Part 5F13... Payment Systems F32and service providers

Annotations:
Amendments (Textual)
F13

Word in Pt. 5 heading omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 2

Recognised systems F33and service providers

Annotations:
Amendments (Textual)

I1184Recognition order F34: payment system

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.

F214

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 F48or connected with the recognised system.

184AF30Recognition order: DSA service provider

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.

I2185Recognition criteria F35: payment system

1

The Treasury may make a recognition order in respect of F14a 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.

185AF31Recognition criteria: DSA service provider

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.

I3186Procedure

1

Before making a recognition order in respect of a payment system F37or a DSA service provider the Treasury must—

a

consult the Bank of England F19and the Payment Systems Regulator,

F38aa

in the case of a recognition order in respect of a DSA service provider, consult the FCA,

b

notify the operator of the system F39or the DSA service provider (as appropriate), and

c

consider any representations made.

F20(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.)

F22

In addition, the Treasury—

a

must consult the FCA before making a recognition order in respect of a payment system F40or 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 F41or 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 F36or a DSA service provider the Treasury may rely on information provided by the Bank of EnglandF3, the FCA or the PRA.

186AF1Amendment of recognition order

1

The Treasury may amend a recognition order.

2

Before amending a recognition order the Treasury must—

a

consult the Bank of England F18and the Payment Systems Regulator,

F43aa

in the case of a recognition order in respect of a DSA service provider, consult the FCA,

b

notify the operator of the recognised F11... payment system F42or the recognised DSA service provider (as appropriate), and

c

consider any representations made.

F16(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.)

F152A

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 F46or 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 F47or 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 F12... payment system F44or by a recognised DSA service provider for the amendment of its recognition order F17or any request by a service provider in relation to such a system F45or provider, for the amendment or revocation of its specification.

I4187De-recognition

1

The Treasury may revoke a recognition order.

2

The Treasury must revoke a recognition order if not satisfied—

F24a

that the criteria in section 185 are met in respect of the recognised F8... payment system. F23, 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 F22and the Payment Systems Regulator,

F25aa

in the case of a recognition order in respect of a DSA service provider, consult the FCA,

b

notify the operator of the recognised F9... payment system F26or the recognised DSA service provider (as appropriate), and

c

consider any representations made.

F44

In addition, the Treasury—

a

must consult the FCA before revoking a recognition order in respect of a payment system F28or 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 F29or 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 F10... payment system F27, or by a recognised DSA service provider for the revocation of its recognition order.