Payment institutions: safeguarding requirements

Authorised PIs must comply with certain safeguarding requirements. Small PIs can choose to comply with them, but must inform us if they do.

Safeguarding requirements for authorised PIs

The PSRs impose safeguarding requirements to protect customer funds received for the provision of a payment service.

All authorised PIs are required to comply with the safeguarding requirements in regulation 19.

Read about the safeguarding requirements in Chapter 10 in our Approach Document.

Safeguarding requirements for small PIs

Small PIs can choose to comply with safeguarding requirements in order to offer the same protections over customer funds as authorised PIs must provide. If a small PI does choose to safeguard, it will need to apply the same level of protections that are expected of an authorised PI.

Safeguarding requirements: informing the FCA

If a small PI chooses to safeguard funds, we expect it to tell us when:

  • it applies for registration, and
  • in annual reporting returns

If a small PI decides to begin safeguarding funds after it has been registered, or, decides that it will cease doing so, it should let us know via:

  • phone: 0300 500 0597

Funds that need to be safeguarded

The requirement to safeguard applies to ‘relevant funds’. These are sums received:

  • from, or for the benefit of, a payment service user for the execution of a payment transaction, and
  • from a payment service provider for the execution of a payment transaction on behalf of a payment service user

Read about the safeguarding requirements in Chapter 10  of our Approach Document.