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The Payment Services Regulations 2017

Type Statutory-Instrument

Publication 2017-07-18

Last updated 2026-02-25

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(b) subsection (1) of section 133A (proceedings before Tribunal: decision and supervisory notices, etc.) is to be read as if “, as a result of section 388(2)” were omitted; and

FCA rules

3

(1) Section 137A of the 2000 Act (the FCA's general rules) applies as if—

(a) references to authorised persons were references to authorised payment institutions, small payment institutions, registered account information service providers ... and electronic money institutions;

(b) in subsection (1)—

(i) the reference in paragraph (a) to the carrying on of regulated activities were to the provision of payment services, and

(ii) the reference in paragraph (b) to the carrying on of activities which are not regulated activities were to the carrying on of activities in connection with the provision of payment services;

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1A) Section 137B of the 2000 Act (FCA general rules: clients’ money, right to rescind etc) applies as if—

(a) references to authorised persons were references to authorised payment institutions, small payment institutions, registered account information service providers, electronic money institutions and relevant credit unions (“relevant institutions”);

(b) after subsection (1) there were inserted—

(1A) Rules relating to the safeguarding of relevant assets held by a relevant institution may— (a) make any provision in relation to those relevant assets which might be made under subsection (1) in relation to clients’ money; (b) treat two or more relevant assets as being part of a single asset pool, and make provision for the distribution of assets in that pool; (c) authorise the retention by a relevant institution of income or capital gains accruing in relation to relevant assets; (d) make provision as to the distribution of such income or capital gains which are not to be retained by the relevant institution.

(c) in subsection (2) the references to “clients’ money” and “money” were read as including a reference to relevant assets;

(d) after subsection (3), there were inserted—

(3A) “Relevant assets” means assets held by a relevant institution to satisfy its obligations to safeguard funds received— (a) in exchange for electronic money that has been issued, or (b) where no electronic money has been issued— (i) from, or for the benefit of, a payment service user for the execution of a payment transaction, or (ii) from a payment service provider for the execution of a payment transaction on behalf of a payment service user, including proceeds derived from the realisation of such assets. (3B) In subsection (3A), “assets” include— (a) money; (b) insurance policies, including rights arising under those policies; (c) guarantees, including rights arising under those guarantees; (d) other investments, whether or not specified by the Treasury under section 22 of the 2000 Act. (3C) “Relevant credit union” means a credit union which issues electronic money. (3D) In paragraph (1A)(b), “asset pool” means a collection of assets collectively owned by those persons whose funds the relevant institution is required to safeguard, and in which the relevant institution may also have an interest.

(1B) Section 137P (control of information rules) of the 2000 Act applies as if—

(a) references to authorised persons were references to authorised payment institutions, small payment institutions, registered account information service providers and electronic money institutions;

(b) the reference to “Either regulator” were read as a reference to the FCA.

(2) Sections 137T (general supplementary powers) and 141A (power to make consequential amendments of references to rules) and Chapter 2 of Part 9A (rules: modification, waiver, contravention and procedural provisions) of the 2000 Act apply in relation to rules made pursuant to sub-paragraph (1) , (1A) or (1B) as they do in relation to other rules made by the FCA under sections 137A, 137B and 137P of the 2000 Act, subject to sub-paragraphs (2A) and (3).

(2A) Section 138C (evidential provisions) applies as if in that section—

(a) in subsection (1) “by other provisions of this Act” were read as “by or under the Payment Services Regulations 2017”;

(b) references to “either regulator”, “a regulator”, “that regulator” or to “the regulator making the rule” were read as references to the FCA.

(3) Section 138D (actions for damages) applies as if in that section—

(a) subsection (1) were omitted;

(b) in subsection (2), the reference to “an authorised person” were a reference to “an authorised payment institution, a small payment institution, a registered account information service provider or an electronic money institution”;

(c) subsection (6) were omitted and “private person” has the meaning given in regulation 148(3) of these Regulations (actions for breach of requirement).

Information gathering and investigations

4

Part 11 of the 2000 Act (information gathering and investigations) applies with the following modifications—

(a) section 165 (regulators' power to require information) is to be read as if—

(i) references to an authorised person were references to a payment service provider;

(ii) in subsection (4), for “this Act” there were substituted “ the Payment Services Regulations 2017 ”; and

(iii) in subsection (7), paragraphs (b) to (e) were omitted;

(b) section 166 (reports by skilled persons) is to be read as if—

(i) references to an authorised person were references to a payment service provider; and

(ii) subsections (10) and (11) were omitted;

(c) section 166A (appointment of skilled person to collect and update information) is to be read as if references to an authorised person were to a payment service provider;

(d) section 167 (appointment of persons to carry out general investigations) is to be read as if—

(i) references to a recognised investment exchange, an authorised person or an appointed representative were references to a payment service provider;

(ii) in subsection (4), references to a former authorised person or appointed representative were to a former payment service provider;

(iii) in subsection (5) for “regulated activities” there were substituted “ payment services ”; and

(iv) for subsection (5A) there were substituted—

(5A) “Investigating authority” means the FCA.

(v) subsection (6) were omitted;

(e) section 168 (appointment of persons to carry out investigations in particular cases) is to be read as if—

(i) in subsection (1)—

(aa) after paragraph (b) there were inserted—

(c) a person may have contravened any requirement of or imposed under the Payment Services Regulations 2017 or section 312R; (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(bb) in paragraph (b) for “191F” to the end there were substituted “ or under regulation 138, 139, 141 or 142 of the Payment Services Regulations 2017 ”;

(ii) for subsection (2) there were substituted—

(2) Subsection (3) also applies if it appears to an investigating authority that there are circumstances suggesting that a person may be guilty of an offence under, or has contravened a requirement of, the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 .

(iii) subsections (4) and (5) were omitted; and

(iv) for subsection (6) there were substituted—

(6) “Investigating Authority” means the FCA.

(f) section 169 (investigations etc in support of overseas regulator) is to be disregarded;

(g) section 170 (investigations: general) is to be read as if—

(i) in subsection (1) “or (5)” were omitted;

(ii) in subsection (3)(a) “or (4)” were omitted; and

(iii) for subsection (10) there were substituted—

(10) “Investigating authority” in relation to an investigator means the FCA.

