The Payment Systems Regulator (PSR) has published Consultation Paper 17/30: PSR regulatory fees 2018/19: Consultation on 2018/19 PSR regulatory fees for the funding of the PSR’s Financial Services (Banking Reform) Act 2013 , the Interchange Fee Regulation and the revised Payment Services Directive functions (CP17/30).
In CP17/30 the PSR sets out a number of proposals for collecting, allocating and calculating its regulatory fees. The fees are used to fund the PSR’s functions under the Financial Services (Banking Reform) Act 2013, Payment Card Interchange Fee Regulations 2015, and the Payment Services Regulations 2017. The proposals will affect the 2018/19 PSR fees and PSR fees in future years.
In particular in CP17/30 the PSR is consulting on:
- the collection of PSR fees from fee payers. The PSR is proposing to end the current method of indirect fees collection where payment system operators issue invoices to, and collect PSR fees from, their members on its behalf. Instead the PSR proposes that the FCA collects regulatory fees directly from fee payers on its behalf. Subject to consultation responses, if the PSR proceeded with this proposal it would publish the amended rules on the collection method in November this year. This would give the FCA and operators sufficient time to make this change for on-account fees collection due by 1 April 2018;
- allocation of PSR fees to fee payers. The PSR is consulting whether it should update its fees allocation methodology. Currently it broadly allocates its budget equally across the regulated payment systems and use transaction volumes to determine the fee that each payment service provider will pay. The PSR is consulting on whether it should revise its approach and use each fee payer’s transaction volumes and values to allocate fee liability; and
- other issues. The PSR is also consulting on how it will allocate fees in 2018/19 and in subsequent years to respond to a number of changes that will take place in 2018. These include, for example, how it intends to treat payment service providers that are implementing ring-fencing and how it intends to allocate fees in relation to the revised Payment Services Directive.
The deadline for comments on CP17/30 is 28 September 2017. Following CP17/30 the PSR will consult again in November 2017 and March 2018 in relation to PSR fees in 2018/19 and in subsequent years with a view to publish the final rules in July 2018.
View PSR consultation on regulatory fees for 2018/19, 17 August 2017