According to the Guide, where payment transactions arise only in connection with the main activity of providing investment services, the investment firm's services cannot be considered within the scope of payment services.
The difference between an ancillary service and the main activity
An investment firm creates money movements when it buys and sells on behalf of its customer, but these money movements are part of the investment service. As long as it is not offered as an independent activity specific to payment services, a separate payment institution licence is not required.
However, the situation changes if the investment firm offers its customers money transfers or payment instruments independently. That is why the boundaries of the business model need to be drawn clearly.
Why is this an important distinction?
If the distinction is made incorrectly, the institution either takes on an unnecessary licensing burden or faces the risk of providing payment services without authorization. For this reason, a legal assessment at the start of product design is recommended.
