UK Legislation Published on Payment Services and Electronic Money

The Payment Systems and Services and Electronic Money (Miscellaneous Amendments) Regulations 2017 have been published and will enter into force in part on December 22, 2017 and in part on January 13, 2018.

The Regulations supplement the implementing legislation for the Settlement Finality Directive to extend its application to non-bank payment institutions as well as those entities to which the SFD applies. This will enable non-bank payment institutions to be treated as participants in designated payment systems, and consequently open up direct access to payment systems to non-bank payment institutions.

The Regulations also make minor amendments to the Payment Services Regulations 2017 and the Electronic Money Regulations 2011 to provide that, where an e-money firm or payment institution protects customer funds via an insurance policy, those insurance policies will be permitted to pay out into an existing safeguarding account rather than requiring a separate account.

The Regulations make further amendments to the Payment Services Regulations 2017 to align the regulatory treatment of registered account information services providers with that of payment institutions when making use of agents. The Regulations also insert a schedule to the Electronic Money Regulations 2011, to clarify the position for firms carrying on business within scope of the Electronic Money Directive between the UK and Gibraltar.

The Regulations also make other minor drafting and consequential amendments.

View the Regulations (SI 2017 No. 1173).

View the Explanatory Memorandum.