Explanatory note

These Regulations apply to any individual or other body which carries on the business of a bureau de change in the course of which foreign currency is sold to individuals or bought from them in exchange for sterling, otherwise than for the purposes of their businesses ( “consumers”).

The Regulations regulate the manner in which a person who holds himself out as operating a bureau de change at any premises gives at those premises an indication to consumers of the rate at which business may be done (an “exchange rate indication”) (regulation 3).

Exchange rate indications must state the terms on which transactions will be conducted and provide other information including any commission or other charges. However, where a consumer requests information about the terms on which a particular transaction will be conducted, only information relevant to that transaction need be given. When an exchange rate indication is given and there is to be an interval between the placing of the order and the supply of the currency during which rates may change, particulars of how the exchange rate and any commission or other charge will be determined must be given before the order is placed (regulation 4). Special provision is made in relation to coin operated machines (regulation 7).

Exchange rate indications and related information are to be given clearly and prominently and either legibly or audibly (regulation 5).

The Regulations require that a receipt setting out the terms of the transaction must be provided to the consumer in all cases except that of a transaction conducted through a machine. The issue of receipts in the latter case is only required if the machine is designed to supply receipts and the consumer requests one, but is not required at all where the machine exchanges coins only (regulation 6).

An exchange rate indication must be accurate and no suggestion may be made that it is not to be relied on (regulation 8).

Criminal penalties are provided for breach of the Regulations (regulation 9).

The Regulations come into force on 18th May 1992 except for the provision relating to the clarity etc of statements accompanying exchange rate indications and the requirement to display corresponding rates for notes and travellers' cheques, both of which come into force on 18th May 1993 (regulation 1).