Small payment institution (small PI)

PSD2 also introduces a number of changes to requirements that small PIs must follow. The Treasury has implemented these through the PSRs 2017 and the FCA has published its Policy Statement and Approach Document.

Small PIs should have made necessary changes to ensure compliance with PSD2 requirements, the majority of which were effective from 13 January 2018. The key changes for small PIs include those relating to Conduct of business (Chapter 8 in our Approach Document), Complaints handling (Chapter 11 in our Approach Document) and Reporting and notifications (Chapter 13 in our Approach Document).

Please also familiarise yourself with the relevant parts of the FCA Handbook which have changed, including SUP 15,* SUP 16* and DISP*. The Handbook is amended by the Payment Services Instrument 2017.

If you have any questions, you can contact us.

Answer the following questions to understand more about what you need to do to meet new PSD2 requirements:

Do you intend to provide payment services from 12 January 2019?

1. To continue providing payment services after 12 January 2019, small PIs must be re-registered. They will need to provide us with additional information. Small PIs can apply to be re-registered from 13 October 2017 and must submit their application before 23:59 on the 12 October 2018. They must be successfully re-registered by 12 January 2019. There will be a fee of £250 for re-registration.

2. The FCA encourages applications to be made as early as possible. Small PIs that have not successfully been re-registered before the end of the transitional timeframes will have to cease providing payment services, as will their agents; we will update the Financial Services Register to reflect that these businesses will no longer be registered. You can find further information on our Registration pages.

3. All small PIs which are account servicing payment service providers (ASPSPs) also need to comply with requirements relating to AIS and PIS providers seeking access to their customers’ online payment accounts (Chapter 17 in our Approach Document).

1. You do not need to apply to re-register. If you do not apply for re-registration before 13 October 2018 this will automatically mean that you are unable to continue to provide payment services after 12 January 2019. Alternatively, you could submit the cancellation form.

2. Please note you still need to comply with the new PSD2 requirements from 13 January 2018 until you are no longer registered.