FEES 1
Fees Manual
FEES 1.1
Application and Purpose
- 01/01/2006
FEES 1.1.1
See Notes
FEES applies to all persons required to pay a fee or levy under a provision of the Handbook. The purpose of this chapter is to set out to whom the rules and guidance in FEES apply. FEES 2 (General Provisions) contains general provisions which may apply to any type of fee payer. FEES 3 (Application, Notification and Vetting Fees) covers one-off fees payable on a particular event for example various application fees (including those in relation to authorisation, variation of Part IV permission, listing and guidance in relation to the Basel Capital Accord) and fees relating to certain notifications and document vetting requests. FEES 4 (Periodic fees) covers all periodic fees and transaction reporting fees. FEES 5 (Financial Ombudsman Service Funding) relates to FOS levies and case fees and FEES 6 (Financial Services Compensation Scheme Funding) relates to the FSCS levy.
Application
FEES 1.1.2
See Notes
This manual applies in the following way:
- (1) FEES 1, 2 and 3 apply to:
- (a) every applicant for Part IV permission (including an incoming firm applying for top-up permission);
- (b) every Treaty firm that wishes to exercise a Treaty right to qualify for authorisation under Schedule 4 to the Act (Treaty rights) in respect of regulated activities for which it does not have an EEA right;
- (c) every applicant for a certificate under article 54 of the Regulated Activities Order;
- (d) every applicant for an authorisation order for, or for recognition of, a collective investment scheme;
- (e) every operator of a scheme making a notification under section 264 or section 270 of the Act;
- (f) every person seeking to become a designated professional body;
- (g) every applicant for recognition as a recognised body under Part XVIII of the Act (Recognised investment exchanges and clearing houses);
- (h) every applicant for listing (under the listing rules);
- (i) every applicant for approval as a sponsor (under the listing rules);
- (j) every issuer (under the listing rules) of tranches from debt issuance programmes and securitised derivative tranches;
- (k) every issuer (under the listing rules) involved in specific events or transactions during the year where documentation is subject to transaction vetting by the FSA;
- (l) under the prospectus rules every issuer, offeror or person requesting approval or vetting of the documents arising in relation to specific events or transactions that it might be involved in during the year;
- (m) every applicant to be listed as a designated investment exchange;
- (n) every firm applying for variation of its Part IV permission; and
- (o) every firm applying for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments).
- (2) FEES 1, 2 and 4 apply to:
- (a) every firm (except an ICVC or UCITS qualifier);
- (b) every manager of an authorised unit trust;
- (c) every ACD of an ICVC;
- (d) every person who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme;
- (e) every designated professional body;
- (f) every recognised body;
- (g) under the Listing Rules every issuer of shares, depositary receipts and securitised derivatives;
- (h) under the Listing Rules every sponsor; and
- (i) under the Disclosure Rules and Transparency Rules every issuer of shares, depositary receipts and securitised derivatives.
- (3) FEES 1, 2 and 5 apply to:
- (a) every firm which is subject to the Compulsory Jurisdiction of the Financial Ombudsman Service; and
- (b) every other person who is subject to the Compulsory Jurisdiction in relation to relevant complaints.
- (4) FEES 1, 2 and 6 apply to:
- (a) every participant firm;
- (b) the FSCS; and
- (c) the Society.
FEES 1.1.3
See Notes
The relevant provisions of FEES 5 and FEES 2 are applied to VJ participants by the standard terms (see DISP 4).
Purpose
FEES 1.1.4
See Notes
FEES 2
General Provisions
FEES 2.1
Introduction
- 01/01/2006
Application
FEES 2.1.1
See Notes
FEES 2.1.2
See Notes
FEES 2.2.1R does not apply in respect of any fee payable under FEES 3 (Application, notification and vetting fees).
FEES 2.1.3
See Notes
The provisions for late payments in FEES 2.2.1R do not apply to fees payable under FEES 3 as applications, notifications and requests for vetting are generally regarded as incomplete until the relevant fee is paid.
Purpose
FEES 2.1.4
See Notes
FEES 2.1.5
See Notes
FEES 2.1.6
See Notes
The FSA fees payable will vary from one financial year to another, and will reflect the FSA's funding requirement for that period and the other key components, as described in FEES 2.1.7G. Periodic fees, which will normally be payable on an annual basis, will provide the majority of the funding required to enable the FSA to undertake its statutory functions.
FEES 2.1.7
See Notes
The key components of the FSA fee mechanism (excluding the FSCS levy and FOS levy and case fees, which are dealt with in FEES 5 and FEES 6) are:
- (1) a funding requirement derived from:
- (a) the FSA's financial management and reporting framework;
- (b) the FSA's budget; and
- (c) adjustments for audited variances between budgeted and actual expenditure in the previous accounting year, and reserves movements (in accordance with the FSA's reserves policy);
- (2) mechanisms for applying penalties received during previous financial years for the benefit of fee payers;
- (3) fee-blocks, which are broad groupings of fee payers offering similar products and services and presenting broadly similar risks to the FSA's regulatory objectives;
- (4) a costing system to allocate an appropriate part of the funding requirement to each fee-block; and
- (5) tariff bases, which, when combined with fee tariffs, allow the calculation of fees.
FEES 2.1.8
See Notes
The amount payable by each fee payer will depend upon the category (or categories) of regulated activity or exemption, or other relevant activity applicable to that person (fee-blocks). It will, in most cases, also depend on the amount of the business that person conducts in each category (fee tariffs).
FEES 2.1.9
See Notes
FEES 2.1.10
See Notes
Paragraph 17(2) of Schedule 1 and section 99(3) to the Act prohibit the FSA from taking account of penalties received when setting its periodic and other fees. Accordingly periodic fees are specified without reference to the penalties received. However, the FSA normally expects to allocate those penalties to the fee-blocks within which the penalty payers fall, by way of a deduction from the periodic fee. Any deductions of this sort are set out in the relevant fees provisions or will be notified to the fee payer at the relevant time.
