FEES 4 Annex 11 Periodic fees in respect of payment services, electronic money, and regulated covered bonds55321978810

R

16This Annex sets out the periodic fees in respect of payment services carried on by fee-paying payment service providers under the Payment Services Regulations and electronic money issuance by fee-paying electronic money issuers under the Electronic Money Regulations and issuance of regulated covered bonds by issuers and CBTL business carried on by CBTL firms under the MCD Order 12in relation to the period 1 April 2017 to 31 March 2018

1Part 1 - Method for calculating the fee for fee-paying payment service providers3

(1)

The periodic fee for fee-paying payment service providers is calculated by identifying the relevant activity group under Part 2 and then3adding the minimum fee to an additional fee calculated by multiplying the tariff base identified in Part 3 of FEES 4 Annex 11 by the appropriate rates applying to each tranche of the tariff base as indicated in the table at Part 5. For small payment institutions and small electronic money institutions 3the tariff rates are not relevant and a flat fee is payable.

3

(2)

A fee-paying payment service provider may apply the relevant tariff bases and rates to non-UK business, as well as to its UK business, if:

(a)

it has reasonable grounds for believing that the costs of identifying the firm's UK business separately from its non-UK business in the way described in Part 3 of FEES 4 Annex 11 is disproportionate to the difference in fees payable; and

(b)

it notifies the FCA in writing at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated), or, if earlier, at the time it pays the fees concerned.

(3)

For a fee-paying payment service provider which is required to comply with FEES 4.4.9 D (Information on which fees are calculated) and has not done so for this period:

(a)

the fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10; and10

(b)

an additional administrative fee of £250 is payable.10

(c)

[deleted]10

88

3Part 1A - Method for calculating the fee for fee-paying electronic money issuers

(1)

The periodic fee for fee-paying electronic money issuers is calculated by identifying the relevant activity group under Part 2A and then multiplying the tariff base identified in Part 3 of 1 R by the appropriate rates applying to each tranche of the tariff base as indicated in the table at Part 5. For small electronic money institutions, the tariff rates are not relevant and a flat fee is payable.

(2)

A fee-paying electronic money issuer may apply the relevant tariff bases and rates to non-UK business, as well as to its UK business, if:

(a)

it has reasonable grounds for believing that the costs of identifying the firm's UK business separately from its non-UK business in the way described in Part 3 of 1 R is disproportionate to the difference in fees payable; and

(b)

it notifies the FCA in writing at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated), or, if earlier, at the time it pays the fees concerned.

(3)

For a fee-paying electronic money issuer which is required to comply with FEES 4.4 (Information on which fees are calculated) and has not done so for this period:

(a)

the fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10; and10

(b)

an additional administrative fee of £250 is payable.10

(c)

[deleted]10

88

3Part 1B - Method for calculating the periodic fee where the firm is both a fee-paying payment service provider and a fee-paying electronic money issuer

Add the fee calculated under Part 1 to the fee calculated under Part 1A.

5Part 1C - Method for calculating the fee for an issuer of a regulated covered bond

The issuance of regulated covered bonds by issuers is linked to activity group G.15 in this annex. The periodic fees for issuers of regulated covered bonds is calculated by multiplying the tariff base relevant to G.15 in Part 3 of 1 R by the appropriate rates applying to each tranche of the tariff base as indicated in the table at Part 5.

Part 2 - Activity groups relevant to fee-paying payment service providers3

This table shows how the payment services performed by fee-paying payment service providers are linked to activity groups (fee-blocks). A fee-paying payment service provider can use the table to identify which fee-blocks it falls into based on its authorisation or registration.

Activity group

Fee payer falls into this activity group if:

G.2 Certain deposit acceptors

3

it is a fee-paying payment service provider not falling within any of the other fee-blocks in this table

G.3 Large payment institutions and registered account information service providers15

it is a fee-paying payment service provider that is 3an authorised payment institution,3 an EEA authorised payment institution, 3a registered account information service provider, an EEA registered account information service provider, 15 the Post Office Limited or a fee-paying electronic money issuer (except if it is a small electronic money institution)3

3

G.4 Small payment institutions

it is a fee-paying payment service provider that is 3a small payment institution or a small electronic money institution3

3

G.5 - Other institutions

it is the Bank of England or a government department or local authority that provides payment services other than when carrying out functions of a public nature.

3Part 2A - Activity groups relevant to fee-paying electronic money issuers

This table shows how the electronic money issuance by fee-paying electronic money issuers is linked to activity groups ('fee-blocks'). A fee-paying electronic money issuer can use the table to identify which fee-blocks it falls into based on its authorisation, registration or permission, as applicable.

3Activity group

Fee payer falls into this activity group if:

G.10 Large electronic money institutions

it is a fee-paying electronic money issuer (except if it is a small electronic money institution)

G.11 Small electronic money institutions

it is a small electronic money institution

12

16

9Part 2B – Activity groups relevant to CBTL firms

This table shows how CBTL business carried on by CBTL firms is linked to activity groups ('fee-blocks'). A CBTL firm can use the table to identify which fee-blocks it falls into based on its registration

Activity Group

Fee payer falls into this activity group if10

G.20 CBTL lender10

It is a CBTL lender and does not have permission to carry out any regulated activities10

G.21 CBTL arranger and CBTL adviser10

it10 is a CBTL arranger or a CBTL adviser and does not have permission to carry out any regulated activities10

Part 3

This table indicates the tariff base for each fee-block. The tariff base is the means by which the FCA measures the amount of business conducted by fee-paying payment service providers,5 fee-paying electronic money issuers, CBTL firms, firms registered under the Money Laundering Regulations14 and issuers of regulated covered bonds5.3

59121116

Activity Group

Tariff base

12

16

12

G.2

MODIFIED ELIGIBLE LIABILITIES

These are determined in the same manner as the tariff-base for relevant firms in the A.1 fee-block set out in FEES 4 Annex 1 Part 2 R.

