(7) The following provisions of Part 9A of the Act (rules and guidance) apply in relation to rules made by the FCA under this regulation as they apply in relation to rules made by the FCA under that Part of the Act, subject to the modification in paragraph (8)— (a) section 137T (general supplementary powers); (b) Chapter 2 (modification, waiver, contravention and procedural provisions), with the exception of sections 138D (actions for damages) and 138EA (matters to consider when making rules); (c) section 141A (power to make consequential amendments of (8) Section 137T applies as if the reference to authorised persons were a reference to relevant persons to whom rules under this regulation apply. (9) A requirement imposed by rules under this regulation is, for the purposes of section 296 of the Act (regulator’s power to give directions), to be treated as an obligation imposed under the Act. (10) In this Part “relevant persons” means market operators and investment firms I317 Sch. 2 para. 45 not in force at Royal Assent, see s. 86(3) I318 Sch. 2 para. 45 in force at 29.10.2024 for specified purposes by S.I. 2024/1071, reg. 3(c)(ii) 46 (1) Regulation 16 (FCA duty to establish position limits) is amended as follows. (2) In the title, for “duty” substitute “power”. (a) for “must” substitute “may”; (b) for the words from “traded” to the end substitute “to which requirements imposed by rules under regulation 15A apply”. (4) After that paragraph insert—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 2 – Transitional amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes “(1A) The power to give a direction under paragraph (1) is exercisable only if the FCA considers that it is necessary to give the direction for the purpose of advancing one or more of its operational objectives referred to (1B) Position limits established by virtue of regulation 15A do not apply to the extent that position limits established by virtue of this regulation apply (5) Omit paragraphs (2), (3) and (5). I319 Sch. 2 para. 46 not in force at Royal Assent, see s. 86(3) 47 (1) Regulation 27 (FCA power to require information) is amended as follows. (2) In paragraph (1), in both of sub-paragraphs (a) and (b) omit “or over the counter (3) In paragraph (2) omit “or over the counter contract”. (4) “(3) For the purposes of this regulation a commodity derivative is a “relevant” (a) requirements imposed by rules under regulation 15A apply to the commodity derivative (or to commodity derivatives of that class), or (b) it is a commodity derivative (or falls within a class of commodity derivatives) to which the FCA is considering making such I320 Sch. 2 para. 47 not in force at Royal Assent, see s. 86(3) 48 (1) Regulation 28 (FCA power to intervene) is amended as follows. (2) In paragraph (1), in the words before sub-paragraph (a), for the words from “the exercise” to “regulation” substitute “advancing one or more of its operational objectives referred to in section 1B(3) of the Act”. (3) In paragraph (2) after “established” insert “in accordance with rules made under (4) In paragraph (3) omit “or an economically equivalent over the counter contract”. I321 Sch. 2 para. 48 not in force at Royal Assent, see s. 86(3) 49 In regulation 29 (interpretation of Part 3), in paragraph (2)— (a) before the definition of “position” insert— ““market operator” has the same meaning as in the markets in financial instruments regulation;”;

154 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 2 – Transitional amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) after the definition of “position limit” insert— ““relevant person” has the meaning given by regulation 15A(10)”. I322 Sch. 2 para. 49 not in force at Royal Assent, see s. 86(3) I323 Sch. 2 para. 49 in force at 29.10.2024 for specified purposes by S.I. 2024/1071, reg. 3(c)(iii) I317 Sch. 2 para. 45 not in force at Royal Assent, see s. 86(3) I318 Sch. 2 para. 45 in force at 29.10.2024 for specified purposes by S.I. 2024/1071, reg. 3(c)(ii) I319 Sch. 2 para. 46 not in force at Royal Assent, see s. 86(3) I320 Sch. 2 para. 47 not in force at Royal Assent, see s. 86(3) I321 Sch. 2 para. 48 not in force at Royal Assent, see s. 86(3) I322 Sch. 2 para. 49 not in force at Royal Assent, see s. 86(3) I323 Sch. 2 para. 49 in force at 29.10.2024 for specified purposes by S.I. 2024/1071, reg. 3(c)(iii) Consequential revocations relating to this Part 50 The following provisions are revoked— (a) paragraph 7BA of the Schedule to the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges, Clearing Houses and Central Securities Depositories) Regulations 2001 ( S.I.
(b) in the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017— (c) in Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments— (i) in Article 26(3), the last sentence; (ii) in Schedule 3, paragraphs 31 and 32; (d) Commission Delegated Regulation (EU) 2017/591 of 1 December 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the application of position limits to commodity derivatives. I324 Sch. 2 para. 50 not in force at Royal Assent, see s. 86(3)

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 2 – Transitional amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 51 (1) Regulation 19B of the Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018 (S.I. 2018/1184) is amended as follows. (2) In paragraph (2) for “one year” substitute “3 years and 6 months”. (3) After paragraph (3) insert— “(4) The period determined by the Bank of England in a particular case under paragraph (2) (whenever determined) may be varied by the making of a (5) Paragraph (6) applies where— (a) a central counterparty (A) was taken to be recognised pursuant to Article 25 of the EMIR regulation in accordance with (b) A ceased to be taken to be so recognised by virtue of the relevant period in the case of A having expired before the commencement (a) may determine that the relevant period in the case of A is (in spite of its expiry) to be treated, as from the making of the determination, (b) may accordingly exercise its power under this regulation to vary the relevant period on or after the commencement day. (7) In paragraphs (5) and (6) “the commencement day” means the day on which Part 5 of Schedule 2 to the Financial Services and Markets Act 2023 comes (8) Paragraphs (5) to (7) expire at the end of 31 December 2025 (but without affecting any variation of a relevant period made under this regulation by virtue of paragraph (6)(b) before that time).” I325 Sch. 2 para. 51 in force at Royal Assent, see s. 86(1)(b) 52 The Electronic Money Regulations 2011 (S.I. 2011/99) are amended in accordance I326 Sch. 2 para. 52 not in force at Royal Assent, see s. 86(3)

156 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 2 – Transitional amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I327 Sch. 2 para. 52 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 53 In regulation 48 (monitoring and enforcement), after paragraph (1)(a) insert— “(aa) electronic money institutions on whom requirements are imposed by or under section 312R of the 2000 Act are complying with them;”. I328 Sch. 2 para. 53 not in force at Royal Assent, see s. 86(3) I329 Sch. 2 para. 53 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 54 In regulation 49 (reporting requirements), after paragraph (1) insert— “(1A) An electronic money institution must give the Authority such information in respect of its compliance with requirements imposed by or under section 312R of the 2000 Act as the Authority may direct.” I330 Sch. 2 para. 54 not in force at Royal Assent, see s. 86(3) I331 Sch. 2 para. 54 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 55 In regulation 50 (public censure), after “Regulations” insert “or, in the case of an electronic money institution, section 312R of the 2000 Act”. I332 Sch. 2 para. 55 not in force at Royal Assent, see s. 86(3) I333 Sch. 2 para. 55 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 56 In regulation 51 (financial penalties)— (a) omit “or” at the end of paragraph (1)(a), and (b) after that paragraph insert— “(aa) an electronic money institution who has contravened a requirement imposed on it by or under section 312R of the I334 Sch. 2 para. 56 not in force at Royal Assent, see s. 86(3) I335 Sch. 2 para. 56 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 57 In regulation 52 (suspending authorisation etc), in paragraph (1) after “Regulations” insert “or by or under section 312R of the 2000 Act”. I336 Sch. 2 para. 57 not in force at Royal Assent, see s. 86(3) I337 Sch. 2 para. 57 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 58 In regulation 54 (injunctions)—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 2 – Transitional amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes (a) omit “or” at the end of paragraph (1)(a); (b) after paragraph (1)(b) insert— “(c) that there is a reasonable likelihood that an electronic money institution will contravene a requirement imposed on it by or under section 312R of the 2000 Act; or (d) that an electronic money institution has contravened such a requirement and that there is a reasonable likelihood that the contravention will continue or be repeated,”; (c) in paragraph (2)(a) after “Regulations” insert “or an electronic money institution has contravened a requirement imposed on it by or under section 312R of the 2000 Act”; (d) in the words after paragraph (2)(b), after “that person” insert “or (e) omit “or” at the end of paragraph (3)(a); (f) after that paragraph insert— “(aa) in the case of an electronic money institution, contravened a requirement imposed on it by or under section 312R of (g) in paragraph (3)(b) for “such a requirement” substitute “a requirement described in sub-paragraph (a) or (aa)”. I338 Sch. 2 para. 58 not in force at Royal Assent, see s. 86(3) I339 Sch. 2 para. 58 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 59 In regulation 55 (power to require restitution), in paragraph (1) after “requirement,” insert “or, where the electronic money issuer is an electronic money institution, has contravened a requirement imposed on it by or under section 312R of the 2000 Act, or been knowingly concerned in the contravention of such a requirement,”. I340 Sch. 2 para. 59 not in force at Royal Assent, see s. 86(3) I341 Sch. 2 para. 59 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 60 In regulation 57 (restitution orders), in paragraph (1) after “requirement,” insert “or, where the electronic money issuer is an electronic money institution, has contravened a requirement imposed on it by or under section 312R of the 2000 Act, or been knowingly concerned in the contravention of such a requirement,”. I342 Sch. 2 para. 60 not in force at Royal Assent, see s. 86(3) I343 Sch. 2 para. 60 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 61 In regulation 58 (complaints), in paragraph (1)— (a) the words from “a requirement” to the end become sub-paragraph (a), and (b) after that sub-paragraph insert “, or

158 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 2 – Transitional amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) a requirement imposed by or under section 312R of the 2000 Act has been breached by an electronic money I344 Sch. 2 para. 61 not in force at Royal Assent, see s. 86(3) I345 Sch. 2 para. 61 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 62 In Schedule 3 (application and modification of legislation)— (a) in paragraph 1(b), in the inserted text substituting section 66A of the 2000 (i) in subsection (1), the words from “a contravention” to the end (ii) after that paragraph insert “, or (b) a contravention of a requirement imposed by or under section 312R of the 2000 Act by an electronic money institution.”, and (iii) for subsection (2) substitute— (a) in relation to subsection (1)(a), any person responsible for the management of the electronic money issuer or, where relevant, any person responsible for the management of electronic money issuance by the electronic (b) in relation to subsection (1)(b), any person responsible for the management of the electronic money institution or, where relevant, any person responsible for the management of electronic money issuance by the electronic (b) in paragraph 3(d)(i), in the inserted subsection (1)(ab), after “2011” insert I346 Sch. 2 para. 62 not in force at Royal Assent, see s. 86(3) I347 Sch. 2 para. 62 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 63 The Payment Services Regulations 2017 (S.I. 2017/752) are amended in accordance I348 Sch. 2 para. 63 not in force at Royal Assent, see s. 86(3) I349 Sch. 2 para. 63 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 64 In regulation 108 (monitoring and enforcement), after paragraph (1)(a) insert—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 2 – Transitional amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes “(aa) authorised payment institutions, small payment institutions or registered account information services providers on whom requirements are imposed by or under section 312R of the 2000 Act I350 Sch. 2 para. 64 not in force at Royal Assent, see s. 86(3) I351 Sch. 2 para. 64 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 65 In regulation 109 (reporting requirements), after paragraph (1) insert— “(1A) An authorised payment institution, small payment institution, or registered account information services provider must give the FCA such information as the FCA may direct in respect of its compliance with requirements imposed by or under section 312R of the 2000 Act.” I352 Sch. 2 para. 65 not in force at Royal Assent, see s. 86(3) I353 Sch. 2 para. 65 in force at 29.8.2023 by S.I. 2023/779, reg.
4(zz)(iv) 66 In regulation 110 (public censure), after “Regulations” insert “or, in the case of an authorised payment institution, small payment institution, or registered account information services provider, section 312R of the 2000 Act”. I354 Sch. 2 para. 66 not in force at Royal Assent, see s. 86(3) I355 Sch. 2 para. 66 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 67 In regulation 111 (financial penalties)— (a) omit “or” at the end of paragraph (1)(a), and (b) after that paragraph insert— “(aa) an authorised payment institution, small payment institution, or registered account information services provider who has contravened a requirement imposed on it by or under section 312R of the 2000 Act; or”. I356 Sch. 2 para. 67 not in force at Royal Assent, see s. 86(3) I357 Sch. 2 para. 67 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 68 In regulation 113 (injunctions)— (a) omit “or” at the end of paragraph (1)(a); (b) after paragraph (1)(b) insert— “(c) that there is a reasonable likelihood that an authorised payment institution, small payment institution, or registered account information services provider will

160 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 2 – Transitional amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes contravene a requirement imposed on it by or under section 312R of the 2000 Act; or (d) that an authorised payment institution, small payment institution, or registered account information services provider has contravened such a requirement and that there is a reasonable likelihood that the contravention will (c) in paragraph (2)(a) after “Regulations” insert “or an authorised payment institution, small payment institution, or registered account information services provider has contravened a requirement imposed on it by or under section 312R of the 2000 Act”; (d) in the words after paragraph (2)(b), after “that person” insert “or institution (e) omit “or” at the end of paragraph (3)(a); (f) after that paragraph insert— “(aa) in the case of an authorised payment institution, small payment institution, or registered account information services provider contravened a requirement imposed on it by or under section 312R of the 2000 Act; or”; (g) in paragraph (3)(b) for “such a requirement” substitute “a requirement described in sub-paragraph (a) or (aa)”. I358 Sch. 2 para. 68 not in force at Royal Assent, see s. 86(3) I359 Sch. 2 para. 68 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 69 In regulation 114 (power to require restitution), in paragraph (1) after “requirement,” insert “or, where the payment service provider is an authorised payment institution, small payment institution, or registered account information services provider, has contravened a requirement imposed on it by or under section 312R of the 2000 Act, or been knowingly concerned in the contravention I360 Sch. 2 para. 69 not in force at Royal Assent, see s. 86(3) I361 Sch. 2 para. 69 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 70 In regulation 116 (restitution orders), in paragraph (1) after “requirement,” insert “or, where the payment service provider is an authorised payment institution, small payment institution, or registered account information services provider, has contravened a requirement imposed on it by or under section 312R of the 2000 Act, or been knowingly concerned in the contravention of such a requirement,”. I362 Sch. 2 para. 70 not in force at Royal Assent, see s. 86(3) I363 Sch. 2 para. 70 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 71 In regulation 117 (complaints), in paragraph (1)—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 2 – Transitional amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) the words from “a requirement” to the end become sub-paragraph (a), and (b) after that sub-paragraph insert “or (b) a requirement imposed by or under section 312R of the 2000 Act has been breached by an authorised payment institution, small payment institution, or registered account information services provider.” I364 Sch. 2 para. 71 not in force at Royal Assent, see s. 86(3) I365 Sch. 2 para. 71 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv) 72 In Schedule 6 (application and modification of legislation)— (a) in paragraph 1, in the inserted text substituting section 66A of the 2000 (i) in subsection (1), the words from “a contravention” to the end (ii) after that paragraph insert “or (b) a contravention of a requirement imposed by or under section 312R of the 2000 Act by an authorised payment institution, small payment institution, or registered account information (iii) for subsection (2) substitute— (a) in relation to subsection (1)(a), any person responsible for the management of the payment service provider or, where relevant, any person responsible for the management of the payment service provider’s payment services activities, (b) in relation to subsection (1)(b), any person responsible for the management of the authorised payment institution, small payment institution, or registered account information services provider or, where relevant, any person responsible for the management of the authorised payment institution’s, small payment institution’s, or registered account information services provider’s payment (b) in paragraph 4(e), in the inserted subsection (1)(c), after “2017” insert “or I366 Sch. 2 para. 72 not in force at Royal Assent, see s. 86(3) I367 Sch. 2 para.
72 in force at 29.8.2023 by S.I. 2023/779, reg. 4(zz)(iv)