- 01/01/2006
FEES 2.2
Late Payments and Recovery of Unpaid Fees
- 01/01/2006
Late Payments
FEES 2.2.1
See Notes
If a person does not pay the total amount of a periodic fee (including fees relating to reportable transactions to the FSA using the FSA's Transaction Reporting System (see SUP 17)), FOS levy or case fee, or share of the FSCS levy, before the end of the date on which it is due, under the relevant provision in FEES 4, 5, or 6, that person must pay an additional amount as follows:
- (1) if the fee was not paid in full before the end of the due date, an administrative fee of £250; plus
- (2) interest on any unpaid part of the fee at the rate of 5% per annum above the Bank of England's repo rate from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.
FEES 2.2.2
See Notes
The FSA, (for periodic fees, FOS and FSCS levies), FOS Ltd (for FOS case fees), expect to issue invoices at least 30 days before the date on which the relevant amounts fall due. FOS case fees are invoiced on a monthly basis. Accordingly it will generally be the case that a person will have at least 30 days from the issue of the invoice before an administrative fee becomes payable.
Recovery of Fees
FEES 2.2.3
See Notes
Paragraph 17(4) of Schedule 1 and section 99(5) to the Act permit the FSA to recover fees (and, where relevant, FOS levies), and section 213(6) permits the FSCS to recover shares of the FSCS levy payable, as a debt owed to the FSA and FSCS respectively, and the FSA and FSCS, as relevant, will consider taking action for recovery (including interest) through the civil courts. Also, the FOS Ltd (in respect of case fees) may take steps to recover any money owed to it (including interest).
FEES 2.2.4
See Notes
In addition, the FSA may be entitled to take regulatory action in relation to the non-payment of fees and FOS levies. FSA may also take regulatory action in relation to the non-payment of FOS case fees or share of the FSCS levy, after reference of the matter to FSA by FOS Ltd or FSCS respectively. What action (if any) that is taken by the FSA will be decided upon in the light of the particular circumstances of the case.
FEES 2.3
Relieving Provisions
- 01/01/2006
Remission of Fees
FEES 2.3.1
See Notes
If it appears to the FSA, or FOS Ltd (in relation to any FOS case fee only), that in the exceptional circumstances of a particular case, the payment of any fee or FOS levy would be inequitable, the FSA or FOS Ltd, as relevant, may (unless FEES 2.3.2B R applies) reduce or remit all or part of the fee or levy in question which would otherwise be payable.
FEES 2.3.2
See Notes
If it appears to the FSA, or FOS Ltd (in relation to any FOS case fee only), that in the exceptional circumstances of a particular case to which FEES 2.3.1R does not apply, the retention by the FSA, or FOS Ltd, as relevant, of a fee or FOS levy which has been paid would be inequitable, the FSA, or FOS Ltd, may (unless FEES 2.3.2B R applies) refund all or part of that fee or levy.
FEES 2.3.2A
See Notes
A poor estimate or forecast by a fee payer, when providing information relevant to an applicable tariff base, is unlikely, of itself, to amount to an exceptional circumstance for the purposes of FEES 2.3.1 R or FEES 2.3.2 R. By contrast, a mistake of fact or law by a fee payer may give rise to such a claim.
FEES 2.3.2B
See Notes
The
FSA
may not consider a claim under FEES 2.3.1 R and/or FEES 2.3.2 R to reduce, remit or refund any overpaid amounts paid by a fee payer in respect of a particular period, due to a mistake of fact or law by the fee payer, if the claim is made by the fee payer more than 2 years after the beginning of the period to which the overpayment relates.
FEES 2.3.3
See Notes
- 06/10/2006
- Past version of FEES 2.3.3 before 06/10/2006
FEES 3
Application, Notification and Vetting Fees
FEES 3.1
Introduction
- 01/01/2006
Application
FEES 3.1.1
See Notes
This chapter applies to every person set out in
FEES 1.1.2R (1).
FEES 3.1.2
See Notes
Purpose
FEES 3.1.3
See Notes
The purpose of this chapter is to set out the
FSA
fee paying requirements on the persons set out in FEES 1.1.2R (1). The FSA's power to charge in respect of guidance regarding the Basel Capital Accord is derived from section 157(4)(c) of the Act.
FEES 3.1.4
See Notes
Most of the detail of what fees are payable by the persons referred to in FEES 3.1.3 G is set out in FEES 3 Annex 1 -
FEES 3 Annex 6.
FEES 3.1.5
See Notes
- (1) The rates set for authorisation fees represent an appropriate proportion of the costs of the FSA in processing the application or exercise of Treaty rights.
- (2) The fees for collective investment schemes reflect the estimated costs to the FSA of assessing applications and notifications. The level of fees payable in respect of an application or a notification will vary depending upon the provision of the Act under which it is made. This fee is adjusted when the scheme concerned is an umbrella scheme.
- (3) Application fees for recognised bodies are calculated from a tariff structure intended to reflect the estimated cost of processing an application of that type and complexity.
FEES 3.1.6
See Notes
Applications for Part IV permission (and exercises of Treaty rights) are categorised by the FSA for the purpose of fee raising as complex, moderately complex and straightforward as identified in FEES 3 Annex 1. This differentiation is based on the permitted activities sought and does not reflect the FSA's risk assessment of the applicant (or Treaty firm).
FEES 3.1.7
See Notes
A potential applicant for
Part IV permission
(or Treaty firm) has the opportunity to discuss its proposed application (or exercise of Treaty rights) with the
FSA
before submitting it formally (see AUTH 3.9.1 G). If an applicant for
Part IV permission
(or Treaty firm) does so, the
FSA
will be able to use that dialogue to make an initial assessment of the fee categorisation and therefore indicate the authorisation fee that should be paid.
FEES 3.1.8
See Notes
See
AUTH 3.9
in relation to the procedures for making applications for Part IV permission and SUP 13A for procedures for the exercise of Treaty rights by Treaty firms.
