The Payment Accounts Regulations 2015

Regulation 8(2)

SCHEDULE 1 Content and presentational format of the fee information document

Compliance with implementing technical standards

[F1 1.   The fee information document must comply with the requirements of—

(a) Commission Implementing Regulation (EU) 2018/34 of 28 September 2017 laying down implementing technical standards with regard to the standardised presentation format of the fee information document and its common symbol according to Directive 2014/92/EU of the European Parliament and of the Council, as amended from time to time; and

(b) any technical standards made by the Authority under regulation 40A (technical standards) regarding a standardised presentational format of the fee information document and its common symbol.]

Textual Amendments

F1 Sch. 1 para. 1 substituted (31.12.2020) by The Payment Accounts (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/661), regs. 1(3), 14(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Content

2.  The fee information document must—

(a) use the terms featured in the linked services list; and

(b) where the payment service provider offers any service featured in the linked services list, quote the corresponding fee for that service.

Packages of services

3.  Where one or more services featured in the linked services list are offered as part of a package of services linked to a payment account, the fee information document must disclose—

(a) the fee for the entire package;

(b) the services included in the package and their quantity; and

(c) the additional fee for any service that exceeds the quantity covered by the package fee.

Presentational format

4.  The fee information document must—

(a) be a short and stand-alone document;

(b) be presented and laid out in a way that is clear and easy to read using characters of a readable size;

(c) be no less comprehensible in the event that, having been originally produced in colour, it is printed or photocopied in black and white;

(d) be written in English or, if agreed by the consumer and payment service provider, in another language;

(e) be accurate, not misleading, and expressed in the currency of the payment account or, if agreed by the consumer and the payment service provider, in another currency F2 ...;

(f) contain the title “fee information document” at the top of the first page next to the common symbol referred to in paragraph 1 to distinguish the fee information document from other documentation;

(g) include a statement that it contains fees for the most representative services related to the payment account and that complete pre-contractual and contractual information on all the services is provided in other documents.

Textual Amendments

F2 Words in Sch. 1 para. 4(e) omitted (31.12.2020) by virtue of The Payment Accounts (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/661), regs. 1(3), 14(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Regulation 10(4)

SCHEDULE 2 Content and presentational format of the statement of fees

Compliance with implementing technical standards

[F3 1.   The statement of fees must comply with the requirements of—

(a) Commission Implementing Regulation (EU) 2018/33 of 28 September 2017 laying down implementing technical standards with regard to the standardised presentation format of the statement of fees and its common symbol according to Directive 2014/92/EU of the European Parliament and of the Council, as amended from time to time; and

(b) any technical standards made by the Authority under regulation 40A (technical standards) regarding a standardised presentational format of the statement of fees and its common symbol.]

Textual Amendments

F3 Sch. 2 para. 1 substituted (31.12.2020) by The Payment Accounts (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/661), regs. 1(3), 15 (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Content

2.  The statement of fees must—

(a) state all fees incurred during the relevant period for services linked to a payment account;

(b) where applicable, use the terms featured in the linked services list; and

(c) be accurate, not misleading, and expressed in the currency of the payment account or, if agreed by the consumer and the payment service provider, in another currency.

Mandatory information

3.—(1) The statement of fees must specify at least the following information—

(a) the unit fee charged for each service and the number of times the service was used during the relevant period;

(b) where the services are combined in a package—

(i) the fee charged for the package as a whole;

(ii) the number of times the package fee was charged during the relevant period; and

(iii) the additional fee charged for any service exceeding the quantity covered by the package fee;

(c) the total amount of fees incurred during the relevant period for—

(i) each service;

(ii) each package of services; and

(iii) services exceeding the quantity covered by the package fee;

(d) the overdraft and overunning interest rate or rates applied to the payment account during the relevant period;

(e) the total amount of interest charged relating to the overdraft and overrunning during the relevant period;

(f) the credit interest rate or rates applied to the payment account during the relevant period;

(g) the total amount of interest earned during the relevant period; and

(h) the total amount of fees charged for all services provided during the relevant period.

(2) In this paragraph—

“overrunning” means a tacitly accepted overdraft whereby a payment service provider makes available to a consumer funds which exceed the current balance in the consumer’s payment account or any overdraft facility; and

“relevant period” means the period to which the statement of fees relates.

Presentational format

4.  The statement of fees must—

(a) be presented and laid out in a way that is clear and easy to read, using characters of a readable size;

(b) be written in English, or if agreed by the consumer and the payment service provider, in another language; and

(c) contain the title “statement of fees” at the top of the first page of the statement next to the common symbol referred to in paragraph 1 to distinguish the document from other documentation.

Regulation 14(2)

SCHEDULE 3 Switching service

Interpretation

1.  In this Schedule—

“transferring payment service provider” means the payment service provider that provides the payment account from which the service is switched; and

“receiving payment service provider” means the payment service provider that provides the payment account to which the service switched.

Authorisation

2.—(1) The receiving payment service provider must perform the switching service upon receipt of an authorisation from the consumer.

(2) In the case of two or more holders of the account, authorisation must be obtained from each of them.

(3) The authorisation must be drawn up in English or in any other language agreed between the parties.