162 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 3 – New Schedule 6B to FSMA 2000 Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I368 Sch. 3 not in force at Royal Assent, see s. 86(3) I369 Sch. 3 in force at 29.8.2023 by S.I. 2023/779, reg. 4(aaa) 1 The matters with respect to which provision may be made under section 71K in respect of activities include (but are not limited to) those described in general terms 2 Activities related to entering into derivative contracts (including those contracts not cleared by a central counterparty). 3 Holding positions in commodity derivatives. 4 Engaging in short selling in relation to specified financial instruments (“shorted instruments”) including where— (a) a person enters into a transaction which creates, or relates to, another (b) the effect (or one of the effects) of the transaction is to confer a financial advantage on that person in the event of a decrease in the price or value of 5 Acting as one of the following in a securitisation— (d) a securitisation special purpose entity. 6 Selling a securitisation position to a retail client located in the United Kingdom. 7 Offering securities to the public. 8 Applying for, securing or maintaining the admission of securities to trading on a

Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 9 Issuing an instrument which references a benchmark. 10 Determining the amount payable under an instrument or financial contract by reference to a benchmark or otherwise being a party to a financial contract which 11 Measuring the performance of an investment fund through a benchmark. 12 Acting as a “benchmark contributor” including persons in the United Kingdom or 13 Contributing data to a regulated benchmark administrator for the purpose of the administrator determining a benchmark.” 1 (1) Eligibility for participation in the FMI sandbox arrangements for FMI entities and persons other than FMI entities. (2) The requirements mentioned in sub-paragraph (1) may be framed by reference to— (a) the description of persons who carry on activities; (b) the description of activities carried on by persons; (c) the relationship of persons with FMI entities. (3) Application or other procedures for participating in the FMI sandbox arrangements. (4) Information to be supplied by persons wishing to participate in the FMI sandbox arrangements for the purposes of assessing eligibility. (5) Information to be supplied by persons participating in the FMI sandbox arrangements for the purposes of notifying other persons of their participation. I370 Sch. 4 para. 1 not in force at Royal Assent, see s. 86(3) I371 Sch. 4 para. 1 in force at 29.8.2023 by S.I. 2023/779, reg. 4(bbb) 2 The particular kinds of technology that may be used under the FMI sandbox arrangements for the purposes of assessing their efficiency or effectiveness. I372 Sch. 4 para. 2 not in force at Royal Assent, see s. 86(3)

164 Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I373 Sch. 4 para. 2 in force at 29.8.2023 by S.I. 2023/779, reg. 4(bbb) 3 (1) The particular kinds of practices that may be adopted under the FMI sandbox arrangements for the purposes of assessing their efficiency or effectiveness. (2) The practices referred to in sub-paragraph (1) include practices adopted in the issuance, trading or settlement of financial instruments in a way not otherwise possible or practicable as a result of requirements imposed by relevant enactments. I374 Sch. 4 para. 3 not in force at Royal Assent, see s. 86(3) I375 Sch. 4 para. 3 in force at 29.8.2023 by S.I. 2023/779, reg. 4(bbb) 4 (1) Descriptions of financial instrument (“the FMI sandbox instruments”) that may be traded under the FMI sandbox arrangements. (2) The forms that the FMI sandbox instruments may take for the purposes of trading as part of the FMI sandbox arrangements. (3) Limitations or prohibitions on the trading of the FMI sandbox instruments, or of other instruments that are converted from, or are otherwise linked to, the FMI sandbox (4) Limitations (whether by reference to number, value or another metric) on the amount of FMI sandbox instruments permitted for trading under the FMI sandbox (5) References in this paragraph to the trading of FMI sandbox instruments include references to their settlement. I376 Sch. 4 para. 4 not in force at Royal Assent, see s. 86(3) I377 Sch. 4 para. 4 in force at 29.8.2023 by S.I. 2023/779, reg. 4(bbb) 5 (1) How payments are to be settled in respect of transactions taking place under the FMI (2) Provision under sub-paragraph (1) includes provision as to cash settlement or whatever other forms of settlement the provision may specify. I378 Sch. 4 para.
5 not in force at Royal Assent, see s. 86(3) I379 Sch. 4 para. 5 in force at 29.8.2023 by S.I. 2023/779, reg. 4(bbb)

Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 6 (1) Requirements applicable— (a) to persons participating in the FMI sandbox arrangements, and (b) to other persons in connection with such arrangements. (2) Provision under this paragraph includes provision conferring powers on the appropriate regulator to make rules or technical standards applicable for the purposes of the FMI sandbox arrangements. I380 Sch. 4 para. 6 not in force at Royal Assent, see s. 86(3) I381 Sch. 4 para. 6 in force at 29.8.2023 by S.I. 2023/779, reg. 4(bbb) 7 Duties of the appropriate regulators to cooperate with each other for the purposes of implementing and operating the FMI sandbox arrangements. I382 Sch. 4 para. 7 not in force at Royal Assent, see s. 86(3) I383 Sch. 4 para. 7 in force at 29.8.2023 by S.I. 2023/779, reg. 4(bbb) 8 (1) Publication of specified details of the FMI sandbox arrangements by the Treasury or the appropriate regulator (or both). (2) Duties of appropriate regulators to provide the Treasury with information about the operation of the FMI sandbox arrangements. (3) Requirements imposed by virtue of this paragraph are in addition to the requirement I384 Sch. 4 para. 8 not in force at Royal Assent, see s. 86(3) I385 Sch. 4 para. 8 in force at 29.8.2023 by S.I. 2023/779, reg. 4(bbb) 9 (1) How requirements imposed by or under the FMI sandbox arrangements are to be (2) Provision under sub-paragraph (1) may be made by— (a) conferring powers on the appropriate regulator; (b) applying provisions of FSMA 2000 in relation to enforcement; (c) imposing other means of enforcement set out in the arrangements. (3) The powers mentioned in sub-paragraph (2)(a) include powers to—

166 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 5 – Financial related amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) suspend or terminate a person’s participation in the FMI sandbox I386 Sch. 4 para. 9 not in force at Royal Assent, see s. 86(3) I387 Sch. 4 para. 9 in force at 29.8.2023 by S.I. 2023/779, reg. 4(bbb) 1 FSMA 2000 is amended as follows. I388 Sch. 5 para. 1 not in force at Royal Assent, see s. 86(3) I389 Sch. 5 para. 1 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(i) I390 Sch. 5 para. 1 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(i)(4) I391 Sch. 5 para. 1 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) 2 In section 1H (further interpretative provisions for sections 1B to 1G), in subsection (2)(c) after “invitations” insert “or inducements”. I392 Sch. 5 para. 2 not in force at Royal Assent, see s. 86(3) I393 Sch. 5 para. 2 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) I394 Sch. 5 para. 2 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I395 Sch. 5 para. 2 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) 3 In section 25 (contravention of section 21), in subsection (2)(a) after “section 21” insert “in accordance with subsection (2A) of that section”. I396 Sch. 5 para. 3 not in force at Royal Assent, see s. 86(3) I397 Sch. 5 para. 3 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) (with I398 Sch. 5 para. 3 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I399 Sch. 5 para. 3 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) (with reg. 3) 4 In section 55A (application for permission), after subsection (5) insert— “(6) References in this section to permission under this Part do not include references to permission under section 55NA.”

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 5 – Financial related amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I400 Sch. 5 para. 4 not in force at Royal Assent, see s. 86(3) I401 Sch. 5 para. 4 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) I402 Sch. 5 para. 4 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I403 Sch. 5 para. 4 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) 5 (1) Section 55O (imposition of requirements on acquisition of control) is amended as (2) In subsection (1)(b), after “power” insert “or (as the case may be) the power under (3) In subsection (2)(a) for “or 55M” substitute “, 55M or 55NA”.
(4) In subsection (3), after “PRA-authorised person” insert “and the case does not relate to a requirement that is imposed (or that could be imposed) under section 55NA”. I404 Sch. 5 para. 5 not in force at Royal Assent, see s. 86(3) I405 Sch. 5 para. 5 in force at 7.2.2024 by S.I. 2023/936, reg. 2(3) 6 In section 55R (persons connected with an applicant), in subsection (1) after “(ba) an application for permission under section 55NA, (bb) whether to vary or cancel permission under section 55NA,”. I406 Sch. 5 para. 6 not in force at Royal Assent, see s. 86(3) I407 Sch. 5 para. 6 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) I408 Sch. 5 para. 6 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I409 Sch. 5 para. 6 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) 7 In section 55U (applications under Part 4A), after subsection (3) insert— “(3A) An application for permission under section 55NA, or for the variation of permission under that section, must contain a statement of the desired I410 Sch. 5 para. 7 not in force at Royal Assent, see s. 86(3) I411 Sch. 5 para. 7 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) I412 Sch. 5 para. 7 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I413 Sch. 5 para. 7 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) 8 In section 55V (determination of applications), in subsection (5)— (a) omit “or” at the end of paragraph (c); (b) after paragraph (d) insert “, or

168 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 5 – Financial related amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (e) for permission under section 55NA or for the variation or cancellation of permission granted under that section,”. I414 Sch. 5 para. 8 not in force at Royal Assent, see s. 86(3) I415 Sch. 5 para. 8 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) I416 Sch. 5 para. 8 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I417 Sch. 5 para. 8 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) 9 (1) Section 55X (determination of warning notices and decision notices) (a) omit “or” at the end of paragraph (d); (b) after paragraph (e) insert— “(f) to give permission under section 55NA but to exercise its power under subsection (4)(b) of that section, or (g) to vary permission under section 55NA on the application of an authorised person but to exercise its power under subsection (4)(b) of that section,”. (a) omit “or” at the end of paragraph (e); (b) after that paragraph insert— “(ea) to give permission under section 55NA but to exercise its power under subsection (4)(b) of that section, (eb) to vary permission under section 55NA on the application of an authorised person but to exercise its power under subsection (4)(b) of that section, or”. I418 Sch. 5 para. 9 not in force at Royal Assent, see s. 86(3) I419 Sch. 5 para. 9 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) I420 Sch. 5 para. 9 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I421 Sch. 5 para. 9 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) 10 (1) Section 55Y (exercise of own-initiative procedure) is amended as follows. (2) After subsection (1) insert— “(1A) This section also applies to an exercise of the FCA’s power under subsection (5)(b) of section 55NA to vary of its own initiative a permission given under that section to an authorised person (“A”). (1B) References in this section to a regulator’s own initiative variation power are to be taken as including the power mentioned in subsection (1A).” (3) For subsection (4) substitute—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 5 – Financial related amendments Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) proposes to vary a Part 4A permission or to impose or vary a (b) varies a Part 4A permission, or imposes or varies a requirement, with (c) proposes to vary a permission under section 55NA, or (d) varies permission under section 55NA with immediate effect, it must give A written notice.” I422 Sch. 5 para. 10 not in force at Royal Assent, see s. 86(3) I423 Sch. 5 para. 10 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) I424 Sch. 5 para. 10 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I425 Sch. 5 para. 10 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) 11 (1) Section 55Z (cancellation of Part 4A procedure) is amended as follows. (2) In the heading, after “permission” insert “or permission under section 55NA”. (3) In subsection (1) after “permission” insert “or permission under section 55NA”.
(4) In subsection (2) after “permission” insert “or permission under section 55NA”. I426 Sch. 5 para. 11 not in force at Royal Assent, see s. 86(3) I427 Sch. 5 para. 11 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) I428 Sch. 5 para. 11 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I429 Sch. 5 para. 11 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3) 12 In section 55Z3 (right to refer matters to the Tribunal), after subsection (2) insert— “(2A) An authorised person who is aggrieved by the exercise by the FCA of its power under section 55NA(5)(b) may refer the matter to the Tribunal.” I430 Sch. 5 para. 12 not in force at Royal Assent, see s. 86(3) I431 Sch. 5 para. 12 in force at 6.9.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(a)(2)(b)(ii) I432 Sch. 5 para. 12 in force at 6.11.2023 for specified purposes by S.I. 2023/936, reg. 2(1)(b)(2)(b)(ii)(4) I433 Sch. 5 para. 12 in force at 7.2.2024 in so far as not already in force by S.I. 2023/936, reg. 2(3)

170 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 1 The Banking Act 2009 is amended as follows. I434 Sch. 6 para. 1 in force at 29.8.2023, see s. 86(2)(a) 2 In the heading to Part 5 (payment systems), after “systems” insert “and service I435 Sch. 6 para. 2 in force at 29.8.2023, see s. 86(2)(a) 3 In section 181 (overview), after “services” insert “, including”. I436 Sch. 6 para. 3 in force at 29.8.2023, see s. 86(2)(a) 4 (1) Section 182 (interpretation of payment system) is amended as follows. (2) In the heading, for ““payment system”” substitute “key terms”. (3) In subsection (1), after “money” insert “or digital settlement assets”. (4) After subsection (4) insert— “(4A) In subsection (1) “digital settlement asset” means a digital representation of value or rights, whether or not cryptographically secured, that— (a) can be used for the settlement of payment obligations, (b) can be transferred, stored or traded electronically, and (c) uses technology supporting the recording or storage of data (which may include distributed ledger technology). (4B) In this section, “digital settlement asset” includes a right to, or an interest in, (5) After subsection (5) insert— “(5A) In this Part, a “DSA service provider” is a person who provides one or more services in relation to a payment system that includes arrangements using digital settlement assets where— (a) the person creates or issues the digital settlement assets involved in

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) the person provides services to safeguard, or to safeguard and administer, digital settlement assets including their private cryptographic keys (or means of access), (c) the person is directly involved in any of the activities mentioned in (d) the person is a digital settlement asset exchange provider, (e) the person sets rules, standards, or conditions of access or participation in relation to the payment system, or (f) the person provides any service that facilitates, or supports, a transfer of money or digital settlement assets to be made using the payment system, including any infrastructure provider in relation to (5B) In this Part “digital settlement asset exchange provider” means a person who provides one or more of the following services, including as creator or issuer of any of the digital settlement assets, by— (a) exchanging, or arranging the exchange of— (i) digital settlement assets for money, (ii) money for digital settlement assets, (iii) digital settlement assets and money for digital settlement (iv) digital settlement assets and money for money, (b) exchanging, or arranging the exchange of, one digital settlement (c) operating an automated process to carry out any of the activities mentioned in paragraphs (a) and (b). (5C) The Treasury may by regulations amend— (a) the definition of “digital settlement asset” in subsection (4A); (b) the definition of “DSA service provider” in subsection (5A); (c) the definition in section 206AA of a person who provides services connected with a recognised payment system that uses digital I437 Sch. 6 para. 4 in force at 29.8.2023, see s. 86(2)(a) 5 (1) Section 183 (interpretation of other expressions) is amended as follows. (2) In the opening words of paragraph (k) after “system” insert “or to a DSA service (3) In sub-paragraph (i) of paragraph (k), after “constituting” insert “, or connected I438 Sch. 6 para. 5 in force at 29.8.2023, see s. 86(2)(a)

