Banking Act 2009

Part 5 U.K. F1 ... Payment Systems

Textual Amendments

F1 Word in Pt. 5 heading omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 2

Introduction U.K.

181 Overview U.K.

This Part enables the Bank of England to oversee certain systems for [F2 transferring money] [F3 and certain persons who provide services in relation to such systems].

Textual Amendments

F2 Words in s. 181 substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 3

F3 Words in s. 181 inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(2)

Commencement Information

I1 S. 181 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 1

182 Interpretation: “F4 ... payment system” U.K.

(1) In this Part “term-inter-bank-payment-system F5 ... payment system” means arrangements designed to facilitate or control the transfer of money F6 ....

[F7 (1A) But “payment system” does not include any arrangements for the physical movement of cash.]

F8 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In subsection (1) “money” includes credit.

(5) A system is F9 ... payment system for the purposes of this Part whether or not it operates wholly or partly in relation to persons or places outside the United Kingdom.

Textual Amendments

F4 Word in s. 182 heading omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 4(6)

F5 Word in s. 182(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 4(2)(a)

F6 Words in s. 182(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 4(2)(b)

F7 S. 182(1A) inserted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 4(3)

F8 S. 182(2)(3) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 4(4)

F9 Word in s. 182(5) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 4(5)

Commencement Information

I2 S. 182 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 2

183 Interpretation: other expressions U.K.

In this Part—

(a) a reference to the “operator” of [F10 a] payment system is a reference to any person with responsibility under the system for managing or operating it,

(b) a reference to the operation of a system includes a reference to its management,

[F11 (ba) a reference to a “service provider” is to be construed in accordance with section 206A(2),]

(c) “the UK financial system” has the meaning given F12 ... by [F13 section 1I] of the Financial Services and Markets Act 2000 F14 ...,

(d) a reference to the Bank of England's role as a monetary authority is to be construed in accordance with section 244(2)(c),

[F15 (e) the FCA” means the Financial Conduct Authority,

(f) “Part 4A permission” has the meaning given by section 55A of the Financial Services and Markets Act 2000,

(g) “the PRA” means the Prudential Regulation Authority,

(h) “PRA-regulated activity” has the meaning given by section 22A of the Financial Services and Markets Act 2000, F16 ...

(i) “recognised investment exchange” has the meaning given by section 285 of that Act.]

[F17 (j) “the Payment Systems Regulator” means the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013, and

(k) in sections 188 to 199 (regulation and enforcement), references to the provision of services by a service provider to a payment system include references to—

(i) services provided by the service provider which form part of the arrangements constituting the system, and

(ii) the service provider’s arrangements for governance or risk management, or for any other matters which may affect the provision of the services by the service provider.]

Textual Amendments

F10 Word in s. 183(a) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 5

F11 S. 183(ba) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(3)(a)

F12 Words in s. 183(c) omitted (8.4.2010) by virtue of Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 44

F13 Words in s. 183(c) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 53(2)(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F14 Words in s. 183(c) omitted (1.4.2013) by virtue of Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 53(2)(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F15 S. 183(e)-(i) substituted for s. 183(e) (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 53(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F16 Word in s. 183 omitted (30.11.2017) by virtue of The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(3)(b)

F17 S. 183(j)(k) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(3)(c)

Commencement Information

I3 S. 183 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 2

Recognised systems U.K.

184 Recognition order U.K.

(1) The Treasury may by order (“recognition order”) specify [F18 a] payment system as a recognised system for the purposes of this Part.

(2) A recognition order must specify in as much detail as is reasonably practicable the arrangements which constitute the F19 ... payment system.

(3) The Treasury may not specify [F20 a payment] system operated solely by the Bank of England.

[F21 (4) See section 206A for the power to specify in a recognition order a person as a person who provides services that form part of the arrangements constituting the recognised system.]

Textual Amendments

F18 Word in s. 184(1) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 6(2)

F19 Word in s. 184(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 6(3)

F20 Words in s. 184(3) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 6(4)

F21 S. 184(4) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(4)

Commencement Information

I4 S. 184 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3

185 Recognition criteria U.K.

(1) The Treasury may make a recognition order in respect of [F22 a] payment system only if satisfied that any deficiencies in the design of the system, or any disruption of its operation, would be likely—

(a) to threaten the stability of, or confidence in, the UK financial system, or

(b) to have serious consequences for business or other interests throughout the United Kingdom.

