Supervision of Non-bank Payment Service Providers and Financial Market Infrastructures
Supervision of payment institutions
Payment institutions may provide payment services if they have been granted Banka Slovenije’s authorisation in accordance with the Payment Services, Services for Issuing Electronic Money and Payment Systems Act (ZPlaSSIED), although the aforementioned law also regulates payment institutions benefiting from an exemption. Account information services may also be provided in Slovenia by account information service providers who are registered with Banka Slovenije in accordance with the ZPlaSSIED.
Following due prior notification, payment institutions may also provide payment services in another EU Member State or signatory state of the Agreement on the European Economic Area or in a third country, via a branch, via an agent or directly. Payment institutions of Member States may also provide payment services in Slovenia, via a branch, via an agent or directly. Banka Slovenije keeps the following lists in its register of payment institutions:
A list of payment institutions that hold a valid authorisation of Banka Slovenije to provide payment services, including their agents and branches
A list of payment institutions benefiting from an exemption that hold a valid authorisation of Banka Slovenije to provide money remittance services, including their agents and branches
A list of registered account information service providers
A list of current notifications of changes in the register (entries in or deletions from the register, changes in entries in the register)
A list of notifications of payment institutions that Banka Slovenije has received from the competent authorities of each payment institution’s home country
Register of supervised entities
The conditions, procedures and documentation regarding authorisation of Banka Slovenije to provide payment services as a payment institution or as a payment institution with a waiver, and the conditions, procedures and documentation in connection with the registration of account information service providers, including the authorisation to acquire a qualifying holding, are set out by the ZPlaSSIED and the Regulation on the content of the request for the granting of an authorisation to provide payment services as a payment institution, to provide electronic money issuance services as an electronic money institution and to acquire a qualifying holding in a payment institution or an electronic money institution, while the fees for deciding on individual requests are set out by the Regulation on the amounts of Banka Slovenije’s annual fees for supervision and fees in connection with decision-making procedures under the Payment Services, Services for Issuing Electronic Money and Payment Systems Act.
Supervision of electronic money institutions
Electronic money institutions may issue electronic money and provide payment services if they have been granted authorisation of Banka Slovenije in accordance with the ZPlaSSIED, while this law also regulates electronic money institutions benefiting from an exemption.
Following due prior notification, electronic money institutions may also provide services in another EU Member State or signatory state of the Agreement on the European Economic Area or in a third country, via a branch or directly. Electronic money issuance services in Slovenia may also be provided by electronic money institutions of other Member States, either directly or via a branch, and such institutions may also distribute and redeem electronic money via a distributor. Banka Slovenije keeps the following lists in its register of electronic money institutions:
A list of electronic money institutions that hold a valid authorisation of Banka Slovenije to provide electronic money issuance services, including their agents and branches
A list of electronic money institutions with a waiver that hold a valid authorisation of Banka Slovenije to provide electronic money issuance services, including their agents and branches
A list of current notifications of changes in the register (entries in or deletions from the register, changes in entries in the register)
A list of notifications of electronic money institutions that Banka Slovenije has received from the competent authorities of each electronic money institution’s home country
Register of supervised entities
The conditions, procedures and documentation regarding authorisation of Banka Slovenije to provide electronic money issuance services and payment services as a (hybrid) electronic money institution and as an electronic money institution benefiting from an exemption, including the authorisation to acquire a qualifying holding, are set out by the ZPlaSSIED and the Regulation on the content of the request for the granting of an authorisation to provide payment services as a payment institution, to provide electronic money issuance services as an electronic money institution and to acquire a qualifying holding in a payment institution or an electronic money institution, while the fees for deciding on individual requests are set out by the Regulation on the amounts of Banka Slovenije’s annual fees for supervision and fees in connection with decision-making procedures under the Payment Services, Services for Issuing Electronic Money and Payment Systems Act.
