their operational programme, a robust business plan, and evidence of initial capital. Additionally, institutions must outline governance structures, internal control mechanisms, and security policies, ensuring sound risk management and compliance with relevant regulations.
Furthermore, applicants are required to maintain professional indemnity insurance or other comparable guarantees, safeguarding against liabilities arising from non-authorised or fraudulent transactions. Ensuring digital operational resilience is essential, with measures aligned to regulatory guidelines for protecting sensitive payment data.
Article 5 Applications for authorisation
1. For authorisation as a payment institution, an application shall be submitted to the competent authorities of the home Member State, together with the following:
(a) a programme of operations setting out in particular the type of payment services envisaged;
(b) a business plan including a forecast budget calculation for the first 3 financial years which demonstrates that the applicant is able to employ the appropriate and proportionate systems, resources and procedures to operate soundly;
(c) evidence that the payment institution holds initial capital as provided for in Article 7;
(d) for the payment institutions referred to in Article 10(1), a description of the measures taken for safeguarding payment service users' funds in accordance with Article 10;