(2) In considering whether to specify a system the Treasury must have regard to—

(a) the number and value of the transactions that the system presently processes or is likely to process in the future,

(b) the nature of the transactions that the system processes,

(c) whether those transactions or their equivalent could be handled by other systems,

(d) the relationship between the system and other systems, and

(e) whether the system is used by the Bank of England in the course of its role as a monetary authority.

Textual Amendments

F22 Word in s. 185(1) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 7

Commencement Information

I5 S. 185 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3

186 Procedure U.K.

(1) Before making a recognition order in respect of a payment system the Treasury must—

(a) consult the Bank of England [F23 and the Payment Systems Regulator],

(b) notify the operator of the system, and

(c) consider any representations made.

[F24 (See section 206A(4) for the procedure to be followed before specifying a person under section 206A(2)(b) (service providers in relation to recognised payment systems) in a recognition order.)]

[F25 (2) In addition, the Treasury—

(a) must consult the FCA before making a recognition order in respect of a payment system the operator of which—

(i) is, or has applied to become, a recognised investment exchange, or

(ii) has, or has applied for, a Part 4A permission, and

(b) if the operator has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, must also consult the PRA.]

(3) In considering whether to make a recognition order in respect of a payment system the Treasury may rely on information provided by the Bank of England[F26 , the FCA or the PRA].

Textual Amendments

F23 Words in s. 186(1)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(5)(a)

F24 Words in s. 186(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(5)(b)

F25 S. 186(2) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(4)(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F26 Words in s. 186(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(4)(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Commencement Information

I6 S. 186 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3

[F27 186A Amendment of recognition order U.K.

(1) The Treasury may amend a recognition order.

(2) Before amending a recognition order the Treasury must—

(a) consult the Bank of England [F28 and the Payment Systems Regulator],

(b) notify the operator of the recognised F29 ... payment system, and

(c) consider any representations made.

[F30 (See section 206A(4) for the procedure to be followed before amending a recognition order so as to specify a person under section 206A(2)(b) (service providers in relation to recognised payment systems) in the order.)]

[F31 (2A) Before amending a recognition order so as to revoke or amend the specification of a person under section 206A(2)(b), the Treasury must also—

(a) consult the FCA and the PRA,

(b) notify the specified person, and

(c) consider any representations made.]

(3) In addition, the Treasury—

(a) must consult the FCA before amending a recognition order in respect of a payment system the operator of which—

(i) is, or has applied to become, a recognised investment exchange, or

(ii) has, or has applied for, a Part 4A permission, and

(b) if the operator has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, must also consult the PRA.

(4) The Treasury must consider any request by the operator of a recognised F32 ... payment system for the amendment of its recognition order [F33 or any request by a service provider in relation to such a system for the amendment or revocation of its specification].]

Textual Amendments

F27 S. 186A inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(2), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F28 Words in s. 186A(2)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(6)(a)(i)

F29 Word in s. 186A(2)(b) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 8

F30 Words in s. 186A(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(6)(a)(ii)

F31 S. 186A(2A) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(6)(b)

F32 Word in s. 186A(4) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 8

F33 Words in s. 186A(4) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(6)(c)

187 De-recognition U.K.

(1) The Treasury may revoke a recognition order.

(2) The Treasury must revoke a recognition order if not satisfied that the criteria in section 185 are met in respect of the recognised F34 ... payment system.

(3) Before revoking a recognition order the Treasury must—

(a) consult the Bank of England [F35 and the Payment Systems Regulator],

(b) notify the operator of the recognised F36 ... payment system, and

(c) consider any representations made.

[F37 (4) In addition, the Treasury—

(a) must consult the FCA before revoking a recognition order in respect of a payment system the operator of which—

(i) is, or has applied to become, a recognised investment exchange, or

(ii) has, or has applied for, a Part 4A permission, and

(b) if the operator has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, must also consult the PRA.]

(5) The Treasury must consider any request by the operator of a recognised F38 ... payment system for the revocation of its recognition order.

Textual Amendments

F34 Word in s. 187(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 9

F35 Words in s. 187(3)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(7)

F36 Word in s. 187(3)(b) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 9

F37 S. 187(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(5), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F38 Word in s. 187(5) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 9

Commencement Information

I7 S. 187 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3

Regulation U.K.

188 Principles U.K.

(1) The Bank of England may publish principles to which operators of recognised F39 ... payment systems are to have regard in operating the systems [F40 and principles to which service providers are to have regard in the provision of services to such systems].

(2) Before publishing principles the Bank must obtain the approval of the Treasury.

