Statute Details
- Title: Payment Services (Composition of Offences) Regulations 2019
- Act Code: PSA2019-RG4
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Payment Services Act 2019
- Key Provision (as extracted): Regulation 2 (Compoundable offences)
- Commencement Date: Not stated in the provided extract
- Legislative History (from extract):
- 28 Jan 2020: SL 812/2019
- 17 Dec 2025: 2025 Revised Edition
- Status: Current version as at 27 Mar 2026
- Citation: Regulation 1 (Citation); Regulation 2 (Compoundable offences)
What Is This Legislation About?
The Payment Services (Composition of Offences) Regulations 2019 (“Composition Regulations”) are subsidiary legislation made under the Payment Services Act 2019 (“PSA”). In practical terms, these Regulations identify which offences under the PSA and its subsidiary instruments may be “compounded” by the Authority.
“Composition” is a regulatory enforcement mechanism. Instead of proceeding through the full criminal process, the Authority may offer a compounded resolution for certain offences—typically by requiring the offender to pay a composition sum. This allows the Authority to address breaches efficiently, reduce enforcement friction, and promote compliance in the payment services sector, which is highly regulated and risk-sensitive.
The scope of the Composition Regulations is narrow and targeted. Rather than creating new offences, the Regulations specify categories of offences that are eligible for compounding. The Regulations therefore operate as a procedural and enforcement framework supplementing the PSA’s substantive offence provisions.
What Are the Key Provisions?
1. Regulation 1: Citation
Regulation 1 provides the short title: “Payment Services (Composition of Offences) Regulations 2019”. This is standard legislative drafting and does not affect substantive rights or obligations.
2. Regulation 2: Compoundable offences
The core provision is Regulation 2, which sets out the offences that “may be compounded by the Authority” in accordance with section 96 of the PSA. The Regulation is effectively a gatekeeper: it determines which PSA offences and which offences under regulations made under the PSA qualify for compounding.
(a) Non-continuing offences under specified PSA provisions
Regulation 2(a) states that the following offences (excluding “continuing offences”) may be compounded:
- an offence under section 8(2) of the PSA;
- an offence under section 16(5) of the PSA;
- an offence under section 41(4) of the PSA;
- an offence under section 43(2) of the PSA;
- an offence under section 92(1) or (2) of the PSA.
The Regulation’s emphasis on “any offence (other than a continuing offence)” is significant. Continuing offences generally involve ongoing contraventions that persist over time. By excluding continuing offences, the Regulations signal that compounding is intended for discrete breaches rather than situations requiring ongoing remedial action through enforcement.
Practical implication for counsel: When assessing whether a matter is eligible for compounding, the first question is whether the alleged offence is a “continuing offence”. If the contravention is ongoing, compounding may be unavailable, and the Authority may instead pursue other enforcement routes.
(b) Non-continuing offences punishable by a fine only
Regulation 2(b) provides a broader category: any offence (other than a continuing offence) under the PSA, or under any regulation made under the PSA, that is “punishable by a fine only” may be compounded.
This is an important drafting choice. It captures offences beyond the specific list in Regulation 2(a), provided they meet the “fine only” and “non-continuing” criteria. For practitioners, this means eligibility for compounding may be determined by the penalty structure of the offence provision rather than by the offence’s subject matter.
Practical implication for counsel: If the alleged offence provision provides for a fine only (and does not include imprisonment or other non-fine punishments), it is more likely to fall within Regulation 2(b). Conversely, if the offence carries imprisonment (or other punishments beyond a fine), compounding under these Regulations may not be available.
3. Link to section 96 of the PSA
Regulation 2 does not itself describe the compounding process. Instead, it states that compounding is “in accordance with section 96 of the Act”. This means the Regulations should be read together with the PSA’s compounding provisions, which typically govern:
- the Authority’s discretion to compound;
- the conditions for compounding;
- the effect of compounding (e.g., whether it prevents further prosecution for the same offence); and
- procedural requirements such as payment and documentation.
For legal work, the Regulations are therefore best treated as an eligibility list, while the PSA provides the mechanics and legal consequences.
How Is This Legislation Structured?
The Composition Regulations are extremely concise. Based on the provided extract, the structure is:
- Regulation 1 (Citation): sets out the short title.
- Regulation 2 (Compoundable offences): lists the offences that may be compounded by the Authority under section 96 of the PSA.
There are no additional Parts or detailed procedural provisions in the extract. The Regulations function as a targeted amendment/clarification instrument within the broader PSA enforcement framework.
Who Does This Legislation Apply To?
Although the Regulations do not explicitly define “who” in the extract, they apply to persons alleged to have committed offences under the PSA or under regulations made under the PSA. In the payment services context, this commonly includes licensed or regulated entities, their officers, and other persons who may be subject to statutory duties under the PSA.
The practical applicability turns on two factors: (1) whether the alleged conduct falls within one of the listed PSA provisions or within the “fine only” category; and (2) whether the offence is a “continuing offence” or not. The Regulations therefore operate as an eligibility filter for enforcement outcomes.
Why Is This Legislation Important?
For practitioners, the significance of the Composition Regulations lies in their role in enforcement strategy and risk management. Payment services regulation involves complex licensing, operational controls, and compliance obligations. When breaches occur, the Authority may prefer a compounding approach for certain offences because it is faster and less resource-intensive than full prosecution.
From a legal advisory perspective, compounding can be a valuable tool for mitigating consequences. Where compounding is available, it may allow the affected party to resolve the matter without the uncertainty, cost, and reputational impact associated with criminal proceedings. However, eligibility is not automatic: it depends on the offence category and the “non-continuing” and “fine only” criteria.
Finally, the Regulations reflect a broader policy approach: proportionate enforcement. By excluding continuing offences, the Regulations indicate that ongoing contraventions may require stronger intervention—such as directions, licence-related action, or prosecution—rather than a one-off financial settlement.
Related Legislation
- Payment Services Act 2019 (including section 96 on compounding and the offence provisions referenced in Regulation 2: sections 8(2), 16(5), 41(4), 43(2), and 92(1) and (2)).
- Payment Services (Composition of Offences) Regulations 2019 (this instrument).
Source Documents
This article provides an overview of the Payment Services (Composition of Offences) Regulations 2019 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.