The Payment Services Regulations 2009

1. Introductory Text

2. PART 1 INTRODUCTORY PROVISIONS

   1. 1. Citation and commencement

   2. 2. Interpretation

   3. 3. Exemption for certain bodies

3. PART 2 REGISTRATION

   1. The register

      1. 4. The register of certain payment service providers

   2. Authorisation as a payment institution

      1. 5. Application for authorisation as a payment institution or variation of an existing authorisation

      2. 6. Conditions for authorisation as a payment institution

      3. 7. Imposition of requirements

      4. 8. Variation etc at request of authorised payment institution

      5. 9. Determination of application for authorisation or variation of authorisation

      6. 10. Cancellation of authorisation

      7. 11. Variation of authorisation on Authority’s own initiative

   3. Registration as a small payment institution

      1. 12. Application for registration as a small payment institution or variation of an existing registration

      2. 13. Conditions for registration as a small payment institution

      3. 14. Supplementary provisions

      4. 15. Application for authorisation as a payment institution where the financial limit is exceeded

   4. Common provisions

      1. 16. Duty to notify changes

      2. 17. Authorised payment institutions and small payment institutions acting without permission

4. PART 3 AUTHORISED PAYMENT INSTITUTIONS

   1. 18. Capital requirements

   2. 19. Safeguarding requirements

   3. 20. Accounting and statutory audit

   4. 21. Outsourcing

   5. 22. Record keeping

   6. Exercise of passport rights

      1. 23. Notice of intention

      2. 24. Registration of EEA branch

      3. 25. Supervision of firms exercising passport rights

      4. 26. Carrying on of Consumer Credit Act business by EEA authorised payment institutions

5. PART 4 PROVISIONS APPLICABLE TO AUTHORISED PAYMENT INSTITUTIONS AND SMALL PAYMENT INSTITUTIONS

   1. 27. Additional activities

   2. 28. Payment accounts and sums received for the execution of payment transactions

   3. 29. Use of agents

   4. 30. Removal of agent from register

   5. 31. Reliance

   6. 32. Duty to notify change in circumstance

6. PART 5 INFORMATION REQUIREMENTS FOR PAYMENT SERVICES

   1. Application

      1. 33. Application of Part 5

      2. 34. Disapplication of certain regulations in the case of consumer credit agreements

      3. 35. Disapplication of certain regulations in the case of low-value payment instruments

   2. Single payment service contracts

      1. 36. Information required prior to the conclusion of a single payment service contract

      2. 37. Information required after receipt of the payment order

      3. 38. Information for the payee after execution

      4. 39. Avoidance of duplication of information

   3. Framework contracts

      1. 40. Prior general information for framework contracts

      2. 41. Information during period of contract

      3. 42. Changes in contractual information

      4. 43. Termination of framework contract

      5. 44. Information prior to execution of individual payment transaction

      6. 45. Information for the payer on individual payment transactions

      7. 46. Information for the payee on individual payment transactions

   4. Common provisions

      1. 47. Communication of information

      2. 48. Charges for information

      3. 49. Currency and currency conversion

      4. 50. Information on additional charges or reductions

7. PART 6 RIGHTS AND OBLIGATIONS IN RELATION TO THE PROVISION OF PAYMENT SERVICES

   1. Application

      1. 51. Application of Part 6

      2. 52. Disapplication of certain regulations in the case of consumer credit agreements

      3. 53. Disapplication of certain regulations in the case of low value payment instruments

   2. Charges

      1. 54. Charges

   3. Authorisation of payment transactions

      1. 55. Consent and withdrawal of consent

      2. 56. Limits on the use of payment instruments

      3. 57. Obligations of the payment service user in relation to payment instruments

      4. 58. Obligations of the payment service provider in relation to payment instruments

      5. 59. Notification of unauthorised or incorrectly executed payment transactions

      6. 60. Evidence on authentication and execution of payment transactions

      7. 61. Payment service provider’s liability for unauthorised payment transactions