(h) section 171 (powers of persons appointed under section 167) is to be read as if subsections (3A) and (7) were omitted;

(i) section 172(4) (additional power of persons appointed as a result of section 168(1) or (4)) is to be read as if “or (4)” were omitted;

(j) section 174 (admissibility of statements made to investigators) is to be read as if—

(i) in subsection (2) “or in proceedings in relation to action to be taken against that person under section 123 to which this section applies” were omitted;

(ii) in subsection (3)(a) for “398” there were substituted “ regulation 142 of the Payment Services Regulations 2017 ”;

(iii) subsection (3A) were omitted; and

(iv) in subsection (4) “or (5)” were omitted;

(k) section 175(8) (information and documents: supplemental provisions) is to be read as if “or (5)” were omitted;

(l) section 176 (entry of premises under warrant) is to be read as if—

(i) in subsection (3)(a) for “an authorised person or an appointed representative” there were substituted “ a payment service provider ”;

(ii) in subsection (10) “or (5)” were omitted;

(iii) for subsection (11)(a) there were substituted—

(a) by the FCA under section 165 or 175; or

(m) 177(5)(a) (offences) is to be read as if for “six months” there were substituted “ three months ”.

Control over payment institutions

5

Part 12 of the 2000 Act (control over authorised persons) applies with the following modifications—

(a) references to a UK authorised person are to be read as references to an authorised payment institution or small payment institution other than one included in the register pursuant to regulation 153(1) (transitional provisions);

(b) section 178 (obligation to notify the appropriate regulator) is to be read as if for subsection (2A) there were substituted—

(2A) In this Part, “the appropriate regulator” means the FCA.

(d) section 187A (assessment: consultation by PRA with FCA) is to be disregarded;

(e) section 187C (variation etc of conditions) is to be read as if subsection (1) were omitted;

(f) section 188(1), (2) and (3) (assessment: consultation with EC competent authorities) are to be read as if after “home state regulator” there were inserted “ or home state competent authority ”;

(g) section 191A (objection by the appropriate regulator) is to be read as if subsection (4A) were omitted;

(h) section 191B (restriction notices) is to be read as if—

(i) subsection (2A) were omitted;

(ii) after subsection (2B) there were inserted—

(2C) In a restriction notice, the FCA must direct that voting power to which the notice relates is, until further notice, not to be exercisable.

(iii) for subsection (3)(b) there were substituted—

(b) voting power that has been exercised as a result of the acquisition is void;

(i) section 191C (orders for sale of shares) is to be read as if subsection (2A) were omitted;

(j) section 191D (obligation to notify the appropriate regulator: dispositions of control) is to be read as if subsection (1A) were omitted;

(k) section 191F (offences) is to be read as if in subsections (8)(a) and (9)(a), for “to a fine not exceeding the statutory maximum” there were substituted in each case “ to a fine, which in Scotland or Northern Ireland may not exceed the statutory maximum ”;

(l) section 191G (interpretation) is to be read as if, in subsection (1), the definition of “UK authorised person” were omitted; and

(m) section 192 (power to change definitions of control etc) is to be disregarded.

Incoming firms: interventions by the FCA

6

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

Auditors and actuaries

7

(1) Section 340 (appointment of auditors and actuaries) of the 2000 Act applies with the following modifications—

(a) references to “the appropriate regulator” and to the “regulator making the rules” are to be read as references to the FCA;

(b) references to an authorised person are to be read as references to an authorised payment institution or a person required by regulation 39(3) of the Payment Services Regulations 2017 to provide an audit opinion to the FCA;

(d) in subsection (5), “(3A) or” were omitted.

(2) Sections 341 (access to books etc) to 346 (provision of false or misleading information to auditor or actuary) of the 2000 Act apply with the following modifications—

(a) references to a regulator are to be read as references to the FCA and references to the PRA are to be disregarded;

(b) references to an authorised person are to be read as an authorised payment institution or a person required by regulation 39 to provide an audit opinion to the FCA;

(c) section 344 (duty of auditor or actuary resigning etc. to give notice) is to be read as if for subsection (4) there were substituted—

(4) In this section “the appropriate regulator” means the FCA.

Restriction on disclosure of information

8

(1) Sections 348 (restrictions on disclosure of confidential information by FCA, PRA etc) , 349 (exceptions from section 348) and 352 (offences) of the 2000 Act apply with the following modifications—

(a) section 348 is to be read as if—

(i) in subsection (2)(b) for the words from “, the PRA” to the end there were substituted “ under the Payment Services Regulations 2017 ”;

(ii) in subsection (3)(a) for “this Act” there were substituted “ the Payments Services Regulations 2017 ”;

(iii) in subsection (5)—

(aa) for “this Part”, there were substituted “ the Payment Services Regulations 2017 ”;

(bb) paragraphs (aa), (c) and (zd) were omitted;

(cc) in paragraph (e) for “paragraphs (a) to (c)” there were substituted “ paragraph (a) ”;

(iv) for subsection (6) there were substituted—

(6) In subsection (5)(f), “expert” includes any body or person appointed under regulation 108 of the Payment Services Regulations 2017 to perform a function on behalf of the FCA.

(v) subsection (8) were omitted.

(b) section 349 is to be read as if subsection (3A) was omitted.

Insolvency

9

The sections of the 2000 Act mentioned in the first column of the Table apply with any modifications shown in the third column.

