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PSR CP16/5: Our proposed method for allocating the money we retain from financial penalties that we have imposed

Published 17 11 2016
Closes 13 01 2017

The PSR is consulting on its draft Financial Penalty Scheme to provide clarity on how it proposes to use the funds retained from penalty receipts and seek views on this.

Why are we publishing this?

We are publishing this paper to share our proposed approach to the allocation of the money retained from financial penalty receipts, and to seek stakeholders’ views.

What are financial penalties and what is the Financial Penalty Scheme?

The Financial Services (Banking Reform) Act 2013 (FSBRA) gives us the power to impose penalties when standards fall well below what we expect. We have similar powers in relation to other legislation, such as the Interchange Fee Regulation (IFR). 

We are required to pay the penalties we receive to the Treasury, after deducting an amount to cover our relevant enforcement costs. This is the ‘retained amount’ and must be used to benefit participants in the payment systems we regulate, whilst ensuring that persons who were liable for penalties do not benefit from the scheme the following year.

The Financial Penalty Scheme explains how we propose to treat the retained amount.

Who should read this?

This consultation is relevant to:

  • participants in regulated payment systems under FSBRA
  • regulated persons under the IFR and;
  • anybody with an interest in our enforcement process

Next steps?

We welcome stakeholder’s views on our proposals by 5pm on 13th of January 2017

You can send us your comments and responses to our consultation questions by emailing us at finpenaltyscheme@psr.org.uk or write to us at the following address:

Payment Systems Regulator Limited
Financial Penalty Scheme Team
25 The North Colonnade
Canary Wharf
London E14 5HS