FEES 3.2
Obligation to pay fees
- 01/01/2006
General
FEES 3.2.1
See Notes
A person in column (1) of the table in FEES 3.2.7 R as the relevant fee payer for a particular activity must pay to the FSA a fee for each application or request for vetting or admission approval made, or notification or notice of exercise of a Treaty right given, as is applicable to it, as set out or calculated in accordance with the provisions referred to in column (2) of that table:
- (1) in full and without deduction; and
- (2) on or before the date given in column (3) of that table.
FEES 3.2.2
See Notes
If an application for a
Part IV permission
(or exercise of a Treaty right) falls within more than one category set out in FEES 3 Annex 1, only one fee is payable. That fee is the one for the category to which the highest fee tariff applies.
Method of payment
FEES 3.2.3
See Notes
- (1) Unless (2) applies, the sum payable under FEES 3.2.1 R must be paid by bankers draft, cheque or other payable order.
- (2) FSA does not specify a method of payment for a person seeking to become a recognised body or a designated professional body or to be added to the list of designated investment exchanges.
FEES 3.2.4
See Notes
The FSA expects that a person seeking to become a recognised body or a designated professional body or to be added to the list of designated investment exchanges will generally pay their respective fees by electronic credit transfer.
FEES 3.2.5
See Notes
- (1) The appropriate authorisation fee is an integral part of an application for, or an application for a variation of, a Part IV permission Any application received by the FSA without the accompanying appropriate fee, in full and without deduction (see FEES 3.2.1 R), will not be treated as an application made, incomplete or otherwise, in accordance with section 51(3)(a) or section 44, of the Act. Where this is the case, the FSA will contact the applicant to point out that the application cannot be progressed until the appropriate fee has been received. In the event that the appropriate authorisation fee, in full and without deduction, is not forthcoming, the application will be returned to the applicant and no application will have been made.
- (2) With the exception of persons seeking to become a designated professional body, all applications, notifications, requests for vetting or admission approval will be treated as incomplete until the relevant fee is fully paid and the FSA will not consider an application, notification, request for vetting or admission approval until the relevant fee is fully paid. Persons seeking to become a designated professional body have 30 days after the designation order is made to pay the relevant fee.
FEES 3.2.6
See Notes
Fees paid under this chapter are not refundable.
FEES 3.2.7
See Notes
Table of application, notification and vetting fees
| (1) Fee payer | (2) Fee payable | Due date | |||||
| (a) | Any applicant for Part IV permission (including an incoming firm applying for top-up permission) | (1) | Unless (2) applies, in respect of a particular application, the highest of the tariffs set out in FEES 3 Annex 1 part 1 which apply to that application. | On or before the application is made | |||
| (2) | In respect of a particular application which is: | ||||||
| (i) | a straightforward or moderately complex case for the purposes of FEES 3 Annex 1 part 1, and only involves a simple change of legal status as set out in |
||||||
| (ii) | FEES 3 Annex 1 part 6, the fee payable is 50% of the tariff that would otherwise be payable in FEES 3 Annex 1 part 1 |
||||||
| (b) | Any Treaty firm that wishes to exercise a Treaty right to qualify for authorisation under Schedule 4 to the Act (Treaty rights) in respect of regulated activities for which it does not have an EEA right | (1) | Where no certificate has been issued under paragraph 3(4) of Schedule 4 to the Act the fee payable is, in respect of a particular exercise, set out in FEES 3 Annex 1, part 4 | On or before the notice of exercise is given | |||
| (2) | Where a certificate in (i) has been issued no fee is payable | ||||||
| (c) | Any applicant for a certificate under article 54 of the Regulated Activities Order | 2,000 | On or before the application is made | ||||
| (d) | Applicants for an authorisation order for, or recognition of, a collective investment scheme | FEES 3 Annex 2, part 1 | On or before the application is made | ||||
| (e) | The operator of a scheme making a notification under section 264 or section 270 of the Act | FEES 3 Annex 2, part 2 | On or before the date the application is made | ||||
| (f) | Any person seeking an order under section 326(1) of the Act to become a designated professional body. | 10,000 | 30 days after the order is granted | ||||
| (g) | Any applicant for recognition as a UK recognised body under section 287 or section 288 of the Act | FEES 3 Annex 3, part 1 | On or before the date the application is made | ||||
| (h) | Any applicant for recognition as an overseas recognised body under section 287 or section 288 and section 292 of the Act | FEES 3 Annex 3, part 2 | On or before the date the application is made | ||||
| (i) | An applicant for listing (under the listing rules) | FEES 3 Annex 4, part 1 | On or before the date the application is made | ||||
| (j) | Applicant for approval as sponsor (under the listing rules) | FEES 3 Annex 4, part 2 | On or before the date the application is made | ||||
| (k) | Issuers of tranches from debt issuance programmes and securitised derivative tranches | FEES 3 Annex 4, part 1 | An upfront fee is required per tranche for draw downs in the following 12 months | ||||
| (l) | Under the listing rules, an issuer involved in specific events or transactions during the year where documentation is subject to a transaction vetting | FEES 3 Annex 5, part 1, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category. | On or before the date that relevant documentation is first submitted to the FSA | ||||
| (m) | Under the prospectus rules, an issuer or person requesting approval or vetting of the documents arising in relation to specific events or transactions that it might be involved in during the year | FEES 3 Annex 5, part 2, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category. | On or before the date that relevant documentation is first submitted to the FSA | ||||
| (n) | Applicants to be added to the list of designated investment exchanges | 50,000 | On or before the date the application is made | ||||
