This chapter sets out the fee payable by an operator of a regulated payment system 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 allows the FCA to make rules requiring participants 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. (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.

3. (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 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.

An operator of a regulated payment system should pay its fees by electronic credit transfer and should notify the FCA if it intends to pay in another way.

The FCA will not relieve or refund a PSR fee if a payment system ceases to be a regulated payment system after the start of that fee year.

The FCA may reduce or remit all or part of a PSR fee, if it appears to the FCA, having consulted the PSR, that in the exceptional circumstances of a particular case paying all or part of it would be inequitable.

The FCA may refund all or part of a PSR fee if it appears to the FCA, having consulted the PSR, that in the exceptional circumstances of a particular case the FCA or the PSR retaining all or part of it would be inequitable.

The FCA will not consider a claim to refund a PSR fee due to a mistake of fact or law by the fee paying operator of a regulated payment system if the claim is made more than two years after the beginning of the fee year to which the fee relates.