Section 25(2)

Where an authorised payment institution intends to outsource any important operational function, including the provision of an information technology system, all of the following conditions must be met— the outsourcing is not undertaken in such a way as to impair— the quality of the authorised payment institution's internal control; or the ability of the FCA to monitor and retrace the authorised payment institution's compliance with these Regulations; the outsourcing does not result in any delegation by the senior management of the authorised payment institution of responsibility for complying with the requirements imposed by or under these Regulations; the relationship and obligations of the authorised payment institution towards its payment service users under these Regulations is not substantially altered; compliance with the conditions which the authorised payment institution must observe in order to be authorised and remain so is not adversely affected; and none of the conditions of the payment institution's authorisation requires removal or variation.

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