HM Treasury has designated Cheque and Credit as a regulated payment system for the purposes of Part 5 of the Financial Services (Banking Reform) Act 2013. This means that the Cheque, Credit and Image Clearing systems are regulated by the Payment Systems Regulator (PSR).
The cheque and credit paper clearing system (PCS) and the cheque Image Clearing System (ICS) are each designated systems under the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (FMIR). The Settlement Finality Regulations protect the finality and irrevocability of the cheque clearing and credit clearing payment messages in the event of insolvency of a system member. It would not be possible for that position to be ‘unwound’ by an insolvency practitioner.
The NPSO is recognised as the System Operator of these regulated payment systems.
The C&CCC continually monitors the regulatory landscape to ensure that its own legal and regulatory framework evolves accordingly. The company also responds to consultation papers issued by regulators and government agencies. A selection of these responses can be found in our Consultation Responses section.
The C&CCC holds its own consultations to explore issues facing the cheque and credit clearing landscape. More information can be found here.