Textual Amendments

F39 Word in s. 188(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 10

F40 Words in s. 188(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(8)

Commencement Information

I8 S. 188 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 1

189 Codes of practice U.K.

The Bank of England may publish codes of practice about the operation of recognised F41 ... payment systems [F42 and the provision of services by service providers to such systems].

Textual Amendments

F41 Word in s. 189 omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 11

F42 Words in s. 189 inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(9)

Commencement Information

I9 S. 189 in force at 12.11.2009 for specified purposes and 31.12.2009 in so far as not already in force by S.I. 2009/3000, art. 4, Sch. para. 1

190 System rules U.K.

(1) The Bank of England may require the operator of a recognised F43 ... payment system—

(a) to establish rules for the operation of the system [F44 including the operation of services that form part of the arrangements constituting the system and are provided by a service provider];

(b) to change the rules in a specified way or so as to achieve a specified purpose;

(c) to notify the Bank of any proposed change to the rules;

(d) not to change the rules without the approval of the Bank.

(2) A requirement under subsection (1)(c) or (d) may be general or specific.

Textual Amendments

F43 Word in s. 190(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 12

F44 Words in s. 190(1)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(10)

Commencement Information

I10 S. 190 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 1

[F45 191 Directions U.K.

(1) The Bank of England may give directions in writing to the operator of a recognised F46 ... [F47 payment] system [F48 or a service provider in relation to such a system].

(2) A direction may—

(a) require or prohibit the taking of specified action in the operation of the system [F49 or the provision of services to the system];

(b) set standards to be met in the operation of the system [F50 or the provision of services to the system].

(3) If a direction is given for the purpose of resolving or reducing a threat to the stability of the UK financial system, the operator [F51 or service provider] (including [F52 the operator’s or service provider’s] officers and staff) has immunity from liability in damages in respect of action or inaction in accordance with the direction.

(4) A direction given for the purpose mentioned in subsection (3) must—

(a) include a statement that it is given for that purpose, and

(b) inform the operator [F53 or service provider] of the effect of that subsection.

(5) The Treasury may by order confer immunity on any person from liability in damages in respect of action or inaction in accordance with a direction (including a direction given for the purpose mentioned in subsection (3)).

(6) An order—

(a) is to be made by statutory instrument, and

(b) is subject to annulment in pursuance of a resolution of either House of Parliament.

(7) An immunity conferred by or under this section does not extend to action or inaction—

(a) in bad faith, or

(b) in contravention of section 6(1) of the Human Rights Act 1998.]

Textual Amendments

F45 S. 191 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(3), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F46 Word in s. 191(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 13

F47 Word in s. 191(1) inserted (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 10 para. 8; S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1

F48 Words in s. 191(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(11)(a)

F49 Words in s. 191(2)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(11)(b)

F50 Words in s. 191(2)(b) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(11)(b)

F51 Words in s. 191(3) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(11)(c)(i)

F52 Words in s. 191(3) substituted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(11)(c)(ii)

F53 Words in s. 191(4)(b) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(11)(d)

192 Role of [F54 FCA and PRA] U.K.

(1) In exercising powers under this Part the Bank of England shall have regard to any action that [F55 the FCA or the PRA] has taken or could take.

[F56 (2) The Bank of England—

(a) must consult the FCA before taking action under this Part in respect of a recognised F57 ... payment system the operator of which satisfies section 186(2)(a) [F58 , a service provider in relation to such a system or a service provider which itself satisfies section 186(2)(a)] and

(b) must consult the PRA before taking action under this Part in respect of a recognised F57 ... payment system the operator of which satisfies section 186(2)(b)] [F59 , a service provider in relation to such a system or a service provider which itself satisfies section 186(2)(b)].

(3) If [F60 the FCA or the PRA] gives the Bank of England notice that [F61 it] is considering taking action in respect of the operator of a recognised F62 ... payment system who satisfies [F63 section 186(2)(a) or (b)] [F64 , a service provider in relation to such a system or a service provider which itself satisfies section 186(2)(a) or (b)] the Bank may not take action under this Part in respect of the operator [F65 or service provider] unless—

(a) [F66 the FCA or (as the case may be) the PRA] consents, or

(b) the notice is withdrawn.

