S. 103 in force at 1.3.2014 by S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1

S. 104 in force at 1.3.2014 by S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1

S. 105 in force at 1.3.2014 by S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1

S. 106 in force at 1.3.2014 by S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1

S. 107 in force at 1.3.2014 by S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1

S. 104 applied (with modifications) (9.12.2015) by The Payment Card Interchange Fee Regulations 2015 (S.I. 2015/1911), regs. 1, 15(2) (as amended (1.1.2024) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), reg. 3(10))

S. 104 applied (with modifications) (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), regs. 1(6), 136(2) (with reg. 3)

http://www.legislation.gov.uk/ukpga/2013/33/part/5/crossheading/consultation-accountability-and-oversight/2019-12-09Financial Services (Banking Reform) Act 2013An Act to make further provision about banking and other financial services, including provision about the Financial Services Compensation Scheme; to make provision for the amounts owed in respect of certain deposits to be treated as a preferential debt on insolvency; to make further provision about payment systems and securities settlement systems; to make provision about the accounts of the Bank of England and its wholly owned subsidiaries; to make provision in relation to persons providing claims management services; and for connected purposes.texttext/xmlenStatute Law Database2024-09-06Expert Participation2019-12-09PART 5Regulation of payment systemsConsultation, accountability and oversight
103Regulator's general duty to consult(1)

The Payment Systems Regulator must make and maintain effective arrangements for consulting relevant persons on—

(a)

the extent to which its general policies and practices are consistent with its general duties under section 49, and

(b)

how its payment systems objectives may best be achieved.

(2)

The following are “relevant persons” for the purposes of this section—

(a)

participants in regulated payment systems, and

(b)

those who use, or are likely to use, services provided by regulated payment systems.

(3)

Arrangements under this section must include the establishment and maintenance of one or more panels of persons to represent the interests of relevant persons.

(4)

Where the Payment Systems Regulator establishes a panel under subsection (3), it must appoint one of the members of the panel to be its chair.

(5)

The Treasury's approval is required for the appointment or dismissal of the chair of a panel established under subsection (3).

(6)

The Payment Systems Regulator must—

(a)

consider representations that are made to it in accordance with arrangements made under this section, and

(b)

from time to time publish, in such manner as it thinks fit, responses to the representations.

104Consultation in relation to generally applicable requirements(1)

In this section references to imposing a generally applicable requirement are to—

(a)

giving a general direction under section 54, or

(b)

imposing a generally-imposed requirement under section 55,

and references to the requirement are to be read accordingly.

(2)

Before imposing a generally applicable requirement, the Payment Systems Regulator must—

(a)

consult the Bank of England, the FCA and the PRA, and

(b)

after doing so, publish a draft of the proposed requirement in the way appearing to the Payment Systems Regulator to be best calculated to bring it to the attention of the public.

(3)

The draft must be accompanied by—

(a)

a cost benefit analysis,

(b)

an explanation of the purpose of the proposed requirement,

(c)

an explanation of the Payment Systems Regulator's reasons for believing that imposing the requirement is compatible with its duties under section 49, and

(d)

notice that representations about the proposed requirement may be made to the Payment Systems Regulator within a specified time.

(4)

Before imposing the proposed requirement the Payment Systems Regulator must have regard to any representations made to it in accordance with subsection (3)(d).

(5)

If the Payment Systems Regulator proposes to impose the requirement, it must publish an account, in general terms, of—

(a)

the representations made to it in accordance with subsection (3)(d), and

(b)

its response to them.

(6)

If the requirement differs from the draft published under subsection (2)(b) in a way which is, in the opinion of the Payment Systems Regulator, significant the Payment Systems Regulator must (in addition to complying with subsection (5)) publish details of the difference together with a cost benefit analysis.

(7)

For the purposes of this section a “cost benefit analysis” is—

(a)

an analysis of the costs together with an analysis of the benefits that will arise—

(i)

if the proposed requirement is imposed, or

(ii)

if subsection (6) applies, from the requirement imposed, and

(b)

subject to subsection (8), an estimate of those costs and of those benefits.

(8)

If, in the opinion of the Payment Systems Regulator—

(a)

the costs or benefits referred to in subsection (7) cannot reasonably be estimated, or

(b)

it is not reasonably practicable to produce an estimate,

the cost benefit analysis need not estimate them, but must include a statement of the Payment Systems Regulator's opinion and an explanation of it.

(9)

The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (2)(b).

(10)

Subsections (2)(b) and (3) to (6) do not apply if the Payment Systems Regulator considers that the delay involved in complying with them would be prejudicial to the interests of those who use, or are likely to use, services provided by regulated payment systems.

(11)

Subsections (3)(a) and (6) do not apply if the Payment Systems Regulator considers that, making the appropriate comparison—

(a)

there will be no increase in costs, or

(b)

there will be an increase in costs but the increase will be of minimal significance.

(12)

In subsection (11) the “appropriate comparison” means—

(a)

in relation to subsection (3)(a), a comparison between the overall position if the requirement is imposed and the overall position if it is not imposed;

(b)

in relation to subsection (6), a comparison between the overall position after the imposing of the requirement and the overall position before it was imposed.

