Banking Act 2009

Recognised systems [F1and service providers] U.K.

184Recognition order [F2: payment system] U.K.

(1)The Treasury may by order (“recognition order”) specify [F3a] payment system as a recognised system for the purposes of this Part.

(2)A recognition order must specify in as much detail as is reasonably practicable the arrangements which constitute the F4... payment system.

(3)The Treasury may not specify [F5a payment] system operated solely by the Bank of England.

[F6(4)See section 206A for the power to specify in a recognition order a person as a person who provides services that form part of the arrangements constituting [F7or connected with] the recognised system.]

[F8184ARecognition order: DSA service providerU.K.

(1)The Treasury may by order (“recognition order”) specify a DSA service provider as a recognised DSA service provider for the purposes of this Part.

(2)A recognition order under this section must specify in as much detail as is reasonably practicable the services provided.

(3)The Treasury may not specify a DSA service provider operated solely by the Bank of England.]

185Recognition criteria [F9: payment system] U.K.

(1)The Treasury may make a recognition order in respect of [F10a] payment system only if satisfied that any deficiencies in the design of the system, or any disruption of its operation, would be likely—

(a)to threaten the stability of, or confidence in, the UK financial system, or

(b)to have serious consequences for business or other interests throughout the United Kingdom.

(2)In considering whether to specify a system the Treasury must have regard to—

(a)the number and value of the transactions that the system presently processes or is likely to process in the future,

(b)the nature of the transactions that the system processes,

(c)whether those transactions or their equivalent could be handled by other systems,

(d)the relationship between the system and other systems, and

(e)whether the system is used by the Bank of England in the course of its role as a monetary authority.

[F11185ARecognition criteria: DSA service providerU.K.

(1)The Treasury may make a recognition order in respect of a DSA service provider only if satisfied that any deficiencies in the services provided by the service provider, or any disruption to the provision of those services, would be likely—

(a)to threaten the stability of, or confidence in, the UK financial system, or

(b)to have serious consequences for business or other interests throughout the United Kingdom.

(2)In considering whether to specify a DSA service provider the Treasury must have regard to—

(a)the value of the services in relation to payment systems that the DSA service provider presently provides or is likely to provide in the future,

(b)the nature of the services in relation to payment systems that the DSA service provider provides,

(c)whether those services or their equivalent could be provided by others, and

(d)the relationship between the DSA service provider and—

(i)operators of payment systems that use digital settlement assets, and

(ii)other DSA service providers.]

186ProcedureU.K.

(1)Before making a recognition order in respect of a payment system [F12or a DSA service provider] the Treasury must—

(a)consult the Bank of England [F13and the Payment Systems Regulator],

[F14(aa)in the case of a recognition order in respect of a DSA service provider, consult the FCA,]

(b)notify the operator of the system [F15or the DSA service provider (as appropriate)], and

(c)consider any representations made.

[F16(See section 206A(4) for the procedure to be followed before specifying a person under section 206A(2)(b) (service providers in relation to recognised payment systems) in a recognition order.)]

[F17(2)In addition, the Treasury—

(a)must consult the FCA before making a recognition order in respect of a payment system [F18or a DSA service provider, where the operator of the system or the provider] —

(i)is, or has applied to become, a recognised investment exchange, or

(ii)has, or has applied for, a Part 4A permission, and

(b)if the operator [F19or provider] has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, must also consult the PRA.]

(3)In considering whether to make a recognition order in respect of a payment system [F20or a DSA service provider] the Treasury may rely on information provided by the Bank of England[F21, the FCA or the PRA].

[F22186AAmendment of recognition orderU.K.

(1)The Treasury may amend a recognition order.

(2)Before amending a recognition order the Treasury must—

(a)consult the Bank of England [F23and the Payment Systems Regulator],

[F24(aa)in the case of a recognition order in respect of a DSA service provider, consult the FCA,]

(b)notify the operator of the recognised F25... payment system [F26or the recognised DSA service provider (as appropriate)], and

(c)consider any representations made.

[F27(See section 206A(4) for the procedure to be followed before amending a recognition order so as to specify a person under section 206A(2)(b) (service providers in relation to recognised payment systems) in the order.)]

[F28(2A)Before amending a recognition order so as to revoke or amend the specification of a person under section 206A(2)(b), the Treasury must also—

(a)consult the FCA and the PRA,

(b)notify the specified person, and

(c)consider any representations made.]

(3)In addition, the Treasury—

(a)must consult the FCA before amending a recognition order in respect of a payment system [F29or a DSA service provider, where the operator of the system or the provider]—

(i)is, or has applied to become, a recognised investment exchange, or

(ii)has, or has applied for, a Part 4A permission, and

(b)if the operator [F30or provider] has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, must also consult the PRA.

(4)The Treasury must consider any request by the operator of a recognised F31... payment system [F32or by a recognised DSA service provider] for the amendment of its recognition order [F33or any request by a service provider in relation to such a system [F34or provider,] for the amendment or revocation of its specification].]

187De-recognitionU.K.

(1)The Treasury may revoke a recognition order.

(2)The Treasury must revoke a recognition order if not satisfied—

[F35(a)]that the criteria in section 185 are met in respect of the recognised F36... payment system. [F37, or

(b)that the criteria in section 185A are met in respect of the recognised DSA service provider.]

(3)Before revoking a recognition order the Treasury must—

(a)consult the Bank of England [F38and the Payment Systems Regulator],

[F39(aa)in the case of a recognition order in respect of a DSA service provider, consult the FCA,]

(b)notify the operator of the recognised F40... payment system [F41or the recognised DSA service provider (as appropriate)], and

(c)consider any representations made.

[F42(4)In addition, the Treasury—

(a)must consult the FCA before revoking a recognition order in respect of a payment system [F43or a DSA service provider, where the operator of the system or the provider] —

(i)is, or has applied to become, a recognised investment exchange, or

(ii)has, or has applied for, a Part 4A permission, and

(b)if the operator [F44or provider] has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, must also consult the PRA.]

(5)The Treasury must consider any request by the operator of a recognised F45... payment system [F46, or by a recognised DSA service provider] for the revocation of its recognition order.