Premium rate services

Published by a ³ÉÈËÓ°Òô TMT expert
Practice notes

Premium rate services

Published by a ³ÉÈËÓ°Òô TMT expert

Practice notes
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FORTHCOMING CHANGE: In October 2024, Ofcom announced that it will take over the regulation of Premium rate services (PRS) from the Phone-paid Services Authority (PSA) on 1 February 2025. This means that the PSA’s 15th Code of practice (the Code) will cease to apply and will be replaced with the Regulation of Premium Rate Services Order 2024 (PRS Order), SI 2024/1046, which will come into force on 1 February 2025. Ofcom will also modify the PRS condition (Condition) to ensure that the PRS Order is complied with and the Enforcement Guidelines will be amended to reflect the enforcement approach to the PRS Order and Condition. The PRS Order will retain key principles and outcomes of the Code, including consumer protection and organisational standards. For more information, see: LNB News 25/10/2024 32.

Note that the PSA’s operational responsibilities are being wound from November 2024 in readiness for these changes (see: LNB News 31/10/2024 42).

Pending the above, this Practice Note provides guidance on the Code, which will remain applicable until the PRS Order comes into force.

This Practice

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Jurisdiction(s):
United Kingdom
Key definition:
Premium definition
What does Premium mean?

(1) For securities selling above par, the difference between the price of a security and par. (2) An amount that must sometimes be paid above par in order to call an issue, ie a call premium. (3) Occasionally used and interchangeable with margin or spread when the latter two refer to a percentage above a given amount or rate. (4) The price paid for an asset. (5) The additional price an investor is prepared to pay for an asset with attractive characteristics. (6) The cost of life cover; usually paid monthly but can be paid annually and sometimes quarterly. For most policies the plan will come to an end if the premium is not paid for one month.

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