172 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes 6 In the cross-heading before section 184 (recognition order), after “systems” insert I439 Sch. 6 para. 6 in force at 29.8.2023, see s. 86(2)(a) 7 In the heading to section 184 , after “order” insert “: payment system”. I440 Sch. 6 para. 7 in force at 29.8.2023, see s. 86(2)(a) 8 In section 184, in subsection (4), after “constituting” insert “or connected with”. I441 Sch. 6 para. 8 in force at 29.8.2023, see s. 86(2)(a) “184A Recognition DSA service provider (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 I442 Sch. 6 para. 9 in force at 29.8.2023, see s. 86(2)(a) 10 In the heading to section 185 (recognition criteria) after “criteria” insert “: payment I443 Sch. 6 para. 10 in force at 29.8.2023, see s. 86(2)(a) “185A Recognition DSA service provider (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

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) to threaten the stability of, or confidence in, the UK financial system, (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 (a) the value of the services in relation to payment systems that the DSA service provider presently provides or is likely to provide in (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 (d) the relationship between the DSA service provider and— (i) operators of payment systems that use digital settlement (ii) other DSA service providers.” I444 Sch. 6 para. 11 in force at 29.8.2023, see s. 86(2)(a) 12 (1) Section 186 (procedure) is amended as follows. (2) In the opening words of subsection (1) after “system” insert “or a DSA service (3) After subsection (1)(a) insert— “(aa) in the case of a recognition order in respect of a DSA service (4) In subsection (1)(b), after “system” insert “or the DSA service provider (as (5) In subsection (2)(a), for “the operator of which” substitute “or a DSA service provider, where the operator of the system or the provider”. (6) In subsection (2)(b), after “operator” insert “or provider”. (7) In subsection (3), after “system” insert “or a DSA service provider”. I445 Sch. 6 para. 12 in force at 29.8.2023, see s. 86(2)(a) 13 (1) Section 186A (amendment of recognition order) is amended as follows. (2) After subsection (2)(a) insert— “(aa) in the case of a recognition order in respect of a DSA service

174 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (3) In subsection (2)(b), after “system” insert “or the recognised DSA service provider (4) In subsection (3)(a), for “the operator of which” substitute “or a DSA service provider, where the operator of the system or the provider”. (5) In subsection (3)(b), after “operator” insert “or provider”. (a) after first “system” insert “or by a recognised DSA service provider”, (b) after second “system” insert “or provider,”. I446 Sch. 6 para. 13 in force at 29.8.2023, see s. 86(2)(a) 14 (1) Section 187 (de-recognition) is amended as follows. (a) the words after “satisfied” become paragraph (a), (b) after that paragraph insert “, or (b) that the criteria in section 185A are met in respect of the recognised DSA service provider.” (3) After subsection (3)(a) insert— “(aa) in the case of a recognition order in respect of a DSA service (4) In subsection (3)(b), after “system” insert “or the recognised DSA service provider (5) In subsection (4)(a), for “the operator of which” substitute “or a DSA service provider, where the operator of the system or the provider”. (6) In subsection (4)(b), after “operator” insert “or provider”. (7) In subsection (5), after “system” insert “, or by a recognised DSA service provider”. I447 Sch. 6 para. 14 in force at 29.8.2023, see s. 86(2)(a) 15 (1) Section 188 (principles) is amended as follows. (a) the words after “publish” to the second “systems” become paragraph (a); (b) after that paragraph insert “, (b) principles to which recognised DSA service providers are to have regard in the provision of services to payment systems (whether or not recognised),”; (c) the words after “and” become paragraph (c); (d) at end insert “or to such DSA service providers”. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective.
Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I448 Sch. 6 para. 15 in force at 29.8.2023, see s. 86(2)(a) 16 In section 189 (codes of practice)— (a) the words after “about” to the first “systems” become paragraph (a); (b) after that paragraph, insert “, (b) the provision of services by DSA service providers in relation to payment systems (whether or not recognised), (d) the words after “and” become paragraph (c); (e) at end insert “or to such DSA service providers”. I449 Sch. 6 para. 16 in force at 29.8.2023, see s. 86(2)(a) 17 In section 190 (system rules), in subsection (1)(a)— (a) after “constituting” insert “, or connected with,”; (b) at end insert “, or a DSA service provider”. I450 Sch. 6 para. 17 in force at 29.8.2023, see s. 86(2)(a) (1) The Bank of England may require a recognised DSA service provider— (a) to establish rules for the operation of services provided by the recognised DSA service provider; (b) to establish rules for the operation of services provided by a service provider to the recognised DSA service provider; (c) to change the rules in a specified way or so as to achieve a specified (d) to notify the Bank of any proposed change to the rules; (e) not to change the rules without the approval of the Bank. (2) A requirement under subsection (1)(d) or (e) may be general or specific.” I451 Sch. 6 para. 18 in force at 29.8.2023, see s. 86(2)(a) 19 (1) Section 191 (directions) is amended as follows. 176 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) the words after the first “to” to the first “system” become paragraph (a); (b) after that paragraph insert “, (b) to a recognised DSA service provider,”; (c) the words after “or” become paragraph (c); (d) at the end of that paragraph insert “or to such DSA service providers”. (a) in paragraph (a), omit “to the system”; (b) in paragraph (b), omit “to the system”. (a) after “operator” insert “, DSA service provider”; (b) after “operator’s” insert “, DSA service provider’s”. (5) In subsection (4)(b), after “operator” insert “, DSA service provider”. I452 Sch. 6 para. 19 in force at 29.8.2023, see s. 86(2)(a) 20 After section 192 (role of FCA and PRA), insert— “192A Power of Bank to require FCA to refrain from specified action (1) Where the first, second and third conditions are met, the Bank of England may give a direction under this section to the FCA. (2) The first condition is that the FCA is proposing to exercise any of its powers (a) a recognised payment system that includes arrangements using (b) a recognised DSA service provider. (3) The second condition is that the Bank of England is of the opinion that the exercise of the power in the manner proposed may— (a) threaten the stability of the UK financial system, (b) have serious consequences for business or other interests in the United Kingdom (including for the payment system or provider in relation to which the powers are proposed to be exercised), or (c) have an adverse effect on the Bank’s ability to act in its capacity as (4) The third condition is that the Bank of England is of the opinion that the giving of the direction is necessary in order to avoid an outcome mentioned (5) A direction under this section is a direction requiring the FCA not to exercise the power or not to exercise it in a specified manner. (6) The direction may be expressed to have effect during a specified period or

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (7) The FCA is not required to comply with a direction under this section if or to the extent that in the opinion of the FCA compliance would be incompatible with any international obligation of the United Kingdom.” I453 Sch. 6 para. 20 in force at 29.8.2023, see s. 86(2)(a) 21 (1) Section 193 (inspection) is amended as follows. (a) after first “system” insert “, a recognised DSA service provider”; (b) after second “system” insert “or such a DSA service provider”. (3) In the opening words of subsection (2)— (a) after first “system” insert “, or a recognised DSA service provider”; (b) after second “system” insert “or such a DSA service provider”. I454 Sch. 6 para. 21 in force at 29.8.2023, see s. 86(2)(a) 22 (1) Section 194 (inspection: warrant) is amended as follows. (a) at end of sub-paragraph (i), omit “or” and insert— “(ia) a recognised DSA service provider, or”; (b) in sub-paragraph (ii), after “system” insert “or a recognised DSA service (3) In subsection (2)(a), after “system” insert “, the DSA service provider”.
(4) In subsection (3), after “system” insert “, the DSA service provider”. I455 Sch. 6 para. 22 in force at 29.8.2023, see s. 86(2)(a) 23 (1) Section 195 (independent report) is amended as follows. (2) In subsection (1)(a), omit “or”. (3) After subsection (1)(b), insert— “(c) a recognised DSA service provider to appoint an expert to report on the provision of services to payment systems (whether or not (d) a service provider in relation to a recognised DSA service provider to appoint an expert to report on the provision of services to the DSA (4) In subsection (2)(a), after “operator” insert “, recognised DSA service provider”. (5) In subsection (2)(b), after “operator” insert “, recognised DSA service provider”. 178 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I456 Sch. 6 para. 23 in force at 29.8.2023, see s. 86(2)(a) 24 In section 196 (compliance failure)— (a) after first “system” insert “, a recognised DSA service provider”; (b) after second “system” insert “or such a DSA service provider”. I457 Sch. 6 para. 24 in force at 29.8.2023, see s. 86(2)(a) 25 In section 197 (publication), in subsection (1)— (a) after first “system” insert “, a recognised DSA service provider”; (b) after second “system” insert “or such a DSA service provider”. I458 Sch. 6 para. 25 in force at 29.8.2023, see s. 86(2)(a) 26 In section 198 (penalty), in subsection (1)— (a) after first “system” insert “, a recognised DSA service provider”; (b) after second “system” insert “or such a DSA service provider”. I459 Sch. 6 para. 26 in force at 29.8.2023, see s. 86(2)(a) 27 (1) Section 199 (closure) is amended as follows. (a) after “concerned” insert “, the DSA service provider concerned”; (b) after second “system” insert “, providing services,”; (c) after third “system” insert “or recognised DSA service provider”. (a) after first “system” insert “, or DSA service provider”; (b) after second “system” insert “, or a recognised DSA service provider”. (a) after “system” insert “, or of each recognised DSA service provider,”; (b) after “206A(2)(b)” insert “or 206A(2A)(b) (as the case may be).” (5) In subsection (4), after “operator” insert “, DSA service provider,”. I460 Sch. 6 para. 27 in force at 29.8.2023, see s. 86(2)(a) 28 (1) Section 200 (management disqualification) is amended as follows. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (2) In subsection (1), after “system” insert “or from being a DSA service provider”. (a) after first “system” insert “, or a recognised DSA service provider,”; (b) after second “system” insert “or such a DSA service provider”. (a) after “system” insert “, or of each recognised DSA service provider,”; (b) after “206A(2)(b)” insert “or 206A(2A)(b) (as the case may be).” I461 Sch. 6 para. 28 in force at 29.8.2023, see s. 86(2)(a) 29 (1) Section 201 (warning) is amended as follows. (a) after first “system” insert “, on a DSA service provider,”; (b) after second “system” insert “or such a DSA service provider”; (c) in paragraph (a), after “operator” insert “, DSA service provider”; (d) in paragraph (b), after “operator” insert “, DSA service provider”; (e) in paragraph (d), after “operator” insert “, DSA service provider”. (a) after first “system” insert “or recognised DSA service provider”; (b) in paragraph (a), after “system” insert “, or DSA service provider”; (c) in paragraph (b), after “operator” insert “, or DSA service provider”; (d) in paragraph (d), after “operator” insert “or DSA service provider”. I462 Sch. 6 para. 29 in force at 29.8.2023, see s. 86(2)(a) 30 In section 202 (appeal), in subsection (2)— (a) after first “system” insert “or recognised DSA service provider”; (b) after second “system” insert “or DSA service provider (as the case may I463 Sch. 6 para. 30 in force at 29.8.2023, see s. 86(2)(a) 31 (1) Section 202A (injunctions) is amended as follows. (i) after first “system” insert “, a recognised DSA service provider,”; (ii) after second “system” insert “or such a DSA service provider”; (b) in the words following paragraph (b), after “operator” insert “, DSA service

180 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (i) after first “system” insert “, a recognised DSA service provider,”; (ii) after second “system” insert “or such a DSA service provider”; (b) in the words following paragraph (b), after “operator” insert “, DSA service I464 Sch. 6 para. 31 in force at 29.8.2023, see s. 86(2)(a) 32 In section 203 (fees), in subsection (1)— (a) after first “systems” insert “, recognised DSA service providers,”; (b) after second “systems” insert “or such DSA service providers”. I465 Sch. 6 para.
32 in force at 29.8.2023, see s. 86(2)(a) 33 After section 203B (annual report) insert— (1) The Bank of England must prepare a statement of the general policy it proposes to follow in relation to its oversight under this Part of — (a) recognised payment systems that include arrangements using digital (b) DSA service providers, and (c) service providers as described in sections 206A and 206AA. (2) Before issuing a statement of policy under this section, the Bank must consult (a) publish the statement on its website, (b) send a copy to the Treasury, and (c) review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision). (4) Nothing in this section is to be regarded as preventing the Bank of England from exercising any of its powers under this Part where it considers it necessary to do so by reason of urgency, before it has prepared a statement I466 Sch. 6 para. 33 in force at 29.8.2023, see s. 86(2)(a) 34 (1) Section 204 (information) is amended as follows. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (2) In subsection (1)(a), after “206A(2)(b)” insert “or 206A(2A)(b)”. (a) after first “system” insert “, a recognised DSA service provider,”; (b) after second “system” insert “or such a DSA service provider”. (a) after first “system” insert “, a recognised DSA service provider,”; (b) after second “system” insert “or such a DSA service provider”. I467 Sch. 6 para. 34 in force at 29.8.2023, see s. 86(2)(a) 35 (1) Section 205 (pretending to be recognised) is amended as follows. (2) In the opening words of subsection (1) after “system” insert “or DSA service (3) In subsection (1)(a), after “system” insert “or provider”. (4) In subsection (1)(b), after “system” insert “or provider”. (5) In subsection (1A), after “system” insert “or recognised DSA service provider”. I468 Sch. 6 para. 35 in force at 29.8.2023, see s. 86(2)(a) 36 (1) Section 206 (saving for informal oversight) is amended as follows. (a) after first “systems” insert “, DSA service providers”; (b) after second “systems” insert “or DSA service providers”. (a) after first “systems” insert “, DSA service providers”; (b) after second “systems” insert “or DSA service providers”. I469 Sch. 6 para. 36 in force at 29.8.2023, see s. 86(2)(a) 37 (1) Section 206A (services forming part of recognised payment systems) is amended as (2) For the heading substitute “Service providers”. (a) omit the words “persons who are”; (b) the words after “providers” become paragraph (a); (c) after that paragraph insert “, or

182 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) in relation to a recognised DSA service provider.” (4) After subsection (2) insert— “(2A) A person is a service provider in relation to a recognised DSA service (a) the person provides services to the recognised DSA service provider, (b) the person is specified as a person within paragraph (a) by the Treasury in the recognition order made in respect of the DSA service (2B) A payment system that includes arrangements using digital settlement assets is a service provider in relation to a recognised DSA service provider if— (a) the system provides services to the recognised DSA service (b) the system is specified as a system within paragraph (a) by the Treasury in the recognition order made in respect of the DSA service (5) After subsection (3) insert— “(3A) In relation to a recognised payment system that includes arrangements using digital settlement assets, subsection (2)(a) includes a person providing services connected with the system. See section 206AA.” (6) In the opening words of subsection (4), after “(2)(b)” insert “or (2A)(b) or systems (7) In subsection (4)(b) after “system” insert “or DSA service provider”. (8) In subsection (5) after “(2)(b)” insert “, (2A)(b) or (2B)(b)”. I470 Sch. 6 para. 37 in force at 29.8.2023, see s. 86(2)(a) “206AA Service providers connected with a recognised payment system that uses digital settlement assets For the purposes of section 206A(3A), a person provides services connected (a) the person creates or issues the digital settlement assets involved in (b) the person provides services to safeguard, or to safeguard and administer, digital settlement assets including their private cryptographic keys (or means of access), (c) the person is directly involved in any of the activities mentioned in (d) the person is a digital settlement asset exchange provider,

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes (e) the person sets rules, standards, or conditions of access or participation in relation to the payment system, or (f) the person provides any service that facilitates, or supports, a transfer of money or digital settlement assets to be made using the payment system, including any infrastructure provider in relation to I471 Sch. 6 para. 38 in force at 29.8.2023, see s. 86(2)(a) I472 Sch. 6 para. 39 in force at 29.8.2023, see s. 86(2)(a) 40 The Financial Services (Banking Reform) Act 2013 is amended as follows. I473 Sch. 6 para. 40 in force at 29.8.2023, see s. 86(2)(a) 41 (1) Section 41 (meaning of payment system) is amended as follows. (2) After subsection (2) insert— “funds” includes digital settlement assets (except in section 41(2) “digital settlement asset” means a digital representation of value or rights, whether or not cryptographically secured, that— (a) can be used for the settlement of payment obligations, (b) can be transferred, stored or traded electronically, and (c) uses technology supporting the recording or storage of data (which may include distributed ledger technology). (2B) In this section, “digital settlement asset” includes a right to, or interest in, a

184 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (2C) The Treasury may by regulations amend the definition of “digital settlement I474 Sch. 6 para. 41 in force at 29.8.2023, see s. 86(2)(a) 42 (1) Section 42 (participants in payment systems) is amended as follows. (2) In subsection (2)(c), for “subsection (5)” substitute “subsections (5) and (5A)”. (3) After subsection (5) insert— “(5A) “Payment service provider” in relation to a payment system that includes arrangements using digital settlement assets means— (a) a person responsible for managing the issuance and redemption of (b) a person whose business or occupation is to safeguard, or to safeguard and administer digital settlement assets, including their private cryptographic keys (or means of access); (c) a digital settlement asset exchange provider; (i) sets rules, standards, or conditions of access or participation (ii) provides any service that facilitates, or supports, a transfer of money or digital settlement assets to be made using the system, including any infrastructure provider in relation to I475 Sch. 6 para. 42 in force at 29.8.2023, see s. 86(2)(a) 43 In section 98 (duty of regulators to ensure co-ordinated exercise of functions), for paragraph (c) of subsection (5) substitute— (i) the functions conferred on it by or under FSMA 2000 (see (ii) the functions conferred on it by or under Part 3 of the Payment Card Interchange Fee Regulations 2015 ( S.I. (iii) the functions conferred on it by or under the Electronic Money Regulations 2011 (S.I. 2011/99); (iv) its functions in regulating— (a) credit institutions where authorised under Part 4A (b) authorised payment institutions under the Payment Services Regulations 2017 (S.I. 2017/752).”

