Criteria for Membership

In line with all UK-based payment schemes, CHAPS Clearing Company encourages new membership applications.  Its membership criteria are open and transparent, and a fair pricing strategy is operated. If you are interested in knowing more about membership, please contact us.

To be eligible for membership, a financial institution must:

• Hold a settlement account at the Bank of England which the Bank of England has agreed may be used for the purpose of settling CHAPS payment obligations.
• Be a participant which falls within the definition of ‘participant in the Financial Markets and Insolvency (Settlement Finality) Regulations 1999.
• Have the ability to comply with the technical and operational requirements of the CHAPS System as set out in the CHAPS Company Rules and other reference documents.  This must be achieved on a continuous basis.
• If required to do so by the Company, provide a legal opinion issued by an independent legal adviser and in terms acceptable to the Company regarding amongst other things the institution's capacity to execute and be bound by the Rules and its agreement(s) with the Company.
• Enter into a separate agreement with the current settlement members known as the Admissions/Membership Agreement.
• Be a shareholder of the Company.
• Complete a rigorous Audit and Certification process to ensure that the new member does not bring additional risk to the scheme or its members once it has joined. 
• Pay external costs incurred by the Company during the joining process.

As of 2011, CHAPS Clearing Company waived the joining fee for the CHAPS scheme.