The Payment Services Regulations 2017
| Year | 2017 |
2017 No. 752
Financial Services And Markets
The Payment Services Regulations 2017
Made 18th July 2017
Laid before Parliament 19th July 2017
Coming into force in accordance with regulation 1
The Treasury are a government department designated1for the purposes of section 2(2) of the European Communities Act 19722in relation to financial services.
The Treasury make these Regulations in exercise of the powers conferred on them by section 2(2) of the European Communities Act 1972, sections 22(1) and (5) and 428(3) of, and paragraph 20(4)(d) of Schedule 1ZA and paragraph 15(1) of Schedule 2 to, the Financial Services and Markets Act 20003, section 3 of the Child Trust Funds Act 20044, section 694 of the Income Tax (Trading and Other Income) Act 20055, sections 85(2)(b) and 109(4)(b) of the Financial Services Act 20126and paragraph 10(4)(b) and (5)(b) of Schedule 4 to the Financial Services (Banking Reform) Act 20137.
PART 1
Introductory provisions
Citation, commencement and extent
1.—(1) These Regulations may be cited as the Payment Services Regulations 2017.
(2) The following provisions come into force on 13th August 2017—
(a)
(a) this regulation and regulations 2 (interpretation), 106 (functions of the FCA), 112(6) (policy on imposition of penalties), 118 (costs of supervision), 120 (guidance), 121 (FCA’s exemption from liability in damages) and 147 (duty to co-operate and exchange of information);
(b)
(b) regulation 122 and the following provisions of Schedule 6 (application and modification of legislation)—
(i) paragraph 1 (disciplinary powers) in so far as that paragraph applies sections 69 and 70 of the 2000 Act;
(ii) paragraph 3 (FCA rules) for the purpose of enabling the FCA to make rules;
(iii) paragraph 5 (control over payment institutions) in so far as that paragraph applies the provisions of sections 179 and 191E of the 2000 Act which confer functions on the FCA;
(iv) paragraph 12 (application of the Financial Services and Markets Act 2000 (Service of Notices) Regulations 20018);
(c)
(c) regulation 156 in so far as it gives effect to the following provisions of Schedule 8 (amendments to legislation)—
(i) paragraph 2(6) (amendment of section 379A of the 2000 Act);
(ii) paragraph 3(b) (amendment of Schedule 15 to the Enterprise Act 20029);
(iii) paragraph 5 (amendment of the Electronic Money Regulations 201110) for the purpose of enabling the FCA to impose requirements, give directions and make rules;
(d)
(d) for the purpose of enabling the FCA to impose requirements and give directions—
(i) regulation 5(3) and (5) (applications for authorisation as a payment institution);
(ii) regulation 6(7)(e) and (f) (professional indemnity insurance for authorised payment institutions);
(iii) regulation 11(1) and (3) (cancellation of registration);
(iv) regulation 13(1), (2), (3) and (5) (application for registration);
(v) regulation 15 (small payment institutions: supplementary provision) in so far as it applies regulation 11(1) and (3);
(vi) regulation 17(1)(b) and (3) (application for registration as an account information service provider);
(vii) regulation 18(4)(b) (professional indemnity insurance for registered account information service providers);
(viii) regulation 19 (registered account information service providers: supplementary provision) in so far as it applies regulation 11(1) and (3);
(ix) regulation 20(3) (duty to notify changes);
(x) regulation 27(1) (notice of intention);
(xi) regulation 30(4), (5) and (7) (supervision of firms exercising passport rights);
(xii) regulation 34(3) and (4) (application for registration of agent);
(xiii) regulation 37(2) (duty to notify change in circumstances);
(xiv) regulation 38(4) (notification of use of limited network exclusion);
(xv) regulation 39(3) to (5) (notification of use of electronic communications exclusion);
(xvi) regulation 71(8)(c) (denial of access to an account information service provider);
(xvii) regulation 98(3) (management of operational and security risks);
(xviii) regulation 99(2) (incident reporting);
(xix) regulation 105(4)(b) (refusal of access to bank account);
(xx) regulation 109(1) to (3) and (5) (reporting requirements);
(xxi) regulation 119 to the extent that it gives effect to paragraph 5(1), (3) and (4) of Schedule 5 (credit agreements).
