This chapter sets out the fee payable by PSR fee payers will be calculated5,6 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

   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 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

   6

A PSR fee payer8 should pay its fees to the FCA6 by direct debit,6 electronic credit transfer, cheque, Maestro, Visa Debit or by credit card (Visa/MasterCard only)6.

8The FCA will use the data provided by the relevant operators in FEES 9.2.4DR to calculate the PSR fees. Before being submitted to the FCA, if requested by a PSR fee payer, the operator should confirm with the relevant PSR fee payer the accuracy of the data it proposes to submit. In the event of a dispute raised by a PSR fee payer over the accuracy of the data provided to the FCA, the FCA will continue to use the data as originally provided. Any later dispute should be directed to the relevant operator of the regulated payment system or IFR card payment system responsible for the provision of the data to the FCA.

The FCA will not relieve or refund a PSR fee if after the start of that fee year:4

1. (1)

   4a payment system ceases to be a regulated payment system; or4

2. (2)

   4an IFR card payment system ceases to be subject to the IFR;4 or

3. (3)

   4a person4 ceases to be a direct payment service provider of a regulated payment system or an IFR card payment system4.

1. (1)

   2The FCA may recover a PSR fee as a debt owed to it under paragraph 23 (8) of Schedule 1ZA of the Act.

2. (2)

   The FCA will consider taking action for the recovery (including interest) through the civil courts.

3. (3)

   In addition, the FCA or PSR may be entitled to take regulatory action in relation to the non-payment of PSR fees. What action, if any, that is taken by the FCA or PSR will be decided upon given the particular circumstances of the case.8

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 PSR fee payer8 if the claim is made more than two years after the beginning of the fee year to which the fee relates.