105Independent inquiries(1)

Section 68 of the Financial Services Act 2012 (cases in which Treasury may arrange independent inquiries) is amended as follows.

(2)

In subsection (1), for “two” substitute “ three ”.

(3)

After subsection (3) insert—(3A)

The third case is where it appears to the Treasury that—

(a)

events have occurred in relation to a regulated payment system which caused or risked causing significant damage to business or other interests throughout the United Kingdom, and

(b)

those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in—

(i)

the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or

(ii)

the operation of that system.

(4)

In section 83(1) (interpretation), after the definition of “regulated activity” insert—

regulated payment system” has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act);

.

106Investigations into regulatory failure(1)

Part 5 of the Financial Services Act 2012 (inquiries and investigations) is amended as follows.

(2)

After section 76 insert—

76ADuty of Payment Systems Regulator to investigate and report on possible regulatory failure(1)

Subsection (3) applies where it appears to the Payment Systems Regulator that—

(a)

events have occurred in relation to a regulated payment system which had or could have had a significant adverse effect on effective competition in the interests of—

(i)

participants in the payment system, or

(ii)

those who use, or are likely to use, the services provided by the payment system, and

(b)

those events might not have occurred, or the adverse effect might have been reduced, but for a serious failure in—

(i)

the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or

(ii)

the operation of that system.

(2)

Subsection (3) also applies where the Treasury direct the Payment Systems Regulator that it appears to the Treasury that the conditions in subsection (1) are met in relation to specified events.

(3)

The Payment Systems Regulator must carry out an investigation into the events and the circumstances surrounding them and report to the Treasury on the result of the investigation.

(4)

Subsection (3) does not apply by virtue of subsection (1) if the Treasury direct the Payment Systems Regulator that it is not required to carry out an investigation into the events concerned.

(5)

In this section “participant”, in relation to a regulated payment system, has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act).

(3)

In section 77 (power of Treasury to require FCA or PRA to undertake investigation)—

(a)

in subsection (1)(a), for “either regulator” substitute “ a regulator ”;

(b)

in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert, or (d)

a regulated payment system.

;

(c)

the heading of that section becomes Power of Treasury to require regulator to undertake investigation.

(4)

In section 78 (conduct of investigation), in subsection (1), for “or 74” substitute “ , 74 or 76A ”.

(5)

In section 79 (conclusion of investigation), for “or 74” substitute “ , 74 or 76A ”.

(6)

In section 80 (statements of policy), in subsection (1)(a), for “or 74” substitute “ , 74 or 76A ”.

(7)

In section 81 (publication of directions), in subsection (1), after paragraph (b) insert—(ba)

section 76A(4);

.

(8)

In section 83(1) (interpretation)—

(a)

after the definition of “listed securities” insert—

the Payment Systems Regulator” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013;

;

(b)

in the definition of “regulator”, for “or the PRA” substitute “ , the PRA or the Payment Systems Regulator ”.

107Competition scrutiny(1)

Chapter 4 of Part 9A of FSMA 2000 (competition scrutiny) applies to the Payment Systems Regulator's practices and regulating provisions in relation to payment systems as it applies to the FCA's practices and regulating provisions within the meaning of that Chapter.

(2)

In subsection (1)—

(a)

the reference to the Payment Systems Regulator's practices in relation to payment systems is a reference to practices adopted by it in the exercise of functions under this Part, and

(b)

the reference to the Payment Systems Regulator's regulating provisions in relation to payment systems is a reference to the following—

(i)

any general directions given under section 54;

(ii)

any generally-imposed requirements under section 55;

(iii)

any guidance given under section 96.