Textual Amendments

F54 Words in s. 192 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(6)(d), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F55 Words in s. 192(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(6)(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F56 S. 192(2) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(6)(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F57 Word in s. 192(2)(a)(b) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 14

F58 Words in s. 192(2)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(12)(a)(i)

F59 Words in s. 192(2)(b) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(12)(a)(ii)

F60 Words in s. 192(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(6)(c)(i), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F61 Word in s. 192(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(6)(c)(ii), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F62 Word in s. 192(3) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 14

F63 Words in s. 192(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(6)(c)(iii), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F64 Words in s. 192(3) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(12)(b)(i)

F65 Words in s. 192(3) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(12)(b)(ii)

F66 Words in s. 192(3)(a) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(6)(c)(iv), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Commencement Information

I11 S. 192 in force at 12.11.2009 for specified purposes and 31.12.2009 in so far as not already in force by S.I. 2009/3000, arts. 2, 4, Sch. para. 1

Enforcement U.K.

193 Inspection U.K.

(1) The Bank of England may appoint one or more persons to inspect the operation of a recognised F67 ... payment system [F68 or the provision of services to such a system by a service provider].

(2) The operator of a recognised F67 ... payment system [F69 , or a service provider in relation to such a system,] must—

(a) grant an inspector access, on request and at any reasonable time, to premises on or from which any part of the system is operated [F70 or (as the case may be) premises on or from which any part of the services is provided], and

(b) otherwise co-operate with an inspector.

Textual Amendments

F67 Word in s. 193(1)(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 15

F68 Words in s. 193(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(13)(a)

F69 Words in s. 193(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(13)(b)(i)

F70 Words in s. 193(2)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(13)(b)(ii)

Commencement Information

I12 S. 193 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

194 Inspection: warrant U.K.

(1) A justice of the peace may on the application of an inspector issue a warrant entitling an inspector or a constable to enter premises if—

[F71 (a) there is conducted on the premises any part of the management or operation of—

(i) a recognised payment system (whether by an operator of the system or by someone providing services used by an operator), or

(ii) a service provider in relation to a recognised payment system, and]

(b) any of the following conditions is satisfied.

(2) Condition 1 is that—

(a) a requirement under section 204 in connection with the payment system [F72 or the service provider] has not been complied with, and

(b) there is reason to believe that information relevant to the requirement is on the premises.

(3) Condition 2 is that there is reason to suspect that if a requirement under section 204 were imposed in connection with the payment system [F73 or the service provider] in respect of information on the premises—

(a) the requirement would not be complied with, and

(b) the information would be destroyed or otherwise tampered with.

(4) Condition 3 is that an inspector—

(a) gave reasonable notice of a wish to enter the premises, and

(b) was refused entry.

(5) Condition 4 is that a person occupying or managing the premises has failed to co-operate with an inspector.

(6) A warrant—

(a) permits an inspector or a constable to enter the premises,

(b) permits an inspector or a constable to search the premises and copy or take possession of information or documents, and

(c) permits a constable to use reasonable force.

(7) Sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 (warrants: procedure) apply to warrants under this section.

(8) In the application of this section to Scotland—

(a) the reference to a justice of the peace includes a reference to a sheriff, and

(b) ignore subsection (7).

(9) In the application of this section to Northern Ireland—

(a) the reference to a justice of the peace is a reference to a lay magistrate, and

(b) the reference to sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 is a reference to the equivalent provisions of the Police and Criminal Evidence (Northern Ireland) Order 1989.

Textual Amendments

F71 S. 194(1)(a) substituted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(14)(a)

F72 Words in s. 194(2)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(14)(b)

F73 Words in s. 194(3) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(14)(b)

Commencement Information

I13 S. 194 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

195 Independent report U.K.

(1) The Bank of England may require

[F74 (a)] the operator of a recognised F75 ... payment system to appoint an expert to report on the operation of the system [F76 ; or

(b) a service provider in relation to a recognised payment system to appoint an expert to report on the provision of services to the system.]

(2) The Bank may impose a requirement only if it thinks—

(a) the operator [F77 or service provider] is not taking sufficient account of principles published by the Bank under section 188,

(b) the operator [F78 or service provider] is failing to comply with a code of practice under section 189, or

(c) the report is likely for any other reason to assist the Bank in the performance of its functions under this Part.

(3) The Bank may impose requirements about—

(a) the nature of the expert to be appointed;

(b) the content of the report;

(c) treatment of the report (including disclosure and publication);

(d) timing.

