The Payment Systems Regulator (PSR) sets out its decisions on changes to its fees structure going forward.
The PSR has been reviewing its fees structure, which has been in place since 2018, to ensure it remains appropriate in the current payments landscape.
Following consultation, the PSR is introducing two main changes to the way its regulatory fees are allocated. These are:
- Move smaller firms outside of its fees, to simplify and save costs.
- A special project fee where payment system operators with a for-profit business model are charged for work related to or arising from their designation. For instance, this could include making sure an appropriate regulatory framework is agreed.
Kate Fitzgerald, the PSR’s Head of Policy, said:
“When a payment system is designated for our regulation, it’s crucial to make sure we regulate it in a way that promotes innovation and competition, balanced with strong safeguards so that people and businesses are protected.
“Making these changes to our fees rules will reduce the burden on smaller firms and fill an important gap in recovering the costs involved with this designation work and overall help ensure we can continue to regulate effectively and efficiently.”
These new fees rules will come into force on 28 April 2023.
- The regulator is moving smaller firms outside of its fees by introducing a minimum yearly fee threshold of £100 for regulated payment service providers.
- In response to feedback received to its consultation, the PSR has narrowed the scope of what is classed as special project work. This means, in line with other regulators, the PSR will charge special project fees only for work related to the designation of a new regulated payment system, new IFR card payment system, or new payment system under the Payment Services Regulations.
- The PSR can only use its regulatory powers in relation to payment systems designated by HM Treasury, which keeps this list under review. There are eight designated payment systems which can be viewed here.
- These rule changes are published in the FCA Handbook.