Entire section
Schedule 1 – Policy issues (major)
Consultation Paper on Proposed amendments to the AIFC Insurance and Reinsurance Prudential Rules

Schedule 2 - Policy issues (non-major)

Schedule 1- Policy issues (non-major)

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Policy issue identified by AFSA for consideration

AFSA's policy decision

1

What should be the application fees to become an authorised PI or a registered SPI?

(section 4.2.3 of policy paper)

·The application fees to become a registered SPI will be 1,000 USD and to become an authorised PI will be 3,500 USD.

·If an SPI no longer meets the requirements to qualify as a SPI, but intends to continue providing payment services, it will be required to apply for authorisation as a PI. There will not be any other more streamlined / shortened process for transitioning from a registered SPI to an authorised PI.

2

What should be the application fees to become an authorised EMI or registered SEMI?

(section 5.2.3 of policy paper)

·The application fees to become a registered SEMI will be 1,000 USD and to become an authorised EMI will be 3,500 USD.

·If an SEMI no longer meets the requirements to qualify as a SEMI, but intends to continue providing payment services, it will be required to apply for authorisation as an EMI. There will not be any other more streamlined / shortened process for transitioning from a registered SEMI to an authorised EMI.

3

What should be the prescribed amount of ongoing capital that electronic money issuers must hold?

(section 5.3.1(a)(ii) of policy paper)

·EMIs will be required to hold a prescribed amount of ongoing capital, being the greater of the initial capital amount, or 2% of their average outstanding e-money issued. The initial capital amount for EMIs will be expressed in USD, and be approximately equivalent to €350,000.

·SEMIs will be subject to an initial capital requirement of 2% average outstanding e-money issued, where their business activities generate (or are projected to generate) average outstanding e-money over a prescribed threshold. The prescribed threshold will be expressed in USD, and be approximately equivalent to €500,000.SEMIs that are subject to this initial capital requirement will also be required to continue to meet this requirement on an ongoing basis (unless their level of business falls below the prescribed threshold).