Part 5U.K.F1... Payment Systems

RegulationU.K.

188PrinciplesU.K.

(1)The Bank of England may publish principles to which operators of recognised F2... payment systems are to have regard in operating the systems [F3and principles to which service providers are to have regard in the provision of services to such systems].

(2)Before publishing principles the Bank must obtain the approval of the Treasury.

189Codes of practiceU.K.

The Bank of England may publish codes of practice about the operation of recognised F4... payment systems [F5and the provision of services by service providers to such systems].

190System rulesU.K.

(1)The Bank of England may require the operator of a recognised F6... payment system—

(a)to establish rules for the operation of the system [F7including the operation of services that form part of the arrangements constituting the system and are provided by a service provider];

(b)to change the rules in a specified way or so as to achieve a specified purpose;

(c)to notify the Bank of any proposed change to the rules;

(d)not to change the rules without the approval of the Bank.

(2)A requirement under subsection (1)(c) or (d) may be general or specific.

[F8191DirectionsU.K.

(1)The Bank of England may give directions in writing to the operator of a recognised F9... [F10payment] system [F11or a service provider in relation to such a system].

(2)A direction may—

(a)require or prohibit the taking of specified action in the operation of the system [F12or the provision of services to the system];

(b)set standards to be met in the operation of the system [F13or the provision of services to the system].

(3)If a direction is given for the purpose of resolving or reducing a threat to the stability of the UK financial system, the operator [F14or service provider] (including [F15the operator’s or service provider’s] officers and staff) has immunity from liability in damages in respect of action or inaction in accordance with the direction.

(4)A direction given for the purpose mentioned in subsection (3) must—

(a)include a statement that it is given for that purpose, and

(b)inform the operator [F16or service provider] of the effect of that subsection.

(5)The Treasury may by order confer immunity on any person from liability in damages in respect of action or inaction in accordance with a direction (including a direction given for the purpose mentioned in subsection (3)).

(6)An order—

(a)is to be made by statutory instrument, and

(b)is subject to annulment in pursuance of a resolution of either House of Parliament.

(7)An immunity conferred by or under this section does not extend to action or inaction—

(a)in bad faith, or

(b)in contravention of section 6(1) of the Human Rights Act 1998.]

192Role of [F17FCA and PRA]U.K.

(1)In exercising powers under this Part the Bank of England shall have regard to any action that [F18the FCA or the PRA] has taken or could take.

[F19(2)The Bank of England—

(a)must consult the FCA before taking action under this Part in respect of a recognised F20... payment system the operator of which satisfies section 186(2)(a) [F21, a service provider in relation to such a system or a service provider which itself satisfies section 186(2)(a)] and

(b)must consult the PRA before taking action under this Part in respect of a recognised F20... payment system the operator of which satisfies section 186(2)(b)] [F22, a service provider in relation to such a system or a service provider which itself satisfies section 186(2)(b)].

(3)If [F23the FCA or the PRA] gives the Bank of England notice that [F24it] is considering taking action in respect of the operator of a recognised F25... payment system who satisfies [F26section 186(2)(a) or (b)] [F27, a service provider in relation to such a system or a service provider which itself satisfies section 186(2)(a) or (b)] the Bank may not take action under this Part in respect of the operator [F28or service provider] unless—

(a)[F29the FCA or (as the case may be) the PRA] consents, or

(b)the notice is withdrawn.