The Payment Services Regulations 2009

JurisdictionUK Non-devolved
CitationSI 2009/209

2009No. 209

FINANCIAL SERVICES AND MARKETS

The Payment Services Regulations 2009

9thFebruary2009

9thFebruary2009

CONTENTS

PART 1

INTRODUCTORY PROVISIONS

1. Citation and commencement

2. Interpretation

3. Exemption for certain bodies

PART 2

REGISTRATION

The register4. The register of certain payment service providers

Authorisation as a payment institution5. Application for authorisation as a payment institution or variation of an existing authorisation

6. Conditions for authorisation as a payment institution

7. Imposition of requirements

8. Variation etc at request of authorised payment institution

9. Determination of application for authorisation or variation of authorisation

10. Cancellation of authorisation

11. Variation of authorisation on Authority's own initiative

Registration as a small payment institution12. Application for registration as a small payment institution or variation of an existing registration

13. Conditions for registration as a small payment institution

14. Supplementary provisions

15. Application for authorisation as a payment institution where the financial limit is exceeded

Common provisions16. Duty to notify changes

17. Authorised payment institutions and small payment institutions acting without permission

PART 3

AUTHORISED PAYMENT INSTITUTIONS

18. Capital requirements

19. Safeguarding requirements

20. Accounting and statutory audit

21. Outsourcing

22. Record keeping

Exercise of passport rights23. Notice of intention

24. Registration of EEA branch

25. Supervision of firms exercising passport rights

26. Carrying on of Consumer Credit Act business by EEA authorised payment institutions

PART 4

PROVISIONS APPLICABLE TO AUTHORISED PAYMENT INSTITUTIONS AND SMALL PAYMENT INSTITUTIONS

27. Additional activities

28. Payment accounts and sums received for the execution of payment transactions

29. Use of agents

30. Removal of agent from register

31. Reliance

32. Duty to notify change in circumstance

PART 5

INFORMATION REQUIREMENTS FOR PAYMENT SERVICES

Application33. Application of Part 5

34. Disapplication of certain regulations in the case of consumer credit agreements

35. Disapplication of certain regulations in the case of low-value payment instruments

Single payment service contracts36. Information required prior to the conclusion of a single payment service contract