(4) The authorisation must allow the consumer to—

(a) provide specific consent to the performance by the transferring payment service provider of each of the tasks set out in paragraph 3(a) to (f);

(b) provide specific consent to the performance by the receiving payment service provider of each of the tasks referred to in paragraph 5(1)(a) to (g);

(c) specifically identify incoming credit transfers, standing orders for credit transfers and direct debit mandates that are to be switched; and

(d) specify the date from which standing orders for credit transfers and direct debits are to be executed from the payment account opened or held with the receiving payment service provider.

(5) The date specified in accordance with sub-paragraph (4)(d) must be at least six business days after the date on which the receiving payment service provider receives the documents transferred from the transferring payment service provider pursuant to paragraph 4(1)(a).

Request from the receiving payment service provider

3.  Within two business days from receipt of the authorisation referred to in paragraph 2, the receiving payment service provider must request that the transferring payment service provider carry out each of the following tasks, if provided for in that authorisation—

(a) transmit to the receiving payment service provider and, if specifically requested by the consumer, to the consumer, a list of the existing standing orders for credit transfers and available information on direct debit mandates that are being switched;

(b) transmit to the receiving payment service provider and, if specifically requested by the consumer, to the consumer, available information about recurring incoming credit transfers and creditor-driven direct debits executed on the consumer’s payment account during the previous 13 months;

(c) where the transferring payment service provider does not provide a system for automated redirection of the incoming credit transfers and direct debits to the payment account held by the consumer with the receiving payment service provider, stop accepting direct debits and incoming credit transfers with effect from the date specified in the authorisation;

(d) cancel standing orders with effect from the date specified in the authorisation;

(e) transfer any remaining positive balance to the payment account opened or held with the receiving payment service provider on the date specified by the consumer; and

(f) close the payment account held by the consumer with the transferring payment service provider on the date specified by the consumer.

Tasks for the transferring payment service provider

4.—(1) Upon receipt of a request from the receiving service provider, the transferring payment service provider must carry out the following tasks, if provided for in the consumer’s authorisation—

(a) send the receiving payment service provider the information described in paragraphs 3(a) and (b) within five business days;

(b) where the transferring payment service provider does not provide a system for automated redirection of incoming credit transfers and direct debits to the payment account held or opened by the consumer with the receiving payment service provider, stop accepting incoming credit transfers and direct debits on the payment account with effect from the date specified in the authorisation;

(c) cancel standing orders from the date specified in the authorisation;

(d) transfer any remaining positive balance from the payment account to the payment account opened or held with the receiving payment service provider on the date specified in the authorisation;

(e) without affecting [F4 regulation 51] (termination of a framework contract) of the Payment Services Regulations, close the payment account on the date specified in the authorisation if—

(i) the consumer has no outstanding obligations on that payment account; and

(ii) the actions described in paragraphs (a), (b) and (d) have been completed.

(2) Where the transferring payment service provider stops accepting incoming credit transfers and direct debits in accordance with sub-paragraph (1)(b), it must within five business days inform the payer or the payee of the reason for not completing the payment transaction.

(3) Where any outstanding obligations on the payment account prevent closure of the account pursuant to sub-paragraph (1)(e), the transferring payment service provider must immediately inform the consumer that this is the case.

Textual Amendments

F4 Words in Sch. 3 para. 4(1)(e) substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 25(d)(i) (with reg. 3)

Tasks for the receiving payment service provider

5.—(1) Within five business days of receipt of the information requested from the transferring payment service provider in accordance with paragraph 3, the receiving payment service provider must, if provided for in the authorisation and to the extent that the information provided by the transferring payment service provider or the consumer enables the receiving payment service provider to do so, carry out the following tasks—

(a) set up the standing orders for credit transfers requested by the consumer and execute them with effect from the date specified in the authorisation;

(b) make any necessary preparations to accept direct debits and accept them with effect from the date specified in the authorisation;

(c) where relevant, inform consumers of their rights pursuant to Article 5(3)(d) of Regulation (EU) 260/2012 of the European Parliament and of the Council of 14th March 2012 establishing technical and business requirements for credit transfers and direct debits in euro(1);

(d) inform payers specified in the authorisation who make recurrent incoming credit transfers into a consumer’s payment account of the details of the consumer’s payment account with the receiving payment service provider and transmit to the payers a copy of the consumer’s authorisation;

(e) where the receiving payment service provider does not have all the information it needs to complete the task referred to in paragraph (d), ask the consumer or the transferring payment service provider to provide the missing information;

(f) inform payees specified in the authorisation and using a direct debit to collect funds from the consumer’s payment account of the details of the consumer’s payment account with the receiving payment service provider and the date from which direct debits are to be collected from that payment account and transmit to each payee a copy of the consumer’s authorisation;

(g) where the receiving payment service provider does not have all the information that it needs to inform the payees, ask the consumer or the transferring payment service provider to provide the missing information.

(2) Where the consumer chooses to personally provide the information referred to in sub-paragraph (1)(d) or (f) to the payers or payees rather than to provide specific consent allowing the receiving payment service provider to do so, the receiving payment service provider must provide the consumer with standard letters providing details of—

(a) the payment account; and

(b) the starting date specified in the authorisation,

within the deadline referred to in sub-paragraph (1).

(3) Except where [F5 regulation 71(2)] of the Payment Services Regulations applies, the transferring payment service provider must not block any payment instrument before the date specified in the consumer’s authorisation.

(4) For the purposes of sub-paragraph (3), “payment instrument” has the same meaning as in the Payment Services Regulations.