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 6 – Digital settlement assets Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I476 Sch. 6 para. 43 in force at 29.8.2023, see s. 86(2)(a) 44 In section 110 (interpretation of Part), at the appropriate place insert— ““digital settlement asset” has the meaning given by section 41(2A);”; ““digital settlement asset exchange provider” has the meaning given by section 182(5B) of the Banking Act 2009;”. I477 Sch. 6 para. 44 in force at 29.8.2023, see s. 86(2)(a) 45 In section 112 (interpretation: infrastructure companies), after subsection (2)(a) “(aa) a recognised DSA service provider,” I478 Sch. 6 para. 45 in force at 29.8.2023, see s. 86(2)(a) 46 In section 113 (interpretation: other expressions), in subsection (1) at the ““recognised DSA service provider” means a DSA service provider, as defined by section 182(5A) of the Banking Act 2009, in respect of which a recognition order under section 184A of that Act is in force;”. I479 Sch. 6 para. 46 in force at 29.8.2023, see s. 86(2)(a) 47 (1) Section 115 (objective of FMI administration) is amended as follows. (2) In the opening words of subsection (1) after system insert “, or a recognised DSA (3) In subsection (1)(a) after “system” in each place, insert “or provider”. I480 Sch. 6 para. 47 in force at 29.8.2023, see s. 86(2)(a) 48 In section 143 (Parliamentary control of orders and regulations), after subsection (2) “(aa) regulations under section 41(2C) (meaning of “digital settlement I481 Sch. 6 para. 48 in force at 29.8.2023, see s. 86(2)(a)

186 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 1 The Financial Services (Banking Reform) Act 2013 is amended as follows. I482 Sch. 7 para. 1 not in force at Royal Assent, see s. 86(3) I483 Sch. 7 para.
1 in force at 29.8.2023 for specified purposes by S.I. 2023/779, reg. 4(ccc)(i) I484 Sch. 7 para. 1 in force at 1.1.2024 for specified purposes by S.I. 2023/1382, reg. 9(1)(d)(i) I485 Sch. 7 para. 1 in force at 1.8.2024 for specified purposes by S.I. 2024/250, reg. 3(b) I486 Sch. 7 para. 1 in force at 1.1.2025 in so far as not already in force by S.I. 2024/250, reg. 4(b) (a) after subsection (11) insert— “(11A) Sections 102A and 102B contain provision about Treasury powers to make recommendations in connection with the Payment Systems Regulator’s general duties and to specify matters to which the Regulator must have regard when exercising certain (b) in subsection (12) for “107” substitute “107A”. I487 Sch. 7 para. 2 not in force at Royal Assent, see s. 86(3) I488 Sch. 7 para. 2 in force at 29.8.2023 for specified purposes by S.I. 2023/779, reg. 4(ccc)(ii) I489 Sch. 7 para. 2 in force at 1.1.2024 in so far as not already in force by S.I. 2023/1382, reg. 9(1)(d)(ii) 3 In section 53 (regulatory principles), in paragraph (c) at the end insert “, including in a way consistent with contributing towards achieving compliance by the Secretary of State with section 1 of the Climate Change Act 2008 (UK net zero emissions target) and section 5 of the Environment Act 2021 (environmental targets) where the Payment Systems Regulator considers the exercise of its functions to be relevant to the making of such a contribution;”. I490 Sch. 7 para. 3 not in force at Royal Assent, see s. 86(3) I491 Sch. 7 para. 3 in force at 29.8.2023 for specified purposes by S.I. 2023/779, reg. 4(ccc)(iii) I492 Sch. 7 para. 3 in force at 1.1.2025 for specified purposes by S.I. 2023/1382, reg. 12(d) (with reg. 16(2)) 4 After section 102 (power of PRA to require Regulator to refrain from specified 102A Recommendations by Treasury in connection with general duties (1) The Treasury may at any time by notice in writing to the Payment Systems Regulator make recommendations to the Regulator about aspects of the

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes economic policy of His Majesty’s Government to which the Regulator should have regard when considering— (a) how to advance one or more of its payment systems objectives, (b) the application of the regulatory principles in section 53, and (c) its exercise of functions under— (i) Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card- (ii) the Payment Card Interchange Fee Regulations 2015 ( S.I. (iii) the Payment Services Regulations 2017 (S.I. 2017/752). (2) The Treasury must make recommendations under subsection (1) at least once (3) The Payment Systems Regulator must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of— (a) action that the Regulator has taken or intends to take in accordance (b) the reasons why the Regulator has not acted or does not intend to act in accordance with the recommendation. (4) The notice under subsection (3) must be given before the end of 12 months beginning with the date the notice containing the recommendation was given (5) Where the Payment Systems Regulator has given notice under subsection (3) in relation to a recommendation, the Regulator must by notice in writing update the Treasury on the matters mentioned in subsection (3)(a) and (b) before the end of each subsequent period of 12 months. (6) Subsection (5) does not apply if the Treasury have notified the Payment Systems Regulator in writing that no update (or further update) is required. (7) The Payment Systems Regulator is not required under subsection (3) or (5) to provide any information whose publication would in the opinion of the Regulator be against the public interest. (a) publish in such manner as they think fit any notice given under subsection (1), (3) or (5), and (b) lay a copy of it before Parliament.” I493 Sch. 7 para. 4 not in force at Royal Assent, see s. 86(3) I494 Sch. 7 para. 4 in force at 29.8.2023 by S.I. 2023/779, reg. 4(ccc)(iv) 5 Before section 103 (regulator’s general duty to consult) insert (under the italic heading “Consultation, accountability and oversight”)—

188 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes “102B Matters to consider when imposing generally applicable requirements (1) This section applies where the Payment Systems Regulator proposes to impose a generally applicable requirement (as defined by section 104(1)). (2) The Regulator must have regard to any specified matters that are relevant to the imposition of the requirement in question.
(3) “Specified” means specified in regulations made by the Treasury for the (4) The specification of a matter for the purposes of this section may apply generally to the exercise of a function or be limited in whatever way the Treasury consider appropriate, including by reference to— (a) the power under which the function is carried out; (b) the persons to whom the carrying out of the function apply; (c) the activities or subject-matter to which the function relates. (5) The duty under subsection (2) is in addition to any other requirements to have regard to matters when exercising relevant functions imposed by another provision of this Act or by any other enactment.” I495 Sch. 7 para. 5 not in force at Royal Assent, see s. 86(3) I496 Sch. 7 para. 5 in force at 29.8.2023 by S.I. 2023/779, reg. 4(ccc)(iv) 6 In section 104 (consultation in relation to generally applicable requirements)— (a) in subsection (1), in the words before paragraph (a) for “section” substitute (b) in subsection (3) after paragraph (b) insert— “(ba) an explanation of the ways in which having regard to specified matters under section 102B(2) has affected the (c) after subsection (12) insert— “(12A) The duty to provide the explanation referred to in subsection (3) (ba) does not apply in relation to any proposed requirement which changes an existing requirement and the changes consist of, or include, changes which, in the Payment Systems Regulator’s (12B) Where an explanation is not provided by virtue of subsection (12A), the draft of the proposed requirement must be accompanied by a statement of the Payment Systems Regulator’s I497 Sch. 7 para. 6 not in force at Royal Assent, see s. 86(3) I498 Sch. 7 para. 6 in force at 29.8.2023 by S.I. 2023/779, reg. 4(ccc)(iv)

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes “104A Requirements in connection with public consultations (1) This section applies where the Payment Systems Regulator issues a public (2) The Payment Systems Regulator must include information in the consultation about any engagement by the Payment Systems Regulator with the statutory panels of the Payment Systems Regulator, the FCA and the PRA in relation to the matters being consulted on. (3) The Payment Systems Regulator is not required under subsection (2) to include any information whose publication would in the opinion of the Payment Systems Regulator be against the public interest. (4) For the purposes of this section, the Payment Systems Regulator issues a public consultation if it publishes any proposals for the purpose of bringing them to the attention of the public (whether or not under a duty to do so (5) In this section a “statutory panel”— (a) in relation to the Payment Systems Regulator, means a panel established under section 103(3), (b) in relation to the FCA, has the meaning given by section 1RA(8) of (c) in relation to the PRA, has the meaning given by section 2NA(8) of 104B Duty of Regulator to review generally applicable requirements The Payment Systems Regulator must keep under review generally any generally applicable requirements. 104C Statement of policy relating to review of requirements (1) The Payment Systems Regulator must prepare and publish a statement of its policy with respect to its review of requirements under section 104B. (2) The statement must provide information about— (a) how representations (including by a relevant panel) can be made to the Regulator with respect to its review of requirements under (b) the arrangements to ensure that those representations are considered. (3) In this section “relevant panel” means— (a) a panel of the Payment Systems Regulator established under (b) a panel of the FCA mentioned in section 1RA(8) of FSMA 2000, and (c) a panel of the PRA mentioned in section 2NA(8) of FSMA 2000. (4) If a statement published under this section is altered or replaced by the Payment Systems Regulator, the Regulator must publish the altered or

190 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (5) A statement prepared under this section must be published by the Payment Systems Regulator in the way appearing to the Regulator to be best designed to bring it to the attention of the public. 104D Requirement to review specified requirements (1) The Treasury may by direction require the Payment Systems Regulator to carry out a review of any generally applicable requirement specified in the (a) the requirement has been in force for at least 12 months, (b) the Treasury consider that it is in the public interest that the (c) it does not appear to the Treasury that— (i) the regulator is carrying out, or proposes to carry out, a review of that requirement, or (ii) if the regulator proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective (2) The Treasury must consult the Payment Systems Regulator before giving a direction under subsection (1).
(3) In exercising the power under this section, the Treasury must have regard to the desirability of minimising any adverse effect that the carrying out of the review may have on the exercise by the Payment Systems Regulator of (4) A direction under subsection (1) may— (a) specify the period within which a review must be carried out; (b) determine the scope and conduct of a review; (c) require the provision of interim reports during the carrying out of (5) Provision made in a direction under subsection (4)(b) may include a (a) for a review to be carried out by a person appointed by the Payment Systems Regulator who is independent of the Regulator; (b) for any such appointment to be made only with the approval of the (6) As soon as practicable after giving the direction the Treasury must— (a) lay before Parliament a copy of the direction, and (b) publish the direction in such manner as the Treasury think fit. (7) Subsection (6) does not apply where the Treasury consider that publication of the direction would be against the public interest. (8) A direction under this section may be varied or revoked by the giving of a

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 104E Report on certain reviews (1) This section applies where the Treasury have given a direction to the Payment Systems Regulator under section 104D(1) to carry out a review. (2) The Payment Systems Regulator must provide a written report to the Treasury as to the opinion of the Regulator in relation to the following (a) whether the requirements under review advance one or more of the (b) whether and to what extent the requirements are functioning effectively and achieving their intended purpose; (c) whether any amendments need to be made to the requirements and, if so, what those amendments should be; (d) whether any requirements should be withdrawn (with or without (e) whether any other action should be taken and, if so, what that action (3) As soon as practicable after receiving the report the Treasury must— (a) lay before Parliament a copy of the report, and (b) publish the report in such manner as the Treasury think fit. (4) When complying with subsection (3) the Treasury may withhold material from the report if the Treasury consider that publication of the material would be against the public interest. 104F Power of Treasury to require the imposition of generally applicable (1) The Treasury may by regulations require the Payment Systems Regulator to exercise a power under this Part to impose a generally applicable requirement in relation to a specified activity or a specified description of (2) Regulations under this section may— (a) specify matters that the requirement must cover; (b) specify a period within which the requirement must be made. (3) But except so far as permitted by subsection (2), regulations under this section may not require the requirement to be imposed— (a) in a specified form or with specified content, or (b) to achieve or advance a specified outcome. (4) If no period is specified under subsection (2)(b) the requirement must be imposed as soon as reasonably practicable after the coming into force of the

