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FEES 9.1 Application and purpose

Application

FEES 9.1.1R

Purpose

FEES 9.1.2G

This chapter sets out the fee payable by a direct payment service provider2 or an operator of an IFR card payment system4 to establish and fund the PSR.

Introduction

FEES 9.1.3G

Section 40(1) of FSBRA (The Payment Systems Regulator) requires the FCA to establish the PSR.

FEES 9.1.4G
  1. (1)

    Paragraph 9 of Schedule 4 of FSBRA and the 2015 Interchange Regulations applying FSBRA in a modified form allow3 the FCA to make rules requiring participants2 in regulated payment systems to pay the FCA specified amounts or amounts calculated in a specified way to:

    1. (a)

      meet the relevant costs referred to in (2) below; and

    2. (b)

      enable the PSR to maintain adequate reserves.

  2. (1A)

    The specified amount or amounts calculated in a specific way in (1) are PSR fees which are levied for the funding of the PSR’s functions and activities in relation to:3

    1. (a)

      regulated payment systems on participants in regulated payment systems; and3

    2. (b)

      the IFR on regulated persons.3

  3. (2)

    The relevant costs in (1)(a) means:

    1. (a)

      the expenses incurred, or expected to be incurred, by the PSR in connection with the discharge of its functions;

    2. (b)

      the expenses incurred by the FCA in establishing the PSR;

    3. (c)

      any other expenses incurred by the FCA in connection with the discharge of its functions under Part 5 of FSBRA; and

    4. (d)

      any expenses incurred, or expected to be incurred, by the FCA in connection with the discharge of the PSR's functions by an officer or member of staff of the FCA under arrangements made under paragraph 5 of Schedule 4 of FSBRA.

  4. (3)

    The amounts in (1) may include the expenses of the FCA in collecting PSR fees.

FEES 9.1.5G

FEES 9 sets out the rules referred to in FEES 9.1.4 G

FEES 9.1.6G

The FCA must pay to the PSR the amounts that it receives as PSR fees, apart from the following amounts (which it may keep):

  1. (1)

    expenses under FEES 9.1.4G (2)(b) to (d); and

  2. (2)

    collection costs, referred to in FEES 9.1.4G (3).

Annual budget and annual plan

FEES 9.1.7G
  1. (1)

    Paragraph 4(1) of Schedule 4 of FSBRA requires the PSR to adopt an annual budget which has been approved by the FCA.

  2. (2)

    Paragraph 6(1) of Schedule 4 of FSBRA requires the PSR to prepare an annual plan which has been approved by the FCA.

FEES 9.1.8G
  1. (1)

    PSR fees will vary from year to year, depending on the PSR's annual plan and budget.

  2. (2)

    These details are in FEES 9 Annex 1 R.

  3. (3)

    The FCA will prepare and consult on new details for each fee year.