      8. 62. Payer’s liability for unauthorised payment transaction

      9. 63. Refunds for payment transactions initiated by or through a payee

      10. 64. Requests for refunds for payment transactions initiated by or through a payee

   4. Execution of payment transactions

      1. 65. Receipt of payment orders

      2. 66. Refusal of payment orders

      3. 67. Revocation of a payment order

      4. 68. Amounts transferred and amounts received

   5. Execution time and value date

      1. 69. Application of regulations 70 to 72

      2. 70. Payment transactions to a payment account

      3. 71. Absence of payee’s payment account with the payment service provider

      4. 72. Cash placed on a payment account

      5. 73. Value date and availability of funds

   6. Liability

      1. 74. Incorrect unique identifiers

      2. 75. Non-execution or defective execution of payment transactions initiated by the payer

      3. 76. Non-execution or defective execution of payment transactions initiated by the payee

      4. 77. Liability of payment service provider for charges and interest

      5. 78. Right of recourse

      6. 79. Force majeure

8. PART 7 THE AUTHORITY

   1. The functions of the Authority

      1. 80. Functions of the Authority

   2. Supervision and enforcement

      1. 81. Monitoring and enforcement

      2. 82. Reporting requirements

      3. 83. Entry, inspection without a warrant etc

      4. 84. Public censure

      5. 85. Financial penalties

      6. 86. Proposal to take disciplinary measures

      7. 87. Injunctions

      8. 88. Power of Authority to require restitution

      9. 89. Proposal to require restitution

      10. 90. Restitution orders

      11. 91. Complaints

   3. Miscellaneous

      1. 92. Costs of supervision

      2. 93. Guidance

      3. 94. Authority’s exemption from liability in damages

      4. 95. Application and modification of primary and secondary legislation

9. PART 8 ACCESS TO PAYMENT SYSTEMS

   1. General

      1. 96. Application of Part 8

      2. 97. Prohibition on restrictive rules on access to payment systems

   2. Supervision and enforcement

      1. 98. Power of OFT to investigate

      2. 99. OFT power to require information

      3. 100. Failure to comply with information requirement

      4. 101. Privileged communications

      5. 102. Notice of OFT decision

      6. 103. Publication of OFT decision

      7. 104. Enforcement of decisions

      8. 105. Power of OFT to impose financial penalties

   3. Miscellaneous

      1. 106. Appeal to the Competition Appeal Tribunal

      2. 107. Disclosure of information by OFT

      3. 108. Defamation

      4. 109. Guidance

10. PART 9 GENERAL

    1. Criminal Offences

       1. 110. Prohibition on provision of payment services by persons other than payment service providers

       2. 111. False claims to be a payment service provider or exempt

       3. 112. Defences

       4. 113. Contravention of regulations 49 and 50

       5. 114. Misleading the Authority or the OFT

       6. 115. Restriction on penalties

       7. 116. Liability of officers of bodies corporate etc

       8. 117. Prosecution of offences

       9. 118. Proceedings against unincorporated bodies

    2. Duties of the Authority, the Commissioners and the OFT to cooperate

       1. 119. Duty to co-operate and exchange of information

    3. Actions for breach of requirements

       1. 120. Right to bring actions

    4. Transitional provisions

       1. 121. Transitional provisions: deemed authorisation

       2. 122. Transitional provisions: requirement to be authorised as a payment institution

       3. 123. Transitional provisions: requirement to be registered as a small payment institution

       4. 124. Transitional provisions: early applications

       5. 125. Transitional provisions: the ombudsman scheme

    5. Amendments to primary and secondary legislation

       1. 126. Amendments to primary and secondary legislation

11. Signature

12. 1. SCHEDULE 1

       Payment Services

       1. PART 1 Payment services

          1. 1. Subject to Part 2, the following activities, when carried out...

       2. PART 2 Activities which do not constitute payment services

          1. 2. The following activities do not constitute payment services—

    2. SCHEDULE 2

       Information to be included in or with an application for authorisation

       1. 1. A programme of operations setting out, in particular, the type...

