The Payment Services Regulations 2017

• (d) the account servicing payment service provider must restore access to the account once the reasons for denying access no longer justify such denial of access.

• (9) Paragraph (8)(a) and (b) do not apply if notifying the payment service user—

• (a) would compromise reasonably justified security reasons; or

• (b) is unlawful.

• (10) When the FCA receives a report under paragraph (8)(c), it must assess the case and take such measures as it considers appropriate.

Obligations of the payment service user in relation to payment instruments and personalised security credentials

72

• (1) A payment service user to whom a payment instrument has been issued must—

• (a) use the payment instrument in accordance with the terms and conditions governing its issue and use; and

• (b) notify the payment service provider in the agreed manner and without undue delay on becoming aware of the loss, theft, misappropriation or unauthorised use of the payment instrument.

• (2) Paragraph (1)(a) applies only in relation to terms and conditions that are objective, non-discriminatory and proportionate.

• (3) The payment service user must take all reasonable steps to keep safe personalised security credentials relating to a payment instrument or an account information service.

Obligations of the payment service provider in relation to payment instruments

73

• (1) A payment service provider issuing a payment instrument must—

• (a) ensure that the personalised security credentials are not accessible to persons other than the payment service user to whom the payment instrument has been issued;

• (b) not send an unsolicited payment instrument, except where a payment instrument already issued to a payment service user is to be replaced;

• (c) ensure that appropriate means are available at all times to enable the payment service user to notify the payment service provider in accordance with regulation 72(1)(b) (notification of loss or unauthorised use of payment instrument) or to request that, in accordance with regulation 71(6), the use of the payment instrument is no longer stopped;

• (d) on request, provide the payment service user at any time during a period of 18 months after the alleged date of notification under regulation 72(1)(b) with the means to prove that such notification to the payment service provider was made;

• (e) provide the payment service user with an option to make a notification under regulation 72(1)(b) free of charge, and ensure that any costs charged are directly attributed to the replacement of the payment instrument;

• (f) prevent any use of the payment instrument once notification has been made under regulation 72(1)(b).

• (2) The payment service provider bears the risk of sending to the payment service user a payment instrument or any personalised security credentials relating to it.

Notification and rectification of unauthorised or incorrectly executed payment transactions

74

• (1) A payment service user is entitled to redress under regulation 76, 91, 92, 93 or 94 (liability for unauthorised transactions, non-execution or defective or late execution of transactions, or charges and interest), only if it notifies the payment service provider without undue delay, and in any event no later than 13 months after the debit date, on becoming aware of any unauthorised or incorrectly executed payment transaction.

• (2) Where the payment service provider has failed to provide or make available information concerning the payment transaction in accordance with Part 6 of these Regulations (information requirements for payment services), the payment service user is entitled to redress under the regulations referred to in paragraph (1) notwithstanding that the payment service user has failed to notify the payment service provider as mentioned in that paragraph.

Evidence on authentication and execution of payment transactions

75

• (1) Where a payment service user—

• (a) denies having authorised an executed payment transaction; or

• (b) claims that a payment transaction has not been correctly executed,

it is for the payment service provider to prove that the payment transaction was authenticated, accurately recorded, entered in the payment service provider's accounts and not affected by a technical breakdown or some other deficiency in the service provided by the payment service provider.

• (2) If a payment transaction was initiated through a payment initiation service provider, it is for the payment initiation service provider to prove that, within its sphere of competence, the payment transaction was authenticated, accurately recorded and not affected by a technical breakdown or other deficiency linked to the payment initiation service.

• (3) Where a payment service user denies having authorised an executed payment transaction, the use of a payment instrument recorded by the payment service provider, including a payment initiation service provider where appropriate, is not in itself necessarily sufficient to prove either that—

• (a) the payment transaction was authorised by the payer; or

• (b) the payer acted fraudulently or failed with intent or gross negligence to comply with regulation 72 (user's obligations in relation to payment instruments and personalised security credentials).

• (4) If a payment service provider, including a payment initiation service provider where appropriate, claims that a payer acted fraudulently or failed with intent or gross negligence to comply with regulation 72, the payment service provider must provide supporting evidence to the payer.

Payment service provider's liability for unauthorised payment transactions

76

• (1) Subject to regulations 74 and 75, where an executed payment transaction was not authorised in accordance with regulation 67 (consent and withdrawal of consent), the payment service provider must—

• (a) refund the amount of the unauthorised payment transaction to the payer; and

• (b) where applicable, restore the debited payment account to the state it would have been in had the unauthorised payment transaction not taken place.

• (2) The payment service provider must provide a refund under paragraph (1)(a) as soon as practicable, and in any event no later than the end of the business day following the day on which it becomes aware of the unauthorised transaction.

• (3) Paragraph (2) does not apply where the payment service provider has reasonable grounds to suspect fraudulent behaviour by the payment service user and notifies a person mentioned in section 333A(2) of the Proceeds of Crime Act 2002 (tipping off: regulated sector) of those grounds in writing.

• (4) When crediting a payment account under paragraph (1)(b), a payment service provider must ensure that the credit value date is no later than the date on which the amount of the unauthorised payment transaction was debited.

• (5) Where an unauthorised payment transaction was initiated through a payment initiation service provider—

• (a) the account servicing payment service provider must comply with paragraph (1);

• (b) if the payment initiation service provider is liable for the unauthorised payment transaction (in relation to which see regulation 75(2)) the payment initiation service provider must, on the request of the account servicing payment service provider, compensate the account servicing payment service provider immediately for the losses incurred or sums paid as a result of complying with paragraph (1), including the amount of the unauthorised transaction.

Payer or payee's liability for unauthorised payment transactions

77

• (1) Subject to paragraphs (2), (3) and (4), a payment service provider which is liable under regulation 76(1) may require that the payer is liable up to a maximum of £35 for any losses incurred in respect of unauthorised payment transactions arising from the use of a lost or stolen payment instrument, or from the misappropriation of a payment instrument.

• (2) Paragraph (1) does not apply if—

• (a) the loss, theft or misappropriation of the payment instrument was not detectable by the payer prior to the payment, except where the payer acted fraudulently; or

• (b) the loss was caused by acts or omissions of an employee, agent or branch of a payment service provider or of an entity which carried out activities on behalf of the payment service provider.

• (3) The payer is liable for all losses incurred in respect of an unauthorised payment transaction where the payer—

• (a) has acted fraudulently; or

• (b) has with intent or gross negligence failed to comply with regulation 72 (obligations of the payment service user in relation to payment instruments and personalised security credentials).