192 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 104G Consultation with the FCA Cost Benefit Analysis Panel (1) Except as provided by subsection (2), the Payment Systems Regulator must consult the FCA Cost Benefit Analysis Panel, and that Panel must provide advice, about the following matters— (a) the preparation of a cost benefit analysis under section 104(3)(a) or (b) the preparation of its statement of policy under section 104H. (2) The requirement to consult under subsection (1)(a) does not apply in such cases as may be set out in the statement of policy maintained under (3) The FCA Cost Benefit Analysis Panel must— (a) keep under review how the Payment Systems Regulator is performing generally in carrying out its duties under section 104(3) (b) provide to the Payment Systems Regulator whatever recommendations the Panel thinks appropriate as a result of such (4) The Payment Systems Regulator must consider representations that are made to it by the FCA Cost Benefit Analysis Panel. (5) The Payment Systems Regulator must from time to time publish in such manner as it thinks fit responses to the representations. (6) In this section references to the “FCA Cost Benefit Analysis Panel” are to the panel established under section 138IA of FSMA 2000.
104H Statement of policy in relation to cost benefit analyses (1) The Payment Systems Regulator must prepare and publish a statement of policy in relation to the preparation of cost benefit analyses for the purposes (2) The statement must provide information about— (a) the methodology adopted in preparing cost benefit analyses; (b) matters to which the Payment Systems Regulator has regard in determining whether section 104(8) applies; (c) matters to which the Payment Systems Regulator has regard in determining whether section 104(10) or (11) applies in relation to the preparation of a cost benefit analysis; (d) arrangements to ensure that representations in connection with a cost benefit analysis that are made in accordance with section 104(3)(d) (e) cases in which the requirement to consult the FCA Cost Benefit Analysis Panel in relation to the preparation of a cost benefit analysis (3) The statement may include whatever other information in relation to cost benefit analyses that the Payment Systems Regulator considers appropriate. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (4) The Payment Systems Regulator may alter or replace a statement published (5) The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4). (6) Publication under this section is to be made in such manner as the Payment Systems Regulator considers best designed to bring the statement to the 104I Statement of policy on panel appointments (1) The Payment Systems Regulator must prepare and publish a statement of policy in relation to the appointment of members to any panel established (2) The statement must provide information about— (a) the process adopted for making appointments; (b) matters considered in determining who is appointed. (3) The statement may provide whatever other information in relation to the making of appointments that the Payment Systems Regulator considers (4) The Payment Systems Regulator may alter or replace a statement published (5) The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4). (6) Before publishing a statement under this section the Payment Systems (a) consult the Treasury about the proposed statement, and (b) have regard to any representations the Treasury make in response to (7) Publication under this section is to be made in such manner as the Payment Systems Regulator considers best designed to bring the statement to the I499 Sch. 7 para. 7 not in force at Royal Assent, see s. 86(3) I500 Sch. 7 para. 7 in force at 29.8.2023 for specified purposes by S.I. 2023/779, reg. 4(ccc)(v) I501 Sch. 7 para. 7 in force at 1.8.2024 for specified purposes by S.I. 2023/1382, reg. 11(c) “107A International trade obligations (1) This section applies where it appears to the Payment Systems Regulator that there is a material risk that a relevant action it proposes to take would be incompatible with an international trade obligation. 194 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (2) The Payment Systems Regulator must give written notice to the Treasury of the proposed action before proceeding to take it. (3) Subsection (2) applies only if a duty to consult applies in respect of the taking (4) For the purposes of subsection (1) the Payment Systems Regulator proposes to take a “relevant action” if it— (a) proposes to impose a generally applicable requirement, or (b) proposes to make changes to its general policies and practices. (5) For the purposes of subsection (3) a duty to consult applies in respect of a (a) the duty imposed by section 104 to publish a draft of a proposed requirement applies in respect of the action, or (b) any other duty (whether or not imposed by a provision of this Act) to publish the proposal to take the action in question applies. (6) The requirement imposed by subsection (2) must be carried out before the duty to consult in respect of the relevant action is carried out. (7) Subsection (8) applies in a case where a notice under subsection (2) is not given because of subsection (3). (8) The Payment Systems Regulator must give written notice to the Treasury of the relevant action it has taken as soon as reasonably practicable after taking it if it appears to the Regulator that there is a material risk that the action is incompatible with an international trade obligation. (9) In this section “international trade obligation” means an obligation of the United Kingdom that relates to financial services or markets under— (a) a free trade agreement, as defined by section 5(1) of the Trade Act (b) the agreement establishing the World Trade Organisation signed at I502 Sch. 7 para. 8 not in force at Royal Assent, see s. 86(3) I503 Sch. 7 para. 8 in force at 1.1.2024 by S.I. 2023/1382, reg. 9(1)(d)(iii) (with reg. 15) 9 In section 110(1) (interpretation), at the appropriate place insert— ““generally applicable requirement” has the meaning given by I504 Sch. 7 para. 9 not in force at Royal Assent, see s. 86(3) I505 Sch. 7 para. 9 in force at 29.8.2023 by S.I. 2023/779, reg.
4(ccc)(vi) 10 In section 143 (orders and Parliamentary control), in subsection (2),

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes “(ba) regulations under section 102B (matters to consider when imposing generally applicable requirements); (bb) regulations under section 104F (power to require imposition of generally applicable requirements);”. I506 Sch. 7 para. 10 not in force at Royal Assent, see s. 86(3) I507 Sch. 7 para. 10 in force at 29.8.2023 by S.I. 2023/779, reg. 4(ccc)(vi) 11 In Schedule 4 (the Payment Systems Regulator), after paragraph 7(2)(b) insert— “(ba) set out any engagement with a statutory panel established under (bb) set out how the Regulator has complied with the statement of policy on panel appointments prepared under section 104I in relation to the process for making appointments and the matters considered in determining who is appointed,”. I508 Sch. 7 para. 11 not in force at Royal Assent, see s. 86(3) I509 Sch. 7 para. 11 in force at 29.8.2023 by S.I. 2023/779, reg. 4(ccc)(vi) 12 In Schedule 4, after paragraph 7 insert— 7A (1) The Treasury may (subject to this paragraph) at any time by direction require the Regulator to publish a report containing information about such matters as are specified in the direction. (2) The Treasury may give a direction under this paragraph requiring information to be published only if the Treasury consider that— (a) the information is reasonably necessary for the purpose of reviewing and scrutinising the discharge of the Regulator’s (b) other available information is not sufficient to meet that purpose. (3) Subject to sub-paragraph (4), the Regulator must publish a report prepared under a direction given under this paragraph in such manner, and within such period, as the direction may require. (4) Nothing in this paragraph requires the inclusion in the report of any information whose publication would be against the public interest. (5) A direction under this paragraph may not— (a) require a report to be published more than once in each quarter; (b) require the publication of information that is confidential information as defined by section 91(2). (6) The Treasury must consult the Regulator before giving a direction under

196 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (7) In exercising the power under this paragraph, the Treasury must have regard to the desirability of minimising any adverse effect that the preparation of the report required in accordance with the direction may have on the exercise by the Regulator of any of its other functions. (a) lay before Parliament a copy of a direction given under this (b) publish the direction in such manner as the Treasury think fit. (9) A direction under this paragraph may be varied or revoked by the giving I510 Sch. 7 para. 12 not in force at Royal Assent, see s. 86(3) I511 Sch. 7 para. 12 in force at 29.8.2023 by S.I. 2023/779, reg. 4(ccc)(vi) 13 In Schedule 4, after paragraph 14 insert— “Engagement with Parliamentary Committees 14A (1) This paragraph applies where the Regulator issues a relevant (2) For the purposes of this paragraph the Regulator issues a relevant (a) publishes proposed generally applicable requirements under (b) publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or (c) publishes other proposals about the exercise of any of its general (3) The Regulator must, as soon as reasonably practicable after issuing the consultation, notify in writing the chair of each relevant Parliamentary Committee that the consultation has been issued. (4) The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation— (a) advance the Regulator’s payment systems objectives, (b) demonstrate that the Regulator has had regard to the regulatory principles in section 53 when preparing the proposals, and (c) engage with matters to which the Regulator must have regard under regulations made under section 102B. (5) The notification must also specify any other part of the consultation which the Regulator considers should be drawn to the attention of the relevant Parliamentary Committees. (6) References in this paragraph to the relevant Parliamentary Committees (a) the Treasury Committee of the House of Commons,

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 7 – Accountability of the Payment Systems Regulator Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes (b) the Committee of the House of Lords which— (i) is charged with responsibility by that House for the purposes of this paragraph, and (ii) has notified the Regulator that it is a relevant Parliamentary Committee for those purposes, and (c) the Joint Committee of both Houses which— (i) is charged with responsibility by those Houses for the purposes of this paragraph, and (ii) has notified the Regulator that it is a relevant Parliamentary Committee for those purposes. (7) References in this paragraph to the Treasury Committee of the House (a) if the name of that Committee is changed, are references to that Committee by its new name, and (b) if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as reference to the Committee by which the functions are (8) Any question arising under sub-paragraph (7) is to be determined by the Speaker of the House of Commons. 14B (1) This paragraph applies where— (a) the Regulator issues a public consultation, and (b) a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the Regulator representations in response to the consultation. (2) For the purposes of this paragraph, the Regulator issues a public consultation if it publishes the draft of any proposals for the purpose of bringing them to the attention of the public (whether or not under a duty to do so imposed by an enactment). (3) The Regulator must give to the chair of the Committee concerned a written response to the representations. (4) The duty to respond imposed by sub-paragraph (3) applies only so far as the Regulator would not be under a corresponding duty to do so imposed (5) The Regulator is not required under sub-paragraph (3) to provide any information whose publication would in the opinion of the Regulator be I512 Sch. 7 para. 13 not in force at Royal Assent, see s. 86(3) I513 Sch. 7 para. 13 in force at 29.8.2023 by S.I. 2023/779, reg. 4(ccc)(vi)

198 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 1 After Part 8A of FSMA 2000 (short selling) insert— (a) requires the Treasury to publish a statement of policy concerning cash deposit and withdrawal services, (b) enables the Treasury to designate persons involved in the provision (c) gives the FCA functions in relation to designated persons. 131N Cash access services and coordination arrangements (1) This section defines “cash”, “cash access service”, “free cash access service” and “cash access coordination arrangements” for the purposes of this Part. (a) banknotes issued by the Bank of England, or an authorised bank in its capacity as an issuer of banknotes in Scotland or Northern Ireland (see Part 6 of the Banking Act 2009), or (b) coins made by the Mint, within the meaning of the Coinage Act 1971 (3) A “cash access service” is— (a) a service which enables cash to be placed on a relevant current account (a “cash deposit service”), or (b) a service which enables cash to be withdrawn from a relevant current account (a “cash withdrawal service”). (4) A “free cash access service” is a cash access service that is— (a) a free of charge service which enables cash to be placed on a relevant (b) a free of charge service which enables cash to be withdrawn from a relevant personal current account. (5) “Cash access coordination arrangements” are arrangements—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) which are designed to coordinate the provision of cash access services by two or more providers of such services, but (b) which do not directly provide cash access services to any person. (6) In relation to cash access coordination arrangements— (a) a reference to the “operator” of such arrangements is to any person with responsibility under the arrangements for managing or (b) a reference to the operation of such arrangements includes their (7) In this section, “relevant current account” has the meaning given by 131O Current accounts and relevant current account providers (1) This section defines “current account”, “relevant current account”, “relevant personal current account” and “relevant current account provider” for the (2) “Current account” means an account by means of which one or more named (c) execute and receive payment transactions to and from third parties, including the execution of credit transfers. (3) For the purposes of subsection (2)(c), “payment transaction” means an act initiated by the payer or payee, or on behalf of the payer, of placing, transferring or withdrawing funds, irrespective of any underlying obligations (4) A “relevant personal current account” means a relevant current account held by one or more individuals for purposes outside any business, trade, craft or profession of that individual or those individuals.
(5) “Relevant current account provider” means a person— (a) who has a Part 4A permission to accept deposits, and (b) who provides current accounts in reliance on that permission (“relevant current accounts”). (6) But the following are not relevant current account providers— (a) credit unions, within the meaning given by section 31(1) of the Credit Unions Act 1979 or Article 2(2) of the Credit Unions (Northern Ireland) Order 1985 (S.I. 1985/1205)(N.I.12); (b) a society that is registered within the meaning of the Friendly Societies Act 1974 (see section 111(1) of that Act) or incorporated under the Friendly Societies Act 1992. (7) The Treasury may by regulations— (a) amend a definition in this section; (b) amend any other provision of this Part in consequence of provision

200 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 131P Cash access policy statement (1) The Treasury must prepare a cash access policy statement. (2) A “cash access policy statement” is a statement of the policies of His Majesty’s Government concerning cash access services in the United Kingdom, or a part of the United Kingdom. (3) The reference to cash access services in subsection (2) includes free cash (4) Policies may be stated in relation to, among other things— (a) cash deposit services and cash withdrawal services; (b) services provided in relation to current accounts of different (c) services provided in predominantly urban areas and services provided in predominantly rural areas. (5) In preparing a cash access policy statement, the Treasury must— (b) have regard to any report provided under section 131Q. (6) The Treasury must publish a cash access policy statement in such manner (a) must keep the cash access policy statement under review; (b) may prepare a revised statement (and subsections (5) and (6) apply in relation to any revised statement). 131Q Provision of reports to assist the Treasury (1) The FCA must, on a request from the Treasury, prepare and send to the Treasury a report on a matter specified in the request. (2) The Treasury may only make a request under this section for a report that they reasonably require in connection with— (a) the preparation of a cash access policy statement (see section 131P), (b) a decision whether or not to designate a person for the purposes of (3) A request for a report under this section— (a) must be made in writing, and (b) may require the FCA to send the report to the Treasury within such reasonable period as may be specified in the request (or such other

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (4) Nothing in section 348, or in regulations made under section 349, is to be taken as preventing or restricting the ability of the FCA to disclose information to the Treasury for the purposes of this section. (5) Subsection (4) does not apply in relation to information provided to the FCA by a regulatory authority outside the United Kingdom. (1) The Treasury may designate a person for the purposes of this Part if the (a) a relevant current account provider, or (b) an operator of cash access coordination arrangements, and at least one of the participants in the arrangements is a relevant current account provider designated under this section. (2) A person is designated by giving the person (the “designated person”) a notice in accordance with this Part (a “designation notice”). (3) A designation notice must specify whether the person is designated in (4) A designation notice given to the operator of cash access coordination arrangements must specify the arrangements in as much detail as is (5) Before giving a designation notice to a person the Treasury must— (c) consider any representations made. (a) comply with rules made by the FCA under section 131V; (b) comply with directions given by the FCA to the designated person (1) The Treasury may designate a person for the purposes of this Part, in relation to the United Kingdom, Great Britain only, or Northern Ireland only (as the case may be), only if satisfied that doing so is likely to further the purpose (2) In considering whether to designate a relevant current account provider, the

202 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes (a) the distribution of cash access services operated by the provider in the United Kingdom, Great Britain or Northern Ireland (as the case (b) the distribution in the United Kingdom, Great Britain or Northern Ireland (as the case may be) of persons holding current accounts (c) the provider’s share of the current account market in the United Kingdom, Great Britain or Northern Ireland (as the case may be); (d) the total value of the deposits held in current accounts provided by the provider in the United Kingdom, Great Britain or Northern (3) If a relevant current account provider is part of a group which includes one or more other relevant current account providers, references in subsection (2) to the provider are to be read as references to— (b) each of those other relevant current account providers. (4) For the purposes of subsection (3), section 421 (meaning of “group”) applies with the omission of subsection (1)(g) of that section. 131T Cancellation or variation of a designation notice (1) If a designation notice has been given to a person the Treasury may, by further notice, cancel the designation notice. (2) If a designation notice has been given to a person (including a designation notice as varied by a notice under this subsection), the Treasury may by further notice, vary the earlier notice. (3) If a further notice under subsection (2) would designate a person in relation to a part of the United Kingdom in relation to which the person was not designated by the earlier notice, sections 131R(3) and (5) and 131S apply in relation to the further notice. Supervision of designated persons 131U Purpose for which FCA must exercise functions under this Part (1) The FCA must exercise its functions under this Part for the purpose of seeking to ensure reasonable provision of cash access services in the United Kingdom, or a part of the United Kingdom. (2) In this section references to cash access services include references to free (3) “Reasonable provision” of cash access services is provision of such nature and extent as the FCA may determine, having regard to— (a) the cash access policy statement currently in effect (see (b) such other matters as it considers appropriate. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (4) In making a determination for the purposes of subsection (3) the FCA must, in particular, have regard to any local deficiencies in provision of cash access (a) which the FCA is aware of, and (b) the impacts of which the FCA considers to be significant. (5) A local deficiency in provision of cash access services is a circumstance which limits the ability of persons in any locality in a part of the United (a) withdraw cash from a relevant current account, or (b) place cash on a relevant current account. (6) In determining whether there are local deficiencies in the provision of cash access services, and the significance of the impacts of such deficiencies, the (a) the cash access policy statement currently in effect, and (b) such other matters as it considers appropriate. (7) Those other matters may include (but are not limited to)— (a) the number of persons likely to be affected by the deficiency; (b) the characteristics of the persons likely to be affected by the (c) the likely impact on the persons likely to be affected. (1) The FCA may make such rules applying to designated persons as appear to the FCA to be necessary or expedient for the purpose mentioned in (2) Rules under this section must not require a designated person to do (or refrain from doing) any thing in relation to a part of the United Kingdom in relation to which the person is not designated. (3) Section 137T (general supplementary powers for rules made by a regulator) applies in relation to rules made by the FCA under this section as if, in paragraph (a), the reference to descriptions of authorised persons, activity or investment were to descriptions of designated persons and activities carried (4) Section 138A (modification or waiver of rules) applies in relation to rules made by the FCA under this section as if subsection (4)(b) were omitted. (5) Section 138I (consultation by FCA before making rules) applies to rules under this section as if, in subsection (2)(d), the reference to the FCA’s duties under section 1B(1) and (5)(a) were to the purpose for which the FCA must exercise its functions under this Part. 131W Power to direct designated persons (1) The FCA may give a direction under this section to a designated person if it considers that it is desirable to give the direction for the purpose mentioned