Section	Subject	Modifications
Generally (for the sections mentioned below)		To be read as if—(a) references to an authorised person or recognised investment exchange were to an authorised payment institution or a small payment institution;(b) references to the appropriate regulator, or to the regulator or a regulator, were to the FCA;(c) references to creditors included users.
Section 356	Powers of FCA to participate in proceedings: company voluntary arrangements	To be read as if subsections (4) and (5) were omitted.
Section 357	Powers of FCA to participate in proceedings: individual voluntary arrangements	To be read as if subsections (7) and (8) were omitted.
Section 358	Powers of FCA to participate in proceedings: trust deeds for creditors in Scotland	To be read as if subsection (6A) were omitted.
Section 359	Administration order	To be read as if—(a) subsection (1)(b) were omitted;(b) subsection (1)(c) were substituted with—“(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”;(c) subsection (1A) were omitted;(d) in subsection (3)(a), the reference to an agreement were to a contract for payment services;(e) subsection (3)(b) and (c) were omitted;(f) in subsection (4), the definitions of “agreement, “authorised deposit taker”, “authorised reclaim fund” and “relevant deposit” were omitted;(g) subsection (5) were omitted.
Section 361	Administrators’ duty to report to FCA	To be read as if—(a) in subsection (2)(a) the reference to the general prohibition were to regulation 138(1) of the Payment Services Regulations 2017;(b) subsection (2)(b) were omitted;(c) subsection (2A) were omitted;(d) in subsection (3)(b) the reference to the general prohibition were to regulation 138(1) of the Payment Services Regulations 2017.
Section 362	Powers of FCA to participate in proceedings	To be read as if—(a) subsection (1)(b) were omitted;(b) subsection (1)(c) were substituted with—“(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”;(c) subsections (7) and (8) were omitted.
Section 362A	Administrator appointed by company or directors	To be read as if subsection (2B) were omitted.
Section 363	Receivership: powers of FCA to participate in proceedings	To be read as if—(a) subsection (1)(b) were omitted;(b) subsection (1)(c) were substituted with—“(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”;(c) subsection (6) were omitted.
Section 364	Receiver’s duty to report to FCA	To be read as if—(a) in subsection (b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017,”;(b) in the words after subsection (b), the words from “and,” to the end were omitted.
Section 365	Voluntary winding up: powers of FCA to participate in proceedings	To be read as if subsection (8) were omitted.
Section 367	Winding-up petitions	To be read as if—(a) subsection (1)(b) were omitted;(b) subsection (1)(c) were substituted with—“(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”;(c) subsection (1A) were omitted;(d) in subsection (4) for “an agreement” there were substituted “a contract for payment services”;(e) subsection (5) were omitted.
Section 370	Liquidator’s duty to report to FCA	To be read as if —(a) in subsection (1)(b)(ii), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017,”;(b) in the words after subsection (1)(b), the words from “and,” to the end were omitted;(c) in subsection (2)(b), the reference to the general prohibition were to regulation 138(1) of the Payment Services Regulations 2017.
Section 371	Winding up: powers of FCA to participate in proceedings	To be read as if —(a) subsection (1)(b) were omitted;(b) subsection (1)(c) were substituted with—“(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”;(c) subsections (6) and (7) were omitted.
Section 372	Bankruptcy: Petitions	To be read as if —(a) subsection (1A) were omitted;(b) in subsections (3) and (4), the reference to an agreement, in both places it occurs, were to a contract for payment services;(c) in subsections (2) and (6) the reference to subsection (1A), in each place it occurs, were omitted;(d) in subsection (7)(b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”;(e) subsection (8) were omitted.
Section 373	Bankruptcy: insolvency practitioner’s duty to report to FCA	To be read as if —(a) in subsection (1)(b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017,”;(b) in the words after subsection (1)(b)(ii), the words from “and,” to the end were omitted;(c) in subsection (1A)(b), the reference to the general prohibition were to regulation 138(1) of the Payment Services Regulations 2017.
Section 374	Bankruptcy: powers of FCA to participate in proceedings	To be read as if —(a) in subsection (5)(b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”;(b) in subsection (6)(b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”;(c) subsections (7) and (8) were omitted.
Section 375	Provisions against debt avoidance: right of FCA to apply for an order	To be read as if—(a) in subsection (1)(a), for the words from “carrying” to the end there were substituted “providing payment services (whether or not in contravention of regulation 138 (1) of the Payment Services Regulations 2017);”;(b) in subsection (1)(b) the reference to a regulated activity carried on were to payment services being provided;(c) subsection (1A) were omitted;(d) in subsection (2) “or subsection (1A)(b) (as the case may be)” were omitted.

Warning notices and decision notices

10

Part 26 of the 2000 Act (notices) applies with the following modifications—

(a) section 388 (decision notices) is to be read as if subsection (2) were omitted;

(b) section 390 (final notices) is to be read as if the reference in subsection (6) to section 384(5) were a reference to regulation 114(2) of these Regulations;

(i) for subsection (1ZB) there were substituted—

(1ZB) A warning notice falls within this subsection if it is given under regulation 112 of the Payment Services Regulations 2017.

(ii) in subsection (10), for “has the same meaning as in section 395” there were substituted “ means a notice given under regulation 12(6), (9) or (10)(b) (including as applied by regulation 15 or 19) of, or paragraph 4 of Schedule 5 to, the Payment Services Regulations 2017) ”;

(d) section 392 (application of sections 393 and 394) is to be read as if for paragraphs (a) and (b) there were substituted—

(a) a warning notice given in accordance with regulations 10(2) (including as applied by regulation 15 or 19), 28(1) (in relation to the cancellation of a registration), 35(2), 112(1) or 115(1) of the Payment Services Regulations 2017; (b) a decision notice given in accordance with regulations 10(3)(a) (including as applied by regulation 15 or 19), 28(2)(a)(i) (in relation to the cancellation of a registration), 35(3)(a), 112(3) or 115(3) of the Payment Services Regulations 2017.

; and

(e) section 395 (the FCA's and PRA's procedures) is to be read as if in subsection (13) for “in accordance with” to the end there were substituted “ under regulation 12(6), (9) or (10)(b) (including as applied by regulation 15 or 19) of, or paragraph 4 of Schedule 5 to, the Payment Services Regulations 2017 ”.

Limitation on power to require documents

11

Section 413 of the 2000 Act (protected items) applies for the purposes of these Regulations as it applies for the purposes of that Act.

PART 2 — Application and modification of secondary legislation

The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001

12

The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001 apply to any notice, direction or document of any kind given by or to the FCA under these Regulations as it applies to any notice, direction or document of any kind under the 2000 Act.

The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001

13

The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001 apply with the following modifications—

(a) regulation 2 (interpretation) is to be read as if—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) before the definition of “prescribed disciplinary proceedings” there were inserted—

“payment services directive” means Directive 2015/2366/EU of the European Parliament and of the Council of 25th November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No. 1093/2010, and repealing Directive 2007/64/EC ; ...