Textual Amendments

F5 Words in Sch. 3 para. 5(3) substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 25(d)(ii) (with reg. 3)

Fees connected with the switching service

6.—(1) At the request of a consumer, transferring and receiving payment service providers must provide the consumer with access free of charge to details of any standing orders and direct debits applicable to the accounts the consumer holds with them.

(2) The transferring payment service provider must not charge the consumer or the receiving payment service provider for the provision of information requested from it by the receiving payment service provider pursuant to paragraph 3(a) and (b).

(3) Any fee payable by the consumer applied by the transferring payment service provider in respect of the termination of the framework contract for the payment account held with the transferring payment service provider must be determined in accordance with [F6 regulation 51] (termination of framework contract) of the Payment Services Regulations.

(4) Transferring or receiving payment service providers may charge the consumer a fee for any task referred to in paragraphs 3 to 5 that is not subject to the provisions in sub-paragraphs (1) to (3) provided that any such fee is—

(a) reasonable; and

(b) no more than the actual costs to the payment service provider of carrying out the relevant task.

Textual Amendments

F6 Words in Sch. 3 para. 6(3) substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 25(d)(iii) (with reg. 3)

Financial loss for consumers

7.—(1) Subject to sub-paragraph (2), where a consumer suffers any financial loss as a direct result of the non-compliance of a payment service provider with any requirement provided for in paragraphs 3 to 5, the payment service provider must reimburse the full extent of the loss without delay.

(2) The duty to reimburse provided for in sub-paragraph (1) does not apply in the case of unavoidable losses arising as a result of—

(a) abnormal and unforeseeable circumstances beyond the control of the payment service provider; or

(b) the payment service provider’s compliance with any statutory obligation.

Information about the switching service

8.—(1) A payment service provider must make available to consumers the following information about the switching service—

(a) the roles of the transferring and receiving payment service providers as provided for in this Schedule;

(b) the time limits that apply to the completion of the tasks provided for in this Schedule;

(c) any fees that are to be be charged;

(d) details of any information that the consumer is required to provide;

(e) details of the consumer’s right to make a complaint to the Financial Ombudsman Service.

(2) The information referred to in sub-paragraph (1) must be made available —

(a) free of charge on paper or another durable medium at all premises of the payment service provider which are accessible to consumers; and

(b) in electronic form on the payment service provider’s website at all times.

Regulation 16(1)

SCHEDULE 4 Designation of alternative arrangements etc.

Interpretation

1.  In this Schedule—

“designation certificate” means a certificate issued by the Regulator pursuant to paragraph 3;

“the operator” means the operator of a switching service which has been designated as an alternative arrangement;

“the Regulator” means the Payment Systems Regulator.

Application for designation

2.—(1) Any person may apply to the Regulator for a certificate (“a designation certificate”) designating a switching service operated by that person as an alternative arrangement.

(2) Any such application—

(a) must be made in such manner as the Regulator may direct; and

(b) must be accompanied by such information as the Regulator may reasonably require for the purpose of determining the application.

(3) The directions and requirements given or imposed under sub-paragraph (2) may differ as between different applications.

(4) Any information to be furnished to the Regulator under this paragraph must be in such form and verified in such manner as it may specify.

(5) Every application must be accompanied by copies of the rules of the switching service to which the application relates, and any guidance relating to that switching service.

Issuing the designation certificate

3.—(1) Where—

(a) an application has been made under paragraph 2;

(b) the applicant has paid any fee charged by virtue of paragraph 4(1); and

(c) the Regulator is satisfied that the requirements of regulation 15(2) are met with respect to the switching service to which the application relates;

the Regulator may issue a designation certificate declaring the switching service to be an alternative arrangement (and identifying the operator of that switching service).

(2) A designation certificate must state the date on which it comes into effect.

(3) Where the Regulator refuses an application for a designation certificate, it must give the applicant a written notice to that effect stating the reasons for the refusal and the right of appeal provided for in paragraph 12.

Application fee

4.—(1) The Regulator may charge a fee to an applicant in respect of an application for a designation certificate.

(2) Fees chargeable by the Regulator under this paragraph must not exceed an amount which reasonably represents the amount of costs incurred or likely to be incurred in determining whether the designation certificate should be issued.

(3) If a charge imposed for making an application to the Regulator for a designation certificate is not paid, the Regulator may treat the application as not having been made.

Annual fee

5.—(1) The Regulator may charge an annual fee to the operator.

(2) The annual fee charged must not exceed the total of the costs incurred by the Regulator during the twelve month period to which the fee relates in exercising the functions under this Schedule in respect of the alternative arrangement to which the fee relates.

(3) Where the Regulator charges a fee in accordance with sub-paragraph (1), the operator must—

(a) pay a first annual fee to the Regulator before the expiry of a twelve month period commencing on the date upon which the designation certificate was issued; and

(b) pay an annual fee to the Regulator before each anniversary of the issue of the designation certificate.

(4) Sub-paragraph (3)(b) does not apply in relation to an anniversary of the issue of a designation certificate on or immediately before which the designation certificate ceases, by virtue of its terms, to have effect.

(5) If any fee required pursuant to this paragraph is not paid when it falls due, the Regulator may recover the amount of the payment as a debt.

Cancellation of designation

6.—(1) A designation certificate may be cancelled by the Regulator if at any time it appears to it that the switching service to which the certificate relates no longer meets the requirements of regulation 15(2).

(2) For the purpose of monitoring whether a switching service, following designation as an alternative arrangement, continues to meet the requirements of regulation 15(2), the Regulator may by notice in writing require any person to provide such information or documents as it may reasonably require.