| (o) | In connection with rules (or future rules) implementing the Capital Requirements Regulations 2006 (including any amendments): | If the firm is applying to the FSA: | Where the firm has made an application directly to the FSA, on or before the date the application is made, otherwise within 30 days after the FSA notifies the firm that its EEA parent's Home State regulator has requested the FSA's assistance. On or before the date the application is made | ||||
| (i) | a firm applying to the FSA for a waiver or concession (or guidance on the availability of either): or | (1) | unless (2) applies, FEES 3 Annex 6; | ||||
| (ii) | a firm’s EEA parent applying to its Home State regulator for the use of the Internal Ratings Based approach and the Home State regulator requesting the FSA’s assistance in accordance with the Capital Requirements Regulations 2006. | (2) | (a) | unless (b) applies a firm submitting a second application for a waiver or concession or guidance described in column (1) within 12 months of the first application (where the fee was paid in accordance with (1)) must pay 50% of the fee applicable to it under FEES 3 Annex 6, but only in respect of that second application | |||
| (b) | No fee is payable by a firm in relation to a successful application for a waiver or a concession based on a minded to grant decision in respect of the same matter following a complete application for guidance in accordance with prescribed submission requirements. | ||||||
| (c) | No fee is payable by a firm applying to its Home State regulator where the Home State regulator has requested the assistance of the FSA and the firm falls within Group 4 of Part 1 of FEES 3 Annex 6. |
||||||
| (p) | A firm applying for a variation of its Part IV permission | (1) | Unless (2) applies, if the proposed new business of the firm would fall within one or more activity groups specified in Part 1 of FEES 4 Annex 1 not applicable before the application, the fee is 50% of the highest of the tariffs set out in FEES 3 Annex 1 which apply to that application | On or before the date the application is made | |||
| (2) | If the only change is that the A.12 activity group tariff applied to the firm's business before the variation and the A.13 activity group will apply after variation, no fee is payable(3) In all other cases, other than applications by credit unions, the fee payable is 250, unless the variation involves only the reduction (and no other increases) in the scope of a Part IV permission in which case no fee is payable. | ||||||
| (q) |
A significant transaction, being one where:
|
50,000 | On or before the date the application is made. | ||||
| (i) |
the issuer has a market capitalisation in excess of 1.5 billion and it is a new applicant for a primary listing under the listing rules, or involved in a reverse or hostile takeover or a significant restructuring; or |
||||||
| (ii) |
the issuer has a market capitalisation in excess of 5 billion and is involved in a class 1 transaction or a transaction requiring vetting of an equity prospectus or equivalent document; or |
||||||
| (iii) |
the issuer is proposing a Depositary Receipt issue intended to raise more than 5billion. |
||||||
| (r) | Providers of reporting or trade matching systems applying for recognition under MiFID as an Approved Reporting Mechanism. | 20,000 | On or before the date the application is made. | ||||
FEES 3 Annex 1
Authorisation fees payable
- 01/01/2006
See Notes
Part 1 - Authorisation fees payable R
Part 2 - Complexity Groupings Straightforward Cases R
Moderately Complex Cases R
Complex Cases R
Part 4 - Authorisation Fees for Treaty Firms R
Part 5 - Activity Groupings R
Part 6 - Change of legal status
| Application type (see Part 2) | Amount payable | |
| (a) | Credit unions - registration of common bond | 200 |
| (b) | Version 1 credit unions - authorisation | 300 |
| (c) | Version 2 credit unions - authorisation | 1,800 |
| (d) | Straightforward | 1,500 |
| (e) | Moderately complex | 5,000 |
| (f) | Complex | 25,000 |
| Straightforward cases | |
| Activity grouping | Description |
| A.3 | Friendly societies only |
| A.4 | Friendly societies only |
| A.12 | Advisory arrangers, dealers or brokers (holding or controlling client money and/or assets) |
| A.13 | Advisory only firms and advisory arrangers, dealers or brokers (not holding or controlling client money and/or assets) |
| A.14 | Corporate finance advisers |
| A.18 | Home finance providers, advisers and arrangers (excluding home finance providers) |
| A.19 | General insurance mediation |
| Moderately complex cases | |
| Activity grouping | Description |
| A.1 | E-money issuers only |
| A.2 | Home finance providers and administrators |
| A.3 | UK ISPVs |
| A.4 | UK ISPVs |
| A.5 | Managing agents at Lloyd's |
| A.7 | Fund managers |
| A.9 | Operators, trustees and depositaries of, operators of personal pension schemes and operators of stakeholder pension schemes |
| A.10 | Firms dealing as principal |
| B. | Service companies |
| Complex cases | |
| Activity grouping | Description |
| A.1 | Deposit acceptors (excluding e-money issuers and credit unions) |
| A.3 | Insurers - general (excluding friendly societies and UK ISPVs) |
| A.4 | Insurers - life (excluding friendly societies and UK ISPVs) |
| If the Treaty firm wishes to undertake the permitted activities in question through its branch in the United Kingdom, the fee is 50% of the fee that would be payable under FEES 3.2.7 R for an applicant for Part IV permission. |
| If the Treaty firm wishes to undertake the permitted activities in question by providing services in the United Kingdom, the fee is 25% of the fee which would be payable under FEES 3.2.7 R for an applicant for Part IV permission. |
| The activity group definitions are set out in FEES 4 Annex 1R. |
| An application involving only a simple change of legal status for the purposes of FEES 3.2.7 R is from an applicant: | ||
| (1) | which is a new legal entity intending to carry on the business, using the same business plan, of an existing firm with no outstanding regulatory obligations cancelling its Part IV permission, and | |
| (2) | which is to: | |
| (a) | have the same or narrower permission, and the same branches (if any), as the firm; | |
| (b) | assume all of the rights and obligations in connection with the regulated activities carried on by the firm; | |
| (c) | continue the same compliance arrangements and compliant client asset and client money procedures, as the firm, subject to any changes required only as a result of the change of legal status; | |