(3) The following provisions come into force on 13th October 2017—
(a)
(a) Part 2, for the purposes of enabling—
(i) the making and determination of applications for authorisation or registration (including the imposition of requirements in relation to authorisations and registrations); and
(ii) the giving of notices under regulation 3(2) (exemption for municipal banks);
(b)
(b) for the purposes of enabling the giving of notifications and the making of applications to the FCA and enabling the FCA to take action in response to such notifications and applications, regulations 25 (outsourcing), 34 (use of agents) and 39 (notification of use of electronic communications exclusion);
(c)
(c) In Schedule 6 (application and modification of legislation), paragraphs 2 (the Upper Tribunal), 5 (control over payment institutions) in so far as not already in force, 8 (restriction on disclosure of information), 10 (warning notices and decision notices) and 13 (application of the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001);
(d)
(d) regulations 142 to 146 (misleading the FCA);
(e)
(e) regulation 150 (transitional and saving provisions), for the purposes of enabling the provision of information or giving of notification under regulation 150(3), and enabling the FCA to take action in response to such information or notification;
(f)
(f) regulation 156 in so far as it gives effect to—
(i) paragraph 5 of Schedule 8 (amendment of the Electronic Money Regulations 2011), for the purpose of enabling the giving of notifications, the making or determining of applications and the taking of action in response to such applications and notifications under the Electronic Money Regulations 2011;
(ii) paragraph 6 of Schedule 8 (amendment of the Rehabilitation of Offenders Act 1974 (Exceptions) Order 197511), for the purpose of the FCA’s determination of applications for authorisation or registration under Part 2 of these Regulations (including the imposition of requirements in relation to authorisations and registrations).
(4) Regulations 27 (notice of intention) and 28 (decision following notice of intention) come into force on 13th December 2017 for the purposes of enabling the giving of notifications and enabling the FCA to take action in response to such notifications.
(5) Regulations 68(3)(c), 69(2)(a) and (3)(d), 70(2)(a) and (3)(c), 77(4)(c) and (6) and 100 (secure communication and authentication) come into force eighteen months after the date on which the regulatory technical standards adopted under Article 98 of the payment services directive come into force.
(6) Except as provided in paragraphs (2) to (5), these Regulations come into force on 13th January 2018.
(7) Paragraph 6 of Schedule 8 (amendment of the Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975) extends to England and Wales only.
Interpretation
2.—(1) In these Regulations—
“the 2000 Act” means the Financial Services and Markets Act 2000;
“account information service” means an online service to provide consolidated information on one or more payment accounts held by the payment service user with another payment service provider or with more than one payment service provider, and includes such a service whether information is provided—
(a) in its original form or after processing;
(b) only to the payment service user or to the payment service user and to another person in accordance with the payment service user’s instructions;
“account information service provider” means a payment service provider which provides account information services;
“account servicing payment service provider” means a payment service provider providing and maintaining a payment account for a payer;
“acquiring of payment transactions” means a payment service provided by a payment service provider contracting with a payee to accept and process payment transactions which result in a transfer of funds to the payee;
“agent” means a person who acts on behalf of an authorised payment institution or a small payment institution in the provision of payment services;
“authentication” means a procedure which allows a payment service provider to verify the identity of a payment service user or the validity of the use of a specific payment instrument, including the use of the user’s personalised security credentials;
“authorised payment institution” means—
(a) a person authorised as a payment institution pursuant to regulation 6 (conditions for authorisation as a payment institution) and included by the FCA in the register as an authorised payment institution pursuant to regulation 4(1)(a) (the register of certain payment service providers); or
(b) a person included by the FCA in the register pursuant to regulation 150 or 152, and regulation 153(1) (transitional provisions);
“the FCA” means the Financial Conduct Authority;
“branch” means a place of business, other than the head office, of—
(a) an authorised payment institution;
(b) a small payment institution;
(c) a registered account information service provider;
(d) an EEA authorised payment institution; or
(e) an EEA registered account information service provider;
which forms a legally dependent part of such a payment service provider and which carries out directly all or some of the services inherent in the business of such a payment service provider; and, for the purposes of these Regulations, all places of business set up in the same EEA State other than the United Kingdom by an authorised payment institution are to...
To continue reading
Request your trial