• (4) Except where the payer has acted fraudulently, the payer is not liable for any losses incurred in respect of an unauthorised payment transaction—

• (a) arising after notification under regulation 72(1)(b);

• (b) where the payment service provider has failed at any time to provide, in accordance with regulation 73(1)(c) (obligations of the payment service provider in relation to payment instruments), appropriate means for notification;

• (c) where regulation 100 (authentication) requires the application of strong customer authentication, but the payer's payment service provider does not require strong customer authentication; or

• (d) where the payment instrument has been used in connection with a distance contract (other than an excepted contract).

• (5) In paragraph (4)(d)—

• “distance contract” means a distance contract as defined by regulation 5 of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (other definitions) ;

• “excepted contract” means a contract that—falls to any extent within regulation 6(1) of those Regulations (limits of application: general); orfalls within regulation 6(2) of those Regulations.

• (6) Where regulation 100 requires the application of strong customer authentication, but the payee or the payee's payment service provider does not accept strong customer authentication, the payee or the payee's payment service provider, or both (as the case may be), must compensate the payer's payment service provider for the losses incurred or sums paid as a result of complying with regulation 76(1).

Payment transactions where the transaction amount is not known in advance

78

Where a card-based payment transaction is initiated by or through the payee and the amount of the transaction is not known when the payer authorises the transaction—

• (a) the payer's payment service provider may not block funds on the payer's payment account unless the payer has authorised the exact amount of the funds to be blocked; and

• (b) the payer's payment service provider must release the blocked funds without undue delay after becoming aware of the amount of the payment transaction, and in any event immediately after receipt of the payment order.

Refunds for payment transactions initiated by or through a payee

79

• (1) Where the conditions in paragraph (2) and the requirement in regulation 80(1) are satisfied, the payer is entitled to a refund from its payment service provider of the full amount of any authorised payment transaction initiated by or through the payee.

• (2) The conditions are that—

• (a) the authorisation did not specify the exact amount of the payment transaction when the authorisation was given in accordance with regulation 67 (consent and withdrawal of consent); and

• (b) the amount of the payment transaction exceeded the amount that the payer could reasonably have expected taking into account the payer's previous spending pattern, the conditions of the framework contract and the circumstances of the case.

• (3) The payer is entitled to an unconditional refund from its payment service provider of the full amount of any direct debit transactions of the type referred to in Article 1 of Regulation (EU) 260/2012 of the European Parliament and of the Council of 14th March 2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009 .

• (4) When crediting a payment account under paragraph (1), a payment service provider must ensure that the credit value date is no later than the date on which the amount of the unauthorised payment transaction was debited.

• (5) For the purposes of paragraph (2)(b), the payer cannot rely on currency exchange fluctuations where the reference exchange rate provided under regulation 43(2)(d) or paragraph 3(b) of Schedule 4 was applied.

• (6) The payer and payment service provider may agree in the framework contract that the right to a refund does not apply where—

• (a) the payer has given consent directly to the payment service provider for the payment transaction to be executed; and

• (b) if applicable, information on the payment transaction was provided or made available in an agreed manner to the payer for at least four weeks before the due date by the payment service provider or by the payee.

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

80

• (1) The payer must request a refund under regulation 79 from its payment service provider within 8 weeks from the date on which the funds were debited.

• (2) The payment service provider may require the payer to provide such information as is reasonably necessary to prove that the conditions in regulation 79(2) are satisfied.

• (3) The payment service provider must either—

• (a) refund the full amount of the payment transaction; or

• (b) provide justification for refusing to refund the payment transaction, indicating the bodies to which the payer may refer the matter if the payer does not accept the justification provided.

• (4) Any refund or justification for refusing a refund must be provided within 10 business days of receiving a request for a refund or, where applicable, within 10 business days of receiving any further information requested under paragraph (2).

• (5) If the payment service provider requires further information under paragraph (2), it may not refuse the refund until it has received further information from the payer.

Execution of payment transactions

Receipt of payment orders

81

• (1) A payer's payment service provider must not debit the payment account before receipt of a payment order.

• (2) Subject to paragraphs (3) to (6), for the purposes of these Regulations the time of receipt of a payment order is the time at which the payment order is received by the payer's payment service provider.

• (3) If the time of receipt of a payment order does not fall on a business day for the payer's payment service provider, the payment order is deemed to have been received on the first business day thereafter.

• (4) The payment service provider may set a time towards the end of a business day after which any payment order received will be deemed to have been received on the following business day.

• (5) Where the payment service user initiating a payment order agrees with its payment service provider that execution of the payment order is to take place—

• (a) on a specific day;

• (b) on the last day of a certain period; or

• (c) on the day on which the payer has put funds at the disposal of its payment service provider,

the time of receipt is deemed to be the day so agreed.

• (6) If the day agreed under paragraph (5) is not a business day for the payer's payment service provider, the payment order is deemed to have been received on the first business day thereafter.

Refusal of payment orders

82

• (1) Subject to paragraph (4), where a payment service provider refuses to execute a payment order or to initiate a payment transaction, it must notify the payment service user of—

• (a) the refusal;

• (b) if possible, the reasons for such refusal; and

• (c) where it is possible to provide reasons for the refusal and those reasons relate to factual matters, the procedure for rectifying any factual errors that led to the refusal.

• (2) Any notification under paragraph (1) must be given or made available in an agreed manner and at the earliest opportunity, and in any event within the periods specified in regulation 86.

• (3) The framework contract may provide for the payment service provider to charge the payment service user for such refusal where the refusal is reasonably justified.

• (4) The payment service provider is not required to notify the payment service user under paragraph (1) where such notification would be otherwise unlawful.

• (5) Where all the conditions set out in the payer's framework contract with the account servicing payment service provider have been satisfied, the account servicing payment service provider may not refuse to execute an authorised payment order irrespective of whether the payment order is initiated by the payer, through a payment initiation service provider, or by or through a payee, unless such execution is otherwise unlawful.

• (6) For the purposes of regulations 86, 91 and 92 (payment transactions to a payment account and non-execution or defective or late execution of a payment transaction) a payment order of which execution has been refused is deemed not to have been received.

Revocation of a payment order

83

• (1) Subject to paragraphs (2) to (5), a payment service user may not revoke a payment order after it has been received by the payer's payment service provider.

• (2) In the case of a payment transaction initiated by a payment initiation service provider, or by or through the payee, the payer may not revoke the payment order after giving consent to the payment initiation service provider to initiate the payment transaction or giving consent to execute the payment transaction to the payee.

