Policy background Miscellaneous Payment and securities settlement systems
The government is committed to creating a more competitive financial services sector. Greater competition in financial services creates better outcomes for consumers, lowering cost and broadening the range of services available. In June 2016 the government and the Bank of England announced further support for financial technology, in particular, widening access to central bank settlement accounts and to the UK’s payment systems to non-bank payment service providers. Measures in the Act will allow HM Treasury to apply the existing Settlement Finality regime to non-bank payment service providers. This allows these providers to benefit from the preferential treatment concerning Settlement Finality (i.e. ensuring that transactions are settled without being unwound by creditors), in the event of a provider becoming insolvent while it has unsettled transactions in the system. Inclusion within the Settlement Finality regime is an access requirement of interbank payment systems.
	HM Treasury has powers in the Banking Act 2009 to recognise payment systems for the purposes of regulatory oversight by the Bank of England. These existing powers only apply to systems involving banks and building societies. The Act allows HM Treasury to recognise non-interbank payment systems, so that all payment systems may be covered. This ensures that HM Treasury and the Bank can respond in a timely manner to potential financial stability risks that could be created by a systemically important non-bank payment system.