Textual Amendments

F74 S. 195(1)(a): words in s. 195(1) renumbered as s. 195(1)(a) (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(15)(a)(i)

F75 Word in s. 195(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 17

F76 S. 195(1)(b) and word inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(15)(a)(ii)

F77 Words in s. 195(2)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(15)(b)

F78 Words in s. 195(2)(b) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(15)(b)

Commencement Information

I14 S. 195 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

196 Compliance failure U.K.

In this Part “compliance failure” means a failure by the operator of a recognised F79 ... payment system [F80 , or a service provider in relation to such a system,] to—

(a) comply with a code of practice under section 189,

(b) comply with a requirement under section 190,

(c) comply with a direction under section 191, or

(d) ensure compliance with a requirement under section 195.

Textual Amendments

F79 Word in s. 196 omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 18

F80 Words in s. 196 inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(16)

Commencement Information

I15 S. 196 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

197 Publication U.K.

(1) The Bank of England may publish details of a compliance failure by the operator of a recognised F81 ... payment system [F82 or a service provider in relation to such a system].

(2) The Bank may publish details of a sanction imposed under sections 198 to 200.

Textual Amendments

F81 Word in s. 197(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 19

F82 Words in s. 197(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(17)

Commencement Information

I16 S. 197 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

198 Penalty U.K.

(1) The Bank of England may require the operator of a recognised F83 ... payment system [F84 , or a service provider in relation to such a system,] to pay a penalty in respect of a compliance failure.

(2) A penalty—

(a) must be paid to the Bank of England, and

(b) may be enforced by the Bank as a debt.

(3) The Bank must prepare a statement of the principles which it will apply in determining—

(a) whether to impose a penalty, and

(b) the amount of a penalty.

(4) The Bank must—

(a) publish the statement on its internet website,

(b) send a copy to the Treasury,

(c) review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and

(d) in applying the statement to a compliance failure, apply the version in force when the failure occurred.

Textual Amendments

F83 Word in s. 198(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 20

F84 Words in s. 198(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(18)

Commencement Information

I17 S. 198 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

199 Closure U.K.

(1) This section applies if the Bank of England thinks that a compliance failure—

(a) threatens the stability of, or confidence in, the UK financial system, or

(b) has serious consequences for business or other interests throughout the United Kingdom.

(2) The Bank may give the operator of the F85 ... payment system concerned [F86 , or the service provider concerned,] an order to stop operating the system [F87 or (as the case may be) providing services to a recognised payment system] (a “closure order”)—

(a) for a specified period,

(b) until further notice, or

(c) permanently.

(3) A closure order may apply to—

(a) all activities of the payment system [F88 or all services provided to a recognised payment system by the service provider], or

(b) specified activities [F89 or specified services].

[F90 (3A) Before giving a closure order to a service provider, the Bank must have regard to the public interest in the continued operation of each recognised payment system in relation to which the service provider is specified under section 206A(2)(b).]

(4) An operator [F91 or service provider] who fails to comply with a closure order commits an offence.

(5) A person guilty of an offence is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to a fine.

Textual Amendments

F85 Word in s. 199(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 21

F86 Words in s. 199(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(a)(i)

F87 Words in s. 199(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(a)(ii)

F88 Words in s. 199(3)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(b)(i)

F89 Words in s. 199(3)(b) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(b)(ii)

F90 S. 199(3A) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(c)

F91 Words in s. 199(4) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(d)

Commencement Information

I18 S. 199 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

200 Management disqualification U.K.

(1) The Bank of England may by order prohibit a specified person from being an operator of a recognised F92 ... payment system—

(a) for a specified period,

(b) until further notice, or

(c) permanently.

(2) The Bank may by order prohibit a specified person from holding an office or position involving responsibility for taking decisions about the management of a recognised F92 ... payment system [F93 or about the management of a service provider in relation to such a system]—

(a) for a specified period,

(b) until further notice, or

(c) permanently.

[F94 (2A) Before making an order under subsection (2) in respect of a service provider, the Bank must have regard to the public interest in the continued operation of each recognised payment system in relation to which the service provider is specified under section 206A(2)(b).]

(3) A person who breaches a prohibition under subsection (1) or (2) commits an offence.

(4) A person guilty of an offence is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to a fine.

