New Payment Services Regulations

The new Payment Services Regulations (“PSRs”) came into effect on 1 November 2009. These regulations are part of  a Europe-wide Directive that aims to harmonise the way that payments are made across the EEA, making them faster, easier and more transparent for the customer. The regulating body in the UK is the Financial Services Authority.

The PSRs require companies that offer “payment services” (i.e. transfer money for you) are either registered or authorised by the Financial Services Authority (FSA). From 1st November 2009, such businesses are now known as Payment Institutions (PIs).

There are differences between ‘Registered’ and ‘Authorised’ firms, most notably that companies below a turnover of €3m per month may register as a smaller PI which carries less stringent regulatory requirements. However they are required to abide by the Conduct of Business rules (COBs) which determine how companies may conduct their business with customers.

Larger companies that apply to be Authorised PIs must meet initial and ongoing requirements for maintaining certain levels of capital within their business and must comply with arrangements to safeguard their customer funds if they hold those funds overnight or longer. They will also have to meet stringent criteria set by the FSA in terms of corporate governance, solvency and risk identification and management.

As of 1st November 2009, Caxton FX Ltd is regulated and authorised for the provision of payment services. Please click here for a full list of our permissions.

For more information on PSRs please visit the FSA’s website here: www.fsa.gov.uk/