PSD Pricing feedback required

As part of the implementation of the PSD many of you will recall that the FSA published a consultation document, in February, on the proposed fees that it will levy for firms wishing to apply in the UK to become an authorised payments institution or a small payments information. The complete text is set out at the following link http://www.fsa.gov.uk/pubs/cp/cp09_07.pdf. In short the proposed charges for applying are as shown on the following table:

Type of firm	Application fee	Minimum annual periodic fee	Tariff base forcvariable annual periodic fee
Small PIs*	£500	£400	None
Authorised PIs*# – one or more activities (a) to (e)	£5,000	£400	Income measure
Authorised PIs*# – activities (f) and/or (g) only	£1,500	£400	Income measure
Authorised PIs*# – any activity and more than 5,000 agents on authorisation	£25,000	£400	Income measure
Small e-money issuers	None	£400	None
FSMA firms in A.1 Fee-block (deposit acceptors) except credit unions	None	£400	Modified Eligible Liabilities
National Savings Bank, Post Office Ltd, Bank of England municipal banks, government departments	None	None	None
* Includes newly regulated PSPs and FSA authorised firms not in our A.1 (deposit acceptors) fee-block seeking permission to undertake payment services
# Financial Institutions seeking deemed authorisation will pay 50% of the otherwise applicable authorisation fee

We at IAMTN have received some feedback from our members directly on the basis for the fee proposal and the levels and have received some feed back which is now being consolidated for the organisation to provide a combined response. However, there are still a few more days for any of you to provide any feedback on these items. Could you please send any responses to me by the end of Thursday 2 April.

It should be noted that this consultation document is purely around the application fees for PI and does not address the on-going fees. These are yet to be determined by the FSA and a further consultation on those is planned for February 2010. The FSA have been very approachable during this consultation process and are more advanced that most other countries. Therefore I would encourage all members, regardless of jurisdiction, to look at the proposals which should help inform the sort of level that they may anticipate in their own country.

If you have any questions please do not hesitate to contact us.

Kind regards,
Leon Isaacs
Managing Director