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      • Payment Services Directive
        • Background
        • Key publications
        • Applying to be a payment institution
        • Being a payment institution
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        • PSD Stakeholder Liaison Group
        • Information for money remitters
        • Frequently asked questions

The Government has appointed the FSA as the competent authority for most aspects of the Payment Services Directive (PSD). On 01 November 2009, the UK implemented the PSD through the Payment Services Regulations 2009 (PSRs).

All firms providing payment services by way of business must now:

• be FSA authorised or registered, unless they are exempt or eligible to take advantage of the transitional provisions; and
• meet the PSR conduct of business requirements.

Who does the PSD affect?

The PSD affects firms providing payment services and their customers. These firms include:

• banks;
• building societies;
• e-money issuers;
• money remitters;
• non-bank credit card issuers; and
• non-bank merchant acquirers.

The PSD was published in the EU Official Journal in December 2007.

What are its key provisions?

The PSD created a new class of regulated firms known as payment institutions (PIs), who must either be authorised or registered by us.  Authorised PIs are subject to prudential requirements.  Conduct of business requirements apply to all payment service providers, including banks, building societies, e-money issuers and the new PIs. 

All PIs must comply with the PSR conduct of business requirements.  Information about them and other aspects of the PSRs can be found in our Approach Document - The FSA’s role under the PSD 2009: Our approach [PDF].  This Document:

• describes our approach to implementing the Payment Services Regulations 2009;
• provides firms with links to all the information they need to give a comprehensive picture of the PSR regime; and
• provides explanatory guidance that gives a practical understanding of the requirements, our regulatory approach and how firms experience regulatory supervision. 

The FSA’s role under the PSD 2009: Our approach [PDF]

Practical guidance on common topics is also provided in our PSD frequently asked questions.

The PSRs are available on the HM Treasury website.

What are the next steps for authorised or registered PIs?

Authorised and registered PIs need to provide us with two types of information while they are being regulated – we categorise these as ‘reporting’ and ‘notifications’.

Reporting information is the information we need on a periodic basis to comply with our supervisory and EU reporting obligations.  Information about what is required can be found in Chapter 13 of our Approach Document.  First reports will be due within 1 month of a PI’s accounting date.

Notifications are what PIs need to send us when there is a change in the information they have already provided.  PIs must provide details of the change without undue delay – we consider this to be within 28 days of the change.  More information about when notifications are required and how to submit them can be found in Chapter 4 of our Approach Document.

PIS requiring assistance about reporting or notifications, or any other aspect of being regulated, can contact our Firms Contact Centre on 0845 606 9966 (call rates may vary).

What must firms do if they want to begin providing payment services?

If firms are unsure whether their activities fall within the scope of the PSRs, then they should consult our Perimeter Guidance [PDF].

All firms intending to provide payment services by way of business must become authorised or registered with us before they begin to do so – they cannot take advantage of the transitional provisions. 

If firms are unsure whether they will need to seek authorisation as a payment institution or whether they qualify for registration only, then they should consider Part 2 of the PSRs [PDF].

If a firm qualifies for registration, it might still want to apply to become an authorised payment institution if it wishes to passport its payment services to other EEA Member States.

Firms should submit applications at least three months before they begin providing payment services, so we have time to consider their application.

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