       2. 2. A business plan including a forecast budget calculation for the...

       3. 3. Evidence that the applicant holds initial capital for the purposes...

       4. 4. Where regulation 19 applies, a description of the measures taken...

       5. 5. A description of the applicant’s governance arrangements and internal control...

       6. 6. A description of the internal control mechanisms which the applicant...

       7. 7. A description of the applicant’s structural organisation, including, where applicable,...

       8. 8. (1) In relation to each person holding, directly or indirectly,...

       9. 9. (1) The identity of directors and persons who are or...

       10. 10. The identity of the auditors of the applicant, if any....

       11. 11. (1) The legal status of the applicant and, where the...

       12. 12. The address of the head office of the applicant.

       13. 13. For the purposes of paragraphs 4, 5 and 7, a...

    3. SCHEDULE 3

       Capital requirements

       1. PART 1 Initial Capital

          1. 1. For the purposes of this Part, “initial capital” comprises the...

          2. 2. (1) An applicant for authorisation as a payment institution must...

       2. PART 2 Own Funds

          1. Qualifying items

             1. 3. For the purposes of this Part, “own funds” means the...

             2. 4. The items specified in paragraph 3(a) to (d) must be—...

             3. 5. Own funds are not to include guarantees provided by the...

          2. Deductions from own funds

             1. 6. The deductions from own funds are— (a) own shares at...

             2. 7. Where shares in another credit institution, financial institution, insurance undertaking,...

          3. Limits on qualifying items

             1. 8. (1) The limits referred to in paragraph 3 are—

             2. 9. The Authority may in temporary and exceptional circumstances direct that...

             3. 10. An authorised payment institution must not include in its own...

          4. Own funds requirement

             1. 11. An authorised payment institution must hold own funds calculated in...

          5. Adjustment by the Authority

             1. 12. The Authority may direct that an authorised payment institution must...

             2. 13. A direction made under paragraph 12 must be on the...

             3. 14. The Authority may make a reasonable charge for making an...

          6. Provision for start-up payment institutions

             1. 15. If an authorised payment institution has not completed a full...

          7. Method A

             1. 16. (1) “Method A” means the calculation method set out in...

          8. Method B

             1. 17. (1) “Method B” means the calculation method set out in...

          9. Method C

             1. 18. (1) “Method C” means the calculation method set out in...

          10. Application of accounting standards

              1. 19. Except where this Schedule provides for a different method of...

    4. SCHEDULE 4

       Prior general information for framework contracts

       1. 1. The following information about the payment service provider—

       2. 2. The following information about the payment service—

       3. 3. The following information about charges, interest and exchange rates—

       4. 4. The following information about communication— (a) the means of communication...

       5. 5. The following information about safeguards and corrective measures—

       6. 6. The following information about changes to and termination of the...

       7. 7. The following information about redress— (a) any contractual clause on—...

    5. SCHEDULE 5

       Application and modification of legislation

       1. PART 1 Application and modification of the 2000 Act

          1. 1. Disciplinary powers

          2. 2. The Tribunal

          3. 3. Information gathering and investigations

          4. 4. Auditors and actuaries

          5. 5. Restriction on disclosure of information

          6. 6. Insolvency

          7. 7. Warning notices and decision notices

          8. 8. Limitation on power to require documents

       2. PART 2 Application and modification of secondary legislation

          1. 9. The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001

          2. 10. The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001

    6. SCHEDULE 6

       Amendments to primary and secondary legislation

       1. PART 1 Amendments to primary legislation

          1. 1. The 2000 Act

       2. PART 2 Amendments to secondary legislation

          1. 2. The Cross Border Credit Transfer Regulations 1999

          2. 3. The Consumer Protection (Distance Selling) Regulations 2000

          3. 4. The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

          4. 5. The Financial Services (Distance Marketing) Regulations 2004

          5. 6. The Money Laundering Regulations 2007

13. Explanatory Note