This section sets out the fees payable for both PCS True Sale and PCS Risk Transfer labels.
The initial fee for each application to award a PCS Label is £9,000 or Euro 12,000 plus any applicable VAT.
For the avoidance of doubt, the Initial Fee is charged on a transaction basis notwithstanding how many separate tranches of securities or risk transfer instruments in that transaction are awarded a label.
The payment currency of the fee will be either Euro or £ and will be determined by the following criteria:
a. If the securities receiving the label/the protection payments under the risk transfer instrument are denominated in sterling or in Euros, the contract will be in that currency;
b. If the securities receiving the label/the protection payments under the risk transfer instrument are denominated in a currency other than sterling or Euros, the contract will be in Euros;
c. If the securities receiving the label/the protection payments under the risk transfer instrument are denominated both in sterling and Euros, the contract will be in the currency of the largest tranche to receive the label or, if the tranches are of equal size, in Euros;
d. If the securities receiving the label/the protection payments under the risk transfer instrument are denominated in either sterling or Euros, on the one hand, and third currency, on the other, the contract will be in sterling or Euros – as the case may be.
The fee becomes payable upon the checklist being received by PCS, irrespective of whether a label is ultimately awarded.
Possible Additional Fee
If the process of awarding the PCS Label requires PCS, in accordance with the procedures laid down in the PCS Procedures Manual, to have to review a new checklist and prospectus or a new checklist and new transaction documents or a new originator certificate or new protection buyer certificate, an additional fee may be charged at the discretion of the PCS. In generally, if the changes to the documents are small, immaterial and immediately put in place, there should be no extra charge. But PCS reserves the right to charge an incremental amount to the Applicant to compensate PCS for the extra work. The decision on whether to charge this additional amount will be the responsibility of the Head of Analytics who shall decide this in its sole discretion.
Any extra-charge will be subject to a cap equal to 2/3rds of the original label fee for each new checklist, offering circular, transaction document or originator/protection buyer certificate that requires review.
Additional fees will be charged in the same currency as the Initial Fee and VAT charged (if applicable).
Label Maintenance Fee
In addition to the Initial Fees, Applicants pay an annual label maintenance fee of £5,000 or Euro 6,000 (plus any applicable VAT) until the securities redeem, no protection payments fall due under the risk transfer instrument or the securities/risk transfer instrument lose(s) the label.
The Label Maintenance Fee will be charged in the same currency as the Initial Fee.
For the avoidance of doubt, the Label Maintenance Fee is charged on a transaction basis notwithstanding how many separate tranches of securities or risk transfer instruments in that transaction are awarded a label.
PCS will send to the Applicant an invoice for the checklist work. For transactions to which the PCS Label is awarded, this should be at the same time as the confirmation letter is sent; for transactions to which no Label is awarded but where the checklist has been received, this should be within ten days of final notification that the label cannot be awarded.
Initial Fees and Additional Fees are payable within 30 days of the Applicant receiving an invoice.
Once paid, the Initial Fees, Additional Fees and Label Maintenance fees cannot be reimbursed.