{
  "url": "https://openlegislation.uk/payment-services-regulations-2017/schedule-3/paragraph-10",
  "json_url": "https://openlegislation.uk/payment-services-regulations-2017/schedule-3/paragraph-10.json",
  "legislation": "uksi/2017/752",
  "legislation_title": "The Payment Services Regulations 2017",
  "legislation_url": "https://openlegislation.uk/payment-services-regulations-2017",
  "path": "schedule/3/paragraph/10",
  "kind": "paragraph",
  "number": "10",
  "heading": null,
  "text": "(1) “Method C” means the calculation method set out in this paragraph.\n(2) The own funds requirement is the relevant indicator multiplied by—\n(a) the multiplication factor; and\n(b) the scaling factor;\nsubject to the proviso in sub-paragraph (7).\n(3) The “relevant indicator” is the sum of the following elements—\n(a) interest income;\n(b) interest expenses;\n(c) gross commissions and fees received; and\n(d) gross other operating income.\n(4) For the purpose of calculating the relevant indicator—\n(a) each element must be included in the sum with its positive or negative sign;\n(b) income from extraordinary or irregular items must not be used;\n(c) expenditure on the outsourcing of services rendered by third parties may reduce the relevant indicator if the expenditure is incurred from a payment service provider;\n(d) the relevant indicator is calculated on the basis of the twelve-monthly observation at the end of the previous financial year;\n(e) the relevant indicator must be calculated over the previous financial year; and\n(f) audited figures must be used unless they are not available in which case business estimates may be used.\n(5) The “multiplication factor” is the sum of—\n(a) 10% of the first 2,500,000 euros of the relevant indicator;\n(b) 8% of the next 2,500,000 euros of the relevant indicator;\n(c) 6% of the next 20,000,000 euros of the relevant indicator;\n(d) 3% of the next 25,000,000 euros of the relevant indicator; and\n(e) 1.5% of any remaining amount of the relevant indicator.\n(6) “Scaling factor” has the meaning given in paragraph 9(4).\n(7) The proviso is that the own funds requirement must not be less than 80% of the average of the previous three financial years for the relevant indicator.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2017/752/schedule/3/paragraph/10",
    "retrieved_at": "2026-10-28T23:09:36.065342+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}