The Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025

UK Statutory Instrument 2025 No. 688 — creates 1 criminal offence.

1offences created

0recorded in force

0revoked

Made: 12 June 2025
In force from: 28 April 2026
Extent: Not stated
Subject: Corporate, financial services, company law, employment, charity, electoral and tax
Made under: Financial Services and Markets Act 2023

Explanatory note

(This note is not part of the Regulations) — published with the instrument by the department that made it. © Crown copyright, reused under the Open Government Licence v3.0.

These Regulations amend regulation 51 of the Payment Services Regulations 2017 (“PSRs”) to impose new requirements on payment service providers (“PSPs”) in relation to the termination of framework contracts for payment services concluded for an indefinite period and entered into on or after 28th April 2026. Regulation 3 substitutes regulation 51 of the PSRs with new regulation 51 and new regulations 51A to 51D. Regulation 51 restates the requirements that apply to all framework contracts, regardless of when they were entered into. Regulation 51A restates the notice requirements that apply to framework contracts concluded for an indefinite period and entered into before 28th April 2026. Regulation 51B provides new notice requirements applying to framework contracts concluded for an indefinite period and entered into on or after 28th April 2026. The requirements include the following— PSPs must give 90 days’ instead of two months’ notice before the termination of a contract takes effect; the termination notice must also contain certain information, including an explanation of the reasons for termination which is sufficiently detailed and specific to enable the payment service user to understand why the framework contract is being terminated. Regulation 51B(4) provides that in the event of a conflict between the requirements in regulation 51B and another legal requirement to which the PSP is subject, the other legal requirement prevails to the extent of the conflict. Regulations 51C and 51D provide specific exceptions or modifications to the requirements in regulation 51B. Regulation 51(6) provides that discharge by agreement may not be relied upon to avoid the new contract termination requirements in regulations 51B and 51D(1)(b). Regulation 2 makes amendments to regulations 25 and 26 of the Payment Accounts Regulations 2015 mainly to bring the notice period and requirements to give reasons in line with the new requirements in the PSRs for contracts entered into on or after 28th April 2026. The other amendments made in these Regulations are consequential to the substitution of regulation 51 of the PSRs described above. A full impact assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector is available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.

Offences created by this instrument

In regulation 2(1) (interpretation), after the definition of “the SEPA regulation” insert— “serious crime” means— an… regulation 3(2) · Status not determined · Strict liability

What Parliament said about it

Contributions, debates and written statements mentioning this instrument by name. Parliamentary material is reused under the Open Parliament Licence v3.0.

Draft Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 Commons · General Committees · 4 June 2025 · The Economic Secretary to the Treasury (Emma Reynolds)
I beg to move, That the Committee has considered the draft Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025. As ever, it is a pleasure to serve under your chairmanship, Mr Mundell. I am grateful for the Committee’s time this afternoon. Financial services fulfil a vital role for people and businesses across the UK. The Government are committed to ensuring high standards of both consumer protection and financial inclusion. The regulations form part of that commitment by strengthening protections for customers, including individual consumers, businesses…
Draft Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 Commons · General Committees · 4 June 2025
Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 Lords · Grand Committee · 5 June 2025 · Lord Wilson of Sedgefield
That the Grand Committee do consider the Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025.
Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 Lords · Grand Committee · 5 June 2025
Public Authorities (Fraud, Error and Recovery) Bill Lords · Grand Committee · 25 June 2025 · Baroness Sherlock (Lab)
My Lords, Amendment 126 would require the independent person, who will be appointed by the Minister for the Cabinet Office to review the PSFA powers under Part 1 of the Act, to carry out an additional assessment of the impact of the whole Act on the number of people facing financial exclusion. I hope that that clears up the question raised by the noble Lord, Lord Vaux. The reviewer is the one for the PSFA bit, and the impact would be for the whole Act, as the amendment is currently drafted. I recognise the intent behind the amendment put forward by the noble Lord, Lord Palmer. I assure…

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