Textual Amendments

F92 Word in s. 200(1)(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 22

F93 Words in s. 200(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(20)(a)

F94 S. 200(2A) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(20)(b)

Commencement Information

I19 S. 200 in force at 12.11.2009 for specified purposes and 31.12.2009 in so far as not already in force by S.I. 2009/3000, arts. 2, 4, Sch. para. 2

201 Warning U.K.

(1) Before imposing a sanction on the operator of [F95 a] payment system [F96 , on a service provider in relation to such a system] or on another person the Bank of England must—

(a) give the operator [F97 , service provider] or other person a notice (a “warning notice”),

(b) give the operator [F98 , service provider] or other person at least 21 days to make representations,

(c) consider any representations made, and

(d) as soon as is reasonably practicable, give the operator [F99 , service provider] or other person a notice stating whether or not the Bank intends to impose the sanction.

[F100 (1A) Before imposing a sanction on a person who is a service provider in relation to a recognised payment system the Bank must also—

(a) give the operator of the payment system a notice (a “warning notice”),

(b) give the operator at least 21 days to make representations,

(c) consider any representations made, and

(d) as soon as reasonably practicable, give the operator a notice stating whether the Bank intends to impose the sanction.]

(2) In [F101 subsections (1) and (1A)] “imposing a sanction” means—

(a) publishing details under section 197(1),

(b) requiring the payment of a penalty under section 198,

(c) giving a closure order under section 199, or

(d) making an order under section 200.

(3) Despite [F102 subsections (1) and (1A)], if satisfied that it is necessary the Bank may without notice—

(a) give a closure order under section 199, or

(b) make an order under section 200.

Textual Amendments

F95 Word in s. 201(1) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 23

F96 Words in s. 201(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(21)(a)(i)

F97 Words in s. 201(1)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(21)(a)(ii)

F98 Words in s. 201(1)(b) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(21)(a)(ii)

F99 Words in s. 201(1)(d) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(21)(a)(ii)

F100 S. 201(1A) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(21)(b)

F101 Words in s. 201(2) substituted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(21)(c)

F102 Words in s. 201(3) substituted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(21)(c)

Commencement Information

I20 S. 201 in force at 12.11.2009 for specified purposes and 31.12.2009 in so far as not already in force by S.I. 2009/3000, arts. 2, 4, Sch. para. 2

202 Appeal U.K.

(1) Where the Bank of England notifies a person under section 201(1)(d) [F103 or (1A)(d)] that the Bank intends to impose a sanction, the person may appeal to the [F104 Upper Tribunal].

(2) Where the Bank of England imposes a sanction on a person without notice in reliance on section 201(3), the person [F105 and, if the person is a service provider in relation to a recognised payment system, the operator of the payment system,] may appeal to the [F106 Upper Tribunal].

[F107 (3) The Bank of England may not impose a sanction while an appeal under this section could be brought or is pending.]

Textual Amendments

F103 Words in s. 202(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(22)(a)

F104 Words in s. 202(1) substituted (6.4.2010) by The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(2)(e), Sch. 2 para. 151(a) (with Sch. 5)

F105 Words in s. 202(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(22)(b)

F106 Words in s. 202(2) substituted (6.4.2010) by The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(2)(e), Sch. 2 para. 151(a) (with Sch. 5)

F107 S. 202(3) substituted (6.4.2010) by The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(2)(e), Sch. 2 para. 151(b) (with Sch. 5)

Commencement Information

I21 S. 202 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2

[F108 202A Injunctions U.K.

(1) If, on the application of the Bank of England, the court is satisfied—

(a) that there is a reasonable likelihood that there will be a compliance failure, or

(b) that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,

the court may make an order restraining the conduct constituting the failure.

(2) If, on the application of the Bank of England, the court is satisfied—

(a) that there has been a compliance failure by the operator of a recognised F109 ... payment system [F110 or a service provider in relation to such a system], and

(b) that there are steps which could be taken for remedying the failure,

the court may make an order requiring the operator [F111 or service provider], and anyone else who appears to have been knowingly concerned in the failure, to take such steps as the court may direct to remedy it.

(3) If, on the application of the Bank of England, the court is satisfied—

(a) that there may have been a compliance failure by the operator of a recognised F112 ... payment system [F113 or a service provider in relation to such a system], or

(b) that a person may have been knowingly concerned in a compliance failure,

the court may make an order restraining the operator [F114 , service provider] or person from dealing with any assets which it is satisfied the operator [F114 , service provider] or person is reasonably likely to deal with.

(4) The jurisdiction conferred by this section is exercisable—

(a) in England and Wales and Northern Ireland, by the High Court, and

(b) in Scotland, by the Court of Session.

(5) In this section—

(a) references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,

(b) references to remedying a failure include mitigating its effect, and

(c) references to dealing with assets include disposing of them.]

