The Payment Services Regulations 2017

Changes over time for: Section 34

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The Payment Services Regulations 2017, Section 34 is up to date with all changes known to be in force on or before 26 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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Changes and effects yet to be applied to Regulation 34:

Regulations power to amend conferred by 2021 c. 22 s. 23

Use of agentsU.K.

This section has no associated Explanatory Memorandum

34.—(1) Authorised payment institutions [F1, small payment institutions and registered account information service providers] may not provide payment services in the United Kingdom through an agent unless the agent is included on the register.

F2(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An application for an agent to be included on the register must—

(a)contain, or be accompanied by, the following information—

(i)the name and address of the agent;

(ii)where relevant, a description of the internal control mechanisms that will be used by the agent to comply with the provisions of the [F3Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ]M1;

(iii)the identity of the directors and persons responsible for the management of the agent and, if the agent is not a payment service provider, evidence that they are fit and proper persons;

(iv)the payment services for which the agent is appointed;

(v)the unique identification code or number of the agent, if any; and

(vi)such other information as the FCA may reasonably require; and

(b)be made in such manner as the FCA may direct.

(4) Different directions may be given, and different requirements imposed, in relation to different applications or categories of application.

(5) At any time after receiving an application and before determining it, the FCA may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application.

F4(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) The FCA may refuse to include the agent on the register only if—

(a)it has not received the information referred to in paragraph (3)(a), or is not satisfied that such information is correct;

(b)it is not satisfied that the directors and persons responsible for the management of the agent are fit and proper persons;

(c)it has reasonable grounds to suspect that, in connection with the provision of services through the agent—

(i)money laundering or terrorist financing within the meaning of the [F5Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017] is taking place, has taken place, or has been attempted; or

(ii)the risk of such activities taking place would be increased.

(8) If the FCA proposes to refuse to include the agent on the register, it must give the authorised payment institution [F6, the small payment institution or the registered account information service provider], as the case may be, a warning notice.

(9) The FCA must, having considered any representations made in response to the warning notice—

(a)if it decides not to include the agent on the register, give the applicant a decision notice; or

(b)if it decides to include the agent on the register, give the applicant notice of its decision, stating the date on which the registration takes effect.

F7(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F8(11) The FCA must give any notice required by paragraph (9) within a period of two months beginning on the date on which the FCA received the completed application.]

(12) If the FCA decides not to include the agent on the register the applicant may refer the matter to the Upper Tribunal.

(13) If the FCA decides to include the agent on the register, it must update the register as soon as practicable.

F9(14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(15) An application under paragraph (3) may be combined with an application under regulation 5 [F10, 13 or 17], in which case the application must be determined in the manner set out in regulation 9 (determination of application for authorisation) (if relevant, as applied by regulation 15 [F11or 19] (supplementary provisions relating to applications for registration as a small payment institution [F12or account information service provider]).

(16) An authorised payment institution [F13, a small payment institution or a registered account information service provider] must ensure that agents acting on its behalf inform payment service users of the agency arrangement.

(17) An authorised payment institution [F14, a small payment institution or a registered account information service provider] must notify the FCA without undue delay if there is any change in the information provided under paragraph (3) or (5).

Textual Amendments

F1Words in reg. 34(1) substituted (13.1.2018) by The Payment Systems and Services and Electronic Money (Miscellaneous Amendments) Regulations 2017 (S.I. 2017/1173), regs. 1(4), 7(c)(i)

F2Reg. 34(2) omitted (31.12.2020) by virtue of The Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 2018/1201), reg. 1(3), Sch. 2 para. 33(2) (with reg. 4, Sch. 3 Pt. 2) (as amended by S.I. 2020/56, regs. 1, 8); 2020 c. 1, Sch. 5 para. 1(1)