22.—(1) “Method C” means the calculation method set out in this paragraph.U.K.
(2) The own funds requirement is the relevant indicator multiplied by—
(a)the multiplication factor; and
(b)the scaling factor;
subject to the proviso in sub-paragraph (7).
(3) The “relevant indicator” is the sum of the following elements—
(a)interest income;
(b)interest expenses;
(c)gross commissions and fees received; and
(d)gross other operating income.
(4) For the purpose of calculating the relevant indicator—
(a)each element must be included in the sum with its positive or negative sign;
(b)income from extraordinary or irregular items may not be used;
(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;
(d)the relevant indicator is calculated on the basis of the twelve-monthly observation at the end of the previous financial year;
(e)the relevant indicator must be calculated over the previous financial year; and
(f)audited figures must be used unless they are not available in which case business estimates may be used.
(5) The “multiplication factor” is the sum of—
(a)10% of the first 2,500,000 euro of the relevant indicator;
(b)8% of the next 2,500,000 euro of the relevant indicator;
(c)6% of the next 20,000,000 euro of the relevant indicator;
(d)3% of the next 25,000,000 euro of the relevant indicator; and
(e)1.5% of any remaining amount of the relevant indicator.
(6) “Scaling factor” has the meaning given in paragraph 21(4).
(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.
23.—(1) “Method D” means the calculation method set out in this paragraph.U.K.
(2) The own funds requirement in respect of the activity of issuing electronic money and providing payment services that are related to the issuance of electronic money is an amount equal to 2% of the average outstanding electronic money of the authorised electronic money institution.
24.—(1) Where—U.K.
(a)an electronic money institution provides payment services that are not related to the issuance of electronic money or carries out any of the activities referred to in regulation 32(1)(b) to (d) and (2); and
(b)the amount of outstanding electronic money is unknown in advance,
the institution may calculate its own funds requirement on the basis of a representative portion assumed to be used for the issuance of electronic money and payment services related to the issuance of electronic money, provided that such representative portion can be reasonably estimated on the basis of historical data and to the satisfaction of the Authority.
(2) Where an electronic money institution has not completed a sufficiently long period of business to compile historical data adequate to make the calculation under sub-paragraph (1), it must make an estimate on the basis of projected outstanding electronic money as evidenced by its business plan, subject to any adjustments to that plan which are, or have been, required by the Authority.