Textual Amendments

F108 S. 202A inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(7), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F109 Word in s. 202A(2)(a) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 24

F110 Words in s. 202A(2)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(23)(a)

F111 Words in s. 202A(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(23)(b)

F112 Word in s. 202A(3)(a) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 24

F113 Words in s. 202A(3)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(23)(a)

F114 Words in s. 202A(3) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(23)(c)

Miscellaneous U.K.

203 Fees U.K.

(1) The Bank of England may require operators of recognised F115 ... payment systems [F116 , and service providers in relation to such systems,] to pay fees.

(2) A requirement under subsection (1) must relate to a scale of fees approved by the Treasury by regulations.

(3) Regulations under subsection (2)—

(a) shall be made by statutory instrument, and

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) A requirement under subsection (1) may be enforced by the Bank as a debt.

Textual Amendments

F115 Word in s. 203(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 25

F116 Words in s. 203(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(24)

Commencement Information

I22 S. 203 in force at 12.11.2009 for specified purposes and 31.12.2009 in so far as not already in force by S.I. 2009/3000, arts. 2, 4, Sch. para. 3

[F117 203A Records U.K.

(1) The Bank of England must maintain satisfactory arrangements for—

(a) recording decisions made in the exercise of its functions under this Part, and

(b) the safe-keeping of those records which it considers ought to be preserved.

(2) The duty in subsection (1) does not apply to a decision to issue a notice under section 204(1).

Textual Amendments

F117 Ss. 203A, 203B inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(8), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

203B Annual report U.K.

(1) At least once a year the Bank of England must make a report to the Treasury on—

(a) the discharge of its functions under this Part,

(b) the extent to which, in its opinion, in discharging those functions its financial stability objective has been met, and

(c) such other matters as the Treasury may from time to time direct.

(2) Subsection (1) does not require the inclusion in the report of any information whose publication would in the opinion of the Bank of England be against the public interest.

(3) The Treasury must lay before Parliament a copy of each report received by them under this section.]

Textual Amendments

F117 Ss. 203A, 203B inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(8), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

204 Information U.K.

(1) The Bank of England may by notice in writing require a person to provide information—

(a) which the Bank thinks will help the Treasury in determining whether to make a recognition order [F118 or an order under section 206A] [F119 , or to specify a person under section 206A(2)(b)], or

(b) which the Bank otherwise requires in connection with its functions under this Part.

[F120 (1A) The Bank of England may by notice in writing require the operator of a recognised F121 ... payment system [F122 or a service provider in relation to such a system] to provide information which the Bank requires in connection with the exercise of its functions (whether under this Part or otherwise) in pursuance of its financial stability objective.]

(2) In particular, a notice [F123 under subsection (1) or (1A)] may require the operator of a recognised F124 ... payment system [F125 or a service provider in relation to such a system] to notify the Bank if events of a specified kind occur.

(3) A notice [F126 under subsection (1) or (1A)] may require information to be provided—

(a) in a specified form or manner;

(b) at a specified time;

(c) in respect of a specified period.

(4) The Bank may disclose information obtained by virtue of this section to—

(a) the Treasury;

[F127 (b) the FCA;

F128 (ba) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(c) an authority in a country or territory outside the United Kingdom which exercises functions similar to those of the Treasury, the Bank of England [F129 , the FCA or the PRA] in relation to F130 ... payment systems;

(d) the European Central Bank;

(e) the Bank for International Settlements.

(5) Subsection (4)—

(a) overrides a contractual or other requirement to keep information in confidence, and

(b) is without prejudice to any other power to disclose information.

(6) The Treasury may by regulations permit the disclosure of information obtained by virtue of this section to a specified person.

(7) The Bank may publish information obtained by virtue of this section.

(8) The Treasury may make regulations about the manner and extent of publication under subsection (7).

(9) Regulations under this section—

(a) shall be made by statutory instrument, and

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(10) It is an offence—

(a) to fail without reasonable excuse to comply with a requirement under this section;

(b) knowingly or recklessly to give false information in pursuance of this section.

(11) A person guilty of an offence is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to a fine.