(iv) in the definition of “relevant provisions”, after paragraph (j) there were inserted—

(k) Article 24 of the payment services directive;

(v) in the definition of “relevant directives”, after paragraph (e) there were inserted—

(ea) the payment services directive;

(b) regulation 5(4)(a) (disclosure for the purposes of certain other proceedings) is to be read as if for “an authorised person, former authorised person or former regulated person” there were substituted “ a payment service provider, former payment service provider, excluded provider or former excluded provider ”;

(c) regulation 5(6)(e) is to be read as if for “an authorised person, former authorised person or former regulated person” there were substituted “ a payment service provider, former payment service provider, excluded provider or former excluded provider ”;

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) regulation 9 (disclosure by regulators or regulator workers to certain other persons) is to be read as if—

(i) in paragraph (1) after “paragraphs” there were inserted “ (1B) ”; and

(ii) after paragraph (1A) there were inserted—

(1B) Paragraph (1) does not permit disclosure to the persons specified in the first column in Part 4A of Schedule 1 unless the disclosure is of payment services ... information.

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) Part 1 of Schedule 1 (disclosure of confidential information whether or not subject to assimilated law restrictions) is to be read as if, in the second column, in the list of functions beside—

(i) “An official receiver appointed under section 399 of the Insolvency Act 1986, or an official receiver for Northern Ireland appointed under article 355 of the Insolvency (Northern Ireland) Order 1989”, after paragraph (ii) there were inserted—

or (iv) payment service providers, former payment service providers, excluded providers or former excluded providers

(ii) “The Department for the Economy in Northern Ireland”, after paragraph (c)(ii) there were inserted—

or (iii) payment service providers, former payment service providers, excluded providers or former excluded providers

(iii) “The Pensions Regulator”, after paragraph (ii) there were inserted—

or (iii) payment service providers, former payment service providers, excluded providers or former excluded providers

(iv) “The Charity Commissioners for England and Wales”, after paragraph (ii) there were inserted—

or (iii) payment service providers, former payment service providers, excluded providers or former excluded providers

; and

(h) Schedule 1 is to be read as if after Part 4 there were inserted—

Person	Functions>
The Commissioners for Her Majesty's Revenue and Customs	Their functions under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

SCHEDULE 7 — Gibraltar

Exercise of deemed passport rights by Gibraltar-based firms

1

(1) These Regulations apply in relation to a firm which—

(a) has its head office in Gibraltar; and

(b) is authorised in Gibraltar to provide payment services;

as follows.

(1A) Such a firm is referred to in the following provisions of this Schedule as a Gibraltar-based firm.

(2) A Gibraltar-based firm is to be treated as having an entitlement, corresponding to the passport right deriving from the payment services directive that such a firm had immediately before IP completion day, to establish a branch or provide services in the United Kingdom.

(2A) Despite their amendment or revocation by the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018, the provisions of these Regulations listed in sub-paragraph (2B) continue to apply, as they had effect immediately before IP completion day, for the purposes of this paragraph.

(2B) The provisions referred to in sub-paragraph (2A) are as follows—

(a) in regulation 2 (interpretation), in paragraph (1)—

(i) paragraphs (d) and (e) of the definition of “branch”, and

(ii) paragraph (d) and (e) of the definition of “payment service provider”;

(b) in regulation 4 (register of certain payment service providers), paragraph (2);

(d) regulation 119 and Schedule 5 (credit agreements);

(e) regulation 138 (prohibition on provision of payment services by persons other than payment service providers);

(f) regulation 147 (duty to co-operate and exchange of information);

(g) in regulation 152 (transitional provisions: payment through network operators), paragraphs (4) to (7);

(h) in Schedule 6 (application and modification of legislation), paragraphs 3 and 4.

(3) In those provisions as applying for the purposes of this paragraph—

(a) references to an “EEA authorised payment institution” or “EEA registered account information service provider” are to be read as references to the Gibraltar-based firm,

(b) references to a “home state competent authority” are to be read as references to the Gibraltar Financial Services Commission,

(d) references to the authorisation of any person as a credit institution, custodian or insurer in accordance with a directive are to be read as references to authorisation in accordance with Gibraltar legislation which implemented the directive,

(e) references to a person's rights or entitlements are to be read as references to the rights or entitlements the person would have, if the person's rights or entitlements were being determined immediately before IP completion day.

Exercise by authorised payment institutions of market access rights in Gibraltar

2

(1) For the purposes of these Regulations, an authorised payment institution or registered account information service provider is to be treated as having an entitlement, corresponding to the passport right that such a firm had immediately before IP completion day, to establish a branch or provide services in Gibraltar.

(1A) Despite their amendment or revocation by the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018, the provisions of these Regulations listed in sub-paragraph (1B) continue to apply, as they had effect immediately before IP completion day, for the purposes of this paragraph.

(1B) The provisions referred to in sub-paragraph (1A) are as follows—

(a) in regulation 4 (register of certain payment service providers), paragraph (1)(a);

(b) regulations 27 and 28 (notice of intention);

(d) in regulation 32 (additional activities), paragraph (2)(c);

(e) in regulation 34 (use of agents), paragraphs (2), (6), (7), (10), (11) and (14);

(f) in regulation 147 (duty to co-operate and exchange information), paragraph (1);

(g) in regulation 153 (transitional and saving provisions), paragraph (2).

(2) In relation to an authorised payment institution or registered account information service provider which establishes a branch or provides services in Gibraltar, those provisions are to be read as if—

(a) references to an “EEA branch” were references to such a branch;

(b) references to an “EEA State” were references to Gibraltar;

(d) references to “passport rights” were references to the entitlement mentioned in sub-paragraph (1).

Modification of legislation

3

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

SCHEDULE 8 — Amendments to legislation

PART 1 — Amendments to primary legislation

Consumer Credit Act 1974

1

In the Consumer Credit Act 1974 —

(a) in section 78 (duty to give information to debtor under running-account credit agreement), after subsection (1) insert—

(1A) Where a request under subsection (1) also amounts to a request under regulation 49 of the Payment Services Regulations 2017 (information during period of contract), subsection (1) applies as if the words “and payment of a fee of £1” were omitted.

(b) in section 84 (misuse of credit-tokens), in subsection (1) for “£50” substitute “ £35 ”.

Financial Services and Markets Act 2000

2

(1) The 2000 Act is amended as follows.

(2) In section 1H (further interpretative provisions for sections 1B to 1G) , in subsection (8)—

(a) in the definition of “payment services” for “2009” substitute “ 2017 ”;

(b) in the definition of “payment service provider”—

(i) for “2009” substitute “ 2017 ”;

(ii) for “(g) or (h)” substitute “ (i) or (j) ”.