(3) The Regulator may cancel a designation certificate, provided that it gives the operator notice in writing of the cancellation, and the reason for the cancellation, at least three months before the date upon which the cancellation takes effect.

(4) Any notice given pursuant to sub-paragraph (3) must notify the operator of the operator’s right to appeal the Regulator’s decision to the Tribunal pursuant to paragraph 12(1)(b).

(5) A designation certificate may be cancelled at any time at the request of the operator.

Provision of information in respect of alternative arrangements

7.—(1) The Regulator may by notice in writing require a person to provide information—

(a) which the Regulator thinks will help it in determining whether to issue a designation certificate under paragraph 3(1); or

(b) which the Regulator otherwise requires in connection with its functions under this Schedule.

(2) A notice under sub-paragraph (1)—

(a) may require information to be provided—

(i) in a specified form or manner;

(ii) at a specified time;

(iii) in respect of a specified period; and

(b) must inform the recipient of—

(i) the Regulator’s ability to apply to the court for an order pursuant to paragraph 11 for the purpose of securing the recipient’s compliance with the notice; and

(ii) where the recipient is an operator, the Regulator’s power pursuant to paragraph 9(1)(a) to require the payment of a penalty in the event of the operator’s failure to comply with the notice.

Directions

8.—(1) The Regulator may give directions in writing to the operator for the purpose of ensuring that the switching service continues to meet the requirements of regulation 15(2).

(2) A direction may—

(a) require or prohibit the taking of specified action by the operator in the operation of the switching service;

(b) set standards to be met in the operation of the switching service.

(3) A direction must inform the operator of—

(a) the date by which its terms must be complied with; and

(b) the Regulator’s power to—

(i) require the operator to pay a penalty pursuant to paragraph 9(1)(b) in the event of the operator’s failure to comply with the direction; and

(ii) apply to the court for an order pursuant to paragraph 11 for the purpose of securing the operator’s compliance with the direction.

Penalties

9.—(1) The Regulator may require the operator to pay a penalty where the operator has failed to comply—

(a) with a notice to provide information issued under paragraph 7; or

(b) a direction given under paragraph 8.

(2) A penalty—

(a) must be paid to the Regulator, and

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

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

(a) whether to impose a penalty, and

(b) the amount of the penalty.

(4) The Regulator must—

(a) publish the statement on its 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 any such revision), and

(d) when applying the statement, apply the version in force at the time when the failure to comply with the relevant requirements set out in sub-paragraph (1)(a) and (b) occurred.

Warning notices

10.  Before it requires the payment of a penalty by the operator under paragraph 9 the Regulator must—

(a) give the operator a notice in writing (a “warning notice”);

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

(c) consider any representations made; and

(d) as soon as is reasonably practicable, give the operator a notice in writing stating whether or not it intends to impose the penalty, and where a penalty is to be imposed, the amount of the penalty.

Injunctions

11.—(1) If, on the application of the Regulator, the court is reasonably satisfied that—

(a) either—

(i) a person has failed to comply with a notice to provide information issued under paragraph 7; or

(ii) the operator of a designated alternative arrangement has failed to comply with a direction given under paragraph 8; and

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

the court may make an order requiring the person or operator to take such steps as the court may direct to remedy it.

(2) In sub-paragraph (1), references to remedying a failure include mitigating its effect.

(3) 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.

Appeals against refusal or cancellation

12.—(1) Where the Regulator has—

(a) refused an application for a designation certificate under paragraph 3(3);

(b) notified an operator that it intends to cancel the designation certificate in accordance with paragraph 6(3); or

(c) required the payment of a penalty under paragraph 9;

the applicant (in the case of the decision referred to in paragraph (a)) or the operator (in the case of a decision referred to in paragraph (b) or (c)) may appeal against the Regulator’s decision to the Tribunal.

(2) In determining an appeal made in accordance with this paragraph, the Tribunal must apply the same principles as would be applied by a court on an application for judicial review.

Exemption from liability in damages

13.—(1) Neither the Regulator nor any person who is, or is acting as, a member, officer or member of staff of the Regulator shall be liable in damages for anything done or omitted in the discharge, or purported discharge, of the Regulator’s functions under these Regulations.

(2) Sub-paragraph (1) does not apply—

(a) if the act or omission is shown to have been in bad faith; or

(b) so as to prevent the award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) (acts of public authorities) of the Human Rights Act 1998(2).

Publication of information and advice

14.  The Regulator may give guidance consisting of such information and advice as it considers appropriate, and in such form and manner as it considers appropriate, with regard to any matter dealt with in regulation 15(2) or this Schedule.

Regulation 16(2)

SCHEDULE 5 Fees connected with alternative arrangements etc.

Interpretation

1.  In this Schedule “participating payment service provider” means a payment service provider that is a party to a switching service that is an alternative arrangement.

Application

2.  Any duty imposed upon a participating payment service provider by this Schedule only applies in connection with its participation in that switching service.

Fees connected with the alternative arrangement

3.—(1) At the request of a consumer, a participating payment service provider must provide the consumer free of charge with details of any standing orders and direct debits applicable to the accounts that the consumer holds with it.

(2) Any fee payable by the consumer applied by a participating payment service provider in respect of the termination of a framework contract for the payment account held with that participating payment service provider must be determined in accordance with [F7 regulation 51] (termination of framework contract) of the Payment Services Regulations.

