The Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations
2025 (Termination Regulations) provide greater protection for users of payment services
against the termination of those services without sufficient notice or explanation. The
Termination Regulations will amend the Payment Account Regulations 2015 (Payment Account
Regulations) i.e., covering current accounts and Payment Services Regulations 2017 (PSRs)
i.e., covering all payment services provided by payment service providers (PSPs).

What do firms need to do now?

1. Key action 1: Payment service providers should review their framework contracts to identify
   whether they require amendments and updates, from 28 April 2026, and put such changes in
   place where required.
2. Key action 2: Payment service providers in-scope of these changes will also need to embed
   complementary operational changes. It’s important to understand the context in which these
   changes take place, in order to ensure that firm systems, governance and associated
   procedures (such as staff training) are amended to meet the FCA’s supervisory expectations.

Termination Regulations enter into force: 28 April 2026

Who do these Termination Regulations apply to?

1. Affected firms: (a) all PSPs providing payment services through a framework contract
   under the PSRs, including e-money institutions and (b) banks providing current accounts.
2. Affected contracts: framework contracts concluded for an indefinite period and entered
   into on or after 28 April 2026. Contracts entered into before that date remain subject to the
   existing 2-month notice requirement unless the firm opts to apply the new requirements.
   Payment service contracts that are also consumer credit agreements are excluded.

For more information on the key points and some practical steps for firms to consider, download our briefing note here.