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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 7 June 2019 - onwards
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Regulation 14 Method C

(1) Where a payment institution is directed by the Bank to calculate its own funds requirement in accordance with this Regulation, that payment institution's own funds requirement shall be calculated as follows:

OFR = MF * K

where -

OFR is the own funds requirement,

MF is the multiplication factor calculated in accordance with paragraph (3),

K is the scaling factor described in Regulation 15.

(2)

(a) The relevant indicator is the sum of the following in respect of the payment institution concerned:

(i) interest income;

(ii) interest expenses;

(iii) commissions and fees received;

(iv) other operating income.

(b) In calculating the relevant indicator -

(i) an amount paid to the payment institution concerned shall be given a positive value,

(ii) an amount paid by the payment institution concerned shall be given a negative value,

(iii) income from extraordinary or irregular items shall not be used, and

(iv) business estimates for the amounts referred to in subparagraph (a) may be used to c

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