This XML file does not appear to have any style information associated with it. The document tree is shown below.
<akomaNtoso xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xsi:schemaLocation="http://docs.oasis-open.org/legaldocml/ns/akn/3.0 http://docs.oasis-open.org/legaldocml/akn-core/v1.0/cos01/part2-specs/schemas/akomantoso30.xsd">
<act name="ukpga">
<meta>
<identification source="#">
<FRBRWork>
<FRBRthis value="http://www.legislation.gov.uk/id/ukpga/2013/33"/>
<FRBRuri value="http://www.legislation.gov.uk/id/ukpga/2013/33"/>
<FRBRdate date="2013-12-18" name="enacted"/>
<FRBRauthor href="http://www.legislation.gov.uk/id/legislature/UnitedKingdomParliament"/>
<FRBRcountry value="GB-UKM"/>
<FRBRnumber value="33"/>
<FRBRname value="2013 c. 33"/>
<FRBRprescriptive value="true"/>
</FRBRWork>
<FRBRExpression>
<FRBRthis value="http://www.legislation.gov.uk/ukpga/2013/33/2019-12-09"/>
<FRBRuri value="http://www.legislation.gov.uk/ukpga/2013/33/2019-12-09"/>
<FRBRdate date="2019-12-09" name="validFrom"/>
<FRBRauthor href="#"/>
<FRBRlanguage language="eng"/>
</FRBRExpression>
<FRBRManifestation>
<FRBRthis value="http://www.legislation.gov.uk/ukpga/2013/33/2019-12-09/data.akn"/>
<FRBRuri value="http://www.legislation.gov.uk/ukpga/2013/33/2019-12-09/data.akn"/>
<FRBRdate date="2024-11-21Z" name="transform"/>
<FRBRauthor href="http://www.legislation.gov.uk"/>
<FRBRformat value="application/akn+xml"/>
</FRBRManifestation>
</identification>
<lifecycle source="#">
<eventRef refersTo="#enactment" date="2013-12-18" eId="date-enacted" source="#"/>
<eventRef date="2014-03-01" eId="date-2014-03-01" source="#"/>
<eventRef date="2018-01-13" eId="date-2018-01-13" source="#"/>
<eventRef date="2019-03-27" eId="date-2019-03-27" source="#"/>
<eventRef date="2019-12-09" eId="date-2019-12-09" source="#"/>
<eventRef date="2020-06-26" eId="date-2020-06-26" source="#"/>
<eventRef date="2020-12-01" eId="date-2020-12-01" source="#"/>
<eventRef date="2023-08-29" eId="date-2023-08-29" source="#"/>
</lifecycle>
<analysis source="#">
<restrictions source="#">
<restriction refersTo="#extent-e+w+s+ni" type="jurisdiction"/>
<restriction href="#part-5" refersTo="#extent-e+w+s+ni" type="jurisdiction"/>
<restriction href="#part-5-crossheading-consultation-accountability-and-oversight" refersTo="#extent-e+w+s+ni" type="jurisdiction"/>
<restriction href="#section-103" refersTo="#extent-e+w+s+ni" type="jurisdiction"/>
<restriction href="#section-104" refersTo="#extent-e+w+s+ni" type="jurisdiction"/>
<restriction href="#section-106" refersTo="#extent-e+w+s+ni" type="jurisdiction"/>
<restriction refersTo="#period-from-2019-12-09-to-2020-06-26" type="jurisdiction"/>
<restriction href="#body" refersTo="#period-from-2019-12-09" type="jurisdiction"/>
<restriction href="#part-5" refersTo="#period-from-2019-03-27-to-2020-12-01" type="jurisdiction"/>
<restriction href="#part-5-crossheading-consultation-accountability-and-oversight" refersTo="#period-from-2018-01-13-to-2023-08-29" type="jurisdiction"/>
<restriction href="#section-103" refersTo="#period-from-2014-03-01-to-2023-08-29" type="jurisdiction"/>
<restriction href="#section-104" refersTo="#period-from-2018-01-13-to-2023-08-29" type="jurisdiction"/>
<restriction href="#section-105" refersTo="#period-from-2014-03-01" type="jurisdiction"/>
<restriction href="#section-106" refersTo="#period-from-2014-03-01" type="jurisdiction"/>
<restriction href="#section-107" refersTo="#period-from-2014-03-01" type="jurisdiction"/>
</restrictions>
<otherAnalysis source="">
<uk:commentary href="#section-103" refersTo="#key-af670b56b3e5dc42954a0c73b3f102e7"/>
<uk:commentary href="#section-104" refersTo="#key-bfabd5afc1174619aba24af728c2af6a"/>
<uk:commentary href="#section-104" refersTo="#key-68677d16d91bcff4654ca830245ef953"/>
<uk:commentary href="#section-104" refersTo="#key-fdb11ddb0af19fadaf58f39c0455f66e"/>
<uk:commentary href="#section-105" refersTo="#key-84ae023a6816ad5f74910ce38dfb7d92"/>
<uk:commentary href="#section-106" refersTo="#key-fc78ca56493c6fd59233dee602520420"/>
<uk:commentary href="#section-107" refersTo="#key-c68bd8641c476550be844fe333048db3"/>
</otherAnalysis>
</analysis>
<temporalData source="#">
<temporalGroup eId="period-from-2014-03-01">
<timeInterval start="#date-2014-03-01" refersTo="#"/>
</temporalGroup>
<temporalGroup eId="period-from-2014-03-01-to-2023-08-29">
<timeInterval start="#date-2014-03-01" end="#date-2023-08-29" refersTo="#"/>
</temporalGroup>
<temporalGroup eId="period-from-2018-01-13-to-2023-08-29">
<timeInterval start="#date-2018-01-13" end="#date-2023-08-29" refersTo="#"/>
</temporalGroup>
<temporalGroup eId="period-from-2019-03-27-to-2020-12-01">
<timeInterval start="#date-2019-03-27" end="#date-2020-12-01" refersTo="#"/>
</temporalGroup>
<temporalGroup eId="period-from-2019-12-09">
<timeInterval start="#date-2019-12-09" refersTo="#"/>
</temporalGroup>
<temporalGroup eId="period-from-2019-12-09-to-2020-06-26">
