The 90-Day Standard: Navigating the 2025 Contract Termination Regulations for UK and Gibraltar Providers

Due to come into force on 28 April 2026, the Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 (the Regulations) are designed to strengthen consumer protections regarding the termination of payment service contracts.

The scope of the Regulations is broad, covering credit institutions, payment institutions, and E-Money Institutions. Consequently, online payment providers and processors are explicitly included within the remit of these new rules.

The landscape for payment service providers (PSPs) and Electronic Money Institutions (EMIs) is undergoing a structural shift as of 28 April 2026. While the core legislation extends to the UK, the “Gibraltar Bridge” creates specific legal imperatives for firms operating across both territories.

1. Mandatory UK Standards (Effective 28 April 2026)

For framework contracts of indefinite periods entered into on or after this date, providers must overhaul termination procedures to meet these new statutory bars. Since neither the legislation does not define the term “indefinite period,” its plain meaning must be considered. Essentially, an indefinite period contract is one that is not a fixed-term contract but can be terminated by notice, or it is a fixed-term contract that is automatically renewable.

Key Protections:

• Termination notices must be specific enough to allow the user to understand the exact reasons for closure. This cannot be withheld unless disclosure would be “unlawful” (e.g., tipping-off under AML laws).
• Termination notices must explicitly advise the user on how to lodge a complaint and their right to escalate to the Financial Ombudsman Service (FOS).
• Providers cannot bypass these rules by claiming the contract was “discharged by agreement”.

2. Immediate Termination Rights

The 90-day notice requirement is waived in specific “severe” scenarios where immediate action is necessary:

• Financial Crime & AML: Inability to apply due diligence measures or reasonable grounds to suspect the service is connected to “serious crime.”
• Statutory Mandates: Mandatory closures under the Immigration Act 2014 or directions from the FCA or HM Treasury.
• Public Order Offences: If the user commits an offence involving harassment, alarm, or distress against a person acting for the provider, termination can be immediate, though a notice must still be provided “without delay”.

3. Gibraltar-Based Providers

While the 2025 Regulations formally apply to UK-based firms, Gibraltar-based firms are significantly impacted due to the Gibraltar Authorisation Regime (GAR).  Under the Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2025, transitional arrangements have been extended through 31 December 2026. This ensures continued market access but carries heavy obligations:

To continue servicing UK customers, Gibraltar firms must demonstrate regulatory alignment with UK standards. Firms falling materially behind the UK’s 90-day/Detailed Explanation standard risk increased supervisory focus from both the GFSC and the FCA.

The Consumer Duty: Both jurisdictions now mandate a Consumer Duty, principally to avoid foreseeable harm. In the eyes of regulators, terminating a UK-based user with only 60 days’ notice (the old Gibraltar baseline) while UK firms provide 90 days could be viewed as a failure to deliver a “good outcome.”

UK Branches: If a Gibraltar firm operates via a UK branch, it is treated as a UK firm for regulatory purposes and must adhere strictly to these 2025 termination rules, alongside the new CASS 15 safeguarding rules (effective 7 May 2026).

4. How Ramparts Can Help

Navigating the nuance between GFSC expectations and FCA mandates requires a cross-border perspective. Ramparts specialises in helping fintechs and EMIs/PSPs bridge this gap.

Whether you are a UK provider servicing Gibraltar clients or a Gibraltar provider targeting the UK market, we provide:

• Full T&C Audits: Aligning your contracts with the 2025 Amendment Regulations.
• GAR Compliance Mapping: Ensuring your internal “Country Manuals” reflect the latest UK conduct of business rules.
• Consumer Duty Implementation: Developing termination protocols that satisfy the “sufficient detail” requirement without breaching AML “tipping-off” rules.

For a review of your current payment terms, contact the Ramparts E-money and Payment Services team.

20.04.26