204 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (2) A direction under this section must not require a designated person to do (or refrain from doing) any thing in relation to a part of the United Kingdom in relation to which the person is not designated.
(3) A direction under this section may require the person to— (b) refrain from taking specified action; (c) review, or take remedial action in respect of, past conduct. (4) A requirement imposed by a direction under this section may be expressed to expire at the end of a specified period, but the imposition of a requirement that expires at the end of a specified period does not affect the power to give a further direction imposing a new requirement. (5) A direction under this section— (a) may be revoked by the FCA by written notice to the person to whom (b) ceases to be in force if the person to whom it is given ceases to be (1) If the FCA proposes to give a direction under section 131W, or gives such a direction with immediate effect, it must give written notice to the designated person to whom the direction is given (or to be given). (2) A direction under section 131W takes effect— (a) immediately, if the notice under subsection (1) states that is the case, (b) on such other date as may be specified in the notice, or (c) if no date is specified in the notice, when the matter to which the notice relates is no longer open to review. (3) A direction under section 131W may be expressed to take effect immediately (or on a specified date) only if the FCA reasonably considers that it is necessary for the direction to take effect immediately (or on that date). (4) The notice under subsection (1) must— (a) give details of the direction; (b) state the FCA’s reasons for the direction and for its determination as to when the direction takes effect; (c) inform the designated person that the person may make representations to the FCA within such period as may be specified in the notice (whether or not the person has referred the matter to (d) inform the designated person of the person’s right to refer the matter (5) The FCA may extend the period allowed under the notice for making (6) The FCA must give the designated person written notice if, having considered any representations made by the person, it decides— (a) to give the direction proposed;

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) if the direction has been given, not to revoke the direction. (7) The FCA must give the designated person written notice if, having considered any representations made by the person, it decides— (a) not to give the direction proposed; (b) to give a different direction; (8) A notice given under subsection (6) must inform the notified person of the person’s right to refer the matter to the Tribunal. (9) A notice under subsection (7)(b) must comply with subsection (4). (10) If a notice informs the designated person of the person’s right to refer a matter to the Tribunal, it must give an indication of the procedure on such (11) For the purposes of subsection (2)(c), whether a matter is open to review is to be determined in accordance with section 391(8). 131Y Information gathering and investigations (1) For the purposes of this Part, Part 11 (information gathering and investigations) applies in accordance with this section. (2) Sections 165A to 165C, 169 and 169A do not apply. (3) Any reference to an authorised person includes a person designated for the purposes of this Part (whether or not the person is an authorised person). (a) references to an authorised person in sections 165 and 176(3A)(a) include a person mentioned in subsection (5) (whether or not the person is an authorised person); (b) sections 175 to 177 apply in relation to section 165 as modified in accordance with paragraph (a). (a) a relevant current account provider who is not a designated person for the purposes of this Part; (b) an operator of cash access coordination arrangements who is not a designated person for the purposes of this Part; (c) the operator of, or an infrastructure provider in relation to, a payment system, who is not a designated person for the purposes of this Part; (d) a person (other than a person mentioned in paragraph (a), (b) or (c)) who provides cash access services and is not a designated person for (e) a person who provides a relevant service to a person mentioned in paragraph (a), (b), (c) or (d) and is not a designated person for the (6) In subsection (5)(c), “payment system”, and “operator” and “infrastructure provider” in relation to a payment system, have the same meanings as in Part

206 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of (7) For the purposes of subsection (5)(e), a “relevant service” is a service provided in connection with the provision of cash access services.
(8) In relation to a person who is not an authorised person but is treated as such for the purposes of this Part (by virtue of subsection (3) or (4)), any reference to “either regulator” is to the FCA only. For the purposes of enforcing a requirement imposed by or under this Part, Part 14 (disciplinary measures) applies as if— (a) any reference to an authorised person includes a person designated for the purposes of this Part (whether or not that person is an (b) section 206A (suspending permission to carry on regulated activities Rules made under paragraph 23 of Schedule 1ZA, in connection with the carrying out of any of the FCA’s functions under this Part, must not provide for the payment of fees to the FCA by any person other than a designated person who is a relevant current account provider. 131Z2 Exclusion and modification of other FCA duties (1) Where the FCA is discharging a function under this Part, section 1B (FCA’s general duties) applies as if— (a) in subsection (1)(b), the reference to one or more of the FCA’s operational objectives were to the purpose mentioned in (b) subsections (4) and (4A) (promoting effective competition in the interests of consumers and advancing competitiveness and growth) (2) In discharging its functions under this Part, the regulatory principles in section 3B(1) have effect as if, in paragraph (g), the reference to the FCA’s objectives included the purpose mentioned in section 131U(1). (3) Section 395 applies in relation to a decision of the FCA made in connection with a function under this Part as if, in subsection (3)(a), the reference to the FCA’s operational objectives included the purpose mentioned in I514 Sch. 8 para. 1 in force at 29.8.2023, see s. 86(2)(c)

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 8 – Cash access services Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 2 FSMA 2000 is amended as follows. I515 Sch. 8 para. 2 in force at 29.8.2023, see s. 86(2)(c) 3 In section 3D (duty of FCA and PRA to ensure co-ordinated exercise of functions), in subsection (4), after “operational objectives”, insert “, or the purpose for which the FCA must exercise its functions under Part 8B (see section 131U(1))”. I516 Sch. 8 para. 3 in force at 29.8.2023, see s. 86(2)(c) 4 In section 55H (variation by FCA at request of authorised person), in subsection (4), after “objectives” insert “, or the purpose for which the FCA must exercise its functions under Part 8B (see section 131U(1))”. I517 Sch. 8 para. 4 in force at 29.8.2023, see s. 86(2)(c) 5 In section 55L (imposition of requirements by FCA), in subsection (6), after “objectives” insert “, or the purpose for which the FCA must exercise its functions under Part 8B (see section 131U(1))”. I518 Sch. 8 para. 5 in force at 29.8.2023, see s. 86(2)(c) 6 In section 55T (persons whose interests are protected), after “operational objectives,” insert “the purpose for which the FCA must exercise its functions under I519 Sch. 8 para. 6 in force at 29.8.2023, see s. 86(2)(c) 7 In section 232A (ombudsman scheme operator’s duty to provide information to FCA), after “objectives,” insert “, or the purpose for which the FCA must exercise its functions under Part 8B (see section 131U(1)),”. I520 Sch. 8 para. 7 in force at 29.8.2023, see s. 86(2)(c)

208 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 8 In section 395 (the FCA’s and PRA’s procedures), in subsection (13), after I521 Sch. 8 para. 8 in force at 29.8.2023, see s. 86(2)(c) 9 In section 429 (Parliamentary control of statutory instruments), in subsection (2), in the list of sections beginning with “90B” insert at the appropriate place “131O(7),”. I522 Sch. 8 para. 9 in force at 29.8.2023, see s. 86(2)(c) 1 After Part 5 of the Banking Act 2009 (payment systems) insert— (1) This Part enables the Bank of England to oversee certain persons involved in wholesale cash distribution (as defined in section 206E). (2) The Bank must exercise its powers under this Part for the purpose of managing risks to the effectiveness, resilience and sustainability of (a) throughout the United Kingdom, or (b) throughout any part of the United Kingdom. (a) must prepare a statement of its policy with respect to the exercise of

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) must from time to time review the statement, and (c) may prepare a revised statement.
(2) When preparing a statement under this section, the Bank must consult such persons as appear to the Bank to be representative of persons likely to be (3) After preparing a statement under this section the Bank must— (a) provide the statement to the Treasury, and (4) The Treasury must lay a copy of each statement received under this section (5) No power conferred on the Bank by this Part may be exercised before a statement under this section has been published. 206E “wholesale cash distribution” “wholesale cash distribution” means the arrangements (taken as a whole) by which banknotes issued by an issuing authority, or coins (a) made available for retail cash distribution, and “wholesale cash distribution activities” are activities intended to facilitate or control wholesale cash distribution and include (but are (a) purchasing cash from issuing authorities or the Mint; (d) undertaking authentication processes; (e) facilitating the return of cash to issuing authorities or the Mint. “authorised bank” has the meaning given by section 210; “banknote” has the meaning given by section 208; (a) banknotes issued by the Bank of England, or an authorised bank in its capacity as an issuer of banknotes in Scotland or (b) coins made by the Mint, within the meaning of the Coinage Act 1971 (see section 11 of that Act); “issue”, in relation to banknotes, has the meaning given by (b) an authorised bank in its capacity as an issuer of banknotes in “retail cash distribution” means arrangements for the provision

210 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 206F other terms “FCA” means the Financial Conduct Authority; (a) a person who has Part 4A permission, (b) an authorised payment institution or small payment institution, within the meaning of the Payment Services Regulations 2017 (c) an authorised electronic money institution or small electronic money institution, within the meaning of the Electronic Money Regulations 2011 (S.I. 2011/99); “Part 4A permission” has the meaning given by section 55A of the Financial Services and Markets Act 2000; “the Payment Systems Regulator” means the Payment Systems Regulator established under section 40 of the Financial Services “PRA” means the Prudential Regulation Authority; “PRA-regulated activity” has the meaning given by section 22A of the Financial Services and Markets Act 2000; “the UK financial system” has the meaning given by section 1I of the Financial Services and Markets Act 2000. (2) For the purposes of this Part, a company (within the meaning of the Companies Act 2006) is wholly owned by the Crown if, and only if, every (a) a Minister of the Crown, government department or company (b) a person acting on behalf of a Minister of the Crown, government department or company wholly owned by the Crown. 206G Wholesale cash oversight orders (1) The Treasury may by order (a “wholesale cash oversight order”) specify a person as a recognised person for the purposes of this Part. (2) A person may be specified only if the person— (a) performs a relevant function in relation to a wholesale cash (b) is recognised as having market significance (see section 206H). (3) The following are relevant functions in relation to a wholesale cash (c) providing a service in relation to the activity; (d) providing financial assistance in relation to the activity. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (4) A wholesale cash oversight order must specify in as much detail as is (a) each wholesale cash distribution activity in relation to which the specified person performs a relevant function, and (b) each relevant function the person performs. (5) The Treasury may not make a wholesale cash oversight order in respect of an issuing authority or the Mint. 206H “Market significance” and “systemic significance” (1) A wholesale cash oversight order must specify whether the person in respect of whom the order is made is recognised— (a) as having market significance only, or (b) as also having systemic significance. (2) The Treasury may recognise a person as having market significance only if satisfied that any significant deficiency in, or disruption to, the performance of the person’s relevant functions in relation to wholesale cash distribution activities would be likely to undermine the effectiveness, resilience, or sustainability of wholesale cash distribution— (a) throughout the United Kingdom, or (b) throughout any part of the United Kingdom. (3) The Treasury may recognise a person as having systemic significance only if satisfied that any significant deficiency in, or disruption to, the performance of the person’s relevant functions in relation to wholesale cash distribution activities would be likely (in addition to the consequences mentioned in (a) to threaten the stability of, or confidence in, the UK financial system, (b) to have serious consequences for business or other interests throughout the United Kingdom or any part of the United Kingdom. (4) Where a person is part of a group, the Treasury may have regard to functions performed by other members of the group when determining matters mentioned in subsection (2) or (3).
(5) In subsection (4), “group” has the meaning given by section 421 of the Financial Services and Markets Act 2000. (6) The Treasury must not recognise a company wholly owned by the Crown as (1) Before making a wholesale cash oversight order in respect of a person the (a) consult the Bank of England, (c) consider any representations made. (2) In addition, the Treasury must—

212 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) consult the FCA before making a wholesale cash oversight order in respect of a person who is, or has applied to be, an FCA-regulated (b) consult the PRA before making a wholesale cash oversight order in respect of a person who has, or has applied for, Part 4A permission for the carrying on of a PRA-regulated activity; (c) consult the Payment Systems Regulator before making a wholesale cash oversight order in respect of a person who is a participant in a (3) In subsection (2)(c), “participant” and “regulated payment system” have the same meanings as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act). (4) In considering whether to make the order, the Treasury may rely on (d) the Payment Systems Regulator. 206J Amendment or revocation of a wholesale cash oversight order (1) The Treasury may amend or revoke a wholesale cash oversight order. (2) The Treasury must revoke a wholesale cash oversight order if no longer satisfied that the person specified in the order— (a) performs a relevant function in relation to a wholesale cash (3) If a person is specified in a wholesale cash oversight order as having systemic significance, the Treasury must amend the order (so that the person is specified as having market significance only) if— (a) satisfied that the person continues to have market significance, but (b) no longer satisfied that the person has systemic significance. (4) Subject to subsections (2) and (3), the Treasury must consider any request by a person specified in a wholesale cash oversight order for the amendment (5) Section 206I (procedure) applies to the amendment or revocation of a wholesale cash oversight order as it applies to the making of the order. (1) The Bank of England may publish principles to which recognised persons must have regard in performing relevant functions in relation to wholesale (2) Different principles may be published in relation to—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) different wholesale cash distribution activities; (b) different relevant functions; (c) persons recognised as having market significance only and persons recognised as also having systemic significance. (3) Before publishing such principles, the Bank must— (a) consult such persons as appear to the Bank to be representative of persons likely to be affected by the principles, and (b) obtain the approval of the Treasury. (1) The Bank of England may publish codes of practice about the performance by recognised persons of relevant functions in relation to wholesale cash (2) Different codes of practice may be published in relation to— (a) different wholesale cash distribution activities; (b) different relevant functions; (c) persons recognised as having market significance only and persons recognised as also having systemic significance. (3) Before publishing a code of practice, the Bank of England must consult such persons as appear to the Bank to be representative of persons likely to be (1) The Bank of England may give directions in writing to a recognised person. (a) require or prohibit the taking of specified action in relation to the performance of a specified relevant function in relation to a specified wholesale cash distribution activity; (b) set standards to be met in the performance of a specified relevant function in relation to a specified wholesale cash distribution (3) Subsection (4) applies if a direction is given to a recognised person for the purpose of resolving or reducing a threat to the stability of the UK financial (4) The recognised person (including the recognised person’s officers and staff) has immunity from liability in damages in respect of action or inaction in accordance with the direction. (5) 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 recognised person of the effect of subsection (4). (6) The Treasury may by regulations confer immunity on any person from liability in damages in respect of action or inaction in accordance with a