(3) Any fee charged to a consumer by a participating payment service provider for any service provided in connection with the switching of a payment account must be—

(a) reasonable; and

(b) no more than the actual costs to the participating payment service provider of providing the relevant service.

Textual Amendments

F7 Words in Sch. 5 para. 3(2) substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 25(e) (with reg. 3)

Financial loss for consumers

4.—(1) Subject to paragraph (2), a participating payment service provider must ensure that any financial loss that the consumer incurs as a direct result of the non-compliance of the participating payment service provider with any requirement provided for in the alternative arrangement must reimburse the consumer the full extent of the loss without delay.

(2) The duty to reimburse provided for in sub-paragraph (1) does not apply in the case of unavoidable losses arising as a result of—

(a) abnormal and unforeseeable circumstances beyond the control of the participating payment service provider; or

(b) the participating payment service provider’s compliance with any statutory obligation.

Information about the alternative arrangement

5.—(1) A participating payment service provider must make available to consumers the following information about the alternative arrangement—

(a) the roles played by participating payment service providers when switching payment accounts;

(b) the time limits that apply for the completion of any tasks provided for in the alternative arrangement;

(c) any fees that are to be be charged;

(d) details of any information that the consumer is required to provide;

(e) details of the consumer’s right to make a complaint to the Financial Ombudsman Service.

(2) The information referred to in sub-paragraph (1) must be made available —

(a) free of charge on paper or another durable medium at all premises of the participating payment service provider that are accessible to consumers; and

(b) in electronic form on the participating payment service provider’s website at all times.

Regulation 21(2)

SCHEDULE 6 Designated credit institutions

Factors to be taken into account

1.  When considering whether to give a designation notice to a credit institution, the Treasury must take into account the following factors—

(a) the credit institution’s geographical coverage;

(b) the distribution of consumers within the United Kingdom;

(c) the credit institution’s share of the United Kingdom’s payment account market.

Procedure

2.—(1) Before giving a designation notice to a credit institution, the Treasury must—

(a) consult the Authority;

(b) notify the credit institution that it is minded to give the designation notice; and

(c) consider any representations made.

(2) When considering whether to give a designation notice to a credit institution, the Treasury may have regard to any information that the Authority has gathered in the course of the exercise of its functions under sections 234I(3) (the Authority’s functions under Part 4 of the Enterprise Act 2002) and 234J(4) (the Authority’s functions under the Competition Act 1998) of the Act.

Cancellation

3.—(1) The Treasury may cancel a designation notice.

(2) Before cancelling a designation notice, the Treasury must—

(a) consult the Authority;

(b) notify the credit institution to which the designation notice relates that it is minded to cancel the designation notice; and

(c) consider any representations made.

(3) Following cancellation of a designation notice, the credit institution must continue to offer a payment account with basic features to any customer holding such an account with the credit institution at the time of cancellation until such time as the customer ceases to be eligible to hold such an account under these Regulations.

Regulation 42

SCHEDULE 7 Application and modification of legislation

PART 1 Application and modification of the Act

The Tribunal

1.—(1) Section 133(5) (proceedings before Tribunal: general provision) to section 133B(6) (offences) of the Act apply in respect of references and appeals made to the Tribunal under these Regulations as they apply in respect of references and appeals made to the Tribunal under the Act in respect of a decision of the FCA with the following modifications.

(2) Section 133 applies as if for subsection (7A) there were substituted—

“(7A) A reference is a “disciplinary reference” for the purposes of this section if it is in respect of any of the following decisions made under the Payment Accounts Regulations 2015—

(a) a decision to publish a statement under regulation 33;

(b) a decision to impose a penalty under regulation 34;

(c) a decision to publish a statement under regulation 35;

(d) a decision to impose a penalty under regulation 35.”.

(3) Section 133A(7) (Proceedings before Tribunal: decision and supervisory notices, etc.) applies as if in subsection (1) “, as a result of section 388(2),” were omitted.

Information gathering and investigations

2.—(1) Subject to sub-paragraph (2), Part 11 of the Act (information gathering and investigations) applies to the Authority’s functions under these Regulations as it applies to its functions under the Act with the modifications set out in sub-paragraphs (3) to (16).

(2) Sections 165A to 165C(8), 169A(9) and 173 do not apply.

(3) References to an authorised person are to be treated as references to a payment service provider.

(4) References to a regulator (other than to an overseas regulator) are to be treated as references to the Authority.

(5) Section 165(10) (Authority’s power to require information) applies as if in subsection (7) paragraphs (b), (c) and (d) were omitted.

(6) Section 166(11) (reports by skilled persons) applies as if subsections (10) and (11) were omitted.

(7) Section 166A(12) (appointment of skilled person to collect and update information) applies as if subsection (10) were omitted.

(8) Section 167(13) (appointment of persons to carry out general investigations) applies as if—

(a) references to an investigating authority were references to the Authority;

(b) references to—

(i) a recognised investment exchange; and

(ii) an appointed representative;

were omitted;

(c) in subsection (5) for “regulated activities” there were substituted “payment services [F8 as defined in regulation 2(1) of the Payment Services Regulations 2017, as amended from time to time]”; and

(d) subsections (5A) and (6) were omitted.

