On 12 July 2023, HM Treasury published The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023, a statutory instrument (SI) amending the Electronic Money Regulations 2011 and the Payment Services Regulation 2017 to remove a limitation on the FCA’s power to make rules in relation to authorised electronic money institutions, small electronic money institutions, authorised payment institutions, small payment institutions and registered account information service providers.

The SI also:

  • Extends the FCA’s existing powers to make rules for authorised persons in relation to client money, the control of information and the appointment of auditors so that such rules may also be made in relation to these institutions.
  • Applies HM Treasury’s power to make recommendations to the FCA in connection with its general duties to the FCA’s duties in relation to electronic money institutions and payment services.
  • Requires the FCA to have regard to the net zero emissions target as one of the regulatory principles applying to the exercise of its functions under the 2011 Regulations and the 2017 Regulations.
  • Amends the Payment Services Regulations 2017 to give the Payment Services Regulator an enhanced power to issue directions to providers of cash withdrawal services.
  • Amends the Payment Card Interchange Fee Regulations 2015 to give the Payment Systems Regulator power to issue directions to operators of payment systems and to those providing services to payment systems.