These Regulations amend the Payment Services Regulations 2009 (“the principal Regulations”), which implement Directive 2007/64/EC of the European Parliament and of the Council on payment systems in the internal market (OJ No L 319, 5.12.2007, p.1). The Directive establishes a an authorisation regime for non-bank payment service providers and sets out the conduct of business rules for all payment service providers.

Regulation 3 amends the principal Regulations to provide for the Financial Services Authority to direct the manner in which requests for cancellation of authorisation may be made.

Regulations 4 to 11 make minor amendments clarifying the principal Regulations.

Regulation 13 inserts a new Schedule into the principal Regulations dealing with the application of the principal Regulations to Gibraltar-based firms operating in the UK and UK firms operating in Gibraltar. Paragraph (1) of that Schedule makes provision for firms authorised and having their head office in Gibraltar to exercise rights to establish branches and provide services in the United Kingdom, corresponding to the “passport” rights of firms authorised in other EEA States under the payment services directive. Paragraph (2) provides for UK firms which seek to establish branches or provide services in Gibraltar to be treated equivalently to those exercising “passport” rights under the payment services directive to establish branches or provide services in other EEA States. Paragraph (3) disapplies provisions of the Financial Services and Markets Act 2000 requiring the FSA and the Financial Service Ombudsman Scheme Operator to consult on rules where the purpose of the rules is to extend existing rules applying to EEA authorised payment institutions to Gibraltar-based firms.

A Transposition Note setting out how the Directive is being transposed into UK law is available from the Payments, Credits and Inclusion Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ. Copies have been placed in the library of each House of Parliament and are available on HM Treasury’s website (www.hm-treasury.gov.uk).