(3) In section 206A (suspending permission to carry on regulated activities etc.) , in subsection (1A)(a) for “2009” substitute “ 2017 ”.

(4) In section 226 (compulsory jurisdiction) —

(a) in subsection (2)(b) for “2009” substitute “ 2017 ”;

(b) after subsection (5) insert—

(5A) If the FCA specifies activities which are account information services provided by authorised payment institutions or EEA authorised payment institutions, the FCA must specify to the same extent account information services provided by registered account information service providers or, as the case may be, EEA registered account information service providers. (5B) Expressions used in subsection (5A) and in the Payments Services Regulations 2017 have the same meaning in that subsection as they do in those Regulations.

(5) In section 234 (industry funding) , in subsection (1) for “2009” substitute “ 2017 ”.

(6) In section 379A(2)(a) (power to apply settlement finality regime to payment institutions) for “2009 (S.I. 2009/209)” substitute “ 2017 ”.

(7) In section 404E (meaning of consumers) , in subsection (6)—

(a) in the definition of “payment services” for “2009” substitute “ 2017 ”;

(b) in the definition of “payment service provider” for “(e)” substitute “ (g) ”.

(8) In section 404F (other definitions etc.) , in subsection (8)(b)—

(a) for “11” substitute “ 12 ”;

(b) for “2009” substitute “ 2017 ”.

(9) In Schedule 1A (further provision about the Consumer Financial Education Body) , in paragraph 12(5)—

(a) for “2009” substitute “ 2017 ”; and

(b) for “(f)” substitute “ (h) ”.

(10) In Schedule 17 (the ombudsman scheme) , in paragraph 13(4) for “2009” substitute “ 2017 ”.

(11) Any reference, in an amendment to the 2000 Act made by an Act passed in the Session in which these Regulations are made, to a person who is a payment service provider for the purposes of the Payment Services Regulations 2009 as a result of falling within any of paragraphs (a) to (f) of the definition in regulation 2(1) of those Regulations is to be read as a reference to a person who is a payment service provider for the purposes of these Regulations as a result of falling within any of paragraphs (a) to (h) of the definition in regulation 2(1) of these Regulations.

Enterprise Act 2002

3

In the Enterprise Act 2002 —

(a) in Schedule 13 (listed Directives and Regulations), after paragraph 15 insert—

(16) In Article 62 of Directive 2015/2366/EU of the European Parliament and of the Council of 25th November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No. 1093/2010, and repealing Directive 2007/64/EC, paragraphs 4 and 5 and the second sentence of paragraph 3.

(b) in Schedule 15 (enactments conferring functions)—

(i) after “Postal Services Act 2011.” insert—

Electronic Money Regulations 2011.

(ii) after “Civil Aviation Act 2012.” insert—

Consumer Rights (Payment Surcharges) Regulations 2012.

(iii) at the end insert—

Payment Services Regulations 2017.

Financial Services (Banking Reform) Act 2013

4

In section 108 of the Financial Services (Banking Reform) Act 2013 (relationship with Part 8 of the Payment Services Regulations 2009) —

(a) in the heading, for “2009” substitute “ 2017 ”;

(b) in subsection (1), for the words from “relevant person” to the end substitute “ person to obtain or maintain access to, or participation in, a payment system in circumstances in which regulation 103 (prohibition on restrictive rules on access to payment systems) or 104 (indirect access to designated payment systems) of the Payment Services Regulations 2017 applies in relation to access to, or participation in, the payment system by the person. ”; and

PART 2 — Amendments to the Electronic Money Regulations 2011

Electronic Money Regulations 2011

5

(1) The Electronic Money Regulations 2011 are amended as follows.

(2) In regulation 2(1) (interpretation)—

(a) in the appropriate places insert—

“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;

“European Banking Authority” means the European Banking Authority established by Regulation (EU) 1093/2010 of the European Parliament and of the Council of 24th November 2010 establishing a European Supervisory Authority (European Banking Authority) ;

“payment initiation service” means a service to initiate a payment order at the request of the payment service user with respect to a payment account held at another payment service provider;

“payment service provider” has the meaning given in regulation 2(1) of the Payment Services Regulations 2017;

;and

“sensitive payment data” means information, including personalised security credentials, which could be used to carry out fraud; but in relation to account information services and payment initiation services does not include the name of an account holder or an account number;

; and

(b) for the definition of “own funds” substitute—

“own funds” means own funds as defined in Article 4(1)(118) of the capital requirements regulation, and “Common Equity Tier 1 capital”, “Tier 1 capital” and “Tier 2 capital” have the same meanings as in that regulation;

(d) for the definition of “the payment services directive” substitute—

“the payment services directive” means Directive 2015/2366/EU of the European Parliament and of the Council of 25th November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No. 1093/2010, and repealing Directive 2007/64/EC;

(3) In regulation 3 (exclusions), for paragraphs (a) and (b) substitute—

(a) monetary value stored on specific payment instruments that can be used only in a limited way and meet one of the following conditions— (i) allow the holder to acquire goods or services only in the issuer's premises; (ii) are issued by a professional issuer and allow the holder to acquire goods or services only within a limited network of service providers which have direct commercial agreements with the issuer; (iii) may be used only to acquire a very limited range of goods or services; or (iv) are valid only in a single EEA State, are provided at the request of an undertaking or a public sector entity, and are regulated by a national or regional public authority for specific social or tax purposes to acquire specific goods or services from suppliers which have a commercial agreement with the issuer; (b) monetary value that is used to make payment transactions resulting from services provided by a provider of electronic communications networks or services, including transactions between persons other than that provider and a subscriber, where those services are provided in addition to electronic communications services for a subscriber to the network or service, and where the additional service is— (i) for purchase of digital content and voice-based services, regardless of the device used for the purchase or consumption of the digital content, and charged to the related bill; or (ii) performed from or via an electronic device and charged to the related bill for the purchase of tickets or for donations to organisations which are registered or recognised as charities by public authorities, whether in the United Kingdom or elsewhere, provided that the value of any single payment transaction does not exceed £40, and the cumulative value of payment transactions for an individual subscriber in a month does not exceed £240.

