Entry in the register of issuers of so-called “Limited Network” instruments

We advised Reservise sp. z o.o. on the project:

entry on the list of entities operating
within the Limited Network, as maintained
by the Financial Supervisory Commission

The Act of 19 August 2011 on Payment Services (UUP) provides for several cases in which its provisions do not apply, even if a given entity issues a payment instrument or performs a payment transaction. One of these is the so-called “limited network/limited range” exemption, which covers payment instruments defined in Art. 3 lit. k) PSD2, which is implemented by art. 6(11) UUP.

Three types of limited network instruments are distinguished, including those that allow the purchase of a very limited range of goods or services. This category includes the solution offered by Reservise sp. z o.o.

If the total value of payment transactions made in the last 12 months exceeds 1,000,000 euros, the entity performing the aforementioned activity is required to notify the Financial Supervisory Commission (KNF), in accordance with the applicable requirements.

For Reservise sp. z o.o., the operator of the Playmore service, which uses the limited network/limited range exemption, we have developed a notification for KNF, in which the model of the business activity is presented in detail and its compliance with the applicable regulations, the European Banking Authority’s Guidelines of 24 February 2022 (EBA/GL/2022/02) relating to the exemption for limited networks in accordance with the second Payment Services Directive (PSD2), as well as the updated Communication of the Office of the Financial Supervisory Authority of 1 June 2022 on the application of the exemption under art. 6, point 11 of the Payment Services Act.

The entry confirms the company’s right to issue a limited-range payment instrument – in this case, the “Playmore Instrument” – which enables payments for selected goods and services belonging to the Sport and Recreation category (limited range exemption).

We are particularly pleased with the speed of the entire process: the entry was obtained in less than 2 months from the date of notification.

DLK’s advisory included:

• Regulatory consultancy,
• Support in preparing a notification,
• Representation of the company in proceedings before the KNF.

See also on DLK websites:

• EBA Guidelines and PFSA Communiqué – limited network instruments
• Representing the client in “reauthorization” proceedings before the PFSA regarding the exemption of limited network/limited range