Schedule 6: Digital settlement assets Part 2 – Amendments to FSBRA 2013
This section extends the application of the existing scope of Part 5 of FSBRA 2013 to include payment systems using digital settlement assets and digital settlement asset service providers. Paragraph 41(2) inserts a new section 41(2A) amending the reference to funds to include digital settlement assets and then defines digital settlement asset, mirroring the Banking Act 2009 definition. This is so that the regulatory oversight for regulated payment systems which HM Treasury controls via designation orders, will be brought within scope of the PSR power as set out above.
	Paragraph 42(3) inserts a new section 42(5A) defining payment service providers mirroring the definition under the new section 182(5A) of the Banking Act 2009.
	Paragraph 43 amends section 98(5)(c) with respect to amending the FCA’s duty to ensure a co-ordinated exercise of functions so that such duties are extended with respect to its functions under the EMR 2011 and its functions in regulating credit institutions with Part 4A permissions and authorised Payment institutions that it regulates under PSR 2017.
	Paragraph 44 inserts definitions of "digital settlement asset" and "digital settlement asset exchange provider" to section 110 of FSBRA 2013. The latter cross-references back to the definition of "digital settlement asset exchange provider" in section 182(5B) of the Banking Act 2009. This ensures that, should the definition in the Banking Act 2009 be amended, the amendment will automatically flow through to FSBRA 2013.