| (d) | continue with a risk profile and arrangements for controlling and monitoring risk which will not be materially different from those of the firm; and | |
| (e) | have the individuals within the firm that are responsible for insurance mediation activity perform the same role for the applicant. | |
FEES 3 Annex 2
Application and notification fees payable in relation to collective investment schemes
- 01/01/2006
See Notes
| Legislative provision | Nature and purpose of fee | Payable by | Amount of fee | Umbrella scheme factor (note 1) |
| Part 1 Application fees payable for firms to be subject to CIS | ||||
| Regulation 12 of the OEIC Regulations | On application for an order declaring a scheme to be an ICVC | An applicant | 1,200 | 2 |
| Section 242 of the Act | On application for an order declaring a scheme to be an AUT | An applicant | 1,200 | 2 |
| Section 272 of the Act | On application for an order declaring a scheme to be an individually recognised overseas scheme | An application | 14,000 | 2 |
| Part 2 Application fees payable for firms to be subject to COLL | ||||
| Regulation 12 of the Act | On application for an order declaring a scheme to be an ICVC, where the scheme is: | An applicant | 2 | |
| UCITS scheme | 1,200 | |||
| Non-UCITS retail scheme | 1,500 | |||
| Qualified investor scheme | 2,400 | |||
| Section 242 of the Act | On application for an order declaring a scheme to be an AUT, where the scheme is: | An applicant | 2 | |
| UCITS scheme | 1,200 | |||
| Non-UCITS retail scheme | 1,500 | |||
| Qualified investor scheme | 2,400 | |||
| Section 272 of the Act | On application for an order declaring a scheme to be an individually recognised overseas scheme | An applicant | 14,000 | 2 |
| Part 3 (notifications) | ||||
| Section 264 of the Act | On giving notice under section 264 of the Act | The operator | 600 | 2 |
| Section 270 of the Act | On giving notice under section 270 of the Act | The operator | 600 | 2 |
| Part 4 (Alternative Investment Funds: fees payable for making a notification to the FCA to market an AIF) | ||||
| Notes: | |
| 1. | For an umbrella scheme the fee is multiplied by the factor shown in the final column of the table. |
FEES 3 Annex 3
Application fees payable in connection with Recognised Investment Exchanges and Recognised Clearing Houses
See Notes
| Description of applicant | Amount payable | Due date | |
| Part 1 (UK recognised bodies) | |||
| Applicant for recognition as a UK RIE | 100,000 | Date the application is made | |
| Applicant for recognition as a UK RCH | 100,000 | Date the application is made | |
| Additional fees for applicant who proposes to: | |||
| - | act as a central counterparty | 25,000 | Date the application is made |
| - | offer safeguarding and administration services | 25,000 | Date the application is made |
| - | use substantially new and untested information technology systems in the performance of its relevant functions | 25,000 | Date the application is made |
| Part 2 (overseas recognised bodies) | |||
| Applicant for recognition as a recognised overseas investment exchange | 50,000 | Date the application is made | |
| Applicant for recognition as a recognised overseas clearing house | 50,000 | Date the application is made | |
| Additional fees for applicant who proposes to: | |||
| - | act as a central counterparty | 25,000 | Date the application is made |
| - | offer safeguarding and administration services | 25,000 | Date the application is made |
FEES 3 Annex 4
Application fees in relation to listing rules
See Notes
Part 1
Part 2
| Fee type | Fee amount |
| Application Fees | |
| Application for listing | 225 plus 100 per each additional issue of securities with its own International Securities Identification Number unless the fee in Category 8 of FEES 3 Annex 5 Part 2 applies. |
| Sponsor Application Fees | |
| Fee type | Fee amount |
| Application for approval as sponsor | 4,000 |
FEES 3 Annex 5
Document vetting and approval fees in relation to listing and prospectus rules
- 01/01/2006
See Notes
Part 1
| Fee type | Fee amount | |
| Transaction vetting fees Transaction vetting fees relate to specific events or transactions that an issuer might be involved in during the year. |
||
| Eligibility | New applicants | 1,300 |
| Category 1 | Class 1 transactions Listing particulars for Depositary Receipts |
5,700 |
| Category 2 | Listing particulars for issuers of specialist securities | 2,500 |
| Category 3 | All other vetting only transactions | 2,500 |
| Category 4 | Supplementary listing particulars | 500 |
Part 2
These fees relate to approval or vetting of the documents referred to in the second column of this table arising in relation to specific events or transactions that an issuer, offeror or person requesting admission might be involved in during the year.
| Category 1 | Equity prospectus Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4) Depositary Receipt prospectus |
5,700 |
| Category 2 | Equity registration document | 4,000 |
| Category 3 | Equity securities note and summary Summary document referred to in PR 1.2.3R(8) |
2,500 |
| Category 4 | Non-equity prospectus or base prospectus (excluding drawdown prospectus or base prospectus) Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4) |
2,500 |
| Category 5 | Non-equity registration document | 1,750 |
| Category 6 | Non-equity securities note and summary Summary document referred to in PR 1.2.3R(8) |
600 |
| Category 7 | Supplementary prospectus | 500 |
| Category 8 | Drawdown prospectus or base prospectus | 600 |
Where a fee in category 8 of this fee schedule is payable, the listing application fee under FEES 3 Annex 4 Part 1 does not apply.
Fees from other fee schedules contained in other sections of the sourcebook may be applicable to a single submission.
Certain transactions may come within the category of significant transactions and thus attract a higher fee, as set out in 3.2.7(q) R.
FEES 3 Annex 6
Fees payable for a waiver (or concession) or guidance on the availability of either in connection with rules implementing Basel Capital Accord
See Notes
Part 1 Fees payable other than for applications for a waiver (or concession) or guidance on the availability of either to allow a firm to use the counterparty credit risk internal model method.
Part 2
Fees payable for applications for a waiver (or concession) or guidance on the availability of either to allow a firm to use the counterparty credit risk internal model method.