<timeInterval start="#date-2019-12-09" end="#date-2020-06-26" refersTo="#"/>
</temporalGroup>
</temporalData>
<references source="#">
<TLCEvent eId="enactment" href="" showAs="EnactmentDate"/>
<TLCLocation eId="extent-e+w+s+ni" href="" showAs="E+W+S+N.I."/>
</references>
<notes source="#">
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-af670b56b3e5dc42954a0c73b3f102e7" marker="I1">
<p>
S. 103 in force at 1.3.2014 by
<ref eId="cygub5wu1-00790" href="http://www.legislation.gov.uk/id/uksi/2014/377">S.I. 2014/377</ref>
,
<ref eId="cygub5wu1-00791" class="subref" href="http://www.legislation.gov.uk/id/uksi/2014/377/article/2/1/a">art. 2(1)(a)</ref>
,
<ref eId="cygub5wu1-00792" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2014/377/schedule/part/1">Sch. Pt. 1</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-bfabd5afc1174619aba24af728c2af6a" marker="I2">
<p>
S. 104 in force at 1.3.2014 by
<ref eId="cygub5wu1-00801" href="http://www.legislation.gov.uk/id/uksi/2014/377">S.I. 2014/377</ref>
,
<ref eId="cygub5wu1-00802" class="subref" href="http://www.legislation.gov.uk/id/uksi/2014/377/article/2/1/a">art. 2(1)(a)</ref>
,
<ref eId="cygub5wu1-00803" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2014/377/schedule/part/1">Sch. Pt. 1</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-84ae023a6816ad5f74910ce38dfb7d92" marker="I3">
<p>
S. 105 in force at 1.3.2014 by
<ref eId="cygub5wu1-00812" href="http://www.legislation.gov.uk/id/uksi/2014/377">S.I. 2014/377</ref>
,
<ref eId="cygub5wu1-00813" class="subref" href="http://www.legislation.gov.uk/id/uksi/2014/377/article/2/1/a">art. 2(1)(a)</ref>
,
<ref eId="cygub5wu1-00814" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2014/377/schedule/part/1">Sch. Pt. 1</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-fc78ca56493c6fd59233dee602520420" marker="I4">
<p>
S. 106 in force at 1.3.2014 by
<ref eId="cygub5wu1-00823" href="http://www.legislation.gov.uk/id/uksi/2014/377">S.I. 2014/377</ref>
,
<ref eId="cygub5wu1-00824" class="subref" href="http://www.legislation.gov.uk/id/uksi/2014/377/article/2/1/a">art. 2(1)(a)</ref>
,
<ref eId="cygub5wu1-00825" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2014/377/schedule/part/1">Sch. Pt. 1</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-c68bd8641c476550be844fe333048db3" marker="I5">
<p>
S. 107 in force at 1.3.2014 by
<ref eId="cygub5wu1-00834" href="http://www.legislation.gov.uk/id/uksi/2014/377">S.I. 2014/377</ref>
,
<ref eId="cygub5wu1-00835" class="subref" href="http://www.legislation.gov.uk/id/uksi/2014/377/article/2/1/a">art. 2(1)(a)</ref>
,
<ref eId="cygub5wu1-00836" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2014/377/schedule/part/1">Sch. Pt. 1</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="C" class="commentary C" eId="key-68677d16d91bcff4654ca830245ef953" marker="C1">
<p>
<ref eId="ccd8e120240131113822338Z" class="subref" href="http://www.legislation.gov.uk/id/ukpga/2013/33/section/104">S. 104</ref>
applied (with modifications) (9.12.2015) by
<ref eId="d10e4" href="http://www.legislation.gov.uk/id/uksi/2015/1911">The Payment Card Interchange Fee Regulations 2015 (S.I. 2015/1911)</ref>
,
<ref eId="ccd8e720240131113822338Z" class="subref" href="http://www.legislation.gov.uk/id/uksi/2015/1911/regulation/1">regs. 1</ref>
,
<ref eId="ccd8e1020240131113822338Z" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2015/1911/regulation/15/2">15(2)</ref>
(as amended (1.1.2024) by
<ref eId="d10e13" href="http://www.legislation.gov.uk/id/uksi/2023/790">The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790)</ref>
,
<ref eId="ccd8e1620240131113822338Z" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2023/790/regulation/3/10">reg. 3(10)</ref>
)
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="C" class="commentary C" eId="key-fdb11ddb0af19fadaf58f39c0455f66e" marker="C2">
<p>
S. 104 applied (with modifications) (13.1.2018) by
<ref eId="cwfo9thy2-00059" href="http://www.legislation.gov.uk/id/uksi/2017/752">The Payment Services Regulations 2017 (S.I. 2017/752)</ref>
,
<ref eId="cwfo9thy2-00060" class="subref" href="http://www.legislation.gov.uk/id/uksi/2017/752/regulation/1/6">regs. 1(6)</ref>
,
<ref eId="cwfo9thy2-00061" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2017/752/regulation/136/2">136(2)</ref>
(with
<ref eId="cwfo9thy2-00062" class="subref" href="http://www.legislation.gov.uk/id/uksi/2017/752/regulation/3">reg. 3</ref>
)
</p>
</note>
</notes>
<proprietary xmlns:ukm="http://www.legislation.gov.uk/namespaces/metadata" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:dct="http://purl.org/dc/terms/" source="#">
<dc:identifier>http://www.legislation.gov.uk/ukpga/2013/33/part/5/crossheading/consultation-accountability-and-oversight/2019-12-09</dc:identifier>
<dc:title>Financial Services (Banking Reform) Act 2013</dc:title>
