meta_id 3235271

On June 12, 2026, the Bank of England published an updated policy statement and supervisory statement on governance requirements for recognised payment system operators (RPSOs). The governance code, which was initially published in June 2017 and has since been updated, establishes binding minimum requirements for payment systems recognised under section 184 of the Banking Act 2009 (the Act). The code does not apply to payment systems operated by recognised clearing houses (RCHs) or central securities depositories (CSDs), which are subject to separate regulatory requirements. The code, issued under section 189 of the Act, establishes that RPSOs must function as systemic risk managers with objectives supporting financial stability. RPSOs must assess and mitigate the impact of their actions on UK financial stability, manage financial and operational risks across the payment system, and maintain robust business continuity plans. The Bank may take enforcement action against RPSOs that fail to comply with code requirements under sections 196-202A of the Act. The supervisory statement provides detailed guidance on compliance expectations. Key governance requirements include board composition standards requiring a minimum of one-third independent non-executive directors (INEDs), at least one executive director, and at least two INEDs. The board chair must be an INED. Board committees addressing governance or risk assessment must be chaired by INEDs. RPSOs must establish procedures for identifying and managing conflicts of interest and implement performance management arrangements, including accountability mechanisms for the board chair overseen by a senior INED. The code applies to all RPSOs except those operated by RCHs or CSDs. For overseas-based RPSOs subject to equivalent domestic supervision implementing the Principles for Financial Market Infrastructures (PFMI) with effective international cooperation arrangements, the Bank may determine on a case-by-case basis that the code does not apply. The Bank currently does not apply code requirements to CLS Bank International under this exemption. RPSOs must comply with the code requirements by June 21, 2018. Newly recognised payment systems have twelve months from recognition to achieve full compliance. The Bank expects RPSOs to conduct self-assessments and develop transition plans to meet requirements by the implementation date.