The Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018

Power of FCA to cancel transitional authorisation U.K.

20.—(1) The FCA may cancel a person's transitional authorisation and remove the person from the register where—

(a) the person's authorisation by the person's home state competent authority is cancelled,

(b) the person has failed to comply with the terms of the person's authorisation by the person's home state competent authority,

(c) the person does not provide payment services in the United Kingdom during the 12 months beginning with [F1 IP completion day],

(d) the person ceases to engage in business activity in the United Kingdom for more than six months,

(e) the person's notification for the purposes of paragraph 14(1)(c) contains false statements,

(f) the person lacks one or more of the following—

(i) robust governance arrangements for its payment service business, including a clear organisational structure with well-defined, transparent and consistent lines of responsibility,

(ii) effective procedures to identify, manage, monitor and report any risks to which the person might be exposed, and

(iii) adequate internal control mechanisms, including sound administrative, risk management and accounting procedures,

(g) any of the directors, or persons responsible for the management of the person's payment services, is not of good repute,

(h) the person does not have a business plan under which appropriate and proportionate systems, resources and procedures will be employed by the person to operate soundly,

(i) the person has not taken adequate measures for the purposes of safeguarding electronic money holders' funds in accordance with regulation 23 of PSR 2017,

(j) in the case of a person carrying on payment initiation services, the person does not hold professional indemnity insurance, or a comparable guarantee, of the kind mentioned in regulation 6(7)(e) of PSR 2017,

[F2 (ja) in the case of a person carrying on account information services, the person does not hold professional indemnity insurance, or a comparable guarantee, of the kind mentioned in regulation 6(7)(f) of PSR 2017,]

(k) the person would constitute a threat to the stability of, or trust in, a payment system by continuing the person's electronic money or payment services business,

(l) the cancellation is desirable in order to protect the interests of consumers, or

(m) the person's provision of payment services is otherwise unlawful, including where such provision of services in unlawful because the person's registration in a register maintained under regulation 54 or 55 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 has been cancelled under regulation 60 of those Regulations.

(2) Regulation 10(2) to (5) of PSR 2017 apply in relation to cancellation under sub-paragraph (1) of this paragraph as they apply in relation to cancellation under regulation 10(1) of those Regulations.

Textual Amendments

F1 Words in Sch. 3 para. 20 substituted (31.1.2020 immediately before exit day) by The Financial Services (Consequential Amendments) Regulations 2020 (S.I. 2020/56), regs. 1, 8(2)(o)

F2 Sch. 3 para. 20(1)(ja) inserted (31.1.2020) by The Financial Services (Miscellaneous) (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1010), regs. 1(3), 7(4); 2020 c. 1, Sch. 5 para. 1(1)