• (3) In the case of a direct debit, the payer may not revoke the payment order after the end of the business day preceding the day agreed for debiting the funds.

• (4) Where a day is agreed under regulation 81(5) (receipt of payment orders), the payment service user may not revoke a payment order after the end of the business day preceding the agreed day.

• (5) At any time after the time limits for revocation set out in paragraphs (1) to (4), the payment order may only be revoked if the revocation is—

• (a) agreed between the payment service user and the relevant payment service provider or providers; and

• (b) in the case of a payment transaction initiated by or through the payee, including in the case of a direct debit, also agreed with the payee.

• (6) A framework contract may provide for the relevant payment service provider to charge for revocation under this regulation.

Amounts transferred and amounts received

84

• (1) Subject to paragraph (2), the payment service providers of the payer and payee must ensure that the full amount of the payment transaction is transferred and that no charges are deducted from the amount transferred.

• (2) The payee and its payment service provider may agree for the relevant payment service provider to deduct its charges from the amount transferred before crediting it to the payee provided that the full amount of the payment transaction and the amount of the charges are clearly stated in the information provided to the payee.

• (3) If charges other than those provided for by paragraph (2) are deducted from the amount transferred—

• (a) in the case of a payment transaction initiated by the payer, the payer's payment service provider must ensure that the payee receives the full amount of the payment transaction;

• (b) in the case of a payment transaction initiated by the payee, the payee's payment service provider must ensure that the payee receives the full amount of the payment transaction.

Execution time and value date

Application of regulations 86 to 88

85

• (1) Regulations 86 to 88 , except paragraphs (2A) to (2D) of regulation 86, apply to any payment transaction—

• (a) executed wholly within the qualifying area in euro under a payment scheme which operates across the qualifying area

• (b) executed wholly within the United Kingdom in sterling; or

• (c) executed wholly under a payment scheme which operates across the qualifying area and involving only one currency conversion between the euro and sterling, provided that—

• (i) the currency conversion is carried out in the United Kingdom; and

• (ii) in the case of cross-border payment transactions, the cross-border transfer takes place in euro.

• (1A) Paragraphs (2A) to (2D) of regulation 86 (payment transactions to a payment account) apply to any payment transaction which is—

• (a) authorised in accordance with regulation 67 (consent and withdrawal of consent);

• (b) executed wholly within the United Kingdom in sterling; and

• (c) not initiated by or through a payee.

• (2) In respect of any other payment transaction, the payment service user may agree with the payment service provider that regulations 86 to 88 (except regulation 86(3)) do not apply.

• (3) In paragraph (1), “the qualifying area” means the area of the United Kingdom and the EEA States.

Payment transactions to a payment account

86

• (1) Subject to paragraphs (2) , (2A) to (2D) and (3), the payer's payment service provider must ensure that the amount of the payment transaction is credited to the payee's payment service provider's account by the end of the business day following the time of receipt of the payment order.

• (2) Where a payment transaction is initiated by way of a paper payment order the reference in paragraph (1) to the end of the business day following the time of receipt of the payment order is to be treated as a reference to the end of the second business day following the time of receipt of the payment order.

• (2A) Paragraph (2B) applies where the following conditions are met—

• (a) the payer’s payment service provider has established that there are reasonable grounds to suspect a payment order from a payer has been placed subsequent to fraud or dishonesty perpetrated by a person other than the payer; and

• (b) such grounds are established by no later than the end of the business day following the time of receipt of the payment order.

• (2B) Subject to paragraph (2C), the payer’s payment service provider may delay crediting the amount of the payment transaction to the account of the payee’s payment service provider for the purpose of contacting the payer or other relevant third party to make further enquiries in order to establish whether it should execute the payment order.

• (2C) The delay referred to in paragraph (2B) must be no longer than necessary to achieve the purpose described, and in any event, no longer than the end of the fourth business day following the time of receipt of the payment order.

• (2D) Where a payment service provider delays a payment order under paragraph (2B)—

• (a) the payer’s payment service provider must notify the payer of—

• (i) the fact of the delay;

• (ii) the reasons for the delay; and

• (iii) any information or action required of the payer to enable the payment service provider to decide whether to execute the order;

• (b) the notification under sub-paragraph (a) must be given or made available in an agreed manner and as soon as possible, and in any event by no later than the end of the business day following the time of receipt of the payment order;

• (c) the requirement in sub-paragraph (a) does not apply to the extent complying with it would be otherwise unlawful.

• (3) Where a payment transaction—

• (a) does not fall within paragraphs (a) to (c) of regulation 85(1) or regulation 85(1A); but

• (b) is to be executed wholly within the United Kingdom,

the payer's payment service provider must ensure that the amount of the payment transaction is credited to the payee's payment service provider's account by the end of the fourth business day following the time of receipt of the payment order.

• (4) The payee's payment service provider must value date and credit the amount of the payment transaction to the payee's payment account following its receipt of the funds.

• (5) The payee's payment service provider must transmit a payment order initiated by or through the payee to the payer's payment service provider within the time limits agreed between the payee and its payment service provider, enabling settlement in respect of a direct debit to occur on the agreed due date.

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

87

• (1) Paragraph (2) applies where a payment service provider accepts funds on behalf of a payee who does not have a payment account with that payment service provider.

• (2) The payment service provider must make the funds available to the payee immediately after the funds have been credited to that payment service provider's account.

Cash placed on a payment account

88

Where a payment service user places cash on its payment account with a payment service provider in the same currency as that payment account, the payment service provider must—

• (a) if the user is a consumer, micro-enterprise or charity, ensure that the amount is made available and value dated immediately after the receipt of the funds;

• (b) in any other case, ensure that the amount is made available and value dated no later than the end of the next business day after the receipt of the funds.

Value date and availability of funds

89

• (1) The credit value date for the payee's payment account must be no later than the business day on which the amount of the payment transaction is credited to the account of the payee's payment service provider.

• (2) Paragraph (3) applies where—

• (a) the transaction does not involve a currency conversion by the payee’s payment service provider;

• (b) the transaction involves a currency conversion by the payee’s payment service provider between the euro and pounds sterling ...; or

• (c) the transaction involves only one payment service provider.

• (3) The payee's payment service provider must ensure that the amount of the payment transaction is at the payee's disposal immediately after that amount has been credited to that payment service provider's account.

• (4) The debit value date for the payer's payment account must be no earlier than the time at which the amount of the payment transaction is debited to that payment account.

