(1)In this Part “payment system” means a system which is operated by one or more persons in the course of business for the purpose of enabling persons to make transfers of funds, and includes a system which is designed to facilitate the transfer of funds using another payment system.
(2)But “payment system” does not include—
(a)any arrangements for the physical movement of cash;
(b)a system which does not make any provision for the transfer of funds by payers, or to recipients, in the United Kingdom;
(c)a securities settlement system operated by a [F1recognised CSD];
(d)a system operated by a recognised clearing house [F2or a recognised CSD];
(e)any other system whose primary purpose is not that of enabling persons to transfer funds.
(3)In this section—
[F3“recognised CSD” has the meaning given by section 285(1) of FSMA 2000;]
“recognised clearing house” has the meaning given by section 285(1) of FSMA 2000;
“securities settlement system” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.
(4)The Treasury may by order amend this section so as to—
(a)add descriptions of systems or arrangements that are not to be regarded as payment systems, or
(b)vary or remove any such description.
Textual Amendments
F1Words in s. 41(2)(c) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 16(2)(a) (with regs. 7(3)(b)(4), 9(1))
F2Words in s. 41(2)(d) inserted (27.3.2019) by The Uncertificated Securities (Amendment and EU Exit) Regulations 2019 (S.I. 2019/679), regs. 1(2), 3(2) (with regs. 10-12)
F3Words in s. 41(3) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 16(2)(b) (with regs. 7(3)(b)(4), 9(1))
Commencement Information
I1S. 41 in force at 1.3.2014 by S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1