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  • UK Legislation Published on Oversight of Systemically Important Payment Systems

    11/29/2017
    The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 has been published and will enter into force in part on November 30, 2017 and in part on January 13, 2018.

    Under the Banking Act 2009, the Bank of England already has oversight of payment systems recognised by HM Treasury, which allows the BoE to directly request information and assurance from the operators of the recognized payment systems and to impose regulatory requirements on the operators where necessary and appropriate. This newly published Order makes changes to Part 5 of the Banking Act 2009 to enable service providers to systemically important payment systems to be supervised by the BoE, where they are brought within the scope of the recognition order for a recognized payment system to which they provide services. This closes a gap in the BoE's oversight of payment systems.

    The Order also makes further minor amendments to Part 5 of the Banking Act to include the Payment Systems Regulator in procedural provisions alongside other financial regulators and adds the PSR to the bodies to which the BoE is permitted to disclose information under the Bank of England Act 1998. Finally the Order makes consequential amendments to ensure that the effect of the Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order is retained unchanged following amendments to the Banking Act 2009 made by the Digital Economy Act 2017.

    View the Order (SI 2017 No. 1167).

    View the Explanatory Memorandum.