Liability

Incorrect unique identifiers

90

• (1) Where a payment order is executed in accordance with the unique identifier, the payment order is deemed to have been correctly executed by each payment service provider involved in executing the payment order with respect to the payee specified by the unique identifier.

• (2) Where the unique identifier provided by the payment service user is incorrect, the payment service provider is not liable under regulation 91 or 92 for non-execution or defective execution of the payment transaction, but the payment service provider—

• (a) must make reasonable efforts to recover the funds involved in the payment transaction; and

• (b) may, if agreed in the framework contract, charge the payment service user for any such recovery.

• (3) The payee's payment service provider must co-operate with the payer's payment service provider in its efforts to recover the funds, in particular by providing to the payer's payment service provider all relevant information for the collection of funds.

• (4) If the payer's payment service provider is unable to recover the funds it must, on receipt of a written request, provide to the payer all available relevant information in order for the payer to claim repayment of the funds.

• (5) Where the payment service user provides information additional to that specified in regulation 43(2)(a) (information required prior to the conclusion of a single payment service contract) or paragraph 2(b) of Schedule 4 (prior general information for framework contracts), the payment service provider is liable only for the execution of payment transactions in accordance with the unique identifier provided by the payment service user.

• (6) Nothing in this regulation affects the liability of a payment service provider under a relevant requirement in a case where the payment order is executed subsequent to fraud or dishonesty (and the requirements imposed by this regulation are subject to any such relevant requirements).

• (7) In this regulation, a “relevant requirement” means a requirement imposed by or under—

• (a) a direction given under regulation 125,

• (b) a direction given under section 54 of the Financial Services (Banking Reform) Act 2013,

• (c) a rule made under section 55 of that Act,

• (d) an order made under section 56(3) of that Act, or

• (e) a variation of an agreement under section 57(2) of that Act.

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

91

• (1) This regulation applies where a payment order is initiated directly by the payer.

• (2) The payer's payment service provider is liable to the payer for the correct execution of the payment transaction unless it can prove to the payer and, where relevant, to the payee's payment service provider, that the payee's payment service provider received the amount of the payment transaction in accordance with regulation 86(1) to (3) (payment transactions to a payment account).

• (3) Where the payer's payment service provider is liable under paragraph (2), it must without undue delay refund to the payer the amount of the non-executed or defective payment transaction and, where applicable, restore the debited payment account to the state in which it would have been had the defective payment transaction not taken place.

• (4) The credit value date for a credit under paragraph (3) must be no later than the date on which the amount was debited.

• (5) If the payer's payment service provider proves that the payee's payment service provider received the amount of the payment transaction in accordance with regulation 86, the payee's payment service provider is liable to the payee for the correct execution of the payment transaction and must—

• (a) immediately make available the amount of the payment transaction to the payee; and

• (b) where applicable, credit the corresponding amount to the payee's payment account.

• (6) The credit value date for a credit under paragraph (5)(b) must be no later than the date on which the amount would have been value dated if the transaction had been executed correctly.

• (7) Where a payment transaction is executed late, the payee's payment service provider must, on receipt of a request from the payer's payment service provider on behalf of the payer, ensure that the credit value date for the payee's payment account is no later than the date the amount would have been value dated if the transaction had been executed correctly.

• (8) Regardless of liability under this regulation, the payer's payment service provider must, on request by the payer, immediately and without charge—

• (a) make efforts to trace any non-executed or defectively executed payment transaction; and

• (b) notify the payer of the outcome.

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

92

• (1) This regulation applies where a payment order is initiated by the payee.

• (2) The payee's payment service provider is liable to the payee for the correct transmission of the payment order to the payer's payment service provider in accordance with regulation 86(5) (payment transactions to a payment account).

• (3) Where the payee's payment service provider is liable under paragraph (2), it must immediately re-transmit the payment order in question to the payer's payment service provider.

• (4) The payee's payment service provider must also ensure that the transaction is handled in accordance with regulation 89 (value date and availability of funds), such that the amount of the transaction—

• (a) is at the payee's disposal immediately after it is credited to the payee's payment service provider's account; and

• (b) is value dated on the payee's payment account no later than the date the amount would have been value dated if the transaction had been executed correctly.

• (5) The payee's payment service provider must, on request by the payee and free of charge, make immediate efforts to trace the payment transaction and notify the payee of the outcome.

• (6) Subject to paragraph (8), if the payee's payment service provider proves to the payee and, where relevant, to the payer's payment service provider, that it is not liable under paragraph (2) in respect of a non-executed or defectively executed payment transaction, the payer's payment service provider is liable to the payer and must, as appropriate and immediately—

• (a) refund to the payer the amount of the payment transaction; and

• (b) restore the debited payment account to the state in which it would have been had the defective payment transaction not taken place.

• (7) The credit value date for a credit under paragraph (6)(b) must be no later than the date on which the amount was debited.

• (8) If the payer's payment service provider proves that the payee's service provider has received the amount of the payment transaction, paragraph (6) does not apply and the payee's payment service provider must value date the amount on the payee's payment account no later than the date the amount would have been value dated if the transaction had been executed correctly.

Non-execution or defective or late execution of payment transactions initiated through a payment initiation service

93

• (1) This regulation applies where a payment order is initiated by the payer through a payment initiation service.

• (2) The account servicing payment service provider must refund to the payer the amount of the non-executed or defective payment transaction and, where applicable, restore the debited payment account to the state in which it would have been had the defective payment transaction not taken place.

• (3) Paragraph (4) applies if the payment initiation service provider does not prove to the account servicing payment service provider that—

• (a) the payment order was received by the payer's account servicing payment service provider in accordance with regulation 81 (receipt of payment orders); and

• (b) within the payment initiation service provider's sphere of influence the payment transaction was authenticated, accurately recorded and not affected by a technical breakdown or other deficiency linked to the non-execution, defective or late execution of the transaction.

• (4) On request from the account servicing payment service provider, the payment initiation service provider must immediately compensate the account servicing payment service provider for the losses incurred or sums paid as a result of the refund to the payer.

Liability of payment service provider for charges and interest

94

A payment service provider is liable to its payment service user for—

• (a) any charges for which the payment service user is responsible; and

• (b) any interest which the payment service user must pay,

as a consequence of the non-execution or defective or late execution of the payment transaction.

Right of recourse

95

Where the liability of a payment service provider (“the first provider”) under regulation 76, 91, 92 or 93 (payment service providers' liability for unauthorised or defective payment transactions) is attributable to another payment service provider or an intermediary, including where there is a failure to use strong customer authentication as required by regulation 100 (authentication), the other payment service provider or intermediary must compensate the first provider for any losses incurred or sums paid pursuant to those regulations.

