(1)Where the first, second and third conditions are met, the PRA may give a direction under this section to the Payment Systems Regulator.
(2)The first condition is that the Payment Systems Regulator is proposing to exercise any of its powers under this Part in relation to—
(a)a class of PRA-authorised persons, or
(b)a particular PRA-authorised person.
(3)The second condition is that the PRA is of the opinion that the exercise of the power in the manner proposed may—
(a)threaten the stability of the UK financial system,
(b)result in the failure of a PRA-authorised person in a way that would have an adverse effect on the stability of the UK financial system,
(c)threaten the continuity of core services provided in the United Kingdom, or
(d)have an adverse effect on the ability of the PRA to comply with its duty under section 2B(1) of FSMA 2000 (the PRA’s general objective).
(4)The third condition is that the PRA is of the opinion that the giving of the direction is necessary in order to avoid the possible consequence falling within subsection (3).
(5)A direction under this section is a direction requiring the Payment Systems Regulator not to exercise the power or not to exercise it in a specified manner.
(6)The direction may be expressed to have effect during a specified period or until revoked.
(7)The Payment Systems Regulator is not required to comply with a direction under this section if or to the extent that in the opinion of the Payment Systems Regulator compliance would be incompatible with any EU obligation or any other international obligation of the United Kingdom.
(8)The reference in subsection (3)(b) to the “failure” of a PRA-authorised person is to be read in accordance with section 2J(3) and (4) of FSMA 2000.
(9)In this section—
“core services” has the same meaning as in FSMA 2000 (see section 142C of that Act), and
“PRA-authorised person” has the same meaning as in FSMA 2000 (see section 2B(5) of that Act).