FEES 9.1 Application and purpose

This chapter sets out how the fees payable by PSR fee payers and other participants7 will be calculated, to establish and fund the PSR.

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

1. (1)

   Paragraph 9 of Schedule 4 of FSBRA and the 2015 Interchange Regulations applying FSBRA in a modified form and the Payment Services Regulations applying FSBRA in a modified form6 allow3 the FCA to make rules requiring participants2 in regulated payment systems and IFR card payment systems6 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)

   [deleted]6

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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 sets out the rules referred to in FEES 9.1.4 G

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).

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.

1. (1)

   PSR fees will vary from year to year, depending on the PSR’s AFR and the transaction volumes and transaction values in the relevant time period5.

2. (2)

   The PSR will publish each year the PSR’s AFR along with the total transaction volumes and transaction values for the relevant time period to enable PSR fee payers to apply the methodology in FEES 9 Annex 1R if they wish.5

3. (3)

   [deleted]5

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