Force majeure

96

• (1) A person is not liable for any contravention of a requirement imposed on it by or under this Part where the contravention is due to abnormal and unforeseeable circumstances beyond the person's control, the consequences of which would have been unavoidable despite all efforts to the contrary.

• (2) A payment service provider is not liable for any contravention of a requirement imposed on it by or under this Part where the contravention is due to the obligations of the payment service provider under other provisions of ... national law.

Miscellaneous

Consent for use of personal data

97

A payment service provider must not access, process or retain any personal data for the provision of payment services by it, unless it has the explicit consent of the payment service user to do so.

Management of operational and security risks

98

• (1) Each payment service provider must establish a framework with appropriate mitigation measures and control mechanisms to manage the operational and security risks, relating to the payment services it provides. As part of that framework, the payment service provider must establish and maintain effective incident management procedures, including for the detection and classification of major operational and security incidents.

• (2) Each payment service provider must provide to the FCA an updated and comprehensive assessment of the operational and security risks relating to the payment services it provides and on the adequacy of the mitigation measures and control mechanisms implemented in response to those risks.

• (3) Such assessment must—

• (a) be provided on an annual basis, or at such shorter intervals as the FCA may direct; and

• (b) be provided in such form and manner, and contain such information, as the FCA may direct.

Incident reporting

99

• (1) If a payment service provider becomes aware of a major operational or security incident, the payment service provider must, without undue delay, notify the FCA.

• (2) A notification under paragraph (1) must be in such form and manner, and contain such information, as the FCA may direct.

• (3) If the incident has or may have an impact on the financial interests of its payment service users, the payment service provider must, without undue delay, inform its payment service users of the incident and of all measures that they can take to mitigate the adverse effects of the incident.

• (4) Upon receipt of the notification referred to in paragraph (1), the FCA must notify any other relevant authorities in the United Kingdom.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Authentication

100

• (1) A payment service provider must apply strong customer authentication where a payment service user—

• (a) accesses its payment account online, whether directly or through an account information service provider;

• (b) initiates an electronic payment transaction; or

• (c) carries out any action through a remote channel which may imply a risk of payment fraud or other abuses.

• (2) Where a payer initiates an electronic remote payment transaction directly or through a payment initiation service provider, the payment service provider must apply strong customer authentication that includes elements which dynamically link the transaction to a specific amount and a specific payee.

• (3) A payment service provider must maintain adequate security measures to protect the confidentiality and integrity of payment service users' personalised security credentials.

• (4) An account servicing payment service provider must allow a payment initiation service provider or account information service provider to rely on the authentication procedures provided by the account servicing payment service provider to a payment service user in accordance with the preceding paragraphs of this regulation.

• (5) Paragraphs (1), (2) and (3) are subject to any exemptions from the requirements in those paragraphs provided for in technical standards made under regulation 106A.

Dispute resolution

101

• (1) This regulation applies in relation to complaints from payment service users who are not eligible within the meaning of section 226(6) of the 2000 Act (the ombudsman scheme – compulsory jurisdiction).

• (2) A payment service provider must put in place and apply adequate and effective complaint resolution procedures for the settlement of complaints from payment service users about the rights and obligations arising under Parts 6 and 7.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) When a payment service provider receives a complaint from a payment service user, the payment service provider must make every possible effort to address all points raised in a reply to the complaint on paper or, if agreed between payment service provider and payment service user, in another durable medium.

• (5) Subject to paragraph (6), the reply must be provided to the complainant within an adequate timeframe and at the latest 15 business days after the day on which the payment service provider received the complaint.

• (6) In exceptional situations, if a full reply cannot be given in accordance with paragraph (4) for reasons beyond the control of the payment service provider, the payment service provider must send a holding reply, clearly indicating the reasons for the delay in providing a full reply to the complaint and specifying the deadline by which the payment service user will receive a full reply.

• (7) The deadline specified under paragraph (6) must not be later than 35 business days after the day on which the payment service provider received the complaint.

• (8) The payment service provider must inform the payment service user about the details of one or more providers of dispute resolution services able to deal with disputes concerning the rights and obligations arising under this Part and Part 6 (information requirements for payment services), if the payment service provider uses such services.

• (9) The payment service provider must also make available in a clear, comprehensive and easily accessible way—

• (a) the information referred to in paragraph (7); and

• (b) details of how to access further information about any provider of dispute resolution services referred to in paragraph (8) and the conditions for using such services.

• (10) The information to be made available under paragraph (8) must be made available—

• (a) on the website of the payment service provider (if any);

• (b) at branches of the payment service provider (if any); and

• (c) in the general terms and conditions of the contract between the payment service provider and the payment service user.

PART 8 — Access to payment systems and bank accounts

Application of regulation 103

102

• (1) Regulation 103 does not apply to the following kinds of payment systems—

• (a) a designated system;

• (b) a payment system consisting solely of payment service providers belonging to the same group.

Prohibition on restrictive rules on access to payment systems

103

• (1) Rules or conditions governing access to, or participation in, a payment system by authorised or registered payment service providers must—

• (a) be objective, proportionate and non-discriminatory; and

• (b) not prevent, restrict or inhibit access or participation more than is necessary to—

• (i) safeguard against specific risks such as settlement risk, operational risk or business risk; or

• (ii) protect the financial and operational stability of the payment system.

• (2) Paragraph (1) applies only to such payment service providers as are legal persons.

• (3) Rules or conditions governing access to, or participation in, a payment system must not, in respect of payment service providers, payment service users or other payment systems—

• (a) restrict effective participation in other payment systems;

• (b) discriminate (whether directly or indirectly) between

• (i) different authorised payment service providers; or

• (ii) different registered payment service providers;

in relation to the rights, obligations or entitlements of participants in the payment system; or

• (c) impose any restrictions on the basis of institutional status.

Indirect access to designated systems

104

• (1) This regulation applies where a participant in a designated system allows an authorised or registered payment service provider that is not a participant in the system to pass transfer orders through the system.

• (2) The participant—

• (a) must treat a request by another authorised or registered payment service provider to pass transfer orders through the system in an objective, proportionate and non-discriminatory manner; and

• (b) must not—

• (i) prevent, restrict or inhibit access to or participation in the system more than is necessary to safeguard against specific risks such as settlement risk, operational risk or business risk, or to protect the financial and operational stability of the participant or the payment system;

• (ii) discriminate (whether directly or indirectly) between different authorised payment service providers or different registered payment service providers in relation to the rights, obligations or entitlements of such providers in relation to access to or participation in the system; or

• (iii) impose any restrictions on the basis of institutional status.

