Payment Systems Oversight Information for Recognised Interbank Payment Systems

This page provides links to further information for operators of interbank payment systems recognised by HM Treasury for oversight by the Bank.

HM Treasury has published a Guidance note on the process for recognising interbank payment systems (see below).

The following interbank payment systems have been recognised by HM Treasury for statutory oversight by the Bank of England, in accordance with section 185 of the Banking Act 2009:

• Bacs (recognised 5 January 2010)
• CHAPS (recognised 5 January 2010)
• CLS (recognised 5 January 2010)
• CREST (recognised 5 January 2010)
• LCH.Clearnet Ltd (recognised 5 January 2010)
• Faster Payments Service (recognised 24 February 2010)
• ICE Clear Europe (recognised 24 February 2010)

The Act provides the Bank with a graduated set of tools to support its oversight function. These include powers to gather information, issue directions, require changes to system rules, appoint inspectors, and require the commissioning of an independent report. There are also powers of sanction for compliance failures as specified in the Act, including publishing the fact of a compliance failure, financial penalties, closure of a system and management disqualification. Section 198(3) of the Act requires the Bank to publish a statement of principles to be applied when considering whether to impose a financial penalty, and the amount of that penalty. A link to this document can be found under 'Key Resources' below.

Under section 188 of the Banking Act the Bank of England may publish principles to which the operators of recognised interbank payment systems are to have regard. Click here for thePrinciples.

The Bank of England has agreed a Memorandum of Understanding with the Financial Services Authority (see below) clarifying how the two Authorities will work together in relation to payment systems, including payment systems that are embedded in FSA-regulated organisations.