This document sets out our final decision on the rates for our regulatory fees for 2017/18.

It follows our March consultation where we set out our proposals for these rates and also confirmed how our fees will be calculated and collected.

What does this document contain?

This document:

  • Answers questions about how fees for the PSR’s functions and activities under the Financial Services (Banking Reform) Act 2013 (FSBRA) and the EU Interchange Fee Regulation 2015 (IFR) will be allocated, calculated and collected.
  • Summarises the responses we received in our March consultation and our feedback on them.

What is the Annual funding requirement (AFR) for 2017/18?

AFR 2017/18 £ million
FSBRA 2017/18 budget 11.4
IFR 2017/18 budget 0.6
Total PSR AFR 2017/18 (initial budget) 12

Who should read this document?

This document is relevant to participants in regulated payment systems under FSBRA, IFR regulated persons and any PSPs which operate in the UK.

What did we decide on?

Having considered all the submissions to our March consultation (CP17/9) we have decided to apply the 2017/18 fee rates as consulted on. The individual operator fee rates can be found in Annex 1 of this document.

The PSR had an underspend for 2016/17 and will refund £4.2 million to fee payers for that year.

What’s next?

We set out below what is expected of each stakeholder affected by this policy statement:

Who? Action & Timeline
Operators

  • Issue invoices for the 2017/18 PSR regulatory fees to their direct members, acquirers and card issuers operating in the UK, in accordance with the calculation methodology and instructions set out in the fees rules - from July 2017

  • Provide the PSR with their fee calculations for individual invoices and the underlying transaction volumes data. - as soon as possible

  • Tell the PSR if any payment is late - by 17 September 2017

  • Pay the PSR all monies collected - by 1 October 2017
Operators who pay their fees themselves
  • Invoice themselves and pay the PSR - by 15 September 2017

Direct PSP members, Acquirers, Card issuers
  • Pay operators their regulatory fees for each invoice the receive - by 15 September 2017

Fees Timeline

A timeline of this year's fees process:

July 2017 Policy statement finalising the periodic fee rates rules for 2017/18 and making any other rules (this document).
July 2017 From July, the operators of regulated payment systems and IFR card systems invoice fee-payers (including the operators of IFR card systems where they are liable for the payment of PSR fees themselves).
15 September 2017 2017/18 PSR fees are due to be paid to the operators (after deducting any on-account payments made on 15 March 2017). Where the operators are liable for the fee themselves, their 2017/18 fees are due to be paid to the FCA on this date.
17 September 2017 Operators to submit information on late payers of 2017/18 fees (on a spreadsheet showing 2016 transaction volumes and 2017/18 fees broken down by PSP) to the PSR, updated to show late/partial payers and to provide their contact details.
1 October 2017 Operators pay 2017/18 PSR fees they have collected to the FCA.



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