37. Information required after receipt of the payment order

38. Information for the payee after execution

39. Avoidance of duplication of information

Framework contracts40. Prior general information for framework contracts

41. Information during period of contract

42. Changes in contractual information

43. Termination of framework contract

44. Information prior to execution of individual payment transaction

45. Information for the payer on individual payment transactions

46. Information for the payee on individual payment transactions

Common provisions47. Communication of information

48. Charges for information

49. Currency and currency conversion

50. Information on additional charges or reductions

PART 6

RIGHTS AND OBLIGATIONS IN RELATION TO THE PROVISION OF PAYMENT SERVICES

Application51. Application of Part 6

52. Disapplication of certain regulations in the case of consumer credit agreements

53. Disapplication of certain regulations in the case of low value payment instruments

Charges54. Charges

Authorisation of payment transactions55. Consent and withdrawal of consent

56. Limits on the use of payment instruments

57. Obligations of the payment service user in relation to payment instruments

58. Obligations of the payment service provider in relation to payment instruments

59. Notification of unauthorised or incorrectly executed payment transactions

60. Evidence on authentication and execution of payment transactions

61. Payment service provider's liability for unauthorised payment transactions

62. Payer's liability for unauthorised payment transaction

63. Refunds for payment transactions initiated by or through a payee

64. Requests for refunds for payment transactions initiated by or through a payee

Execution of payment transactions65. Receipt of payment orders

66. Refusal of payment orders

67. Revocation of a payment order

68. Amounts transferred and amounts received

Execution time and value date69. Application of regulations 70 to 72

70. Payment transactions to a payment account

71. Absence of payee's payment account with the payment service provider

72. Cash placed on a payment account

73. Value date and availability of funds

Liability74. Incorrect unique identifiers

75. Non-execution or defective execution of payment transactions initiated by the payer

76. Non-execution or defective execution of payment transactions initiated by the payee

77. Liability of payment service provider for charges and interest

78. Right of recourse

79. Force majeure

PART 7

THE AUTHORITY

The functions of the Authority80. Functions of the Authority

Supervision and enforcement81. Monitoring and enforcement

82. Reporting requirements

83. Entry, inspection without a warrant etc

84. Public censure

85. Financial penalties

86. Proposal to take disciplinary measures

87. Injunctions

88. Power of Authority to require restitution

89. Proposal to require restitution

90. Restitution orders

91. Complaints

Miscellaneous92. Costs of supervision

93. Guidance

94. Authority's exemption from liability in damages

95. Application and modification of primary and secondary legislation

PART 8

ACCESS TO PAYMENT SYSTEMS

General96. Application of Part 8

97. Prohibition on restrictive rules on access to payment systems

Supervision and enforcement98. Power of OFT to investigate

99. OFT power to require information

100. Failure to comply with information requirement

101. Privileged communications

102. Notice of OFT decision

103. Publication of OFT decision

104. Enforcement of decisions

105. Power of OFT to impose financial penalties

Miscellaneous106. Appeal to the Competition Appeal Tribunal

107. Disclosure of information by OFT

108. Defamation

109. Guidance

PART 9

GENERAL

Criminal Offences110. Prohibition on provision of payment services by persons other than payment service providers

111. False claims to be a payment service provider or exempt

112. Defences

113. Contravention of regulations 49 and 50

114. Misleading the Authority or the OFT

115. Restriction on penalties

116. Liability of officers of bodies corporate etc

117. Prosecution of offences

118. Proceedings against unincorporated bodies

Duties of the Authority, the Commissioners and the OFT to cooperate119. Duty to co-operate and exchange of information

Actions for breach of requirements120. Right to bring actions

Transitional provisions121. Transitional provisions: deemed authorisation

122. Transitional provisions: requirement to be authorised as a payment institution

123. Transitional provisions: requirement to be registered as a small payment institution

124. Transitional provisions: early applications

125. Transitional provisions: the ombudsman scheme

Amendments to primary and secondary legislation126. Amendments to primary and secondary legislation

SCHEDULE 1-

Payment Services

PART 1-

Payment services

PART 2-

Activities which do not constitute payment services

SCHEDULE 2-

Information to be included in or with an application for authorisation

SCHEDULE 3-

Capital requirements

PART 1-

Initial Capital

PART 2-

Own Funds

SCHEDULE 4-

Prior general information for framework contracts

SCHEDULE 5-

Application and modification of legislation

PART 1-

Application and modification of the 2000 Act

PART 2-

Application and modification of secondary legislation

SCHEDULE 6-

Amendments to primary and secondary legislation

PART 1-

Amendments to primary legislation

PART 2-

Amendments to secondary legislation

The Treasury are a government department designated 1 for the purposes of section 2(2) of the European Communities Act 1972 2 in relation to payment services and measures relating to payment systems;

The Treasury, in exercise of the powers conferred by section 2(2) of the European Communities Act 1972, make the following Regulations:

PART 1

INTRODUCTORY PROVISIONS

Citation and commencement

1.-

(1) These Regulations may be cited as the Payment Services Regulations 2009.

(2) These Regulations come into force-

(a) on 2nd March 2009 for the purposes of regulations 25, 80, 92 to 94, 95 in respect of paragraphs 5 and 10 of Schedule 5, 119 and 126 in respect of paragraphs 1 and 6(g) of Schedule 6;

(b) on 1st May 2009 for the purposes of-

(i) enabling applications for authorisation as a payment institution and the variation of an authorisation to be made under regulation 5 and the Authority to determine such applications in accordance with regulations 6 to 9;

(ii) enabling applications for registration as a small payment institution and the variation of a registration to be made under regulation 12 and the Authority to determine such applications in accordance with regulation 13 and regulations 7 to 9 (as applied by regulation 14);

(iii) enabling applications for an agent to be included on the register under regulation 29 and the Authority to determine such applications in accordance with that regulation;

(iv) enabling the Authority to give directions as to the manner in which an application under regulation 5(1) or (2), 12(1) or (2) or 29(3) is to be made and enabling the Authority to require the applicant to provide further information in accordance with regulation 5(4), 12(4) or 29(3)(a)(iv), as the case may be;

(v) enabling the Authority to cancel an authorisation or registration or vary an authorisation or registration on its own initiative in accordance with regulation 10 or 11 (as applied, in the case of a registration, by regulation 14);

(vi) requiring a person who has made an application under regulation 5(1) or (2) or 12(1) or (2) to provide information to the Authority in accordance with regulation 16 and enabling the Authority to give directions under that regulation;

(vii) enabling...

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