52,000
| For firms falling into a group (Group 1) in which five or more significant overseas entities are applying for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments), the fees in Table 1 are applicable. Where a request for assistance regarding an Advanced or Foundation IRB application under the Capital Requirements Regulations 2006 has been made to the FSA as detailed in FEES 3.2.7 R (o), the fees in Table 1 and Table 2 are applicable if: |
|
| (i) | the firm is a subsidiary of the applicant in the United Kingdom and has permission to accept deposits; and |
| (ii) | the firm does not fall within Group 4 of Table 2. |
| Table 1 |
| Application group | Description of group | Application fee 2007/08 | ||
| Advanced IRB ('000) | Foundation IRB ('000) | AMA ('000) | ||
| Group 1 | Five or more significant overseas entities applying for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments) | 257 | 222 | 174 |
| For all other firms the fees in Table 2 are applicable |
| Table 2 |
| Application group | Description of group | Application fee 2007/08 | |||
| Modified eligible liabilities (m) | Number of traders as at 31 December 2006 | Advanced IRB ('000) | Foundation IRB ('000) | AMA ('000) | |
| Group 2 | >40,000 | >200 | 222 | 190 | 140 |
| Group 3 | >5,000 - 40,000 | 26 - 200 | 90 | 69 | 49 |
| Group 4 | 0 - 5,000 | 0 - 25 | 40 | 29 | 23 |
| (1) | Advanced and Foundation IRB applications are applications for guidance regarding the Internal Ratings Based approach for credit risk. AMA applications are applications for guidance regarding the Advanced Measurement Approach for operational risk. |
| (2) | For the purposes of Table 2, a firm's A.1 or A10 tariff data for the relevant period will be used to provide the value of modified eligible liabilities or number of traders. |
Fees payable for applications for a waiver (or concession) or guidance on the availability of either to allow a firm to use the counterparty credit risk internal model method.
52,000
FEES 4
Periodic fees
FEES 4.1
Introduction
- 01/01/2006
Application
FEES 4.1.1
See Notes
This chapter applies to every person set out in FEES 1.1.2R (2).
Purpose
FEES 4.1.2
See Notes
The purpose of this chapter is to set out the requirements on firms and others to pay periodic fees and transaction reporting fees in certain circumstances.
Background
FEES 4.1.3
See Notes
FEES 4.1.4
See Notes
- (1) The periodic fees for collective investment schemes reflect the estimated costs to the FSA of considering proposals to change regulated collective investment schemes, maintaining up to date records about them, and related policy work.
- (2) The provision of the Transaction Reporting System facilities for firms reporting transactions under SUP 17 incurs costs to the FSA. These costs depend upon the amount the facility is used. Accordingly the income which the FSA receives from these transactions reporting fees will be set and accounted for separately from the fee-block tariffs, and are set out in FEES 4 Annex 3.
FEES 4.1.5
See Notes
The Society of Lloyd's, which has permission under section 315(2) of the Act (The Society: authorisation and permission), has its own fee block.
FEES 4.1.6
See Notes
The FSA will allocate penalties received for the benefit of relevant fee payers by way of a permitted deduction specified in FEES 4 Annex 2, or in the case of listed issuers, as notified to issuers annually, for the relevant year.
FEES 4.1.7
See Notes
FEES 4.2
Obligation to pay periodic fees
- 01/01/2006
General
FEES 4.2.1
See Notes
A person shown in column (1) of the table in FEES 4.2.11 R as the relevant fee payer must pay each periodic fee applicable to it, calculated in accordance with the provisions referred to in column (2) of that table, as adjusted by any relevant provision in this chapter:
- (1) in full and without deduction (unless permitted or required by a provision in FEES); and
- (2) on or before the date given in column (3) of that table, unless FEES 4.2.10 R applies.
FEES 4.2.2
See Notes
- (1) A relevant fee payer will be required to pay a periodic fee for every year during which they have the status in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, for every year during which it is a regulated collective investment scheme) subject to any reductions or exemptions applicable under this chapter. If a person is the relevant fee payer for more than one status listed in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, the relevant fee payer for more than one regulated collective investment scheme) he will be required to pay a fee in relation to each.
- (2) A recognised body may also have obligations to pay fees to the FSA under other rules arising from legislation other than the Act. For example a recognised body may have an obligation to pay a fee as an approved operator of a relevant system under the Uncertificated Securities Regulations 1995 (SI 1995/3272).
FEES 4.2.3
See Notes
The
FSA
will issue invoices to firms and other fee payers and expects to do so at least 30 days before the dates on which payments fall due under FEES 4.2.1 R.
Method of payment
FEES 4.2.4
See Notes
- (1) Unless (2) applies, a periodic fee must be paid using either direct debit, credit transfer (BACS/CHAPS), cheque, switch or by credit card (Visa/Mastercard only). Any payment by permitted credit card must include an additional 2% of the sum paid.
- (2) The FSA does not specify a method of payment for a recognised body or a designated professional body.
FEES 4.2.5
See Notes
The
FSA
expects a recognised body or a designated professional body will generally pay their respective fees by electronic credit transfer.
- 01/01/2006
Modifications for persons becoming subject to periodic fees during the course of a financial year
FEES 4.2.6
See Notes
- (1) Unless (2) applies, if the event, as described in column 4 of the table in FEES 4.2.11 R, giving rise to, or giving rise to an increase in, the fee payable in FEES 4.2.1 R, occurs on or after 1 July of the relevant financial year, the periodic fee required under FEES 4.2.1 R is modified for:
- (a) firms (other than ICVCs and UCITS qualifiers) in accordance with FEES 4.2.7 R and FEES 4.2.8 R;
- (b) for all other fee payers in column (1) of the table in FEES 4.2.11 R, in accordance with the table below.
| Period in which event (in column 4 of the table in FEES 4.2.11 R) occurs | Proportion of periodic fee payable |
| 1 April to 30 June inclusive | 100% |
| 1 July to 30 September inclusive | 75% |
| 1 October to 31 December inclusive | 50% |
| 1 January to 31 March inclusive | 25% |
- (2) For recognised bodies, if the recognition order is made during the course of the relevant financial year, the periodic fee required is set out in Column (4) of the table in FEES 4.2.11 R.
