Payment systems and specified service providers policy and codes of practice

Relevant to UK recognised payment system operators (RPSOs) and UK specified service providers (SSPs).

In this section

Domestic statutory framework

The UK’s domestic statutory framework for payment systems is set out in the Banking Act 2009 and the Financial Services (Banking Reform) Act 2013.

Part 5 of the Banking Act 2009 enables the Bank of England to regulate and supervise recognised payment systems (including those that use digital settlement assets (DSA)) recognised by HM Treasury, specified services provides to recognised payment systems, and recognised DSA providers.  

  
Part 6 of the Financial Services (Banking Reform) Act 2013 makes provision for the FMI special administration regime (FMI SAR) to apply to operators of certain infrastructure systems and service providers to those systems as designated by the Treasury under Part 6 of the Act. The FMI SAR is the bespoke insolvency regime to address the risks posed by the possible failure of recognised payment systems, DSA service providers and specified service providers. The Financial Market Infrastructure Administration Rules give effect to Part 6 of the Act by setting out the procedure for making an application for an FMI administration order (Part 2) and by applying (with modifications) specified provisions of the Insolvency (England and Wales) Rules 2016.  
The UK’s settlement finality regime seeks to reduce the risks associated with participation in payment and securities settlement systems. The regime does this by minimising the disruption caused by insolvency proceedings brought against a participant in such a system. The Bank of England is a designating authority under the Settlement Finality Regulations.

Bank of England Codes of Practice

A Code of Practice (CoP) sets out binding requirements for RPSOs and SSPs. A supervisory statement explains the Bank's supervisory approach and provides guidance as to how the Bank expects RPSOs and SSPs to meet their regulatory obligations under the CoP.

Part 1: Governance (only applies to RPSOs)   
Part 2: Operational resilience   
Part 3: Outsourcing and third-party risk management   

Bank of England guidance

The Bank may set out its expectations and publish guidance on the interpretation of more detailed regulatory requirements for FMIs.

The Bank’s approach to supervising Payment System Operations (RPSOs) and Specific Service Providers (SSPs) is covered in its guidance on the Bank's approach to FMI supervision. 

Statements of Policy

The Bank may publish statements of policy that set out how it will exercise its statutory powers over FMIs.

The Bank has published a Statement of Policy on its approach to enforcement

International standards

The Committee on Payments and Market Infrastructures (CPMI), the International Organisation of Securities Commissions (IOSCO) and the Financial Stability Board (FSB) set out international standards for financial market infrastructures (FMIs). These standards are not binding but are implemented domestically through the domestic statutory framework and through Codes of Practice.

The Principles for financial market infrastructures are the international standards for financial market infrastructures. They are part of a set of 12 key standards that the international community considers essential to strengthening and preserving financial stability.   
The guidance on ‘Recovery of Financial Market Infrastructures’ sets out how FMIs such as Payment Systems Operations should develop plans to enable them to recover from threats to their viability and financial strength, along with providing guidance to relevant authorities in carrying out their responsibilities associated with the development and implementation of recovery plans.   
The guidance on ‘Cyber resilience for financial market infrastructures’ sets out the preparations and measures that FMIs should undertake to enhance their cyber resilience capabilities in order to limit the risks that cyber threats pose to financial stability.   
These principles promote consistent disclosure of information by FMIs and consistent assessments by international financial institutions and national authorities.   

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This page was last updated 26 June 2025