Financial Services And Markets PART 1 INTRODUCTORY PROVISIONS Citation and commencement 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interpretation 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exemption for certain bodies 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 2 REGISTRATION The register The register of certain payment service providers 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Authorisation as a payment institution Application for authorisation as a payment institution or variation of an existing authorisation 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditions for authorisation as a payment institution 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Imposition of requirements 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Variation etc at request of authorised payment institution 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Determination of application for authorisation or variation of authorisation 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cancellation of authorisation 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Variation of authorisation on Authority’s own initiative 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Registration as a small payment institution Application for registration as a small payment institution or variation of an existing registration 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditions for registration as a small payment institution 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplementary provisions 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application for authorisation as a payment institution where the financial limit is exceeded 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common provisions Duty to notify changes 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Authorised payment institutions and small payment institutions acting without permission 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 3 AUTHORISED PAYMENT INSTITUTIONS Capital requirements 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Safeguarding requirements 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounting and statutory audit 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Outsourcing 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Record keeping 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exercise of passport rights Notice of intention 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Registration of EEA branch 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supervision of firms exercising passport rights 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Carrying on of Consumer Credit Act business by EEA authorised payment institutions 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 4 PROVISIONS APPLICABLE TO AUTHORISED PAYMENT INSTITUTIONS AND SMALL PAYMENT INSTITUTIONS Additional activities 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payment accounts and sums received for the execution of payment transactions 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Use of agents 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Removal of agent from register 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reliance 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty to notify change in circumstance 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 5 INFORMATION REQUIREMENTS FOR PAYMENT SERVICES Application Application of Part 5 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Disapplication of certain regulations in the case of consumer credit agreements 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Disapplication of certain regulations in the case of low-value payment instruments 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Single payment service contracts Information required prior to the conclusion of a single payment service contract 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information required after receipt of the payment order 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information for the payee after execution 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Avoidance of duplication of information 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Framework contracts Prior general information for framework contracts 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information during period of contract 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Changes in contractual information 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Termination of framework contract 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information prior to execution of individual payment transaction 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information for the payer on individual payment transactions 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information for the payee on individual payment transactions 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common provisions Communication of information 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Charges for information 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Currency and currency conversion 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information on additional charges or reductions 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 6 RIGHTS AND OBLIGATIONS IN RELATION TO THE PROVISION OF PAYMENT SERVICES Application Application of Part 6 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Disapplication of certain regulations in the case of consumer credit agreements 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Disapplication of certain regulations in the case of low value payment instruments 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Charges Charges 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Authorisation of payment transactions Consent and withdrawal of consent 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limits on the use of payment instruments 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Obligations of the payment service user in relation to payment instruments 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Obligations of the payment service provider in relation to payment instruments 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notification of unauthorised or incorrectly executed payment transactions 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Evidence on authentication and execution of payment transactions 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payment service provider’s liability for unauthorised payment transactions 61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payer’s liability for unauthorised payment transaction 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Refunds for payment transactions initiated by or through a payee 63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requests for refunds for payment transactions initiated by or through a payee 64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Execution of payment transactions Receipt of payment orders 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Refusal of payment orders 66 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Revocation of a payment order 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amounts transferred and amounts received 68 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Execution time and value date Application of regulations 70 to 72 69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payment transactions to a payment account 70 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Absence of payee’s payment account with the payment service provider 71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cash placed on a payment account 72 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Value date and availability of funds 73 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liability Incorrect unique identifiers 74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-execution or defective execution of payment transactions initiated by the payer 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-execution or defective execution of payment transactions initiated by the payee 76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liability of payment service provider for charges and interest 77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Right of recourse 78 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Force majeure 79 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 7 THE AUTHORITY The functions of the Authority Functions of the Authority 80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supervision and enforcement Monitoring and enforcement 81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reporting requirements 82 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Entry, inspection without a warrant etc 83 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Public censure 84 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial penalties 85 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proposal to take disciplinary measures 86 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Injunctions 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power of Authority to require restitution 88 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proposal to require restitution 89 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restitution orders 90 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Complaints 91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Miscellaneous Costs of supervision 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Guidance 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Authority’s exemption from liability in damages 94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application and modification of primary and secondary legislation 95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 8 ACCESS TO PAYMENT SYSTEMS General Application of Part 8 96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prohibition on restrictive rules on access to payment systems 97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supervision and enforcement Power of OFT to investigate 98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OFT power to require information 99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Failure to comply with information requirement 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Privileged communications 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notice of OFT decision 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Publication of OFT decision 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enforcement of decisions 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power of OFT to impose financial penalties 105 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Miscellaneous Appeal to the Competition Appeal Tribunal 106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Disclosure of information by OFT 107 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Defamation 108 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Guidance 109 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 9 GENERAL Criminal Offences Prohibition on provision of payment services by persons other than payment service providers 110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . False claims to be a payment service provider or exempt 111 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Defences 112 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Contravention of regulations 49 and 50 113 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Misleading the Authority or the OFT 114 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restriction on penalties 115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liability of officers of bodies corporate etc 116 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prosecution of offences 117 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceedings against unincorporated bodies 118 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duties of the Authority, the Commissioners and the OFT to cooperate Duty to co-operate and exchange of information 119 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actions for breach of requirements Right to bring actions 120 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provisions Transitional provisions: deemed authorisation 121 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provisions: requirement to be authorised as a payment institution 122 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provisions: requirement to be registered as a small payment institution 123 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provisions: early applications 124 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provisions: the ombudsman scheme 125 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendments to primary and secondary legislation Amendments to primary and secondary legislation 126 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .