Róisín Shortall (Dublin North West, Social Democrats)
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47. To ask the Minister for Finance if his attention has been drawn to reports that a company (details supplied) is deducting fees from unused vouchers ahead of their expiry date; his views on same; if he plans to amend the legislation to prohibit this practice; and if he will make a statement on the matter. [3953/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The company in question is authorised by the Central Bank as an electronic money institution pursuant to Regulation 9 of the European Communities (Electronic Money) Regulations 2011 (as amended) (EMR).

These gift cards meet the definition of “electronic money” and are subject to regulation under the aforementioned Regulations. It should be noted that Vouchers that are deemed electronic money, within the meaning of the EMR are excluded from the Consumer Protection (Gift Vouchers) Act 2019. This is on the basis that they are already regulated under the EMR, which transposes the Electronic Money Directive (EMD) 2009/110/EC into Irish law.

The EMD is a maximum harmonization directive, meaning that, EU countries may not introduce rules that are stricter than those set in the directive. As per Regulation 52 of the EMR electronic money products have to be redeemable at any time and cannot have an expiry date.

In particular regulated firms must design and sell products that are suitable to their customers’ needs, are capable of delivering the promised benefits, with key risks and charges with respect to those products appropriately disclosed. Specifically, Regulation 74-76 of the European Union Payment Services Regulations 2019 (PSR) sets out the specific requirements regarding the information that is required to be shared by electronic money institutions with payment service users including in relation to charges.

I have been informed by the Central Bank that while it does not comment on the supervision of specific firms, the Central Bank’s expectation is that, all regulated firms, including electronic money institutions, comply with their regulatory obligations. The Central Bank also expects regulated firms to take a customer-focused approach and to act in their customers' best interests at all times.

It may be useful to know that as part of the European Commission’s Retail Payments Strategy, which was launched in September 2020, the Commission has under taken to align the revised Payment Services Directive (PSD2) and the Electronic Money Directive frameworks by including the issuance of e-money as a payment service in PSD2. This will ensure greater consistency in the various pieces of legislation on retail payments and promote robust supervision and oversight of firms in the relevant sectors.

This work will be carried out as part of the review of PSD2, which is expected to begin later this year. Officials in my Department will consider the issue of reducing balance fees as part of future discussions on the Electronic Money Directive.