<dc:description>An Act to make further provision about banking and other financial services, including provision about the Financial Services Compensation Scheme; to make provision for the amounts owed in respect of certain deposits to be treated as a preferential debt on insolvency; to make further provision about payment systems and securities settlement systems; to make provision about the accounts of the Bank of England and its wholly owned subsidiaries; to make provision in relation to persons providing claims management services; and for connected purposes.</dc:description>
<dc:type>text</dc:type>
<dc:format>text/xml</dc:format>
<dc:language>en</dc:language>
<dc:publisher>Statute Law Database</dc:publisher>
<dc:modified>2024-09-06</dc:modified>
<dc:contributor>Expert Participation</dc:contributor>
<dct:valid>2019-12-09</dct:valid>
<ukm:PrimaryMetadata>
<ukm:DocumentClassification>
<ukm:DocumentCategory Value="primary"/>
<ukm:DocumentMainType Value="UnitedKingdomPublicGeneralAct"/>
<ukm:DocumentStatus Value="revised"/>
</ukm:DocumentClassification>
<ukm:Year Value="2013"/>
<ukm:Number Value="33"/>
<ukm:EnactmentDate Date="2013-12-18"/>
<ukm:ISBN Value="9780105433132"/>
</ukm:PrimaryMetadata>
<ukm:Notes>
<ukm:Note IdURI="http://www.legislation.gov.uk/id/ukpga/2013/33/notes"/>
<ukm:Alternatives>
<ukm:Alternative URI="http://www.legislation.gov.uk/ukpga/2013/33/pdfs/ukpgaen_20130033_en.pdf" Date="2014-02-04" Title="Explanatory Note" Size="789993"/>
</ukm:Alternatives>
</ukm:Notes>
<ukm:CorrectionSlips>
<ukm:CorrectionSlip URI="http://www.legislation.gov.uk/ukpga/2013/33/pdfs/ukpgacs_20130033_en_003.pdf" Date="2018-11-26" Title="Correction Slip 3" Size="11459"/>
<ukm:CorrectionSlip URI="http://www.legislation.gov.uk/ukpga/2013/33/pdfs/ukpgacs_20130033_en_001.pdf" Date="2015-03-16" Title="Correction Slip 1" Size="11375"/>
<ukm:CorrectionSlip URI="http://www.legislation.gov.uk/ukpga/2013/33/pdfs/ukpgacs_20130033_en.pdf" Date="2014-03-27" Title="Correction Slip" Size="11591"/>
</ukm:CorrectionSlips>
<ukm:Alternatives>
<ukm:Alternative URI="http://www.legislation.gov.uk/ukpga/2013/33/pdfs/ukpga_20130033_en.pdf" Date="2013-12-20" Size="1498429"/>
</ukm:Alternatives>
<ukm:Statistics>
<ukm:TotalParagraphs Value="425"/>
<ukm:BodyParagraphs Value="212"/>
<ukm:ScheduleParagraphs Value="213"/>
<ukm:AttachmentParagraphs Value="0"/>
<ukm:TotalImages Value="0"/>
</ukm:Statistics>
</proprietary>
</meta>
<body eId="body">
<part eId="part-5">
<num>
<b>PART 5</b>
</num>
<heading>Regulation of payment systems</heading>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-consultation-accountability-and-oversight" uk:target="true">
<heading>
<i>Consultation, accountability and oversight</i>
</heading>
<section eId="section-103">
<num>103</num>
<heading>Regulator's general duty to consult</heading>
<subsection eId="section-103-1">
<num>(1)</num>
<intro>
<p>The Payment Systems Regulator must make and maintain effective arrangements for consulting relevant persons on—</p>
</intro>
<level class="para1" eId="section-103-1-a">
<num>(a)</num>
<content>
<p>the extent to which its general policies and practices are consistent with its general duties under section 49, and</p>
</content>
</level>
<level class="para1" eId="section-103-1-b">
<num>(b)</num>
<content>
<p>how its payment systems objectives may best be achieved.</p>
</content>
</level>
</subsection>
<subsection eId="section-103-2">
<num>(2)</num>
<intro>
<p>
The following are “
<term refersTo="#term-relevant-persons" eId="term-relevant-persons">relevant persons</term>
” for the purposes of this section—
</p>
</intro>
<level class="para1" eId="section-103-2-a">
<num>(a)</num>
<content>
<p>participants in regulated payment systems, and</p>
</content>
</level>
<level class="para1" eId="section-103-2-b">
<num>(b)</num>
<content>
<p>those who use, or are likely to use, services provided by regulated payment systems.</p>
</content>
</level>
</subsection>
<subsection eId="section-103-3">
<num>(3)</num>
<content>
<p>Arrangements under this section must include the establishment and maintenance of one or more panels of persons to represent the interests of relevant persons.</p>
</content>
</subsection>
<subsection eId="section-103-4">
<num>(4)</num>
<content>
<p>Where the Payment Systems Regulator establishes a panel under subsection (3), it must appoint one of the members of the panel to be its chair.</p>
</content>
</subsection>
<subsection eId="section-103-5">
<num>(5)</num>
<content>
<p>The Treasury's approval is required for the appointment or dismissal of the chair of a panel established under subsection (3).</p>
</content>
</subsection>
<subsection eId="section-103-6">
<num>(6)</num>
<intro>
<p>The Payment Systems Regulator must—</p>
</intro>
<level class="para1" eId="section-103-6-a">
<num>(a)</num>
<content>
<p>consider representations that are made to it in accordance with arrangements made under this section, and</p>
</content>
</level>
<level class="para1" eId="section-103-6-b">
<num>(b)</num>
<content>
