Section 199 ClosureI1

United Kingdom

(1)

This section applies if the Bank of England thinks that a compliance failure—

(a)

threatens the stability of, or confidence in, the UK financial system, or

(b)

has serious consequences for business or other interests throughout the United Kingdom.

(2)

The Bank may give the operator of the F1... payment system concerned F2, the DSA service provider concerned F3, or the service provider concerned, an order to stop operating the system F4, providing services, F5or (as the case may be) providing services to a recognised payment system F6or recognised DSA service provider (a “closure order”)—

(a)

for a specified period,

(b)

until further notice, or

(c)

permanently.

(3)

A closure order may apply to—

(a)

all activities of the payment system F7, or DSA service provider F8or all services provided to a recognised payment system F9, or a recognised DSA service provider by the service provider, or

(b)

specified activities F10or specified services.

(3A)

F11Before giving a closure order to a service provider, the Bank must have regard to the public interest in the continued operation of each recognised payment system F12, or of each recognised DSA service provider, in relation to which the service provider is specified under section 206A(2)(b) F13or 206A(2A)(b) (as the case may be).

(4)

An operator F14, DSA service provider, F15or service provider who fails to comply with a closure order commits an offence.

(5)

A person guilty of an offence is liable—

(a)

on summary conviction, to a fine not exceeding the statutory maximum, or

(b)

on conviction on indictment, to a fine.

Annotations

Textual amendments

F1: Word in s. 199(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 21
F2: Words in s. 199(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(2)(a)
F3: Words in s. 199(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(a)(i)
F4: Words in s. 199(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(2)(b)
F5: Words in s. 199(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(a)(ii)
F6: Words in s. 199(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(2)(c)
F7: Words in s. 199(3)(a) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(3)(a)
F8: Words in s. 199(3)(a) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(b)(i)
F9: Words in s. 199(3)(a) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(3)(b)
F10: Words in s. 199(3)(b) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(b)(ii)
F11: S. 199(3A) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(c)
F12: Words in s. 199(3A) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(4)(a)
F13: Words in s. 199(3A) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(4)(b)
F14: Words in s. 199(4) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(5)
F15: Words in s. 199(4) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(d)

Commencement

I1: S. 199 in force at 31.12.2009 by S.I. 2009/3000, art. 4, Sch. para. 2