(4) After regulation 3 (electronic money: exclusions) insert—

(3A) (1) If, in any period of 12 months, the total value of payment transactions made with monetary value falling within regulation 3(a)(i) to (iii) issued by a person (“issuer”) exceeds 1 million euros, the issuer must notify the Authority. (2) The period of 12 months referred to in paragraph (1) does not include any period in respect of which a notification has already been made under paragraph (1). (3) A notification under paragraph (1) must— (a) include a description of the transactions made; and (b) specify the exclusion by virtue of which the monetary value is not electronic money. (4) Notifications and information provided to the Authority under this regulation must be given— (a) within such time as the Authority may direct after the end of the period of 12 months referred to in paragraph (1); and (b) in such form or verified in such manner as the Authority may direct, and different directions may be given in relation to different notifications or information or categories of notification or information. (5) When the Authority receives a notification under this regulation, the Authority must assess whether the notified monetary value falls within regulation 3(a)(i) to (iii). (6) If the Authority considers that any part of the notified monetary value does not fall within regulation 3(a)(i) to (iii)— (a) the Authority must notify the issuer, and (b) the issuer may refer the matter to the Upper Tribunal. (3B) (1) If a person (“issuer”) issues, or intends to issue, monetary value falling within regulation 3(b), the service provider must— (a) notify the Authority, and (b) include with such notification a description of the transactions for which the monetary value is intended to be used. (2) The issuer must provide a notification under paragraph (1)— (a) if the issuer started to issue the monetary value before 13th January 2018, on or before that date, or (b) otherwise, before the issuer starts to issue the monetary value. (3) The issuer must also provide to the Authority, at such times as the Authority may direct, an annual audit opinion testifying that the transactions for which the monetary value is used comply with the limits mentioned in regulation 3(b). (4) Information provided to the Authority under this regulation must be in such form or verified in such manner as the Authority may direct. (5) Different directions may be given under paragraph (3) and (4) in relation to different issuers or different categories of issuers.

(5) In regulation 4 (the register of certain electronic money issuers)—

(a) in paragraph (1) after sub-paragraph (b) insert—

(ba) persons who have notified the Authority in accordance with regulation 3A or 3B;

(b) in paragraph (6) after sub-paragraph (a) insert—

(aa) enter in the register any cancellation of an authorisation or registration; (ab) enter in the register a description of the service provided by a person included on the register by virtue of paragraph (1)(ba);

(7) The Authority must, without delay, notify the European Banking Authority of— (a) the information entered in the register; (b) any changes to the information in the register; (c) the reasons for the cancellation of any authorisation or registration; and (d) where a person is included on the register by virtue of paragraph (1)(ba), the particular exclusion which applies to the person.

(6) In regulation 6 (conditions for authorisation)—

(a) in paragraph (2) for “regulation 5” substitute “ regulations 5 and 20 ”;

(b) after paragraph (4) insert—

(4A) The applicant carries on, or will carry on, at least part of its electronic money and payment service business in the United Kingdom.

(e) in the case of an applicant which proposes to carry on payment initiation services, it holds professional indemnity insurance or a comparable guarantee, which covers— (i) the territories in which the applicant proposes to offer payment initiation services; and (ii) the applicant's potential liability under regulations 76 and 91 to 95 of the Payment Services Regulations 2017, up to such amount as the Authority may direct; and (f) in the case of an applicant which proposes to carry on account information services, it holds professional indemnity insurance or a comparable guarantee, which covers— (i) the territories in which the applicant proposes to offer account information services; and (ii) the applicant's potential liability to account servicing payment service providers and payment service users resulting from unauthorised or fraudulent access to, or use of, payment account information, up to such amount as the Authority may direct.

(7) In regulation 8 (variation at request of an authorised electronic money institution), in the wording after paragraph (c)—

(a) after “provided that” insert “ the Authority is satisfied that ”;

(b) for “will continue to be met” substitute “ are being or are likely to be met ”.

(8) In regulation 10(1) (cancellation of authorisation)—

(a) in sub-paragraph (e) after “own funds” insert “ , or does not inform the Authority of a major change in circumstances which is relevant to its meeting those conditions or that requirement, as required by regulation 37 ”;

(b) in sub-paragraph (g) after “stability of” insert “ , or trust in, ”;

(c) in paragraph (i) after “unlawful” insert “ , including where such provision of services is unlawful because the person's registration in a register maintained under regulation 54 or 55 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 has been cancelled under regulation 60 of those Regulations ”.

(9) In regulation 11(1) (variation of authorisation on Authority's own initiative)—

(a) in sub-paragraph (a) after “own funds” insert “ , or does not inform the Authority of a major change in circumstances which is relevant to its meeting those conditions or that requirement, as required by regulation 37 ”;

(b) in sub-paragraph (c) after “stability of” insert “ , or trust in, ”;

(c) in sub-paragraph (e) after “unlawful” insert “ , including where such provision of services is unlawful because the person's registration in a register maintained under regulation 54 or 55 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 has been cancelled under regulation 60 of those Regulations ”.

(10) In regulation 13 (conditions for registration)—

(a) in paragraph (2) for “regulation 12” substitute “ regulations 12 and 20 ”;

(b) after paragraph (4) insert—

(4A) The business to which the application relates must not include the provision of account information services or payment initiation services.

(11) In regulation 15 (supplementary provisions)—

(a) in paragraph (b), in the modified version of regulation 8—

(i) in paragraph (1), in the wording after sub-paragraph (c)—

(aa) after “provided that” insert “ the Authority is satisfied that ”;

(bb) for “continue to be met” substitute “ are being or are likely to be met ”;

(ii) in paragraph (2) omit “that must continue to be met”;

(b) in paragraph (c), in the modified version of regulation 10(1)(e), after “(d)” insert “ , or does not inform the Authority of a major change in circumstances which is relevant to its meeting those conditions, as required by regulation 37 ”.

(12) In regulation 16 (application to become an authorised electronic money institution where a financial limit is exceeded)—

(a) for the heading substitute “ application for authorisation if requirements cease to be met ”;

(b) for “referred to in regulation 8(2)(c) or (d) (as applied by regulation 15)”, substitute “ in regulation 13(3), (4), (8) or (9) ”.

(13) In regulation 20 (safeguarding requirements)—

(a) after paragraph (2) insert—

(2A) An electronic money institution may safeguard certain relevant funds in accordance with regulation 21 and the remaining relevant funds in accordance with regulation 22.

