diff --git a/core/Controller/LostController.php b/core/Controller/LostController.php
index 5350dca0af687..ce98426084b03 100644
--- a/core/Controller/LostController.php
+++ b/core/Controller/LostController.php
@@ -37,6 +37,7 @@
 use \OCP\AppFramework\Http\TemplateResponse;
 use OCP\AppFramework\Utility\ITimeFactory;
 use OCP\Defaults;
+use OCP\Encryption\IEncryptionModule;
 use OCP\Encryption\IManager;
 use \OCP\IURLGenerator;
 use \OCP\IRequest;
@@ -259,7 +260,15 @@ public function setPassword($token, $userId, $password, $proceed) {
 		}
 
 		if ($this->encryptionManager->isEnabled() && !$proceed) {
-			return $this->error('', array('encryption' => true));
+			$encryptionModules = $this->encryptionManager->getEncryptionModules();
+			foreach ($encryptionModules as $module) {
+				/** @var IEncryptionModule $instance */
+				$instance = call_user_func($module['callback']);
+				// this way we can find out whether per-user keys are used or a system wide encryption key
+				if ($instance->needDetailedAccessList()) {
+					return $this->error('', array('encryption' => true));
+				}
+			}
 		}
 
 		try {
diff --git a/tests/Core/Controller/LostControllerTest.php b/tests/Core/Controller/LostControllerTest.php
index 1e51de649e39f..61bdb219184cc 100644
--- a/tests/Core/Controller/LostControllerTest.php
+++ b/tests/Core/Controller/LostControllerTest.php
@@ -27,6 +27,7 @@
 use OCP\AppFramework\Http\TemplateResponse;
 use OCP\AppFramework\Utility\ITimeFactory;
 use OCP\Defaults;
+use OCP\Encryption\IEncryptionModule;
 use OCP\Encryption\IManager;
 use OCP\IConfig;
 use OCP\IL10N;
@@ -713,10 +714,49 @@ public function testSendEmailNoEmail() {
 		$this->assertEquals($expectedResponse, $response);
 	}
 
-	public function testSetPasswordEncryptionDontProceed() {
+	public function testSetPasswordEncryptionDontProceedPerUserKey() {
+		/** @var IEncryptionModule|PHPUnit_Framework_MockObject_MockObject $encryptionModule */
+		$encryptionModule = $this->createMock(IEncryptionModule::class);
+		$encryptionModule->expects($this->once())->method('needDetailedAccessList')->willReturn(true);
+		$this->encryptionManager->expects($this->once())->method('getEncryptionModules')
+			->willReturn([0 => ['callback' => function() use ($encryptionModule) { return $encryptionModule; }]]);
 		$response = $this->lostController->setPassword('myToken', 'user', 'newpass', false);
 		$expectedResponse = ['status' => 'error', 'msg' => '', 'encryption' => true];
 		$this->assertSame($expectedResponse, $response);
 	}
 
+	public function testSetPasswordDontProceedMasterKey() {
+		$encryptionModule = $this->createMock(IEncryptionModule::class);
+		$encryptionModule->expects($this->once())->method('needDetailedAccessList')->willReturn(false);
+		$this->encryptionManager->expects($this->once())->method('getEncryptionModules')
+			->willReturn([0 => ['callback' => function() use ($encryptionModule) { return $encryptionModule; }]]);
+		$this->config->method('getUserValue')
+			->with('ValidTokenUser', 'core', 'lostpassword', null)
+			->willReturn('encryptedData');
+		$this->existingUser->method('getLastLogin')
+			->will($this->returnValue(12344));
+		$this->existingUser->expects($this->once())
+			->method('setPassword')
+			->with('NewPassword')
+			->willReturn(true);
+		$this->userManager->method('get')
+			->with('ValidTokenUser')
+			->willReturn($this->existingUser);
+		$this->config->expects($this->once())
+			->method('deleteUserValue')
+			->with('ValidTokenUser', 'core', 'lostpassword');
+		$this->timeFactory->method('getTime')
+			->will($this->returnValue(12348));
+
+		$this->crypto->method('decrypt')
+			->with(
+				$this->equalTo('encryptedData'),
+				$this->equalTo('test@example.comSECRET')
+			)->willReturn('12345:TheOnlyAndOnlyOneTokenToResetThePassword');
+
+		$response = $this->lostController->setPassword('TheOnlyAndOnlyOneTokenToResetThePassword', 'ValidTokenUser', 'NewPassword', false);
+		$expectedResponse = array('status' => 'success');
+		$this->assertSame($expectedResponse, $response);
+	}
+
 }