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Version Superseded: 29/08/2023
Point in time view as at 30/11/2017.
Banking Act 2009, Cross Heading: Recognised systems is up to date with all changes known to be in force on or before 20 September 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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(1)The Treasury may by order (“recognition order”) specify [F1a] 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 F2... payment system.
(3)The Treasury may not specify [F3a payment] system operated solely by the Bank of England.
[F4(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
F1Word in s. 184(1) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 6(2)
F2Word 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)
F3Words in s. 184(3) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 6(4)
F4S. 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
I1S. 184 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3
(1)The Treasury may make a recognition order in respect of [F5a] 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
F5Word in s. 185(1) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 7
Commencement Information
I2S. 185 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3
(1)Before making a recognition order in respect of a payment system the Treasury must—
(a)consult the Bank of England [F6and the Payment Systems Regulator],
(b)notify the operator of the system, and
(c)consider any representations made.
[F7(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.)]
[F8(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[F9, the FCA or the PRA].
Textual Amendments
F6Words 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)
F7Words 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)
F8S. 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.
F9Words 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
I3S. 186 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3
(1)The Treasury may amend a recognition order.
(2)Before amending a recognition order the Treasury must—
(a)consult the Bank of England [F11and the Payment Systems Regulator],
(b)notify the operator of the recognised F12... payment system, and
(c)consider any representations made.
[F13(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.)]
[F14(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 F15... payment system for the amendment of its recognition order [F16or any request by a service provider in relation to such a system for the amendment or revocation of its specification].]
Textual Amendments
F10S. 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.
F11Words 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)
F12Word 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
F13Words 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)
F14S. 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)
F15Word in s. 186A(4) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 8
F16Words 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)
(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 F17... payment system.
(3)Before revoking a recognition order the Treasury must—
(a)consult the Bank of England [F18and the Payment Systems Regulator],
(b)notify the operator of the recognised F19... payment system, and
(c)consider any representations made.
[F20(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 F21... payment system for the revocation of its recognition order.
Textual Amendments
F17Word in s. 187(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 9
F18Words 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)
F19Word 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
F20S. 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.
F21Word 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
I4S. 187 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3
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