• (3) If the participant refuses such a request, it must provide full reasons for the refusal to the payment service provider which made the request.

Access to bank accounts

105

• (1) A credit institution must—

• (a) grant payment service providers of the types referred to in paragraphs (a) to (f) of the definition of “payment service provider” in regulation 2(1), and applicants for authorisation or registration as such payment service providers, access to payment accounts services on an objective, non-discriminatory and proportionate basis;

• (b) when a payment service provider of a type mentioned in sub-paragraph (a) enquires about such access, include in the response to the enquiry the criteria that the credit institution applies when considering requests for such access; and

• (c) maintain arrangements to ensure that those criteria are applied in a manner which ensures compliance with sub-paragraph (a).

• (2) Access to payment accounts services granted to a payment service provider pursuant to paragraph (1) must be sufficiently extensive to allow the payment service provider to provide payment services in an unhindered and efficient manner.

• (3) If a credit institution refuses a request for access to such services from a payment service provider of the types mentioned in paragraph (1)(a), or withdraws access to such services for such a payment service provider, it must notify the FCA.

• (4) A notification under paragraph (3) must—

• (a) contain duly motivated reasons for the refusal or the withdrawal of access; and

• (b) contain such information, and be provided in such form and manner and within such period following the refusal or withdrawal of access, as the FCA may direct.

• (5) The FCA must provide the reasons received under paragraph (4) to the Payment Systems Regulator, unless the Payment Systems Regulator informs the FCA that it does not wish to receive them.

PART 9 — The Financial Conduct Authority

Functions of the FCA

106

• (1) The FCA ... has the functions and powers conferred on it by these Regulations.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In determining the general policy and principles by reference to which it performs particular functions under these Regulations ... the FCA must have regard to—

• (a) the need to use its resources in the most efficient and economic way;

• (b) the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;

• (c) the desirability of sustainable growth in the economy of the United Kingdom in the medium or long term , including in a way consistent with contributing towards achieving compliance by the Secretary of State with—

• (i) section 1 (target for 2050) of the Climate Change Act 2008, and

• (ii) section 5 (environmental targets: effect) of the Environment Act 2021,

where the FCA considers the exercise of its functions to be relevant to the making of such a contribution;

• (d) the general principle that consumers should take responsibility for their own decisions;

• (e) the responsibilities of those who manage the affairs of persons subject to requirements imposed by or under these Regulations, including those affecting consumers, in relation to compliance with those requirements;

• (f) the desirability where appropriate of the FCA exercising its functions in a way that recognises differences in the nature of, and objectives of, businesses carried on by different persons subject to requirements imposed by or under these Regulations;

• (g) the desirability in appropriate cases of the FCA publishing information in relation to persons on whom requirements are imposed by or under these Regulations;

• (h) the principle that the FCA should exercise its functions as transparently as possible.

• (4) The Treasury may at any time by notice in writing to the FCA make recommendations to the FCA about aspects of the economic policy of His Majesty’s Government to which the FCA should have regard when considering the application of the principles in paragraph (3).

• (5) Section 1JA of the 2000 Act applies in relation to any recommendation made under paragraph (4) as if—

• (a) that recommendation were made under section 1JA(1)(d);

• (b) the reference in subsection (1)(d) to the regulatory principles in section 3B were a reference to the principles set out in regulation 106(3) of these Regulations.

Application of this Part to requirements of directly applicable EU regulations and FCA rules

107

For the purposes of this Part, including the legislation applied by regulation 122 and Schedule 6, but with the exception of regulation 119 and Schedule 5 (credit agreements)—

• (a) the requirements imposed on payment service providers by Articles 8(2), 9(2) and 12 of the interchange fee regulation are to be treated as if they were included in Part 5 of these Regulations (requirements for providers of certain services which are not payment services);

• (b) the requirements imposed on payment service providers by Articles 8(5) and (6), 9(1), 10(1) and (5) and 11 of the interchange fee regulation are to be treated as if they were included in Part 6 of these Regulations (information requirements for payment services); and

• (c) requirements imposed on payment service providers by or under assimilated direct legislation adopted under the payment services directive, or by rules made by the FCA pursuant to paragraph 3 of Schedule 6, are to be treated as if they were imposed by or under Part 7 of these Regulations (rights and obligations in relation to the provision of payment services).

Supervision and enforcement

Monitoring and enforcement

108

• (1) The FCA must maintain arrangements designed to enable it to determine whether—

• (a) persons on whom requirements are imposed by or under Parts 2 to 7 or regulation 105 (access to bank accounts) are complying with them;

• (aa) authorised payment institutions, small payment institutions or registered account information services providers on whom requirements are imposed by or under section 312R of the 2000 Act are complying with them;

• (b) there has been any contravention of regulation 138(1) (prohibition on provision of payment services by persons other than payment service providers), 139(1) (false claims to be a payment service provider or exempt) or 142(1)(a) or (2) (misleading a regulator).

• (2) The arrangements referred to in paragraph (1) may provide for functions to be performed on behalf of the FCA by any body or person who is, in its opinion, competent to perform them.

• (3) The FCA must also maintain arrangements for enforcing the provisions of these Regulations.

• (4) Paragraph (2) does not affect the FCA's duty under paragraph (1).

Reporting requirements

109

• (1) A person must give the FCA such information as the FCA may direct in respect of its provision of payment services or its compliance with requirements imposed by or under Parts 2 to 7 or regulation 105 (access to bank accounts).

• (1A) An authorised payment institution, small payment institution, or registered account information services provider must give the FCA such information as the FCA may direct in respect of its compliance with requirements imposed by or under section 312R of the 2000 Act.

• (2) Information required under this regulation must be given at such times and in such form, and verified in such manner, as the FCA may direct.

• (3) A direction under paragraph (2) must specify the purpose for which the information is required, as appropriate, and the time within which the information is to be given.

• (4) Each payment service provider in the United Kingdom (but not an agent of such a payment service provider or an excluded provider) must provide to the FCA statistical data on fraud relating to different means of payment.

• (5) Such data must be provided at least once per year, and must be provided in such form as the FCA may direct.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Public censure

110

If the FCA considers that a person has contravened a requirement imposed on them by or under these Regulations or, in the case of an authorised payment institution, small payment institution, or registered account information services provider, section 312R of the 2000 Act, the FCA may publish a statement to that effect.