<p>from time to time publish, in such manner as it thinks fit, responses to the representations.</p>
</content>
</level>
</subsection>
</section>
<section eId="section-104">
<num>104</num>
<heading>Consultation in relation to generally applicable requirements</heading>
<subsection eId="section-104-1">
<num>(1)</num>
<intro>
<p>In this section references to imposing a generally applicable requirement are to—</p>
</intro>
<level class="para1" eId="section-104-1-a">
<num>(a)</num>
<content>
<p>giving a general direction under section 54, or</p>
</content>
</level>
<level class="para1" eId="section-104-1-b">
<num>(b)</num>
<content>
<p>imposing a generally-imposed requirement under section 55,</p>
</content>
</level>
<wrapUp>
<p>and references to the requirement are to be read accordingly.</p>
</wrapUp>
</subsection>
<subsection eId="section-104-2">
<num>(2)</num>
<intro>
<p>Before imposing a generally applicable requirement, the Payment Systems Regulator must—</p>
</intro>
<level class="para1" eId="section-104-2-a">
<num>(a)</num>
<content>
<p>consult the Bank of England, the FCA and the PRA, and</p>
</content>
</level>
<level class="para1" eId="section-104-2-b">
<num>(b)</num>
<content>
<p>after doing so, publish a draft of the proposed requirement in the way appearing to the Payment Systems Regulator to be best calculated to bring it to the attention of the public.</p>
</content>
</level>
</subsection>
<subsection eId="section-104-3">
<num>(3)</num>
<intro>
<p>The draft must be accompanied by—</p>
</intro>
<level class="para1" eId="section-104-3-a">
<num>(a)</num>
<content>
<p>a cost benefit analysis,</p>
</content>
</level>
<level class="para1" eId="section-104-3-b">
<num>(b)</num>
<content>
<p>an explanation of the purpose of the proposed requirement,</p>
</content>
</level>
<level class="para1" eId="section-104-3-c">
<num>(c)</num>
<content>
<p>an explanation of the Payment Systems Regulator's reasons for believing that imposing the requirement is compatible with its duties under section 49, and</p>
</content>
</level>
<level class="para1" eId="section-104-3-d">
<num>(d)</num>
<content>
<p>notice that representations about the proposed requirement may be made to the Payment Systems Regulator within a specified time.</p>
</content>
</level>
</subsection>
<subsection eId="section-104-4">
<num>(4)</num>
<content>
<p>Before imposing the proposed requirement the Payment Systems Regulator must have regard to any representations made to it in accordance with subsection (3)(d).</p>
</content>
</subsection>
<subsection eId="section-104-5">
<num>(5)</num>
<intro>
<p>If the Payment Systems Regulator proposes to impose the requirement, it must publish an account, in general terms, of—</p>
</intro>
<level class="para1" eId="section-104-5-a">
<num>(a)</num>
<content>
<p>the representations made to it in accordance with subsection (3)(d), and</p>
</content>
</level>
<level class="para1" eId="section-104-5-b">
<num>(b)</num>
<content>
<p>its response to them.</p>
</content>
</level>
</subsection>
<subsection eId="section-104-6">
<num>(6)</num>
<content>
<p>If the requirement differs from the draft published under subsection (2)(b) in a way which is, in the opinion of the Payment Systems Regulator, significant the Payment Systems Regulator must (in addition to complying with subsection (5)) publish details of the difference together with a cost benefit analysis.</p>
</content>
</subsection>
<subsection eId="section-104-7">
<num>(7)</num>
<intro>
<p>For the purposes of this section a “cost benefit analysis” is—</p>
</intro>
<level class="para1" eId="section-104-7-a">
<num>(a)</num>
<intro>
<p>an analysis of the costs together with an analysis of the benefits that will arise—</p>
</intro>
<level class="para2" eId="section-104-7-a-i">
<num>(i)</num>
<content>
<p>if the proposed requirement is imposed, or</p>
</content>
</level>
<level class="para2" eId="section-104-7-a-ii">
<num>(ii)</num>
<content>
<p>if subsection (6) applies, from the requirement imposed, and</p>
</content>
</level>
</level>
<level class="para1" eId="section-104-7-b">
<num>(b)</num>
<content>
<p>subject to subsection (8), an estimate of those costs and of those benefits.</p>
</content>
</level>
</subsection>
<subsection eId="section-104-8">
<num>(8)</num>
<intro>
<p>If, in the opinion of the Payment Systems Regulator—</p>
</intro>
<level class="para1" eId="section-104-8-a">
<num>(a)</num>
<content>
<p>the costs or benefits referred to in subsection (7) cannot reasonably be estimated, or</p>
</content>
</level>
<level class="para1" eId="section-104-8-b">
<num>(b)</num>
<content>
<p>it is not reasonably practicable to produce an estimate,</p>
</content>
</level>
<wrapUp>
<p>the cost benefit analysis need not estimate them, but must include a statement of the Payment Systems Regulator's opinion and an explanation of it.</p>
</wrapUp>
</subsection>
<subsection eId="section-104-9">
<num>(9)</num>
<content>