Supervision of payment and settlement systems
Payment and securities settlement systems consist of a set of instruments, procedures, rules and technological support for transmitting information and settling cash or securities between their participants. Payment and settlement systems thus constitute core infrastructure of a modern economythat facilitates the transfer of cash and financial instruments between market entities.
The smooth and secure functioning of payment and settlement systems is therefore vital for increasing the safety and effectiveness of the financial system and promoting the general stability of the economy. In light of the above, central banks, whose general role is also to safeguard the financial stability, have a specific interest in the smooth functioning of these systems.
Banka Slovenije’s role in the supervision of payment and settlement systems is set out in general terms by the Treaty on the Functioning of the European Union, the Statute of the European System of Central Banks and of the European Central Bank and the Bank of Slovenia Act, and more specifically by the Payment Services, Services for Issuing Electronic Money and Payment Systems Act and the Regulation on the application of the (EU) Regulation on improving securities settlement in the European Union and on central securities depositories. Under the aforementioned regulations, Banka Slovenije is competent and responsible for the supervision of payment and settlement systems.
There are currently five payment systems and one securities settlement system operating under Slovenian law.
The payment systems are TARGET-Slovenija, which is operated by Banka Slovenije, and four retail payment systems operated by Bankart:
BIPS, which is used for settlement of domestic (i) credit transfers and (ii) instant credit transfers and exchanging information with TIPS for settlement of cross-border instant credit transfers
SIMP-PS, which is used for clearing and settlement of domestic direct debits
Poravnava kartic, which is used for clearing and settlement of domestic payment card transactions at POS terminals and ATMs
Poravnava bankomatov, which is used solely for clearing and settlement of transactions with domestic Maestro debit cards at ATMs when the cardholder makes a withdrawal from an ATM belonging to another participant of the payment system, and not with the participant with whom they hold an account.
The settlement of transactions in securities traded on the Ljubljana Stock Exchange, and the settlement of OTC transactions in Slovenia are undertaken in the securities settlement system (Central securities depository) operated by KDD d. d. (Central Securities Clearing Corporation).
Supervision of foreign exchange transactions
Under the Foreign Exchange Act, a currency exchange operator is a legal entity, a sole trader or an individual independently pursuing registered business activities that provides exchange operations on the basis of authorisation ofBanka Slovenije. In addition to currency exchange operators, exchange operations may also be conducted by banks and savings banks that, in accordance with the law governing banking, provide the service of trading in foreign means of payment, including exchange operations. The aforementioned law defines exchange operations as the purchase and sale of foreign currency (banknotes and coins denominated in foreign currency and issued by a central bank or a government), and the purchase of cheques denominated and negotiable in foreign currency.
The provision of exchange operations and the granting, withdrawal and termination of the authorisation of Banka Slovenije to provide exchange operations g are also regulated by the Foreign Exchange Act. Together with the procedures and documentation in connection with the aforementioned authorisation, the conditions of and approach to providing exchange operations are set out in detail by the Regulation on the provision of exchange operations. The fees for deciding on requests for the granting of the authorisation are set out by the Regulation on the tariff of fees for Banka Slovenije services.
Banka Slovenije keeps a list of currency exchange operators and their individual currency exchange points.
Register of supervised entities
Under the Foreign Exchange Act and the Regulation on the provision of exchange operations, currency exchange operators, banks and savings banks are required to submit regular and ad hoc reports to Banka Slovenije in connection with their operations. They are required to report on a half-yearly basis on the total volume of operations at all currency exchange points, by the fifteenth day of the month following the end of the half year in question. The content, form and method of the reporting are set out in detail by the Regulation on the provision of exchange operations. The ad hoc reporting relates to communicating changes in data in connection with responsible persons and qualified owners, data on the number of employees providing exchange operations, and information on all changes affecting the status or operations of the currency exchange operator. Detailed guidelines in connection with electronic transactions with Banka Slovenije are also relevant to reporting on exchange operations. Banka Slovenije digital certificates are used for this purpose in accordance with the appendix of the Regulation on the provision of exchange operations.