CHAPS is recognised by HM Treasury as an inter-bank payment system and is overseen by the Bank of England, in accordance with the Banking Act 2009.
CHAPS has been designated as a “system” by the Bank of England, as the relevant designating authority under the Financial Markets and Insolvency (Settlement Finality) Regulations 1999. This ensures that settlement of payments, within the CHAPS system, is final and irrevocable, underpinned by statute and is catered for in our Rules which all participants of CHAPS must adhere to.
In the Bank of England’s April 2013 FMIs approach document, the Bank confirmed that, for the purposes of section 188 of the Banking Act 2009, the updated Principles for Financial Market Infrastructures (PFMIs) published in April 2012 by the Committee on Payment and Market Infrastructures (CPMI) and the Technical Committee of the International Organization of Securities Commissions (IOSCO), were the principles to which recognised payment systems such as CHAPS must have regard.
As a systemically important payment system and in line with Principle 1 of the CPMI-IOSCO Principles for FMIs, CHAPS continually monitors the regulatory landscape to ensure that its own legal and regulatory framework evolves accordingly. CHAPS also responds to consultation papers issued by regulators and government agencies. A selection of these responses can be found in our Consultation Responses section.
In line with CHAPS Co’s proactive approach to monitoring the regulatory landscape, we are proud to be a patron of the Financial Markets Law Committee (FMLC), an independent committee of legal experts whose role is to identify issues of legal uncertainty which might give rise to material risks, and to consider how such issues should be addressed.