The Bank of England (BoE) has issued a Policy Statement, Code of Practice and supervisory statement relating to governance of recognised payment system operators.
The BoE has decided to develop a code for payment system operators that have been recognised by HM Treasury under the Banking Act 2009 (the Act). The code provides transparency on the minimum requirements that all recognised operators of payment systems (RPSOs) to which the code applies must meet. The code is being issued under section 189 of the Act which means that it is binding on those RPSOs to which it applies. If an RPSO fails to comply with its requirements, the BoE may take enforcement action.
The BoE has also decided to introduce a supervisory statement to complement the code. The supervisory statement sets out in more detail how the BoE expects RPSOs to which the code applies to comply with the provisions of the code. Unlike the code, the supervisory statement is not binding although it does provide RPSOs with guidance as to how the BoE will assess compliance with the code. Consequently, a RPSO may demonstrate that they meet the requirements of the code in some other way, if appropriate to its business.
The code will be implemented on 21 June 2018.