<p>The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (2)(b).</p>
</content>
</subsection>
<subsection eId="section-104-10">
<num>(10)</num>
<content>
<p>Subsections (2)(b) and (3) to (6) do not apply if the Payment Systems Regulator considers that the delay involved in complying with them would be prejudicial to the interests of those who use, or are likely to use, services provided by regulated payment systems.</p>
</content>
</subsection>
<subsection eId="section-104-11">
<num>(11)</num>
<intro>
<p>Subsections (3)(a) and (6) do not apply if the Payment Systems Regulator considers that, making the appropriate comparison—</p>
</intro>
<level class="para1" eId="section-104-11-a">
<num>(a)</num>
<content>
<p>there will be no increase in costs, or</p>
</content>
</level>
<level class="para1" eId="section-104-11-b">
<num>(b)</num>
<content>
<p>there will be an increase in costs but the increase will be of minimal significance.</p>
</content>
</level>
</subsection>
<subsection eId="section-104-12">
<num>(12)</num>
<intro>
<p>
In subsection (11) the “
<term refersTo="#term-appropriate-comparison" eId="term-appropriate-comparison">appropriate comparison</term>
” means—
</p>
</intro>
<level class="para1" eId="section-104-12-a">
<num>(a)</num>
<content>
<p>in relation to subsection (3)(a), a comparison between the overall position if the requirement is imposed and the overall position if it is not imposed;</p>
</content>
</level>
<level class="para1" eId="section-104-12-b">
<num>(b)</num>
<content>
<p>in relation to subsection (6), a comparison between the overall position after the imposing of the requirement and the overall position before it was imposed.</p>
</content>
</level>
</subsection>
</section>
<section eId="section-105">
<num>105</num>
<heading>Independent inquiries</heading>
<subsection eId="section-105-1">
<num>(1)</num>
<content>
<p>Section 68 of the Financial Services Act 2012 (cases in which Treasury may arrange independent inquiries) is amended as follows.</p>
</content>
</subsection>
<subsection eId="section-105-2">
<num>(2)</num>
<content>
<p>
<mod>
In subsection (1), for “two” substitute
<quotedText>“ three ”</quotedText>
.
</mod>
</p>
</content>
</subsection>
<subsection eId="section-105-3">
<num>(3)</num>
<content>
<p>
<mod>
After subsection (3) insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<subsection>
<num>(3A)</num>
<intro>
<p>The third case is where it appears to the Treasury that—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>events have occurred in relation to a regulated payment system which caused or risked causing significant damage to business or other interests throughout the United Kingdom, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the operation of that system.</p>
</content>
</level>
</level>
</subsection>
</quotedStructure>
</mod>
</p>
</content>
</subsection>
<subsection eId="section-105-4">
<num>(4)</num>
<content>
<p>
<mod>
In section 83(1) (interpretation), after the definition of “regulated activity” insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<p>
<term refersTo="#term-regulated-payment-system">regulated payment system</term>
” has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act);
</p>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
</section>
<section eId="section-106">
<num>106</num>
<heading>Investigations into regulatory failure</heading>
<subsection eId="section-106-1">
<num>(1)</num>
<content>
<p>Part 5 of the Financial Services Act 2012 (inquiries and investigations) is amended as follows.</p>
</content>
</subsection>
<subsection eId="section-106-2">
<num>(2)</num>
<content>
<p>
<mod>
After section 76 insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<section>
<num>76A</num>
<heading>Duty of Payment Systems Regulator to investigate and report on possible regulatory failure</heading>
<subsection>
<num>(1)</num>
<intro>
<p>Subsection (3) applies where it appears to the Payment Systems Regulator that—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>events have occurred in relation to a regulated payment system which had or could have had a significant adverse effect on effective competition in the interests of—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>participants in the payment system, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>those who use, or are likely to use, the services provided by the payment system, and</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>those events might not have occurred, or the adverse effect might have been reduced, but for a serious failure in—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the operation of that system.</p>
</content>
</level>
</level>
</subsection>
<subsection>
<num>(2)</num>
<content>
<p>Subsection (3) also applies where the Treasury direct the Payment Systems Regulator that it appears to the Treasury that the conditions in subsection (1) are met in relation to specified events.</p>
</content>
