This article is the second in a series of publications about the impact of transfer pricing in the global financial services industry. Purpose of this article is to present a detailed analysis of the financial services industry and the application of transfer pricing with respect to the provision of centralized services. The article describes these services and their importance to a financial services business and it notes the different ways in which these services can be organized and charged. Most important, it provides practical guidance on the calculation and allocation of arm's length charges for these types of services, and notes the competing objectives that companies have to balance when setting their transfer pricing policies.