214 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes direction under this section (including a direction given for the purpose (7) Regulations under subsection (6)— (a) are to be made by statutory instrument, and (b) are subject to annulment in pursuance of a resolution of either House (8) An immunity conferred by or under this section does not extend to action (b) in contravention of section 6(1) of the Human Rights Act 1998. (9) In this section, “specified” means specified in the direction. 206N Role of the FCA, PRA and Payment Systems Regulator (1) In exercising powers under this Part, the Bank of England must have regard to any action that the FCA, PRA or Payment Systems Regulator has taken (a) consult the FCA before taking action under this Part in respect of a person who is, or has applied to be, an FCA-regulated person; (b) consult the PRA before taking action under this Part in respect of a person who has, or has applied for, Part 4A permission for the carrying on of a PRA-regulated activity; (c) consult the Payment Systems Regulator before taking action under this Part in respect of a participant in a regulated payment system. (3) In subsection (2)(c), “participant” and “regulated payment system” have the same meanings as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act). (4) If the FCA, PRA or Payment Systems Regulator gives the Bank of England notice that it is considering taking action in respect of a person mentioned in subsection (2), the Bank may not take action under this Part in respect of (a) the FCA, PRA or Payment Systems Regulator (as the case may be) (1) The Bank of England may appoint one or more persons to inspect the performance by a recognised person of a relevant function in relation to a wholesale cash distribution activity. (2) A recognised person who performs a relevant function in relation to a wholesale cash distribution activity must—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) grant an inspector access, on request and at any reasonable time, to premises on or from which any part of the function is performed, and (b) otherwise co-operate with an inspector. (1) A justice of the peace may, on the application of an inspector appointed under section 206O, issue a warrant entitling an inspector or a constable to enter (a) there is performed on the premises any part of a relevant function in relation to a wholesale cash distribution activity, and (b) any of the following conditions is satisfied. (a) a requirement under section 206Z3 (information) in relation to the relevant function has not been complied with, and (b) there is reason to believe that information relevant to the requirement is on the premises. (3) Condition 2 is that there is reason to suspect that if a requirement under section 206Z3 were imposed in relation to the relevant function in respect of information on the premises— (a) the requirement would not be complied with, and (b) the information would be destroyed or otherwise tampered with. (4) Condition 3 is that an inspector— (a) gave reasonable notice of a wish to enter the premises, and (5) Condition 4 is that a person occupying or managing the premises has failed to co-operate with an inspector. (a) permits an inspector or a constable to enter the premises, (b) permits an inspector or a constable to search the premises and copy or take possession of information or documents, and (c) permits a constable to use reasonable force. (7) Sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 (warrants: procedure) apply to warrants under this section. (8) In the application of this section to Scotland— (a) the reference to a justice of the peace includes a reference to a sheriff, (9) In the application of this section to Northern Ireland— (a) the reference to a justice of the peace is a reference to a lay (b) the reference to sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 is a reference to the equivalent provisions of the Police and Criminal Evidence (Northern Ireland)

216 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (1) The Bank of England may require a recognised person who performs a relevant function in relation to a wholesale cash distribution activity to appoint an expert to report on the performance of the function. (2) The Bank may impose a requirement only if it thinks— (a) the person is not having sufficient regard to principles published by (b) the person is failing to comply with a code of practice under (c) the report is likely for any other reason to assist the Bank in the performance of its functions under this Part.
(3) The Bank may impose requirements about— (a) the nature of the expert to be appointed; (b) the content of the report; (c) treatment of the report (including disclosure and publication); In this Part “compliance failure” means a failure by a recognised person to— (a) comply with a code of practice under section 206L, (b) comply with a direction under section 206M, or (c) ensure compliance with a requirement under section 206Q The Bank of England may publish details of— (a) a compliance failure by a recognised person; (b) a sanction imposed under sections 206T to 206V. (1) The Bank of England may require a recognised person to pay a penalty in respect of a compliance failure. (a) must be paid to the Bank, and (b) may be enforced by the Bank as a civil debt owed to the Bank. (3) The Bank must prepare a statement of the principles which it will apply in (a) whether to impose a penalty, and (a) publish the statement on its website,

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) send a copy to the Treasury, (c) review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and (d) in applying the statement to a compliance failure, apply the version in force when the failure occurred. (1) This section applies if the Bank of England thinks that a compliance failure by a person recognised for the purposes of this Part as having systemic (a) threatens the stability of, or confidence in, the UK financial system, (b) has serious consequences for business or other interests throughout (2) The Bank may give the person an order (a “closure order”) to stop performing specified relevant functions in relation to specified wholesale (3) Before giving a closure order to a recognised person, the Bank must have regard to the public interest in the continued performance by the person of relevant functions (whether or not specified) in relation to wholesale cash distribution activities (whether or not specified). (4) A recognised person who fails to comply with a closure order commits an (5) A person who commits an offence under this section is liable— (a) on summary conviction in England and Wales, to a fine; (b) on summary conviction in Scotland, to a fine not exceeding the (c) on summary conviction in Northern Ireland, to a fine not exceeding (d) on conviction on indictment, to a fine. (6) In this section, “specified” means specified in the closure order. 206V Management disqualification (1) The Bank of England may by order prohibit a specified person from holding an office or position involving responsibility for taking decisions about the management of a recognised person— (2) A person who breaches a prohibition under subsection (1) commits an

218 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (3) A person who commits an offence under this section is liable— (a) on summary conviction in England and Wales, to a fine; (b) on summary conviction in Scotland, to a fine not exceeding the (c) on summary conviction in Northern Ireland, to a fine not exceeding (d) on conviction on indictment, to a fine. (4) In this section, “specified” means specified in the order. (1) Before imposing a sanction on a person the Bank of England must— (a) give the person a notice (“a warning notice”), (b) give the person at least 21 days from the date of the notice to make (c) consider any representations made, and (d) as soon as reasonably practicable, give the person a notice stating whether the Bank intends to impose the sanction. (2) In subsection (1), “imposing a sanction” means— (a) publishing details under section 206S; (b) requiring the payment of a penalty under section 206T; (c) giving a closure order under section 206U; (d) making an order under section 206V. (3) Despite subsection (1), if satisfied that it is necessary, the Bank may without (a) give a closure order under section 206U, or (b) make an order under section 206V. (1) Where the Bank of England notifies a person under section 206W(1) that it intends to impose a sanction, the person may appeal to the Upper Tribunal. (2) Where the Bank imposes a sanction on a person without notice in reliance on section 206W(3), the person may appeal to the Upper Tribunal. (3) The Bank of England may not impose a sanction while an appeal under this section could be brought or is pending. (1) If, on the application of the Bank of England, the court is satisfied— (a) that there is a reasonable likelihood that there will be a compliance (b) that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated, the court may make an order restraining the conduct constituting the failure. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective.
Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (2) If, on the application of the Bank of England, the court is satisfied— (a) that there has been a compliance failure by a recognised person, and (b) that there are steps which could be taken for remedying the failure, the court may make an order requiring the recognised person, and any other person who appears to have been knowingly concerned in the failure, to take such steps as the court may direct to remedy it. (3) If, on the application of the Bank of England, the court is satisfied— (a) that there may have been a compliance failure by a recognised (b) that any other person may have been knowingly concerned in a the court may make an order restraining the person from dealing with any assets which it is satisfied the person is reasonably likely to deal with. (4) The jurisdiction conferred by this section is exercisable— (a) in England and Wales and Northern Ireland, by the High Court; (b) in Scotland, by the Court of Session. (a) references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing; (b) references to an order requiring steps to be taken are, in Scotland, to be read as references to an order for specific performance under section 45 of the Court of Session Act 1988; (c) references to remedying a failure include mitigating its effect; (d) references to dealing with assets include disposing of them. (1) The Bank of England may require a recognised person to pay fees. (2) A requirement under subsection (1) must relate to a scale of fees approved by the Treasury by regulations. (3) Regulations under subsection (2)— (a) are to be made by statutory instrument, and (b) are subject to annulment in pursuance of a resolution of either House (4) A requirement under subsection (1) may be enforced by the Bank as a civil The Bank of England must maintain satisfactory arrangements for— (a) recording decisions made in the exercise of functions under this Part,

220 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) the safe-keeping of those records which it considers ought to be (1) At least once a year the Bank of England must make a report to the Treasury (a) the discharge of its functions under this Part, and (b) such other matters as the Treasury may from time to time direct. (2) A report on the discharge of the Bank’s functions under this Part must, in particular, include the Bank’s opinion as to— (a) the extent to which risks to the effectiveness, resilience and sustainability of wholesale cash distribution throughout the United Kingdom, or throughout any part of the United Kingdom, have been (b) the extent to which, in relation to the exercise of functions in relation to persons recognised as having systemic significance, risks to the stability of the UK financial system have been managed. (3) This section does not require the inclusion in a report of any information the publication of which would, in the opinion of the Bank, be against the (4) The Treasury must lay before Parliament a copy of each report received 206Z3 Requirement to provide information (1) The Bank of England may by notice in writing require a person to provide (a) which the Bank thinks will help the Treasury in determining whether to make a wholesale cash oversight order, or (b) which the Bank otherwise requires in connection with its functions (2) The Bank of England may by notice in writing require a person who performs a relevant function in relation to wholesale cash distribution activity to provide information which the Bank requires in connection with the exercise of its functions (whether under this Part or otherwise) in pursuance of— (a) the purpose mentioned in section 206C(2), or (b) the Bank’s Financial Stability Objective (see section 2A of the Bank (3) In particular, a notice under subsection (1) or (2) may require the person to notify the Bank if events of a specified kind occur. (4) A notice under subsection (1) or (2) may require information to be (a) in a specified form or manner; (b) at, or by, a specified time; (c) in respect of a specified period. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes (a) to fail without reasonable excuse to comply with a requirement (b) knowingly or recklessly to give false information in pursuance of (6) A person who commits an offence under this section is liable— (a) on summary conviction in England and Wales, to a fine; (b) on summary conviction in Scotland, to a fine not exceeding the (c) on summary conviction in Northern Ireland, to a fine not exceeding (d) on conviction on indictment, to a fine. (7) In this section, “specified” means specified in the notice. 206Z4 Disclosure of information (1) The Bank of England may disclose information obtained by virtue of (a) overrides a contractual or other requirement to keep information in (b) is without prejudice to any other power to disclose information. (3) The Treasury may by regulations— (a) permit the disclosure by the Bank of information obtained by virtue of section 206Z3 to specified persons; (b) permit the publication of specified information and make provision about the manner and extent of publication. (4) In subsection (3), “specified” means specified in the regulations. (5) Regulations under subsection (3)— (a) are to be made by statutory instrument, and (b) are subject to annulment in pursuance of a resolution of either House 206Z5 Saving for informal oversight Nothing in this Part prevents the Bank of England— (1) from having dealings with persons who are not recognised persons for the (a) from having dealings with recognised persons other than through

222 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes Companies wholly owned by the Crown 206Z6 Power to disapply regulation and enforcement provisions (1) The Treasury may by regulations provide for any provision of sections 206K to 206Z4 not to apply (insofar as it would otherwise do so), or to apply with modifications, in relation to recognised persons that are companies wholly (2) Regulations under subsection (1) may modify legislation (including any provision of, or made under, this Act). “legislation” means primary legislation, subordinate legislation (within the meaning of the Interpretation Act 1978) and retained direct EU legislation, but does not include rules or other instruments “modify” includes amend, repeal or revoke. (4) Before making regulations under this section, the Treasury must consult the (5) Regulations under subsection (1)— (a) are to be made by statutory instrument, and (b) may not be made unless a draft has been laid before, and approved by a resolution of, each House of Parliament.” I523 Sch. 9 para. 1 in force at 29.8.2023, see s. 86(2)(d) 2 Part 6 of the Financial Services (Banking Reform) Act 2013 (special administration for operators of certain infrastructure systems) is amended as follows. I524 Sch. 9 para. 2 in force at 29.8.2023, see s. 86(2)(d) 3 In section 111 (financial market infrastructure administration), in the heading, after I525 Sch. 9 para. 3 in force at 29.8.2023, see s. 86(2)(d) 4 (1) Section 112 (interpretation: infrastructure companies) is amended as follows. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (2) In subsection (2), omit the “or” at the end of paragraph (b) and insert— “(ba) a person recognised for the purposes of Part 5A of the Banking Act 2009 (wholesale cash distribution) as having systemic significance, (a) in paragraph (a), for “(2)(a) or (b)” substitute “(2)(a), (b) or (ba)”; (b) in paragraph (b), after “question” insert “or, in the case of a person falling within subsection (2)(ba), a relevant function”. (4) In subsection (6), in paragraph (b), for “(2)(a) or (b)” substitute “(2)(a), (b) or (ba)”. (5) After subsection (6) insert— “(7) In subsection (4)(b), “relevant function” means a function performed by the person in relation to wholesale cash distribution.” I526 Sch. 9 para. 4 in force at 29.8.2023, see s. 86(2)(d) 5 In section 113 (interpretation: other expressions), in subsection (1)— (a) in the definition of “the relevant system”, after paragraph (b) insert— “(ba) in relation to an infrastructure company falling within subsection (2) (ba) of that section, any system used by the company to facilitate or control wholesale cash distribution,”; ““wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 206E of the Banking I527 Sch. 9 para. 5 in force at 29.8.2023, see s. 86(2)(d) 6 In section 115 (objective of FMI administration), after subsection (1A) insert— “(1B) Where an FMI administrator is appointed in relation to a company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, the objective of the FMI administration is— (a) to ensure that the functions performed by the person in relation to wholesale cash distribution are and continue to be performed efficiently and effectively, and (b) to ensure by one or both of the specified means that it becomes unnecessary for the FMI administration order to remain in force for that purpose or those purposes.” I528 Sch. 9 para.
6 in force at 29.8.2023, see s. 86(2)(d)

224 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 7 In section 119 (continuity of supply), in subsection (6), in the definition of “supply”, “(aa) in the case of an infrastructure company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, goods or services used by the person in connection with wholesale cash I529 Sch. 9 para. 7 in force at 29.8.2023, see s. 86(2)(d) 8 In section 120 (power to direct FMI administrator), in subsection (8), at the end insert “or section 206M of that Act (directions) in relation to a person recognised for the purposes of Part 5A of that Act”. I530 Sch. 9 para. 8 in force at 29.8.2023, see s. 86(2)(d) 9 In section 127 (interpretation of Part), in subsection (1), at the end insert— ““wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 113.” I531 Sch. 9 para. 9 in force at 29.8.2023, see s. 86(2)(d) 10 The Banking Act 2009 is amended as follows. I532 Sch. 9 para. 10 in force at 29.8.2023, see s. 86(2)(d) for section 206A (services forming part of recognised payment systems) insert— “PART 5A - Wholesale cash distribution 206M Bank of England immunity Negative resolution 206Z Fees regulations Negative resolution 206Z4 Information Negative resolution

