This paper sets out how fees for the financial year 2017/18 will be allocated for our functions under the Financial Services (Banking Reform) Act 2013 (FSBRA) and the EU Interchange Fee Regulation (IFR).
It also provides our decision on how our fees will be calculated and collected and confirms that we are consulting on our proposed fee rates.
Why are we publishing this document?
In November 2016 we consulted on our proposed approach for allocating the PSR’s annual funding requirement (AFR) and calculating and collecting fees for the year 2017/18.
We received nine responses to our consultation, from payment system operators and payment service providers (PSPs).
responds to submissions to the November 2016 consultation
sets out our policy decisions on how the costs of PSR’s functions under FSBRA and IFR for the fee year 2017/18 and future years will be allocated, calculated and collected
- starts a consultation on our proposed 2017/18 PSR fee rate
Our allocation approach for 2017/18
FSBRA and IFR fees
We have decided to use the same allocation method for FSBRA and IFR as stated in PS16/17 - PSR regulatory fees 2016/17
We expect to have an underspend for the year 2016/17. We will return some of the fees we have collected to the industry through the 2017/18 fees collection process.
In our November consultation we asked for stakeholder input on a number of issues:
Publication of transaction volumes
- We proposed to publish IFR transaction volumes much like our established approach of publishing FSBRA transaction volumes
- We have decided not to publish IFR transaction volumes but to continue publishing FSBRA transaction volumes
Operator visibility of transaction volumes covered by the IFR
- We proposed to require PSPs to provide operators with sufficient information to be able to assess, or estimate, relevant transaction volumes more accurately
- We have decided not to implement the above.
- We proposed to round PSR fees amounts up to two decimal places. Therefore, fees invoices should be rounded to charge amounts in pence only, not in fractions of pence.
- We have decided not to collect any money where the total amount owing after a rebate is less than £50. As the sums involved are very small, we consider the impact of this is likely to be minimal.
- We proposed to make a small change to FEES 9.2.3B, stating that where an operator is required to pay the fee it must do so by 15 September.
- We have decided to implement this amendment.
What happens next?
Please consider our proposal and send us your comments on the question in this consultation paper by 5.00pm on 12 May 2017.
You can email us at PSRfees@psr.org.uk or write to us at the following address:
Payment Systems Regulator Ltd
25 The North Colonnade
London E14 5HS