Banking Act 2009

Recognised systems

184 Recognition order

(1) The Treasury may by order (“recognition order”) specify an inter-bank 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 inter-bank payment system.

(3) The Treasury may not specify an inter-bank system operated solely by the Bank of England.

185 Recognition criteria

(1) The Treasury may make a recognition order in respect of an inter-bank 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.

186 Procedure

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

(a) consult the Bank of England,

(b) notify the operator of the system, and

(c) consider any representations made.

(2) The Treasury must also consult the FSA before making a recognition order in respect of a payment system the operator of which—

(a) is, or has applied to become, a recognised investment exchange within the meaning of section 285 of the Financial Services and Markets Act 2000,

(b) is, or has applied to become, a recognised clearing house within the meaning of that section, or

(c) has, or has applied for, permission under Part 4 of that Act (regulated activities).

(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 or the FSA.

187 De-recognition

(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 inter-bank payment system.

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

(a) consult the Bank of England,

(b) notify the operator of the recognised inter-bank payment system, and

(c) consider any representations made.

(4) The Treasury must also consult the FSA before revoking a recognition order in respect of a payment system the operator of which—

(a) is, or has applied to become, a recognised investment exchange within the meaning of section 285 of the Financial Services and Markets Act 2000,

(b) is, or has applied to become, a recognised clearing house within the meaning of that section, or

(c) has, or has applied for, permission under Part 4 of that Act (regulated activities).

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