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 9 – Wholesale cash distribution Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 206Z6 Power to disapply regulation and enforcement I533 Sch. 9 para. 11 in force at 29.8.2023, see s. 86(2)(d) 12 In section 261 (index of defined terms)— (a) in the entry for “FCA”, in the second column, for “& 183” substitute “, (b) in the entry for “Payment Systems Regulator”, in the second column, after (c) in the entry for “PRA”, in the second column, for “& 183” substitute “, I534 Sch. 9 para. 12 in force at 29.8.2023, see s. 86(2)(d) I532 Sch. 9 para. 10 in force at 29.8.2023, see s. 86(2)(d) I533 Sch. 9 para. 11 in force at 29.8.2023, see s. 86(2)(d) I534 Sch. 9 para. 12 in force at 29.8.2023, see s. 86(2)(d) 13 The Financial Services Act 2012 is amended as follows. I535 Sch. 9 para. 13 in force at 29.8.2023, see s. 86(2)(d) 14 (1) Section 85 (relevant functions in relation to complaints scheme) is amended as (2) In subsection (3)(a), after “(payment systems)” insert “or Part 5A of that Act (wholesale cash distribution)”. (a) in the words before paragraph (a), for “Part 5” substitute “Parts 5 and 5A”; (b) in paragraph (a), for “and 189” substitute “,189, 206K and 206L”; (c) in paragraph (b), at the end insert “and 206T(3)”. I536 Sch. 9 para. 14 in force at 29.8.2023, see s. 86(2)(d)

226 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 15 (1) Section 110 (payment to Treasury of penalties received by Bank of England) is (2) In subsection (2), in paragraph (b), for “section 198” substitute “sections 198 (a) omit the “and” at the end of paragraph (c); (b) at the end of paragraph (d) insert “, and (e) sections 206S to 206V and 206Y of that Act (wholesale cash I537 Sch. 9 para. 15 in force at 29.8.2023, see s. 86(2)(d) I535 Sch. 9 para. 13 in force at 29.8.2023, see s. 86(2)(d) I536 Sch. 9 para. 14 in force at 29.8.2023, see s. 86(2)(d) I537 Sch. 9 para. 15 in force at 29.8.2023, see s. 86(2)(d) Financial Services (Banking Reform) Act 2013 16 In section 98 of the Financial Services (Banking Reform) Act 2013 (duty of regulators to ensure co-ordinated exercise of functions), in subsection (5)(b), at the end insert “or Part 5A of that Act (wholesale cash distribution)”. I538 Sch. 9 para. 16 in force at 29.8.2023, see s. 86(2)(d) 1 In Part 18 of FSMA 2000 (recognised investment exchanges, clearing houses and CSDs), before Chapter 3B insert—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes 309A Recognised bodies to which this Chapter applies (1) The Treasury may by regulations specify as a “relevant recognised body” for the purposes of this Chapter a type of recognised body mentioned in (2) The types of recognised bodies are— (a) recognised investment exchanges; (b) recognised central counterparties; (3) Before making regulations under subsection (1), the Treasury— (a) must consult the FCA if it proposes to specify recognised investment exchanges (or recognised investment exchanges of a specified (b) must consult the Bank of England if it proposes to specify recognised central counterparties or recognised CSDs (or recognised central counterparties or recognised CSDs of a specified (c) in any case, must consult such persons as appear to it to be representative of interests likely to be affected by the application of this Chapter to the types, or descriptions, of bodies it proposes to (4) In this Chapter, references to “the appropriate regulator” are to be read in accordance with section 285A (accordingly, the appropriate regulator in relation to a recognised investment exchange is the FCA, and in any other (5) Nothing in this Chapter applies to overseas investment exchanges. 309B Part 18 prohibition orders (1) This section applies if it appears to the appropriate regulator that an individual is not a fit and proper person to perform functions in relation to an activity carried on by a relevant recognised body. (2) The appropriate regulator may make an order (a “Part 18 prohibition order”) prohibiting the individual from performing a specified function, any function falling within a specified description or any function. (3) A Part 18 prohibition order may relate to—

228 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) a specified activity, any activity falling within a specified description or all activities (but see subsection (5)); (b) all persons falling within subsection (4), or a particular paragraph of that subsection, or all persons within a specified class of person falling within a particular paragraph of that subsection. (4) A person falls within this subsection if the person is— (a) a relevant recognised body (whether or not the appropriate regulator making the order is the appropriate regulator in relation to relevant recognised bodies of that type), (c) an exempt person (other than a relevant recognised body), or (d) a person to whom, as a result of Part 20, the general prohibition does not apply in relation to a regulated activity. (5) If a Part 18 prohibition order makes provision in relation to a person or persons falling within subsection (4)(b), (c) or (d), subsection (3)(a) applies in relation to such provision as if references to an activity or activities were to a regulated activity or regulated activities. (6) In this section, “specified” means specified in the Part 18 prohibition order. 309C Procedure for making Part 18 prohibition orders (1) If the appropriate regulator proposes to make a Part 18 prohibition order it (a) comply with such consultation requirements as may be prescribed, (b) give the individual to whom the order would apply a warning notice. (2) A warning notice under subsection (1)(b) must set out the terms of the (3) If the appropriate regulator decides to make a Part 18 prohibition order it must give the individual to whom the order applies a decision notice. (a) name the individual to whom the Part 18 prohibition order applies, (b) set out the terms of the order. (5) If the appropriate regulator decides to make a Part 18 prohibition order, the individual to whom the order applies may refer the matter to the Tribunal. 309D Varying and withdrawing Part 18 prohibition orders (1) This section applies where the appropriate regulator has made a Part 18 prohibition order in relation to an individual. (2) The appropriate regulator may vary or revoke the Part 18 prohibition order on the application of the individual. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (3) Before varying or revoking a Part 18 prohibition order, the appropriate regulator must comply with such consultation requirements as may be (4) On an application for the variation or revocation of a Part 18 prohibition (a) if the appropriate regulator decides to grant the application, it must give the applicant written notice of its decision; (b) if the appropriate regulator proposes to refuse the application, it must give the applicant a warning notice; (c) if the appropriate regulator decides to refuse the application, it must give the applicant a decision notice. (5) If the appropriate regulator gives the applicant a decision notice under subsection (4)(c), the applicant may refer the matter to the Tribunal. 309E Offence of breaching prohibition (1) An individual who performs a function, or agrees to perform a function, in breach of a Part 18 prohibition order is guilty of an offence.
(2) An individual who commits an offence under this section is liable— (a) on summary conviction in England and Wales, to a fine; (b) on summary conviction in Scotland, to a fine not exceeding level 5 (c) on summary conviction in Northern Ireland, to a fine not exceeding level 5 on the standard scale. (3) In proceedings for an offence under this section, it is a defence for the individual to show that the individual took all reasonable precautions and exercised all due diligence to avoid committing the offence. 309F Duty in relation to prohibited individuals (1) A person (“P”) falling within section 309B(4) must take reasonable care to ensure that no function in relation to the carrying on of P’s activities is performed by an individual who is prohibited from performing that function by a Part 18 prohibition order. (2) A contravention of subsection (1) is actionable at the suit of a private person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty. (3) In prescribed cases, a contravention of subsection (1) which would be actionable at the suit of a private person is actionable at the suit of a person who is not a private person, subject to the defences and other incidents applying to actions for breach of statutory duty. (4) In this section “private person” has such meaning as may be prescribed. 230 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (1) A relevant recognised body must take reasonable care to ensure that a person does not perform a designated senior management function in relation to the carrying on of an activity by the body, unless the person is acting in accordance with an approval given by the appropriate regulator under this (2) Subsection (1) applies only in relation to a function performed under— (a) an arrangement entered into by the relevant recognised body, or (b) an arrangement entered into by a contractor of the relevant (3) “Designated senior management function” means a function of a description specified in rules made by the appropriate regulator. (4) The appropriate regulator may specify a description of function under subsection (3) only if it is satisfied that the function is a senior management (5) A function is a “senior management function” in relation to the carrying on of a relevant recognised body’s activities if— (a) the function will require the person performing it to be responsible for managing one or more aspects of the body’s affairs, and (b) those aspects involve, or might involve, a risk of serious (ii) for business or other interests in the United Kingdom. (6) In subsection (5)(a), the reference to managing one or more aspects of a relevant recognised body’s affairs includes a reference to taking decisions, or participating in the taking of decisions, about how one or more aspects of those affairs should be carried on. (7) In subsection (2), “arrangement”— (a) means any kind of arrangement for the performance of a function of a relevant recognised body which is entered into by the body, or by a contractor of the body, and another person, and (b) includes, in particular, an arrangement under which the other person is appointed to an office, becomes a partner or is employed (whether under a contract of service or otherwise). 309H Rules under section 309G(3): transitional provision (1) In relation to rules made by the Bank of England or the FCA under section 309G(3), the power conferred by section 137T(c) to make transitional provision includes, in particular, power— (a) to provide for anything done under this Chapter, or under Part 5 (performance of regulated activities), in relation to a senior management function of a particular description to be treated as

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes having been done in relation to a senior management function of a (b) to provide for anything done under this Chapter, or under Part 5 (including any application or order made, any requirement imposed and any approval or notice given) to cease to have effect, to continue to have effect, or to continue to have effect with modifications, or subject to time limits or conditions; (c) to provide for rules made by the regulator making the rules under section 309G(3) to apply with modifications; (2) The Treasury may by regulations make whatever incidental, consequential, transitional, supplemental or saving provision the Treasury consider appropriate in connection with the making of rules under section 309G(3). (3) Regulations under subsection (2) may— (a) confer functions on the Bank of England or the FCA (including the (b) modify legislation (including any provision of, or made under, this “legislation” means primary legislation, subordinate legislation (within the meaning of the Interpretation Act 1978) and retained direct EU legislation, but does not include rules or other instruments “modify” includes amend, repeal or revoke.
309I Applications for approval (1) A relevant recognised body may apply for approval from the appropriate regulator under section 309G for a person to perform a designated senior management function in relation to the carrying on of the body’s activities. (2) The application must be made in such manner as the appropriate regulator (3) The application must contain— (a) a statement setting out the aspects of the applicant’s affairs which it is intended that the person will be responsible for managing in (b) such other information as the appropriate regulator may reasonably (4) A statement provided under subsection (3)(a) is known as a “statement of (5) At any time after the application is received, and before it is determined, the appropriate regulator may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to

232 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (6) The appropriate regulator may require the applicant to present information provided under this section in such form, or to verify the information in such a way, as the appropriate regulator may direct. (7) Different directions may be given, and different requirements may be imposed, in relation to different applications or categories of application. (8) In subsection (1), “relevant recognised body” includes— (a) if recognised investment exchanges are a type of recognised body to which this Chapter applies, a person who has applied for recognition (b) if recognised central counterparties are a type of recognised body to which this Chapter applies, a person who has applied for recognition (c) if recognised CSDs are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such 309J Vetting by relevant recognised bodies (1) Before making an application under section 309I for approval for a person to perform a designated senior management function, a relevant recognised body must be satisfied that the person is a fit and proper person to perform (2) In deciding that question, the relevant recognised body must have regard, among other things, to whether the person, or any person who may perform a function on the person’s behalf— (a) has obtained a specified qualification; (b) has undergone, or is undergoing, specified training; (c) possesses a specified level of competence; (d) has specified personal characteristics. (3) In subsection (2), “specified” means specified in rules made by the (4) Before making rules for the purposes of this section, the appropriate regulator must comply with such consultation requirements as may be 309K Determining power to grant approval (1) The appropriate regulator may grant an application under section 309I for approval for a person to perform a designated senior management function (a) it is satisfied that the person is a fit and proper person to perform (b) it is satisfied that the condition in paragraph (a) will be met if the application is granted subject to one or more conditions (see

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (2) In determining the application, the appropriate regulator may have regard, among other things, to the matters mentioned in section 309J(2) (qualifications etc of person for whom approval sought). (3) The appropriate regulator may, if it appears to it that it is desirable to do so in order to advance a relevant objective— (a) grant the application subject to any conditions that it considers (b) grant the application so as to give approval only for a limited period. (4) For the purposes of subsection (3), “relevant objective” means— (a) if the appropriate regulator is the FCA, any of its operational (b) if the appropriate regulator is the Bank of England, the Financial (5) Before granting approval under this section (whether or not subject to conditions or for a limited period), the appropriate regulator must comply with such consultation requirements as may be prescribed. 309L Determining period for approval (1) The appropriate regulator must, before the end of the period for consideration, determine whether— (a) to grant an application under section 309I for approval for a person to perform a function, without imposing conditions or limiting the period for which the approval has effect, or (b) to give a warning notice under section 309M(2). (2) In subsection (1), “the period for consideration” means the period of 3 months beginning with the day on which the appropriate regulator receives This is subject to subsections (3) and (4).
(3) Where the application under section 309I is made by a person in reliance on section 309I(8) (applicants for recognition to be treated as relevant recognised bodies), “the period for consideration” means whichever of the (a) the period described in subsection (2), and (b) the period within which the person’s application for recognition (i) in the case of an application under section 287, in accordance with section 290(1B); (ii) in the case of an application under section 288, in accordance with Article 17(7) of the EMIR regulation; (iii) in the case of an application under section 288A, in accordance with section 290(4A). (4) If the appropriate regulator imposes a requirement under section 309I(5), the period described in subsection (2) stops running on the day on which the requirement is imposed but starts running again—

234 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (a) on the day on which the required information is received by the (b) if the information is not provided on a single day, on the last of the days on which it is received by the appropriate regulator. (5) An applicant may withdraw an application under section 309I, by giving written notice to the appropriate regulator, at any time before the appropriate regulator determines the application, but only with the consent of— (a) the person in relation to whom the application is made, and (b) the person by whom that person is to be retained to perform the function to which the application relates, if not the applicant. 309M Determining further procedure (1) If the appropriate regulator decides to grant an application under section 309I without imposing conditions or limiting the period for which approval is given, it must give written notice of its decision to each of the interested (2) If the appropriate regulator proposes to refuse the application, or to grant the application subject to conditions or for a limited period (or both), it must give a warning notice to each of the interested parties. (3) If the appropriate regulator decides to refuse the application, or to grant the application subject to conditions or for a limited period (or both), it must give a decision notice to each of the interested parties. (4) If the appropriate regulator decides to refuse the application, or to grant the application subject to conditions or for a limited period (or both), each of the interested parties may refer the matter to the Tribunal. (5) In this section, “the interested parties”, in relation to an application under section 309I for approval for a person to perform a function, are— (b) the person in relation to whom the application is made, and (c) the person by whom that person is to be retained to perform the function to which the application relates, if not the applicant. 309N Changes in responsibilities (1) This section applies where, on an application made by a relevant recognised body under section 309I, the appropriate regulator has given approval for a person to perform a designated senior management function (and has not (2) Each time there is a notifiable change in the aspects of the relevant recognised body’s affairs which the person is responsible for managing in performing the function, the relevant recognised body must provide the appropriate regulator with a revised statement of responsibilities (see (3) Whether a change is “notifiable” is to be determined by the relevant recognised body in accordance with rules made by the appropriate regulator. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 10 – Performance of functions relating to financial market infrastructure Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (4) The appropriate regulator may require the relevant recognised body to present information provided under this section in such form, or to verify the information in such a way, as the appropriate regulator may direct. (1) This section applies if an approval under section 309G has been given by the appropriate regulator in relation to the performance by a person of a designated senior management function. (2) The appropriate regulator may withdraw the approval if it considers that the person is not a fit and proper person to perform the function. (3) In considering whether to withdraw an approval, the appropriate regulator may take into account any matter which may be taken into account in considering an application under section 309I. (4) The relevant recognised body on whose application the approval was given (a) consider whether there are grounds on which the appropriate regulator could withdraw the approval under this section, and (b) if it considers that there are such grounds, notify the appropriate (5) For the purposes of subsection (4), a “specified interval” is an interval specified in rules made by the appropriate regulator for the purposes of this 309P Procedure for withdrawing approval (1) If the appropriate regulator proposes to withdraw an approval given under (a) comply with such consultation requirements as may be prescribed, (b) give each of the interested parties a warning notice. (2) If the appropriate regulator decides to withdraw the approval, it must give each of the interested parties a decision notice.