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AI Summary of 206A. Service providers

The Treasury may by order apply any provision of this Part to service providers in relation to recognised payment systems or to recognised DSA service providers. A person is a service provider in relation to a recognised payment system if they provide services that form part of the arrangements constituting the system and are specified by the Treasury in the recognition order; a person is a service provider in relation to a recognised DSA service provider if they provide services to that DSA service provider and are specified in the recognition order. A payment system that includes arrangements using digital settlement assets may be specified as a service provider in relation to a recognised DSA service provider. Telecommunication or information technology services are given as examples, and for systems with digital settlement assets the definition includes persons providing services connected with the system (see section 206AA).

Before specifying persons or systems the Treasury must consult the Bank of England, the Payment Systems Regulator, the FCA and the PRA, must notify the operator and proposed persons and must consider representations; the Treasury may not specify the Bank of England. Before making an order the Treasury must consult the Bank of England, the FCA, the PRA and such other persons as it considers appropriate. An order may modify any provision of this Part in its application to such service providers and may, but need not, take the form of textual amendment. Orders are to be made by statutory instrument and require a draft to be laid before and approved by resolution of each House of Parliament.

Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 29 August 2023 - onwards
Version 5 of 5

206A. Service providers

(1) The Treasury may by order make provision applying any provision of this Part to service providers -

(a) in relation to a recognised payment system, or

(b) in relation to a recognised DSA service provider.

(2) A person is a service provider in relation to a recognised payment system if -

(a) the person provides services that form part of the arrangements constituting the system, and

(b) the person is specified as a person within paragraph (a) by the Treasury in the recognition order made in respect of the system.

(2A) A person is a service provider in relation to a recognised DSA service provider if -

(a) the person provides services to the recognised DSA service provider, and

(b) the person is specified as a person within paragraph (a) by the Treasury in the recognition order made in respect of the DSA service provider.