(b) in paragraph (6) for “Regulation 19 of the Payment Services Regulations 2009” substitute “ Regulation 23 of the Payment Services Regulations 2017 ”.

(14) In regulation 21 (safeguarding option 1)—

(a) in paragraph (2)(a) after “authorised credit institution” insert “ or the Bank of England ”;

(b) after paragraph (4) insert—

(4A) Notwithstanding paragraphs (1), (2), (3)(b) and (4), where an electronic money institution is a participant in a designated system and the institution holds an account at the Bank of England for the purposes of completing the settlement of transfer orders that have been entered into the designated system on behalf of electronic money holders— (a) funds held in the account pending settlement in accordance with the rules or default arrangements of the designated system, in respect of transfer orders that have been entered into the designated system on behalf of electronic money holders, may continue to be held in the account with relevant funds; (b) the account, or a specified amount of funds in the account, may be subject to an interest or right in favour of the Bank of England in order to ensure the availability of funds to complete the settlement of transfer orders in accordance with the rules or default arrangements of the designated system; (c) subject to paragraph (4B), funds received into the account by the electronic money institution upon settlement are to be considered as having been appropriately safeguarded in accordance with this regulation from the time of receipt in the designated system until the time of receipt into the account. (4B) The Authority may direct that paragraph (4A)(c) does not apply in relation to a designated system if, in the Authority's view, the rules and default arrangements of that system do not adequately insulate the funds of electronic money holders from the claims of other creditors of electronic money institutions which are participants in the system.

(i) omit “and” after sub-paragraph (b);

(ii) after sub-paragraph (c) insert—

(d) any funds held in an account as permitted by paragraph (4A)(a); (e) any funds expected to be received into an account as described in paragraph (4A)(c) in respect of transfer orders that have been entered into the designated system; and (f) any funds received into an account as described in paragraph (4A)(c).

(d) in paragraph (7) after the definition of “authorised custodian” insert—

“default arrangements”, “designated system”, “rules”, “settlement”, “system” and “transfer order” have the same meanings as in the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 .

(15) In regulation 22 (safeguarding option 2), in paragraph (1)(a)(ii) and (iii) after “a” insert “ comparable ”.

(16) In regulation 24 (insolvency events)—

(a) in paragraph (1)(b) after “21(2)(a) or (b)” insert “ or (4A), ”;

(b) in paragraph (4), in the definition of “asset pool”, after paragraph (b) insert—

(ba) where regulation 21(4A) applies, any funds that are received into the account held at the Bank of England upon settlement in respect of transfer orders that have been entered into the designated system on behalf of electronic money holders, whether settlement occurs before or after the insolvency event;

(5) In paragraph (4) “designated system”, “settlement” and “transfer order” have the same meanings as in the Financial Markets and Insolvency (Settlement Finality) Regulations 1999.

(17) In regulation 26 (outsourcing)—

(a) in paragraph (2)—

(i) after “important operational function” insert “ , including provision of an information technology system ”;

(ii) in sub-paragraph (a)(ii) after “monitor” insert “ and retrace ”;

(b) in paragraphs 2(a)(ii), (b) and (c) and (3)(a) for “2009” substitute “ 2017 ”;

(4) An authorised electronic money institution must notify the Authority without undue delay of any change in outsourced functions or the persons to which functions are outsourced.

(18) In regulation 28 (notice of intention)—

(a) in paragraph (2), for sub-paragraphs (a) to (d) substitute—

(a) states the name and address of the institution, and any authorisation or reference number; (b) identifies the EEA States in which it intends to operate; (c) identifies the electronic money issuance, redemption, distribution or payment services which it seeks to carry on in those States; (d) if the institution intends to use an agent to provide the services in any of those States, includes the information referred to in regulation 34(3) (requirement for agents to be registered); (e) if the institution intends to use an EEA branch to provide the services in any of those States, includes— (i) the information referred to in paragraphs 2 and 5 of Schedule 1 in relation to the services to be provided through each EEA branch; (ii) the names of those responsible for the management of each proposed EEA branch; and (iii) details of the organisational structure of each proposed EEA branch; (f) if the authorised payment institution intends to enter into a contract with a person in another EEA State under which that person will carry out any operational function relating to the issuance, distribution or issuance of electronic money or the provision of payment services in that EEA State, includes notification of that intention; and (g) identifies the distributors, if any, whom the institution intends to engage to distribute or redeem electronic money in exercise of its passport rights in that State.

(b) for paragraphs (3) and (4) substitute—

(3) If any of the information provided by an authorised electronic money institution in a notice of intention changes, including by the addition of a further branch, the institution must give the Authority notice of such changes in a further notice of intention. (4) The Authority must, within one month beginning with the date on which it receives a complete notice of intention, inform the host state competent authority of the information contained in the notice of intention.

(19) For regulation 29 (registration of EEA branch) substitute—

(29) (1) If the Authority, taking into account any information received from the host state competent authority, proposes to determine that an authorised electronic money institution is not permitted to exercise passport rights in an EEA State as notified in a notice of intention, the Authority must give the relevant institution a warning notice. (2) The Authority must, within the period of three months beginning with the date on which it receives a notice of intention and having considered any representations made in response to the warning notice— (a) if it decides (i) that the authorised electronic money institution is not permitted to exercise passport rights in the EEA State, not to register an EEA branch, or to cancel the registration an EEA branch, give the institution a decision notice; or (ii) that the authorised electronic money institution is permitted to exercise passport rights in the EEA State, to register an EEA branch, or not to cancel the registration of an EEA branch, give the institution notice of its decision; and (b) notify the host state competent authority of its decision, providing reasons for that decision if the Authority does not agree with the assessment of the host state competent authority. (3) If the Authority decides that the authorised electronic money institution is not permitted to exercise passport rights in the EEA State, not to register an EEA branch, or to cancel the registration of an EEA branch, the institution may refer the matter to the Upper Tribunal. (4) If the Authority decides to register an EEA branch, it must update the register as soon as practicable. (5) If the Authority decides to cancel the registration of an EEA branch, the Authority must, where the period for a reference to the Upper Tribunal has expired without a reference being made, as soon as practicable update the register accordingly. (6) The authorised electronic money institution may commence activities as notified in its notice of intention only after the Authority has notified the institution of its decision under paragraph (2)(a)(ii) and, in the case of services to be provided through an EEA branch, after entry of the branch on the register. (7) After registration, the authorised electronic money institution must notify the Authority of the date on which it starts to provide payment services in the other EEA State through the EEA branch, and the Authority must notify such date to the host state competent authority. (29A) (1) If a home state competent authority sends information to the Authority about an EEA authorised electronic money institution which intends to provide services in the United Kingdom, the Authority must, before the end of the period of one month beginning on the day which the Authority receives all the required information— (a) assess the information; and (b) provide relevant information to the home state competent authority in connection with the intended provision of payment services in the United Kingdom, including in particular any reasonable grounds for concern with regard to money laundering or terrorist financing within the meaning of the money laundering directive in connection with the intended appointment of an agent or establishment of a branch in the United Kingdom. (2) The EEA authorised electronic money institution may provide services in the United Kingdom in accordance with the information it has provided to the home state competent authority upon entry of the branch or agent in the register maintained by the home state competent authority.