</subsection>
<subsection>
<num>(3)</num>
<content>
<p>The Payment Systems Regulator must carry out an investigation into the events and the circumstances surrounding them and report to the Treasury on the result of the investigation.</p>
</content>
</subsection>
<subsection>
<num>(4)</num>
<content>
<p>Subsection (3) does not apply by virtue of subsection (1) if the Treasury direct the Payment Systems Regulator that it is not required to carry out an investigation into the events concerned.</p>
</content>
</subsection>
<subsection>
<num>(5)</num>
<content>
<p>
In this section “
<term refersTo="#term-participant">participant</term>
”, in relation to a regulated payment system, has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act).
</p>
</content>
</subsection>
</section>
</quotedStructure>
</mod>
</p>
</content>
</subsection>
<subsection eId="section-106-5">
<num>(3)</num>
<intro>
<p>In section 77 (power of Treasury to require FCA or PRA to undertake investigation)—</p>
</intro>
<level class="para1" eId="section-106-5-a">
<num>(a)</num>
<content>
<p>
<mod>
in subsection (1)(a), for “either regulator” substitute
<quotedText>“ a regulator ”</quotedText>
;
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-106-5-b">
<num>(b)</num>
<content>
<p>
<mod>
in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert
<quotedText startQuote="">, or </quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(d)</num>
<content>
<p>a regulated payment system.</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-106-5-c">
<num>(c)</num>
<content>
<p>
<mod>
the heading of that section becomes
<quotedText>
<b>Power of Treasury to require regulator to undertake investigation</b>
</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-106-6">
<num>(4)</num>
<content>
<p>
<mod>
In section 78 (conduct of investigation), in subsection (1), for “or 74” substitute
<quotedText>“ , 74 or 76A ”</quotedText>
.
</mod>
</p>
</content>
</subsection>
<subsection eId="section-106-7">
<num>(5)</num>
<content>
<p>
<mod>
In section 79 (conclusion of investigation), for “or 74” substitute
<quotedText>“ , 74 or 76A ”</quotedText>
.
</mod>
</p>
</content>
</subsection>
<subsection eId="section-106-8">
<num>(6)</num>
<content>
<p>
<mod>
In section 80 (statements of policy), in subsection (1)(a), for “or 74” substitute
<quotedText>“ , 74 or 76A ”</quotedText>
.
</mod>
</p>
</content>
</subsection>
<subsection eId="section-106-9">
<num>(7)</num>
<content>
<p>
<mod>
In section 81 (publication of directions), in subsection (1), after paragraph (b) insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(ba)</num>
<content>
<p>section 76A(4);</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
<subsection eId="section-106-10">
<num>(8)</num>
<intro>
<p>In section 83(1) (interpretation)—</p>
</intro>
<level class="para1" eId="section-106-10-a">
<num>(a)</num>
<content>
<p>
<mod>
after the definition of “listed securities” insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<p>
<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>
” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013;
</p>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-106-10-b">
<num>(b)</num>
<content>
<p>
<mod>
in the definition of “regulator”, for “or the PRA” substitute
<quotedText>“ , the PRA or the Payment Systems Regulator ”</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
</section>
<section eId="section-107">
<num>107</num>
<heading>Competition scrutiny</heading>
<subsection eId="section-107-1">
<num>(1)</num>
<content>
<p>Chapter 4 of Part 9A of FSMA 2000 (competition scrutiny) applies to the Payment Systems Regulator's practices and regulating provisions in relation to payment systems as it applies to the FCA's practices and regulating provisions within the meaning of that Chapter.</p>
</content>
</subsection>
<subsection eId="section-107-2">
<num>(2)</num>
<intro>
<p>In subsection (1)—</p>
</intro>
<level class="para1" eId="section-107-2-a">
<num>(a)</num>
<content>
<p>the reference to the Payment Systems Regulator's practices in relation to payment systems is a reference to practices adopted by it in the exercise of functions under this Part, and</p>
</content>
</level>
<level class="para1" eId="section-107-2-b">
<num>(b)</num>
<intro>
<p>the reference to the Payment Systems Regulator's regulating provisions in relation to payment systems is a reference to the following—</p>
</intro>
<level class="para2" eId="section-107-2-b-i">
<num>(i)</num>
<content>
<p>any general directions given under section 54;</p>
</content>
</level>
<level class="para2" eId="section-107-2-b-ii">
<num>(ii)</num>
<content>
<p>any generally-imposed requirements under section 55;</p>
</content>
</level>
<level class="para2" eId="section-107-2-b-iii">
<num>(iii)</num>
<content>
<p>any guidance given under section 96.</p>
</content>
</level>
</level>
</subsection>
</section>
</hcontainer>
</part>
</body>
</act>
</akomaNtoso>