(9) Section 168(14) (appointment of persons to carry out investigations in particular cases) applies as if—

(a) references to an investigating authority were references to the Authority;

(b) in subsection (1)—

(i) in paragraph (b) for “191F” to the end, there were substituted “or;”;

(ii) after paragraph (b) there were inserted—

“(c) a person may have contravened any requirement of or imposed under the Payment Accounts Regulations 2015.”; and

(c) subsections (2), (4), (5) and (6) were omitted.

(10) Section 169(15) (investigations etc in support of overseas regulator) applies as if—

(a) references to an overseas regulator were references to a competent authority F9 ... designated in accordance with Article 21 of the Payment Accounts Directive [F10 , as it has effect in EU law];

(b) in subsection (8) for “Part XXIII” there were substituted “sections 348, 349 and 352”; and

(c) subsection (13) were omitted.

(11) Section 170(16) (investigations: general) applies as if—

(a) references to an investigating authority were references to the Authority;

(b) in subsection (1) “or (5)” were omitted;

(c) in subsection (3)(a) “or (4)” were omitted;

(d) subsection (3)(b) were omitted; and

(e) subsection (10) were omitted.

(12) Section 171(17) (powers of persons appointed under section 167) applies as if subsections (3A) and (7) were omitted.

(13) Section 172 (additional power of persons appointed as a result of section 168(1) or (4)) applies as if in subsection (4) “or (4)” were omitted.

(14) Section 174(18) (admissibility of statements made to investigators) applies as if—

(a) in subsection (2)—

(i) “or in proceedings in relation to action to be taken against that person under section 123”; and

(ii) “or (as the case may be) a regulator”;

were omitted;

(b) in subsection (3)(a) “177(4) or” were omitted;

(c) in subsection (4) “or (5)” were omitted; and

(d) in subsection (5) “, 173” were omitted.

(15) Section 175(19) (information and documents: supplemental provisions) applies as if in subsection (8) “or (5)” were omitted.

(16) Section 176(20) (entry of premises under a warrant) applies as if—

(a) in subsection (1) “the Secretary of State,” were omitted;

(b) in subsection (3)(a) “or an appointed representative” were omitted;

(c) in subsection (10) “or (5)” were omitted;

(d) in subsection (11)(a) for “87C” to “169A” there were substituted “165”; and

(e) in subsection (11)(b) “, 173” were omitted.

Textual Amendments

F8 Words in Sch. 7 para. 2(8)(c) inserted (31.12.2020) by The Payment Accounts (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/661), regs. 1(3), 16(2)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F9 Words in Sch. 7 para. 2(10)(a) omitted (31.12.2020) by virtue of The Payment Accounts (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/661), regs. 1(3), 16(2)(b)(i) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F10 Words in Sch. 7 para. 2(10)(a) inserted (31.12.2020) by The Payment Accounts (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/661), regs. 1(3), 16(2)(b)(ii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Restriction on disclosure of information

3.—(1) Sections 348(21) (restrictions on disclosure of confidential information by FCA, PRA etc), 349(22) (exceptions from section 348) and 352 (offences) of the Act apply to information received in connection with the Authority’s functions under these Regulations as they apply in relation to information received in connection with the Authority’s functions under the Act with the following modifications.

(2) Section 348 applies as if—

(a) in subsection (3)(a) for “this Act” there were substituted “the Payment Accounts Regulations 2015”;

(b) in subsection (5)—

(i) paragraphs (aa) and (c) were omitted;

(ii) in paragraph (e) for “paragraphs (a) to (c)” there were substituted “paragraph (a)”;

(iii) in paragraph (ea) for “those paragraphs” there were substituted “that paragraph”;

(iv) paragraph (f) were omitted;

(c) subsection (6) were omitted.

(3) Section 349 applies as if subsections (3A) and (3B) were omitted.

(4) Section 352 applies as if—

(a) in subsection (1) “or 350(5)” were omitted;

(b) subsection (4) were omitted;

(c) in subsection (5) “or (4)” were omitted;

(d) in subsection (6)(a) “or that it had been disclosed in accordance with section 350” were omitted.

Warning notices and decision notices

4.—(1) Subject to sub-paragraph (2), Part 26 of the Act (notices) applies to notices given by the Authority under these Regulations as it applies to notices given by the Authority under the Act with the following modifications.

(2) Section 391A(23) does not apply.

(3) Section 387(24) (warning notices) applies as if subsections (1A) and (3A) were omitted.

(4) Section 388(25) (decision notices) applies as if subsections (1A) and (2) were omitted.

(5) Section 390(26) (final notices) applies as if—

(a) subsections (6) and (10) were omitted; and

(b) in subsection (8) “or (6)(c)” were omitted.

(6) Section 391(27) (publication) applies as if—

(a) for subsection (1ZB) there were substituted—

“(1ZB) A warning notice falls within this subsection if it is given under regulation 36 of the Payment Accounts Regulations 2015.”; and

(b) subsections (4A), (5A), (6A), F11 ... (7B), (8A) [F12 , (8AA)] and (11) were omitted.

(7) Section 392(28) (application of sections 393 and 394) applies as if for paragraphs (a) and (b) there were substituted—

“warning noticed and decision notices given in accordance with regulation 36 of the Payment Accounts Regulations 2015.”.

(8) Section 395(29) (the FCA’s and PRA’s procedures) applies as if—

(a) subsection (1)(b)(ii) were omitted;

(b) in subsection (9) “other than a warning notice or decision notice relating to a decision of the PRA that is required by a decision of the FCA of the kind mentioned in subsection 1(b)(ii)” were omitted;

(c) subsection (9A) were omitted; and

(d) in subsection (13) for “in accordance with” to the end there were substituted “under regulation 31 of the Payment Accounts Regulations 2015.”.

