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FEES 4 Annex 11 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 in relation to the period 1 April 2011 to 31 March 2012321

R

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 FSA 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;

(b)

an additional administrative fee of £250 is payable; and

(c)

the minimum total fee (including the administrative fee in (b)) is £650.

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 FSA 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;

(b)

an additional administrative fee of £250 is payable; and

(c)

the minimum total fee (including the administrative fee in (b)) is £650.

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.

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

it is a fee-paying payment service provider that is 3an authorised payment institution,3 an EEA authorised payment institution, 3 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

Part 3

This table indicates the tariff base for each fee-block. The tariff base is the means by which the FSA measures the amount of business conducted by fee-paying payment service providers and fee-paying electronic money issuers.3

Activity Group

Tariff base

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

18(3)

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 six 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).

3G.11

Not applicable.

Part 4 - Valuation period

This table indicates the valuation date for each fee-block. A fee-paying payment service provider and a fee-paying electronic money issuer 3can calculate tariff data by applying the tariff bases set out in Part 33 with reference to the valuation dates shown in this table.

33

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

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.

Part 5 - Tariff rates

Activity group

Fee payable in relation to 2011/123

3

G.2

Minimum fee (£)

400

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

Fee (£/£m or part £m of MELS)

2 2

2> 0.1

0.452653

3

> 0.25

0.452653

3

> 1.0

0.452653

3

> 10.0

0.452653

3

> 50.0

0.452653

3

> 500.0

0.452653

3

G.3

Minimum fee (£)

400

£ thousands or part thousand of Relevant Income

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

2 2

2> 1003

3

0.299503

3

> 2503

3

0.299503

3

> 10003

3

0.299503

3

> 10,0003

3

0.299503

3

> 50,0003

3

0.299503

3

> 500,0003

3

0.299503

3

G.4

£400

G.5

As in G.3.

3G.10

Minimum fee (£)

1,500

3million or part m of average outstanding electronic money (AOEM)

Fee (/, or part m of AOEM)

3>5.0

150.00

3G.11

£1,000

Part 6 - Permitted deductions for financial penalties pursuant to regulation 85 of3 the Payment Services Regulations and regulation 51 of the Electronic Money Regulations, as applicable32

Fee-paying payment service providers and fee-paying electronic money issuers 3may make deductions as provided in this Part.

Activity group

Nature of deduction

Amount of deduction

G.2

Financial penalties received

0.1%32

23

G.3

Financial penalties received

0.1%32

3

G.4

Financial penalties received

0.1%32

23

G.5

Financial penalties received

0.1%32

23

3G.10

Financial penalties received

0.1%

3G.11

Financial penalties received

0.1%

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%