(20) In regulation 30 (supervision of firms exercising passport rights)—

(a) in paragraph (2)(b)(ii) after “information” insert “ , including on compliance with the conditions at regulation 6(4)(a) and (4A) ”;

(b) for paragraph (4) substitute—

(4) The Authority may direct that an EEA authorised electronic money institution exercising its passport rights to services in the United Kingdom through a branch or an agent in the United Kingdom must report to the Authority on such activities, for information and statistical purposes and, where the institution has exercised its right of establishment in the United Kingdom, to monitor compliance with Part 5 of these Regulations. (5) Reports required under paragraph (4) must be given at such times and in such form, and verified in such manner, as the Authority may direct. (6) An agent in the United Kingdom appointed by an EEA authorised electronic money institution or a branch of an EEA authorised electronic money institution in the United Kingdom must maintain the confidentiality of any confidential information provided to the Authority under paragraph (4). (7) If a host state competent authority informs the Authority that an authorised electronic money institution providing services through an EEA branch or an EEA agent does not comply with a provision of the payment services directive, the Authority must— (a) exercise its powers as appropriate without undue delay, to ensure that the authorised payment institution complies with the relevant provisions; and (b) inform the host state competent authority and the competent authority of any other relevant EEA State of the measures taken without delay. (8) Where immediate action is necessary to address a serious risk to the collective interests of electronic money holders or payment service users in the United Kingdom, the Authority may, in addition to providing information under paragraph (2), take precautionary measures in relation to an EEA authorised electronic money institution pending action by the home state competent authority. (9) Any measures taken under paragraph (8) must be temporary and must end when the risk identified has been addressed. (10) If the Authority decides to take measures under paragraph (8), it must inform the home state competent authority, the competent authority of any other relevant EEA State, and the European Banking Authority of the measures to be taken and the reason that immediate action is necessary— (a) in advance of taking the measures, if that is compatible with the need for immediate action; and (b) in any event without undue delay. (12) In paragraphs (7)(b) and (10) “competent authority of any other relevant EEA State” means a competent authority designated in accordance with the electronic money directive in an EEA State which the Authority considers to have an interest in the measures taken, or to be taken, by the Authority.

(21) Before regulation 32 (additional activities) insert—

(31A) (1) An electronic money institution must maintain relevant records and keep them for at least five years from the date on which the record was created. (2) For the purposes of paragraph (1), records are relevant where they relate to compliance with obligations imposed by or under Parts 2 to 4 and, in particular, would enable the Authority to supervise effectively such compliance.

(22) In regulation 32(2) for “regulation 27(2) of the Payment Services Regulations 2009” substitute “ regulation 32(2) of the Payment Services Regulations 2017 ”.

(23) In regulation 34 (requirement for agents to be registered)—

(a) in paragraph (3)(a)—

(i) in paragraph (iii) after “the agent and” insert “ , if the agent is not an electronic money institution or an EEA authorised electronic money institution, or a payment service provider within the meaning of the Payment Services Regulations 2017, ”;

(ii) omit “and” after paragraph (iii)

(iii) after paragraph (iii) insert—

(iiia) the services for which the agent is appointed; (iiib) the unique identification code or number of the agent, if any; and

(b) after paragraph (5) insert—

(5A) Where the application relates to the provision of services in exercise of passport rights through an EEA agent, the Authority must, within one month beginning with the date on which it received the completed application, inform the host state competent authority of the information provided under paragraph (3) or (5).

(d) after paragraph (10) insert—

(10A) Where the application relates to the provision of services in exercise of passport rights through an EEA agent, the Authority must— (a) take into account any information received from the host state competent authority in making its decision; and (b) notify the host state competent authority of its decision, providing reasons for that decision if the Authority does not agree with the assessment of the host state competent authority. (10B) The Authority must give notice under paragraph (10) and (10A)— (a) where the application relates to the provision of services in the United Kingdom, within a period of two months beginning on the date on which the Authority received the completed application; (b) where the application relates to the provision of services in the exercise of passport rights through an EEA agent, within a period of three months beginning on the date on which the Authority received the completed application.

(e) after paragraph (12) insert—

(12A) An authorised electronic money institution must notify the Authority of the date on which it starts to provide services in another EEA State through a registered EEA agent, and the FCA must notify such date to the host state competent authority.

(f) after paragraph (14) insert—

(15) An authorised electronic money institution must notify the Authority without undue delay if there is any change in the information notified under paragraph (3) or (5).

(24) In regulation 36(1) (reliance) for “2009” substitute “ 2017 ”.

(25) In regulation 49 (reporting requirements), after paragraph (2) insert—

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

(26) In regulation 71 (duty to co-operate and exchange information)—

(a) in paragraph (1)—

(i) omit “and” after sub-paragraph (b);

(ii) after sub-paragraph (c) insert—

; and (d) the European Banking Authority,

(b) in paragraph (2)(a) for “and (c)” substitute “ , (c) and (d) ”;

(3) If the European Banking Authority is assisting the Authority, or a competent authority in another EEA State, in relation to a disagreement between those authorities pursuant to Article 19 of Regulation (EU) 1093/2010 of the European Parliament and of the Council of 24th November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC , the Authority must defer any decision in relation to the subject of the disagreement until the disagreement is resolved under that Article.

(27) In regulation 73 (prohibition on contracting out) for “2009” substitute “ 2017 ”.

(28) After regulation 78 (amendments to the banking consolidation directive) insert—

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