Textual Amendments

F11 Word in Sch. 7 para. 4(6)(b) omitted (31.12.2020) by virtue of The Payment Accounts (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/661), regs. 1(3), 16(3)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F12 Word in Sch. 7 para. 4(6)(b) inserted (31.12.2020) by The Payment Accounts (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/661), regs. 1(3), 16(3)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Misleading the Authority

5.  Section 398(30) of the Act (misleading FCA or PRA: residual cases) applies in respect of requirements imposed by or under these Regulations, as it applies in respect of requirements imposed by or under the Act.

Institution of proceedings

6.  Section 401(31) of the Act (proceedings for offences) applies in respect of offences under these Regulations as it applies in respect of offences under the Act, but as if—

(a) references to the appropriate regulator were references to the Authority; and

(b) subsections (3A) and (3B) were omitted.

Limitation on power to require documents

7.  Section 413 of the Act (protected items) applies for the purposes of these Regulations as it applies for the purposes of the Act.

PART 2 Application and modification of secondary legislation

The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001

8.  The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001(32) apply to any notice given by or to the Authority under these Regulations as they apply to relevant documents within the meaning of regulation 1(2)(33) of those Regulations with the following modifications—

(a) references to an investigating authority apply as if they are references to the Authority; and

(b) regulation 6A is omitted.

The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001

9.  The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001(34) apply with the following modifications—

(a) in regulation 2(35)—

(i) after the definition of “overseas regulatory authority” insert—

““Payment Accounts Directive” means Directive 2014/92/EU of the European Parliament and of the Council of 23rd July 2014 on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features;

“payment accounts directive information” means confidential information received by the Authority in the course of discharging its functions as the competent authority under the Payment Accounts Directive;”;

(ii) in the definition of “single market restrictions”, after paragraph (m) add—

“(n) Articles 21(2) and 22 of the Payment Accounts Directive;”;

(b) in regulation 8(36)—

(i) at the end of paragraph (c) omit “and”; and

(ii) at the of paragraph (d) insert—

“; and

(e) payment accounts directive information.”; and

(c) in regulation 11(37), after paragraph (g) insert—

“(h) payment accounts directive information.”.

(1)

OJ No L 94, 30.3.2012, p.22.

(2)

1998 c.42.

(3)

Section 234I was inserted by section 129 of, and paragraphs 1 and 3 of Part 1 of Schedule 8 to, the Financial Services (Banking Reform) Act 2013.

(4)

Section 234J was inserted by section 129 of, and paragraphs 1 and 3 of Part 1 of Schedule 8 to, the Financial Services (Banking Reform) Act 2013.

(5)

Section 133 was substituted by S.I. 2010/22 and subsequently amended by section 23(1) and (2) of the Financial Services Act 2012 (c. 21), and section 17 of, and paragraph 83 of Part 3 of Schedule 9 to, the Crime and Courts Act 2013 (c. 22) and by S.I. 2013/1388 and S.I. 2014/3329.

(6)

Section 133B was substituted by S.I. 2010/22 and subsequently amended by section 23(1) and (4) of the Financial Services Act 2012.

(7)

Section 133A was substituted by S.I. 2010/22 and subsequently amended by section 23(1) and (3) of the Financial Services Act 2012.

(8)

Section 165A was inserted by section 18(1) and (2) of the Financial Services Act 2010 (c.28) and subsequently amended by section 41 of, and paragraph 2 of Part 1 of Schedule 12 to, the Financial Services Act 2012. Section 165B was inserted by section 18(1) and (2) of the Financial Services Act 2010 and subsequently amended by section 41 of, and paragraph 3 of Part 1 of Schedule 12 to, the Financial Services Act 2012. Section 165C was inserted by section 18(1) and (2) of the Financial Services Act 2010 and subsequently amended by section 41 of, and paragraph 4 of Part 1 of Schedule 12 to, the Financial Services Act 2012.

(9)

Section 169A was inserted by section 18(1) and (3) of the Financial Services Act 2010 and subsequently amended by section 41 of, and paragraph 10 of Part 1 of Schedule 12 to, the Financial Services Act 2012.

(10)

Section 165 was amended by section 24(1) and (2) of, and by paragraphs 1 and 15 of Part 1 of Schedule 2 to, the Financial Services Act 2010, and by section 41 of, and paragraph 1 of Part 1 of Schedule 12 to, the Financial Services Act 2012, and by S.I. 2013/1773 and S.I. 2015/575.

(11)

Section 166 was substituted by section 41 of, and paragraph 5 of Part 1 of Schedule 12 to, the Financial Services Act 2012.

(12)

Section 166A was inserted by section 41 of, and paragraph 6 of Part 1 of Schedule 12 to, the Financial Services Act 2012.

(13)

Section 167 was amended by section 41 of, and paragraph 7(1), (2) and (3) of Part 1 of Schedule 12 to, the Financial Services Act 2012, and by S.I. 2007/126 and S.I. 2015/575.