Textual Amendments

F118 Words in s. 204(1)(a) inserted (8.4.2010) by Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 45

F119 Words in s. 204(1)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(25)(a)

F120 S. 204(1A) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(9)(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F121 Word in s. 204(1A) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 26

F122 Words in s. 204(1A) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(25)(b)

F123 Words in s. 204(2) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(9)(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F124 Word in s. 204(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 26

F125 Words in s. 204(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(25)(b)

F126 Words in s. 204(3) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(9)(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F127 S. 204(4)(b)(ba) substituted for s. 204(4)(b) (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(9)(c), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F128 S. 204(4)(ba) omitted (1.3.2017) by virtue of Bank of England and Financial Services Act 2016 (c. 14), s. 41(3), Sch. 2 para. 60 (with Sch. 3); S.I. 2017/43, reg. 2(g)

F129 Words in s. 204(4)(c) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(9)(d), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F130 Word in s. 204(4)(c) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 26

Commencement Information

I23 S. 204(1)(a)(2)(3)(4)(a)(b)(5)(6)(8)-(11) in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 4

I24 S. 204(1)(b)(4)(c)(4)(d)(4)(e)(7) in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 4

205 Pretending to be recognised U.K.

(1) It is an offence for the operator of a non-recognised F131 ... payment system—

(a) to assert that the system is recognised, or

(b) to do anything which suggests that the system is recognised.

[F132 (1A) It is an offence for a person who is not a service provider in relation to a recognised payment system—

(a) to assert that the person is such a service provider, or

(b) to do anything which suggests that the person is such a service provider.]

(2) A person guilty of an offence is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to a fine.

Textual Amendments

F131 Word in s. 205(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 27

F132 S. 205(1A) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(26)

Commencement Information

I25 S. 205 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 5

206 Saving for informal oversight U.K.

(1) Nothing in this Part prevents the Bank of England from having dealings with the operators of payment systems [F133 , or persons who provide services in relation to payment systems,] to which this Part does not apply.

(2) Nothing in this Part prevents the Bank from having dealings, other than through the provisions of this Part, with the operators of payment systems [F134 , or persons who provide services in relation to payment systems,] to which this Part does apply.

Textual Amendments

F133 Words in s. 206(1) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(27)

F134 Words in s. 206(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(27)

Commencement Information

I26 S. 206 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 5

[F135 206A Services forming part of recognised F136 ... payment systems U.K.

(1) The Treasury may by order make provision applying any provision of this Part to persons who are service providers in relation to a recognised F137 ... payment system.

(2) A person is a service provider in relation to a recognised F138 ... payment system if—

(a) the person provides services that form part of the arrangements constituting the system, and

(b) the person is specified as a person within paragraph (a) by the Treasury in the recognition order made in respect of the system.

(3) Telecommunication or information technology services are examples of the kind of services that may fall within subsection (2)(a).

(4) Before specifying persons under subsection (2)(b), the Treasury must—

(a) consult the Bank of England [F139 , the Payment Systems Regulator] [F140 , the FCA and the PRA],

(b) notify the operator of the system and the persons whom the Treasury proposes to specify, and

(c) consider any representations made.

(5) The Treasury may not specify the Bank of England under subsection (2)(b).

(6) Before making an order under subsection (1), the Treasury must consult—

(a) the Bank of England,

[F141 (b) the FCA,

(ba) the PRA, and]

(c) such other persons as the Treasury consider appropriate.

(7) An order under subsection (1)—

(a) may modify any provision of this Part in its application to persons who are service providers in relation to a recognised F142 ... payment system;

(b) may (but need not) take the form of textual amendment.

(8) An order under subsection (1)—

(a) is to be made by statutory instrument, and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.]

Textual Amendments

F135 S. 206A inserted (8.4.2010) by Financial Services Act 2010 (c. 28), ss. 20, 26(1)(f)

F136 Word in s. 206A heading omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 28

F137 Word in s. 206A(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 28

F138 Word in s. 206A(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 28

F139 Words in s. 206A(4)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(28)

F140 Words in s. 206A(4)(a) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(10)(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F141 S. 206A(6)(b)(ba) substituted for s. 206A(6)(b) (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 104(10)(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F142 Word in s. 206A(7)(a) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 28

[F143 206B International obligations U.K.

(1) If it appears to the Treasury that any action proposed to be taken by the Bank of England in exercising its powers under this Part would be incompatible with EU obligations or any other international obligations of the United Kingdom, the Treasury may direct the Bank not to take that action.

(2) If it appears to the Treasury that any action which the Bank of England has power under this Part to take is required for the purpose of implementing any such obligation, the Treasury may direct the Bank to take that action.

(3) A direction under this section—

(a) may include such supplemental or incidental requirements as the Treasury consider necessary or expedient, and

(b) is enforceable on an application by the Treasury, by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.]

Textual Amendments

F143 S. 206B inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 105, 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.