(1) The administrator may not enter into the TA unless all of Conditions 1 to 3 are met.

(2) Condition 1 is that the arrangement includes such provision as the administrator thinks necessary to ensure that users or holders whose relevant funds are to be transferred will be able to exercise their rights in relation to those funds as soon as reasonably practicable after the transfer.

(3) Condition 2 is that the institution has obtained a contractual undertaking from the transferee that the transferee will -

(a) safeguard the relevant funds to be transferred, and

(b) after the transfer, safeguard any further relevant funds of users or holds whose relevant funds, rights or liabilities under PS or EMI contracts were transferred.

(4) Paragraph (3) applies even if the transferee is a small payment institution or a small electronic money institution.