UK regulation of payment services providers—essentials

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • UK regulation of payment services providers—essentials
  • Scope of this Practice Note
  • UK transposition of PSD2
  • UK exit from the EU and impact on payment services legislation
  • Key changes introduced by the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018
  • Safeguarding of client assets
  • Reducing the scope of the PSRs 2017 to reflect Exit
  • Access to the SEPA
  • Key changes introduced by the Financial Services (Electronic Money, Payment Services and Miscellaneous Amendments) (EU Exit) Regulations 2019
  • Who the PSRs 2017 cover
  • More...

UK regulation of payment services providers—essentials

Scope of this Practice Note

The Payment Services Regulations 2017, SI 2017/752 (PSRs 2017) transposed the recast PSD2 (Directive 2015/2366/EU) into national law on 13 January 2018 and largely came into force on that date. The PSRs 2017 replaced the Payment Services Regulations, SI 2009/209 (PSRs), which itself transposed the original Payment Services Directive (PSD) (Directive 2007/64/EC). The PSD was intended to regulate payment services providers (PSPs) and harmonise the payments sector within the EU.

Advances in payments systems outstripped the regulatory capacity of the PSD and a PSD2 was published in the Official Journal of the EU on 23 December 2015 (here). PSD2 came into force on 13 January 2016 and had to be implemented by Member States by 13 January 2018. The PSD was repealed with effect from that date. The government’s approach to transposing PSD2 was to copy-out the directive, while looking to take advantage of derogations, and ensuring that the exemptions from the PSD carry across to the PSD2 where appropriate. This will help to minimise the impacts on affected businesses, while ensuring that consumers benefit from the protections and rights that the PSD2 puts in place.

For further information on PSD2, see Practice Notes: Payment Services Directive 2 (PSD2)—one minute guide and EU regulation of payment services providers—essentials.

This Practice Note provides information and analysis with regard to

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