FEES 4 Annex 11 Periodic fees in respect of payment services carried on by fee-paying payment service providers under the Payment Services Regulations2

2Part 1 - Method for calculating the fee

(1)

The periodic fee for fee-paying payment service providers is calculated by adding 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 e-money issuers the tariff rates are not relevant and a flat fee is payable.

(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.

Part 2 - Activity groups

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 and e-money issuers

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 an authorised payment institution an EEA authorised payment institution or the Post Office Limited

G.4 Small payment institutions

it is a small payment institution or a small e-money issuer

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.

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.

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.

Part 4 - Valuation period

This table indicates the valuation date for each fee-block. A fee-paying payment service provider can calculate its tariff data by applying the tariff bases set out in Part 2 with reference to the valuation dates shown in this table.

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 a fee-paying payment service provider's tariff data is in a currency other than sterling, it must be converted into sterling at the exchange rate prevailing on the relevant valuation date.

G.2

For banks, e-money issuers and building societies as in FEES 4 Annex 1 Part 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.

Part 5 - Tariff rates

Activity group

Fee payable in relation to 2010/11

G.2

Minimum fee (£)

400

£ million of Modified Eligible Liabilities (MELS)

Fee (£/£m or part £m of MELS)

[tariff band to follow]

[tariff rate to follow]

G.3

Minimum fee (£)

400

£ thousands or part thousand of Relevant Income

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

[tariff band to follow]

[tariff rate to follow]

G.4

£400

G.5

As in G.3.

Part 6 - Permitted deductions for financial penalties

Fee-paying payment service providers may make deductions as provided in this Part.

Activity group

Nature of deduction

Amount of deduction

G.2

Financial penalties received

[to follow]

G.3

Financial penalties received

[to follow]

G.4

Financial penalties received

[to follow]

G.5

Financial penalties received

[to follow]

Part 7 - Permitted deductions forEEA authorised payment institutions, full credit institutions and e-money issuers that are EEA firms

Fee-paying payment service providers may make deductions as provided in this Part.

Activity group

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

Minimum amount payable

G.2

[to follow]

[to follow]

G.3 excluding the Post Office Limited

[to follow]

[to follow]