Financial penalties

111

• (1) The FCA may impose a penalty of such amount as it considers appropriate on—

• (a) a payment service provider who has contravened a requirement imposed on them by or under these Regulations; ...

• (aa) an authorised payment institution, small payment institution, or registered account information services provider who has contravened a requirement imposed on it by or under section 312R of the 2000 Act; or

• (b) a person who has contravened regulation 138(1) (prohibition on provision of payment services by persons other than payment service providers), 139(1) (false claims to be a payment service provider or exempt) or 142(1)(a) or (2) (misleading a regulator).

• (2) The FCA may not in respect of any contravention both require a person to pay a penalty under this regulation and cancel their authorisation as a payment institution or their registration as a small payment institution or account information service provider (as the case may be).

• (3) A penalty under this regulation is a debt due from that person to the FCA, and is recoverable accordingly.

Proposal to take disciplinary measures

112

• (1) Where the FCA proposes to publish a statement under regulation 110 or to impose a penalty under regulation 111, it must give the person concerned a warning notice.

• (2) The warning notice must set out the terms of the proposed statement or state the amount of the proposed penalty.

• (3) If, having considered any representations made in response to the warning notice, the FCA decides to publish a statement under regulation 110 or to impose a penalty under regulation 111, it must without delay give the person concerned a decision notice.

• (4) The decision notice must set out the terms of the statement or state the amount of the penalty.

• (5) If the FCA decides to publish a statement under regulation 110 or impose a penalty on a person under regulation 111, the person concerned may refer the matter to the Upper Tribunal.

• (6) Sections 210 (statements of policy) and 211 (statements of policy: procedure) of the 2000 Act apply in respect of the imposition of penalties under regulation 111 and the amount of such penalties as they apply in respect of the imposition of penalties under Part 14 of the 2000 Act (disciplinary measures) and the amount of penalties under that Part of that Act.

• (7) After a statement under regulation 110 is published, the FCA must send a copy of it to the person concerned and to any person to whom a copy of the decision notice was given under section 393(4) of the 2000 Act (third party rights) (as applied by paragraph 10 of Schedule 6 to these Regulations).

Injunctions

113

• (1) If, on the application of the FCA, the court is satisfied—

• (a) that there is a reasonable likelihood that any person will contravene a requirement imposed by or under these Regulations; ...

• (b) that any person has contravened such a requirement and that there is a reasonable likelihood that the contravention will continue or be repeated,

• (c) that there is a reasonable likelihood that an authorised payment institution, small payment institution, or registered account information services provider will contravene a requirement imposed on it by or under section 312R of the 2000 Act; or

• (d) that an authorised payment institution, small payment institution, or registered account information services provider has contravened such a requirement and that there is a reasonable likelihood that the contravention will continue or be repeated,

the court may make an order restraining (or in Scotland an interdict prohibiting) the contravention.

• (2) If, on the application of the FCA, the court is satisfied—

• (a) that any person has contravened a requirement imposed by or under these Regulations or an authorised payment institution, small payment institution, or registered account information services provider has contravened a requirement imposed on it by or under section 312R of the 2000 Act; and

• (b) that there are steps which could be taken for remedying the contravention,

the court may make an order requiring that person or institution or provider, and any other person who appears to have been knowingly concerned in the contravention, to take such steps as the court may direct to remedy it.

• (3) If, on the application of the FCA, the court is satisfied that any person may have—

• (a) contravened a requirement imposed by or under these Regulations; ...

• (aa) in the case of an authorised payment institution, small payment institution, or registered account information services provider contravened a requirement imposed on it by or under section 312R of the 2000 Act; or

• (b) been knowingly concerned in the contravention of a requirement described in sub-paragraph (a) or (aa),

it may make an order restraining (or in Scotland an interdict prohibiting) them from disposing of, or otherwise dealing with, any assets of theirs which it is satisfied they are reasonably likely to dispose of or otherwise deal with.

• (4) The jurisdiction conferred by this regulation is exercisable by the High Court and the Court of Session.

• (5) In paragraph (2), references to remedying a contravention include references to mitigating its effect.

Power of FCA to require restitution

114

• (1) The FCA may exercise the power in paragraph (2) if it is satisfied that a payment service provider (referred to in this regulation and regulation 115 as “the person concerned”) has contravened a requirement imposed by or under these Regulations, or been knowingly concerned in the contravention of such a requirement, or, where the payment service provider is an authorised payment institution, small payment institution, or registered account information services provider, has contravened a requirement imposed on it by or under section 312R of the 2000 Act, or been knowingly concerned in the contravention of such a requirement, and that—

• (a) profits have accrued to the person concerned as a result of the contravention; or

• (b) one or more persons have suffered loss or been otherwise adversely affected as a result of the contravention.

• (2) The power referred to in paragraph (1) is a power to require the person concerned, in accordance with such arrangements as the FCA considers appropriate, to pay to the appropriate person or distribute among the appropriate persons such amount as appears to the FCA to be just having regard—

• (a) in a case within sub-paragraph (a) of paragraph (1), to the profits appearing to the FCA to have accrued;

• (b) in a case within sub-paragraph (b) of that paragraph, to the extent of the loss or other adverse effect;

• (c) in a case within both of those paragraphs, to the profits appearing to the FCA to have accrued and to the extent of the loss or other adverse effect.

• (3) In paragraph (2) “appropriate person” means a person appearing to the FCA to be someone—

• (a) to whom the profits mentioned in paragraph (1)(a) are attributable; or

• (b) who has suffered the loss or adverse effect mentioned in paragraph (1)(b).

Proposal to require restitution

115

• (1) If the FCA proposes to exercise the power under regulation 114(2), it must give the person concerned a warning notice.

• (2) The warning notice must state the amount which the FCA propose to require the person concerned to pay or distribute as mentioned in regulation 114(2).

• (3) If, having considered any representations made in response to the warning notice, the FCA decides to exercise the power under regulation 114(2), it must without delay give the person concerned a decision notice.

• (4) The decision notice must—

• (a) state the amount that the person concerned is to pay or distribute;

• (b) identify the person or persons to whom that amount is to be paid or among whom that amount is to be distributed; and

• (c) state the arrangements in accordance with which the payment or distribution is to be made.

• (5) If the FCA decides to exercise the power under regulation 114(2), the person concerned may refer the matter to the Upper Tribunal.

