On July 11, the Payment Services Regulations 2012 were published. SI 2012/1791. The Regulations address a concern that unfit persons may currently establish or manage a small payment institution. They amend the Money Laundering Regulations 2007 (MLRs) and the Payment Services Regulations 2009 (PSRs).

The Regulations will, among other things:

• Give the FSA the power to check that the owners and managers of small payment institutions are fit and proper persons, and that the directors and managers of such businesses are of good repute and possess the necessary knowledge and experience.
• Give HMRC the power to strike a business off the register of money service businesses under the MLRs, if the business is providing, or is purporting to provide, a payment service, when it is not registered or authorised to do so by the FSA.

They come into force on October 1 (with the exception of the regulations relating to the consequential amendments).