FEES 4.2.7
See Notes
A firm (other than and ICVC or UCITS qualifier) which becomes authorised, or whose permission is extended, during the course of the financial year must pay a fee which is calculated by:
- (1) identifying each of the tariffs set out in Part 1 of FEES 4 Annex 2R for the relevant financial year that apply to the firm only after the permission is received or extended, but ignoring:
- (a) the A.13 activity group if, before the variation, the A.12 activity group applied to the firm's business; or
- (b) the A.12 activity group if, before the variation, the A.13 activity group applied to the firm's business;
- (2) calculating the amount for each of those tariffs which is the higher of:
- (a) the minimum fee specified for the tariff; and
- (b) the result of applying the tariff to the projected valuation, for its first year (as provided to the FSA in the course of the firm's application), of the business to which the tariff relates (or, where relevant, the number of approved persons immediately after the permission is given);
- (3) adding together the amounts calculated under (2); and
- (4) modifying the result as indicated by the table in FEES 4.2.6 R.
FEES 4.2.7A
See Notes
Projected valuations for a firm's first year will be collected for the 12 month period beginning with the date a firm becomes authorised, or the date permission is extended. That information will be used to calculate the periodic fee for the remainder of the financial year in which the firm was authorised or its permission was extended (adjusted in accordance with FEES 4.2.7 R) and to calculate the periodic fee for the following financial year.
FEES 4.2.8
See Notes
In relation to an incoming EEA firm or an incoming Treaty firm the modification provisions of FEES 4.2.7 R apply only in relation to the relevant regulated activities of the firm, which are passported activities or Treaty activities and which are carried on in the United Kingdom.
Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period
FEES 4.2.9
See Notes
The FSA will not refund periodic fees if, after the start of the period to which they relate:
- (1) a fee payer ceases to have the status set out in column (1) of the table in FEES 4.2.11 R; or
- (2) a firm reduces its permission so that it then falls out of the fee-block previously applied to it,
(but see FEES 2.3 (Relieving Provisions) and FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period)).
Extension of Time
FEES 4.2.10
See Notes
A person need not pay a periodic fee on the date on which it is due under the relevant provision in FEES 4.2.1 R, if:
- (1) that date falls during a period during which circumstances of the sort set out in GEN 1.3.2 R (Emergencies) exist, and that person has reasonable grounds to believe that those circumstances impair its ability to pay the fee, in which case he must pay it on or before the fifth business day after the end of that period; or
- (2) unless FEES 4.3.6R (3) or FEES 4.3.6R (4) (Time and method for payment) applies, that date would otherwise fall on or before the 30th day after the date on which the FSA has sent written notification to that person of the fee payable on that date, in which case he must pay on or before the 30th day after the date on which the FSA sends the notification.
FEES 4.2.11
See Notes
Table of periodic fees
| 1 Fee payer | 2 Fee payable | 3 Due date | 4 Events occurring during the period leading to modified periodic fee | ||
| Any firm (except an ICVC or a UCITS qualifier) | As specified in FEES 4.3.1 R | (1) | Unless (2) applies, on or before the relevant dates specified in FEES 4.3.6 R | Firm receives permission; or Firm extends permission | |
| (2) | If an event specified in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event, or if later the dates specified in FEES 4.3.6 R. | ||||
| Any firm which reports its reportable transactions to the FSA using the FSA's Direct Reporting System or FSA's Transaction Reporting System (see SUP 17) | FEES 4 Annex 3 | (1) | For transaction charges, the first working day of each month | Not applicable | |
| (2) | For licence fees and enrolment charges, by the date set out on the relevant invoice | ||||
| Persons who hold a certificate issued by the FSA under article 54 of the Regulated Activities Order (Advice given in newspapers etc.) | £1,000 | (1) | Unless (2) applies, on or before 30 April | Certificate issued to person by FSA under Article 54 RAO | |
| Any manager of an authorised unit trust; | In relation to each unit trust the amount specified in FEES 4 Annex 4 | (2) | If an event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event | Authorisation order is made in relation to the relevant scheme | |
| Any ACD of an ICVC; and | In relation to each ICVC the amount specified in FEES 4 Annex 4 | ||||
| Persons who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme; | In relation to each recognised scheme the amount specified in FEES 4 Annex 4 | The relevant scheme becomes a recognised collective investment scheme | |||
| Designated professional body | FEES 4 Annex 5 | 1 July or if payment is by instalments, by the due dates set out in FEES 4 Annex 5 | Not applicable | ||
| UK recognised body | FEES 4 Annex 6, part 1 | (1) | Unless (2) applies, by the due dates set out in FEES 4 Annex 6, part 1 | Recognition order is made. Modified periodic fee: | |
| (2) | If the event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event | (1) | for a UK recognised investment exchange, 150,000; | ||
| (2) | for a UK recognised clearing house, 250,000. | ||||
| Overseas recognised body | FEES 4 Annex 6, part 2 | (1) | , unless (2) applies, 1 July. | Recognition order is made. Modified periodic fee: | |
| (2) | If the event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event. | (1) | for an overseas investment exchange, 10,000; | ||
| (2) | for a overseas clearing house, 35,000. | ||||
| Listed issuers (in LR) of shares, depositary receipts and securitised derivatives (in LR). | FEES 4 Annex 7 | Within 30 days of the date of the invoice | Issuer (in LR) becomes subject to listing rules | ||
| Sponsors | 10,000 per year for the period from 1 April to 31 March the following year (see Note) | Within 30 days of the date of the invoice | Approval of sponsor | ||
| All non-listed issuers (in DTR) of shares, depositary receipts and securitised derivatives. | FEES 4 Annex 8 | Within 30 days of the date of the invoice | Non-listed issuer (in DTR) becomes subject to disclosure rules and transparency rules | ||
Note: Sponsors on the list of approved sponsors as at 1 April each year will be liable for the full year's annual fee unless FEES 4.3.13 R applies.