G.3

RELEVANT INCOME

This is the sum of the following elements of the firm's UK business:

Interest income

Interest expenses

Gross commissions and fees received

Gross other operating income

calculated in the same manner as the relevant indicator referred to in paragraph 10(3) 15

of Schedule 3 to the Payment Services Regulations.

For the Post Office Limited only, Relevant Income relates only to its payment services business.

G.4

Not applicable.

G.5

As in G.3 and Relevant Income only relates to payment services business.

3G.10

Average outstanding electronic money as defined under regulation 2(1) of the Electronic Money Regulations.

This is the average total amount of financial liabilities related to electronic money in issue at the end of each calendar day over the preceding twelve4 calendar months (which is the period ending on the date set out under Part 4), calculated on the first calendar day of each calendar month and applied for that calendar month (£million).4

45

3G.11

Not applicable.

5G.15

Regulated covered bonds issued in the 12 months ending on the valuation date and valued as at the valuation date.

9G.20

Not applicable

9G.21

Not applicable

Part 4 - Valuation period

This table indicates the valuation date for each fee-block. A fee-paying payment service provider,5 a fee-paying electronic money issuer and a regulated covered bond issuer 53can calculate tariff data by applying the tariff bases set out in Part 33 with reference to the valuation dates shown in this table.

533

Activity group

Valuation date

In this table, reference to specific dates or months are references to the latest one occurring before the start of the period to which the fee applies e.g. for 2010/11 fees (1 April 2010 to 31 March 2011), a reference to December means December 2009.

Where the tariff data of a fee-paying payment service provider or a fee-paying electronic money issuer3 is in a currency other than sterling, it must be converted into sterling at the exchange rate prevailing on the relevant valuation date.

3

12

16

12

G.2

For banks and building societies as in FEES 4 Annex 1 Part 3.

3

G.3

Relevant income for the financial year ended in the calendar year ending 31 December.

G.4

Not relevant.

G.5

Relevant income for the twelve months ending 31 December.

3G.10

31 December.

3G.11

Not relevant.

5G.15

(1) The last day of the financial quarter during which the issuer became registered as an issuer in the FCA financial year (the 12 months ending 31 March).

(2) For subsequent FCA financial years, 31 December unless (3) applies.

(3) If the issuer became registered as an issuer between 1 January and 31 March inclusive, 31 March in respect of the FCA financial year immediately following the FCA financial year during which it became registered and 31 December in respect of all further FCA financial years.

A reference to a financial quarter in this box means any of the following periods: 1 April to 30 June inclusive, 1 July to 30 September inclusive, 1 October to 31 December inclusive or 1 January to 31 March inclusive.

Part 5 - Tariff rates

Activity group

Fee payable in relation to 532017/1816

35678810

12

16

12

12

G.2

Minimum fee (£)

50012

88

£ million or part £m 2of Modified Eligible Liabilities (MELS)

Fee (£/£m or part £m of MELS)

2 2

2> 0.1

530.645612

35678810

G.3

Minimum fee (£)

50012

88

£ thousands or part thousand of Relevant Income

Fee (£/£thousand or part £thousand of Relevant Income)

2 2

2> 1003

3

530.434112

35678810

G.4

Flat fee (£)6

50012

88

G.5

As in G.310

3G.10

Minimum fee (£)

1,64312

88

£63million or part m of average outstanding electronic money (AOEM)

Fee (£66m10, or part £10m of AOEM)

3>5.0

120.00105

56688

3G.11

Flat fee (£)6

1,09512

5588

5G.15

Minimum fee for the first registered programme (£)6

89,87612

6778810

Minimum fee for all subsequent registered programmes

75% of minimum fee for first registered programme

£10million or part £10m of regulated covered bonds issued in the 12 months ending on the valuation date.

Fee (£1010m or part £10m of regulated covered bonds issued in the 12 months ending on the valuation date)

>0.00

13.2712

6778810

For the purposes of calculating fees, any regulated covered bonds denominated in a currency other than sterling must be converted into sterling at the applicable exchange rate set out below.

Where an exchange rate hedging agreement was entered into in connection with the issuance of regulated covered bonds denominated in a currency other than sterling, the applicable exchange rate for those regulated cover bonds is the exchange rate stipulated in the exchange rate hedging agreement.

An exchange rate hedging agreement is any agreement entered into to hedge the market risk relating to fluctuations in exchange rates.

In all other cases, the applicable exchange rate is the daily spot rate available on the Bank of England's Statistical Interactive Database (the Bank of England exchange rate) applying on the valuation date. If the valuation date is not a business day, then the applicable exchange rate is the Bank of England exchange rate applying on the first business day following the valuation date.

9G.20

Flat fee (£)

404.0012

10

9G.21

Flat fee (£)

202.0012

10

23

517517

12

23532

12

3532

12

23532

12

23532

12

5

12

5
17

Part 7 - This table shows the modifications to fee tariffs that apply to 2EEA authorised payment institutions, EEA authorised electronic money institutions,3 and2 full credit institutions that are EEA firms.2

32

Activity group

Percentage deducted from the tariff payable under Part 5 applicable to the firm

Minimum amount payable

G.2

40%2

2

G.3

2

40%2

2

3G.10

40%