PART 5Regulation of payment systems

“Payment system” etc

I141Meaning of “payment system”

1

In this Part “payment system” means a system which is operated by one or more persons in the course of business for the purpose of enabling persons to make transfers of funds, and includes a system which is designed to facilitate the transfer of funds using another payment system.

2

But “payment system” does not include—

a

any arrangements for the physical movement of cash;

b

a system which does not make any provision for the transfer of funds by payers, or to recipients, in the United Kingdom;

c

a securities settlement system operated by a person approved under regulations under section 785 of the Companies Act 2006 (provision enabling procedures for evidencing and transferring title);

d

a system operated by a recognised clearing house;

e

any other system whose primary purpose is not that of enabling persons to transfer funds.

3

In this section—

  • “recognised clearing house” has the meaning given by section 285(1) of FSMA 2000;

  • “securities settlement system” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.

4

The Treasury may by order amend this section so as to—

a

add descriptions of systems or arrangements that are not to be regarded as payment systems, or

b

vary or remove any such description.