The Payment Services Regulations 2009

Transitional provisions: deemed authorisation

121.—(1) Any financial institution (within the meaning of the banking consolidation directive) which—

(a)is constituted under the law of a part of the United Kingdom and has its head office and, if it has a registered office, that office, in the United Kingdom; and

(b)before 25th December 2007 had—

(i)lawfully provided payment services in the United Kingdom; and

(ii)met the condition in Article 24(1)(e) of the banking consolidation directive;

shall be deemed to have been granted authorisation by the Authority under regulation 9.

(2) An institution which is deemed to have been granted authorisation by virtue of paragraph (1) shall continue on or after 25th December 2009 to be deemed to have been granted authorisation only if it has by that date—

(a)notified the Authority of the payment services referred to in sub-paragraph (b)(i); and

(b)provided the Authority with the information specified in paragraph 1, 4, 7 to 9 and 12 of Schedule 2 (“the required information”).

(3) Authorisation which continues on or after 25th December 2009 to be deemed to have been granted by virtue of paragraph (2) shall continue to be so deemed until such time as the Authority decides whether to include the institution in the register as an authorised payment institution.

(4) If the Authority decides to include the institution in the register as an authorised payment institution—

(a)it must as soon as practicable update the register accordingly; and

(b)the institution shall cease to be deemed to have been granted authorisation by virtue of paragraph (1) or (2).

(5) The Authority may decide that an institution is not to be included in the register as an authorised payment institution only if—

(a)it has not received the required information; or

(b)any of the conditions in regulation 6(4) to (6) (other than the condition that a person must be a body corporate) (“the required conditions”) are not met in respect of that institution.

(6) If the Authority is satisfied that—

(a)it has received the required information; and

(b)the required conditions are met,

it must give the institution notice of its decision.

(7) If the Authority proposes to decide that—

(a)it has not received the required information; or

(b)any of the required conditions is not met,

it must give the institution a warning notice.

(8) The Authority must, having considered any representations in response to the warning notice—

(a)if it decides that it has not received the required information or that any of the required conditions is not met, give the institution a decision notice; or

(b)if it decides that it has received the required information and that the required conditions have been met, give the institution notice of its decision.

(9) If the Authority gives the institution a decision notice, the institution may refer the matter to the Tribunal.

(10) Where the period for a reference to the Tribunal has expired without a reference being made, the institution shall cease to be deemed to have been granted authorisation by virtue of paragraph (1) or (2).

(11) Where an institution is deemed to have been granted authorisation by virtue of paragraph (1) or (2)—

(a)the duty to which the Authority is subject under regulation 4(1)(a) to maintain a register shall not apply in respect of it; and

(b)Parts 3 and 4 shall not apply to it.