(14)

Section 168 was amended by section 41 of, and paragraphs 8(1), 8(2)(a) and (b), 8(3)(a) and (b), 8(4)(a)-(g), 8(5) and 8(6) of Part 1 of Schedule 12 to, the Financial Services Act 2012, by section 47 of, and paragraph 1 and 11 of Schedule 3 to, the Pension Schemes Act 2015 (c.8), and by section 62 of, and paragraph 33 of Part 7 of Schedule 7 to, the Counter-Terrorism Act 2008 (c. 28), and by section 24(1) and (2) of, and paragraphs 1 and 16(1), (2) and (3) of Part 1 of Schedule 2 to, the Financial Services Act 2010, and by S.I. 2007/126, S.I. 2012/2554 and S.I. 2013/1773.

(15)

Section 169 was amended by section 41 of, and paragraph 9(1), (2) and (6) of Part 1 of Schedule 12 to, the Financial Services Act 2012.

(16)

Section 170 was amended by section 41 of, and paragraph 10 of Part 1 of Schedule 12 to, the Financial Services Act 2012.

(17)

Section 171 was amended by S.I. 2007/126.

(18)

Section 174 was amended by section 41 of, and paragraph 12 of Part 1 of Schedule 12 to, the Financial Services Act 2012.

(19)

Section 175 was amended by section 41 of, and paragraph 13 of Part 1 of Schedule 12 to, the Financial Services Act 2012.

(20)

Section 176 was amended by section 41 of, and paragraph 14 of Part 1 of Schedule 12 to, the Financial Services Act 2012, and by section 24(1) and (2) of, and paragraphs 1 and 17 of Part 1 of Schedule 2 to, the Financial Services Act 2010, and by S.I. 2005/1433.

(21)

Section 348 was amended by section 24(1) and (2) of, and paragraphs 1 and 26 of Part 1 of Schedule 2 to, the Financial Services Act 2010, and by section 41 of, and paragraph 18 of Part 2 of Schedule 12 to, the Financial Services Act 2012, and by section 129 of, and paragraph 5 of Part 1 of Schedule 8 to, the Financial Services (Banking Reform) Act 2013.

(22)

Section 349 was amended by section 41 of, and paragraph 19(1) to (4) of Part 2 of Schedule 12 to, the Financial Services Act 2012, and by section 964(1) and (4) of the Companies Act 2006 (c.46), and by S.I. 2006/1183 and S.I. 2007/1093.

(23)

Section 391A was inserted by S.I. 2013/3115.

(24)

Section 387 was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraph 26 of Part 6 of Schedule 9 to, the Financial Services Act 2012.

(25)

Section 388 was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraph 27 of Part 6 of Schedule 9 to, the Financial Services Act 2012.

(26)

Section 390 was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraph 29 (1) to (5) of Part 6 of Schedule 9 to, the Financial Services Act 2012, and by S.I. 2010/22.

(27)

Section 391 was amended by sections 24(2) and 37(1) of, and paragraph 1 of Part 1 and paragraph 30 (1) to (8) of Part 6 of Schedule 9 to, the Financial Services Act 2012, and by sections 13(1) and (3) and 24(1) and (2) of, and paragraphs 1 and 28 of Part 1 of Schedule 2 to, the Financial Services Act 2010 and by S.I. 2012/916, S.I. 2013/1388, S.I. 2013/3115, and S.I. 2014/2879.

(28)

Section 392 was amended by sections 18(1) and (5), section 35, section 37(1) and section 42 of, and paragraphs 1 and 37 of Schedule 8, and paragraph 1 of Part 1 and paragraph 31 of Part 6 of Schedule 9 and paragraph 8 of Schedule 13 to, the Financial Services Act 2012, and by section 24(1) and (2) of, and paragraphs 1 and 29 of Part 1 of Schedule 2 to, the Financial Services Act 2010, and by S.I. 2007/126 and S.I. 2013/1388.

(29)

Section 395 was amended by section 17(1) and (3), section 18(1) and (6), section 19(2), section 24(3) and section 37(1) of, and paragraph 1 of Part 1 and paragraph 34 (1) to (15) of Part 6 of Schedule 9 to, the Financial Services Act 2012 and by S.I. 2005/381, S.I. 2005/1433, S.I. 2007/1973, S.I. 2009/534 and S.I. 2013/1388.

(30)

Section 398 was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraph 36(1) and (3) of Part 7 of Schedule 9 to, the Financial Services Act 2012, and by S.I. 2013/1773.

(31)

Section 401 was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraph 38 of Part 7 of Schedule 9 to, the Financial Services Act 2012 and by S.I. 2013/1881.

(32)

S.I. 2001/1420.

(33)

Regulation 1(2) was amended by S.I. 2010/1193, S.I. 2013/472 and S.I. 2014/549.

(34)

S.I. 2001/2188.

(35)

Regulation 2 was amended by S.I. 2003/693, S.I. 2003/2066, S.I. 2004/1862, S.I. 2004/3379, S.I. 2006/3413, S.I. 2010/2628, S.I. 2012/916, S.I. 2012/2554, S.I. 2013/472, S.I. 2013/504, S.I. 2013/1162, S.I. 2013/1773, S.I. 2013/3115, S.I. 2014/3348, S.I. 2015/575, and S.I. 2015/910.

(36)

Regulation 8 was substituted by S.I. 2006/3413 and subsequently amended by S.I. 2012/916, S.I. 2013/504 and S.I. 2014/3348.

(37)

Regulation 11 was amended by S.I. 2003/2066, S.I. 2006/3413, S.I. 2011/1613, S.I. 2012/916, S.I. 2013/504 and S.I. 2014/3348.