Financial Services (Banking Reform) Act 2013

42 Participants in payment systems etc U.K.

(1) This section applies for the purposes of this Part.

(2) The following persons are “participants” in a payment system—

(a) the operator of the payment system (see subsection (3));

(b) any infrastructure provider (see subsection (4));

(c) any payment service provider (see [F1 subsections (5) and (5A)]).

(But see also subsection (8).)

(3) “Operator”, in relation to a payment system, means any person with responsibility under the system for managing or operating it; and any reference to the operation of a payment system includes a reference to its management.

(4) “Infrastructure provider”, in relation to a payment system, means any person who provides or controls any part of the infrastructure used for the purposes of operating the payment system.

(5) “Payment service provider”, in relation to a payment system, means any person who provides services to persons who are not participants in the system for the purposes of enabling the transfer of funds using the payment system.

[F2 (5A) “Payment service provider” in relation to a payment system that includes arrangements using digital settlement assets means—

(a) a person responsible for managing the issuance and redemption of digital settlement assets;

(b) a person whose business or occupation is to safeguard, or to safeguard and administer digital settlement assets, including their private cryptographic keys (or means of access);

(c) a digital settlement asset exchange provider;

(d) a person who—

(i) sets rules, standards, or conditions of access or participation in relation to the system, or

(ii) provides any service that facilitates, or supports, a transfer of money or digital settlement assets to be made using the system, including any infrastructure provider in relation to the system.]

(6) A payment service provider has “direct access” to a payment system if the payment service provider is able to provide services for the purposes of enabling the transfer of funds using the payment system as a result of arrangements made between the payment service provider and the operator of the payment system.

(7) Any reference to participation in a payment system is to be read in accordance with this section, and in particular—

(a) in the case of an operator of a payment system, includes a reference to developing the system, and

(b) in the case of a payment service provider with direct access to a payment system, includes a reference to entering into an agreement with a person to enable the person to become a payment service provider in relation to the system.

(8) The Bank of England is not to be regarded as a participant of any kind in any payment system.

Textual Amendments

F1 Words in s. 42(2)(c) substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 42(2)

F2 S. 42(5A) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 42(3)

Commencement Information

I1 S. 42 in force at 1.3.2014 by S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1