Restitution orders

116

• (1) The court may, on the application of the FCA, make an order under paragraph (2) if it is satisfied that a person has contravened a requirement imposed by or under these Regulations, or been knowingly concerned in the contravention of such a requirement, or, where the payment service provider is an authorised payment institution, small payment institution, or registered account information services provider, has contravened a requirement imposed on it by or under section 312R of the 2000 Act, or been knowingly concerned in the contravention of such a requirement, and that—

• (a) profits have accrued to them as a result of the contravention; or

• (b) one or more persons have suffered loss or been otherwise adversely affected as a result of the contravention.

• (2) The court may order the person concerned to pay to the FCA such sum as appears to the court to be just having regard—

• (a) in a case within sub-paragraph (a) of paragraph (1), to the profits appearing to the court to have accrued;

• (b) in a case within sub-paragraph (b) of that paragraph, to the extent of the loss or other adverse effect;

• (c) in a case within both of those sub-paragraphs, to the profits appearing to the court to have accrued and to the extent of the loss or other adverse effect.

• (3) Any amount paid to the FCA in pursuance of an order under paragraph (2) must be paid by it to such qualifying person or distributed by it among such qualifying persons as the court may direct.

• (4) In paragraph (3), “qualifying person” means a person appearing to the court to be someone—

• (a) to whom the profits mentioned in paragraph (1)(a) are attributable; or

• (b) who has suffered the loss or adverse effect mentioned in paragraph (1)(b).

• (5) On an application under paragraph (1) the court may require the person concerned to supply it with such accounts or other information as it may require for any one or more of the following purposes—

• (a) establishing whether any and, if so, what profits have accrued to them as mentioned in sub-paragraph (a) of that paragraph;

• (b) establishing whether any person or persons have suffered any loss or adverse effect as mentioned in sub-paragraph (b) of that paragraph; and

• (c) determining how any amounts are to be paid or distributed under paragraph (3).

• (6) The court may require any accounts or other information supplied under paragraph (5) to be verified in such manner as it may direct.

• (7) The jurisdiction conferred by this regulation is exercisable by the High Court and the Court of Session.

• (8) Nothing in this regulation affects the right of any person other than the FCA to bring proceedings in respect of the matters to which this regulation applies.

Complaints

117

• (1) The FCA must maintain arrangements designed to enable payment service users and other interested parties to submit complaints to it that—

• (a) a requirement imposed by or under Parts 2 to 7 of these Regulations has been breached by a payment service provider, or

• (b) a requirement imposed by or under section 312R of the 2000 Act has been breached by an authorised payment institution, small payment institution, or registered account information services provider.

• (2) Where it considers it appropriate, the FCA must include in any reply to a complaint under paragraph (1) details of the ombudsman scheme established under Part 16 of the 2000 Act (the ombudsman scheme).

Miscellaneous

Costs of supervision

118

• (1) The functions of the FCA under these Regulations are to be treated for the purposes of paragraph 23 of Schedule 1ZA (fees) to the 2000 Act as functions conferred on the FCA under that Act, with the following modifications—

• (a) section 1B(5)(a) of the 2000 Act (FCA's general duties) does not apply to the making of rules under paragraph 23 by virtue of this regulation;

• (b) rules made under paragraph 23 by virtue of this regulation are not to be treated as regulating provisions for the purposes of section 140A(1) of the 2000 Act (competition scrutiny) ;

• (c) paragraph 23(7) does not apply.

• (2) The FCA must in respect of each of its financial years pay to the Treasury any amounts received by it during the year by way of penalties imposed under regulation 111.

• (3) The Treasury may give directions to the FCA as to how the FCA is to comply with its duty under paragraph (2).

• (4) The directions may in particular—

• (a) specify the time when any payment is required to be made to the Treasury, and

• (b) require the FCA to provide the Treasury at specified times with information relating to penalties that the FCA has imposed under regulation 111.

• (5) The Treasury must pay into the Consolidated Fund any sums received by them under this regulation.

Credit agreements

119

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Guidance

120

• (1) The FCA may give guidance consisting of such information and advice as it considers appropriate with respect to—

• (a) the operation of these Regulations;

• (b) any matters relating to the functions of the FCA under these Regulations;

• (c) any other matters about which it appears to the FCA to be desirable to give information or advice in connection with these Regulations.

• (2) The FCA may—

• (a) publish its guidance;

• (b) offer copies of its published guidance for sale at a reasonable price;

• (c) if it gives guidance in response to a request made by any person, make a reasonable charge for that guidance.

FCA's exemption from liability in damages

121

The functions of the FCA under these Regulations are to be treated for the purposes of paragraph 25 (exemption from liability in damages) of Part 4 of Schedule 1ZA to the 2000 Act as functions conferred on the FCA under that Act.

Application and modification of primary and secondary legislation

122

The provisions of primary and secondary legislation set out in Schedule 6 apply for the purposes of these Regulations with the modifications set out in that Schedule.

PART 10 — The Payment Systems Regulator

Interpretation of Part 10

123

In this Part—

• “the 2013 Act” means the Financial Services (Banking Reform) Act 2013 ;

• “compliance failure” means a failure by a regulated person to comply with—a qualifying requirement; ora direction given under regulation 125(1);

• ...

• “general direction” has the meaning given in regulation 125(5);

• “general guidance” has the meaning given in regulation 134(2);

• “qualifying requirement” means an obligation, prohibition or restriction imposed by—regulation 61 (information on ATM withdrawal charges),Part 8 (access to payment systems and bank accounts), with the exception of the obligation imposed on the FCA by regulation 105(5) (access to bank accounts), ora direction given by the Payment Systems Regulator under regulation 125(2A);

• “regulated person” means a person on whom a qualifying requirement is imposed.

Functions of the Payment Systems Regulator

124

• (1) The Payment Systems Regulator has the functions and powers conferred on it by these Regulations.

• (2) In determining the general policy and principles by reference to which it performs particular functions under these Regulations ... the Payment Systems Regulator must have regard to the matters to which the FCA is required to have regard by regulation 106(3), and for that purpose references to the FCA in regulation 106(3)(f) to (h) are to be read as references to the Payment Systems Regulator.

• (3) The Payment Systems Regulator must maintain arrangements designed to enable it to determine whether regulated persons are complying with qualifying requirements, and for enforcing qualifying requirements.

Directions

125

• (1) The Payment Systems Regulator may give a direction in writing to any regulated person.

• (2) A direction may be given for the purpose of—

• (a) obtaining information about—

• (i) compliance with a qualifying requirement; or

• (ii) the application of a qualifying requirement to a person;

• (b) remedying a failure to comply with a qualifying requirement; or

• (c) preventing a failure to comply, or continued non-compliance, with a qualifying requirement.