The Economic Committee approved the exemption regulations for those engaged in payment initiation services

The Economic Committee approved the exemption regulations for those engaged in payment initiation services

Today (Sunday), the Knesset's Economic Committee finished approving the regulations designed to regulate the practice of payment services, payment initiation and financial information services, designed to determine which companies will be exempt from the licensing obligation. The Payment Services and Payment Initiation Law, which was approved as part of the Arrangements Law last year, regulated the activities of non-bank entities providing payment services and required those operating in the field to operate under the license and supervision of the Securities Authority.

Last week, the committee held two meetings on the subject, at the end of which it was agreed to extend the interim period in which the operators of customer clubs and issuers of vouchers can continue to operate without a license, until their activities are examined and regulated in order to comply with the rules for safeguarding the money of customers and business owners. According to the regulations approved today, the customer clubs and market place managers who mediate between sellers and buyers will be exempt from licensing until December 31, 2024, and issuers of means of payment (cheques) will be exempt from licensing until June 6, 2027.

However, in order to protect the customers, as of the end of the year, a duty of due disclosure will apply to license-exempt issuers of means of payment, and they will have to inform their customers about the exemption from licensing and that the Securities Authority does not supervise them. As for the bills of exchange industry, the Director of the Legislative System at the Securities Authority stated, Orit Schreiber, because the Authority is examining whether a dedicated regulation is required for companies in this field.

MK Ohad Tal, who filled the chairman's place, said at the meeting that “their approval and the entry into force of the law are a very important move to lower the cost of living and protect consumers in Israel.” As mentioned, at the end of the discussion, the regulations were approved unanimously, with the votes of MK Tal and MK Vladimir Blayak.

Photo: Knesset spokeswoman, Noam Moshkowitz

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