Section 22

An authorised payment institution must maintain at all times own funds equal to or in excess of the greater of— the amount of initial capital specified in Part 1 of Schedule 3 (capital requirements), or in the case of an authorised payment institution which does not fall within paragraph (2), the amount of own funds calculated in accordance with Part 2 of Schedule 3. An authorised payment institution falls within this paragraph if— it does not offer payment services specified in paragraph 1(a) to (f) of Schedule 1 (payment services other than payment initiation services or account information services); or it is included in the consolidated supervision of a parent credit institution in accordance with the capital requirements regulation and CRR rules (as defined in section 144A of the 2000 Act); and all of the conditions specified in Article 7(1) of the capital requirements regulation are met in respect of it. The own funds maintained must meet the following requirements— the amount of Tier 2 capital must be equal to or less than one third of the amount of Tier 1 capital; at least 75% of the amount of Tier 1 capital must be in the form of Common Equity Tier 1 capital. An authorised payment institution must not include in its own funds calculation any item— used in an equivalent calculation by an authorised payment institution, credit institution, investment firm, asset management company or insurance undertaking in the same group; or in the case of an authorised payment institution which carries out activities other than providing payment services, is used in carrying out those activities.

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Source: legislation.gov.uk · retrieved 2026-09-04