The Payment Systems Regulator (PSR) has published Policy Statement 17/1: The Payment Systems Regulator’s Financial Penalty Scheme: Decision on the Financial Penalty Scheme for the use of the retained amount from PSR regulatory penalty receipts (PS17/1).
In PS17/1 the PSR states that it has decided to use the money it is entitled to retain out of financial penalties paid to it to reduce the money it collects from payment service providers who pay regulatory fees in the following fees year. The PSR will do this through its Financial Penalty Scheme (the scheme). The scheme covers certain PSR powers, including under the Financial Services (Banking Reform) Act 2013, the Interchange Fee Regulation, the Competition Act 1998 and the Enterprise Act 2002.
The scheme is published alongside PS17/1 and explains the PSR’s approach using the retained amount. The PSR states that it has decided to implement the scheme on the basis of the approach outlined in its earlier consultation without any substantive changes.
The PSR is mindful that implementing the scheme will add another layer of complexity to the fees collection process. It states that the way it proposes to implement it is designed to minimise this additional burden. The PSR’s approach ensures that no invoice will need to be adjusted, and no regulatory burden or complexity is added to the fees process. The PSR will also implement the suggestion to give payment system operators (PSOs) enough time to process any necessary adjustments to invoices and communicate to their members. However, as no invoices need to be adjusted, the PSR does not need to provide PSOs with an itemised account of the adjustments required for each payment service provider that became liable to pay a penalty.
View Policy Statement 17/1: The Payment Systems Regulator’s Financial Penalty Scheme Decision on the Financial Penalty Scheme for the use of the retained amount from PSR regulatory penalty receipts, 24 March 2017
View The Payment Systems Regulator’s Financial Penalty Scheme, 24 March 2017