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Textual Amendments
F1Word in Pt. 5 heading omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 2
F2Words in Pt. 5 heading inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 2
Textual Amendments
F3Words in s. 184 cross-heading inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 6
(1)The Treasury may by order (“recognition order”) specify [F5a] 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 F6... payment system.
(3)The Treasury may not specify [F7a payment] system operated solely by the Bank of England.
[F8(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 [F9or connected with] the recognised system.]
Textual Amendments
F4Words in s. 184 heading inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 7
F5Word in s. 184(1) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 6(2)
F6Word 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)
F7Words in s. 184(3) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 6(4)
F8S. 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)
F9Words in s. 184(4) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 8
Commencement Information
I1S. 184 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3
(1)The Treasury may by order (“recognition order”) specify a DSA service provider as a recognised DSA service provider for the purposes of this Part.
(2)A recognition order under this section must specify in as much detail as is reasonably practicable the services provided.
(3)The Treasury may not specify a DSA service provider operated solely by the Bank of England.]
Textual Amendments
F10S. 184A inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 9
(1)The Treasury may make a recognition order in respect of [F12a] 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
F11Words in s. 185 heading inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 10
F12Word 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)The Treasury may make a recognition order in respect of a DSA service provider only if satisfied that any deficiencies in the services provided by the service provider, or any disruption to the provision of those services, 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 DSA service provider the Treasury must have regard to—
(a)the value of the services in relation to payment systems that the DSA service provider presently provides or is likely to provide in the future,
(b)the nature of the services in relation to payment systems that the DSA service provider provides,
(c)whether those services or their equivalent could be provided by others, and
(d)the relationship between the DSA service provider and—
(i)operators of payment systems that use digital settlement assets, and
(ii)other DSA service providers.]
Textual Amendments
F13S. 185A inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 11
(1)Before making a recognition order in respect of a payment system [F14or a DSA service provider] the Treasury must—
(a)consult the Bank of England [F15and the Payment Systems Regulator],
[F16(aa)in the case of a recognition order in respect of a DSA service provider, consult the FCA,]
(b)notify the operator of the system [F17or the DSA service provider (as appropriate)], and
(c)consider any representations made.
[F18(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.)]
[F19(2)In addition, the Treasury—
(a)must consult the FCA before making a recognition order in respect of a payment system [F20or a DSA service provider, where the operator of the system or the provider] —
(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 [F21or provider] 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 [F22or a DSA service provider] the Treasury may rely on information provided by the Bank of England[F23, the FCA or the PRA].
Textual Amendments
F14Words in s. 186(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 12(2)
F15Words 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)
F16S. 186(1)(aa) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 12(3)
F17Words in s. 186(1)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 12(4)
F18Words 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)
F19S. 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.
F20Words in s. 186(2)(a) substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 12(5)
F21Words in s. 186(2)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 12(6)
F22Words in s. 186(3) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 12(7)
F23Words 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 [F25and the Payment Systems Regulator],
[F26(aa)in the case of a recognition order in respect of a DSA service provider, consult the FCA,]
(b)notify the operator of the recognised F27... payment system [F28or the recognised DSA service provider (as appropriate)], and
(c)consider any representations made.
[F29(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.)]
[F30(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 [F31or a DSA service provider, where the operator of the system or the provider]—
(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 [F32or provider] 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 F33... payment system [F34or by a recognised DSA service provider] for the amendment of its recognition order [F35or any request by a service provider in relation to such a system [F36or provider,] for the amendment or revocation of its specification].]
Textual Amendments
F24S. 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.
F25Words 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)
F26S. 186A(2)(aa) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 13(2)
F27Word 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
F28Words in s. 186A(2)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 13(3)
F29Words 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)
F30S. 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)
F31Words in s. 186A(3)(a) substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 13(4)
F32Words in s. 186A(3)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 13(5)
F33Word in s. 186A(4) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 8
F34Words in s. 186A(4) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 13(6)(a)
F35Words 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)
F36Words in s. 186A(4) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 13(6)(b)
(1)The Treasury may revoke a recognition order.
(2)The Treasury must revoke a recognition order if not satisfied—
[F37(a)]that the criteria in section 185 are met in respect of the recognised F38... payment system. [F39, or
(b)that the criteria in section 185A are met in respect of the recognised DSA service provider.]
(3)Before revoking a recognition order the Treasury must—
(a)consult the Bank of England [F40and the Payment Systems Regulator],
[F41(aa)in the case of a recognition order in respect of a DSA service provider, consult the FCA,]
(b)notify the operator of the recognised F42... payment system [F43or the recognised DSA service provider (as appropriate)], and
(c)consider any representations made.
[F44(4)In addition, the Treasury—
(a)must consult the FCA before revoking a recognition order in respect of a payment system [F45or a DSA service provider, where the operator of the system or the provider] —
(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 [F46or provider] 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 F47... payment system [F48, or by a recognised DSA service provider] for the revocation of its recognition order.
Textual Amendments
F37Words in s. 187(2) renumbered as s.187(2)(a) (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 14(2)(a)
F38Word in s. 187(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 9
F39S. 187(2)(b) and word inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 14(2)(b)
F40Words 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)
F41S. 187(3)(aa) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 14(3)
F42Word 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
F43Words in s. 187(3)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 14(4)
F44S. 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.
F45Words in s. 187(4)(a) substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 14(5)
F46Words in s. 187(4)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 14(6)
F47Word in s. 187(5) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 9
F48Words in s. 187(5) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 14(7)
Commencement Information
I4S. 187 in force at 4.8.2009 by S.I. 2009/2038, art. 2, Sch. para. 3