FEES 4.3
Periodic fee payable by firms (other than ICVCs and UCITS qualifiers)
- 01/01/2006
- Future version of FEES 4.3 after 23/07/2013
FEES 4.3.1
See Notes
The periodic fee payable by a firm (except an ICVC or a UCITS qualifier) is:
- (1) each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R, using information obtained in accordance with FEES 4.4; less
- (2) any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2.
FEES 4.3.2
See Notes
- (1) The amount payable by each firm will depend upon the category (or categories) of regulated activities it is engaged in (fee-blocks), and on the amount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in in respect of the FCA and in respect of the PRA FEES 4 Annex 1, while FEES 4 Annex 2 sets out the tariff rates for the relevant financial year.
- (2) Incoming EEA firms, and incoming Treaty firms receive a discount to reflect the reduced scope of the FSA's responsibilities in respect of them. The level of the discount varies from fee-block to fee-block, according to the division of responsibilities between the FSA and Home state regulators for firms in each fee-block (see FEES 4.3.11 G and FEES 4.3.12 R ).
Calculation of periodic fee
FEES 4.3.3
See Notes
The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society) calculated as follows:
- (1) identify each of the tariffs set out in Part 1 of FEES 4 Annex 2 which apply to the business of the firm for the period specified in that annex;
- (2) for each of those tariffs, calculate the sum payable in relation to the business of the firm for that period, applying any minimum fee discount as may be applicable (see FEES 4.3.16 R);
- (3) add together the amounts calculated under (2); and
- (4) apply any applicable payment charge or discount specified in FEES 4.2.4 R, provided that:
Modification for firms with new or extended permissions
FEES 4.3.4
See Notes
- (1) A firm which becomes authorised during the course of a financial year will be required to pay a proportion of the periodic fee which reflects the proportion of the year for which it will have a permission - see FEES 4.2.5 G and FEES 4.2.6 R.
- (2) Similarly a firm which extends its permission so that its business then falls within additional fee blocks will be required to pay a further periodic fee under this section for those additional fee blocks, but discounted to reflect the proportion of the year for which the firm has the extended permission - see FEES 4.2.6 R and FEES 4.2.7 R.
- (3) These provisions apply (with some changes) to incoming EEA firms and incoming Treaty firms.
Amount payable by the Society of Lloyd's
FEES 4.3.5
See Notes
The periodic fee referred to in FEES 4.3.1 R in relation to the Society is specified against its name in FEES 4 Annex 2.
Time of payment
FEES 4.3.6
See Notes
- (1) If the firm's, periodic fee for the previous financial year was at least £50,000, the firm must pay:
- (a) an amount equal to 50% of the periodic fee payable for the previous year, by 30 April in the financial year to which the sum due under FEES 4.2.1 R relates; and
- (b) the balance of the periodic fee due for the current financial year by 1 September in the financial year to which that sum relates.
- (2) If the firm's, periodic fee for the previous financial year was less than £50,000, the firm must pay the periodic fee due in full by 1 August or, if later, within 30 days of the date of the invoice in the financial year to which that sum relates.
- (3) If a firm has applied to cancel its Part IV permission in the way set out in SUP 6.4.5 D (Cancellation of permission), then (1) and (2) do not apply but it must pay the total amount due when the application is made.
- (4) If the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission in the way set out in ENF 5 (Cancellation of Part IV permission on the FSA's own initiative), then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.
Groups of firms
FEES 4.3.7
See Notes
A firm which is a member of a group may pay all of the amounts due from other firms in the same group under FEES 4.2.1 R, if:
- (1) it notifies the FSA in writing of the name of each other firm within the group for which it will pay; and
- (2) it pays the fees, in accordance with this chapter, as a single amount as if that were the amount required from the firm under FEES 4.2.1 R.
FEES 4.3.8
See Notes
A notification under FEES 4.3.7R (1) should be made in accordance with SUP 15.7 (Form and method of notification).
FEES 4.3.9
See Notes
If the payment made does not satisfy in full the periodic fees payable by all of the members of the group notified to the FSA under FEES 4.3.7 R, the FSA will apply the sum received among the firms which have been identified in the notification given under FEES 4.3.7R (1) in proportion to the amounts due from them. Each firm will remain responsible for the payment of the outstanding balance attributable to it.
FEES 4.3.10
See Notes
If a firm pays its fees through an agent outside the scope of FEES 4.3.7 R, the firm is responsible for ensuring that the
FSA
is informed that the sum being paid is for that firm's periodic fees.
Incoming EEA firms and incoming Treaty firms
FEES 4.3.11
See Notes
The FSA recognises that its responsibilities in respect of an incoming EEA firm or of an incoming Treaty firm are reduced compared with a firm which is incorporated in the United Kingdom. Accordingly the periodic fees which would otherwise be applicable to incoming EEA firms and incoming Treaty firms are reduced.
FEES 4.3.12
See Notes
For an incoming EEA firm or an incoming Treaty firm, the calculation required by FEES 4.3.3 R is modified as follows:
- (1) the tariffs set out in Part 1 of FEES 4 Annex 2 are applied only to the regulated activities of the firm which are carried on in the United Kingdom; and
- (2) those tariffs are modified in accordance with Part 3 of and, if applicable, Part 3 of FEES 4 Annex 2.
Firms Applying to Cancel or Vary Permission Before Start of Period
FEES 4.3.13
See Notes
- (1) If:
- (a) a firm makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 6.3.15 D (3) (Variation of permission) and SUP 6.4.5 D (Cancellation of permission); an issuer makes an application for de-listing; or a sponsor notifies FSA of its intention to be removed from the list of approved sponsors; and
- (b) the firm, issuer or sponsor makes the application or notification referred to in (a) before the start of the period to which the fee relates;
- FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission, de-listing or removal from the list of approved sponsors, took effect immediately before the start of the period to which the fee relates.
- (2) But (1) does not apply if, due to the continuing nature of the business, the variation, cancellation, de-listing or removal is not to take effect within three months of the start of the period to which the fee relates.
FEES 4.3.14
See Notes
Where a firm has applied to cancel its Part IV permission, or the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission, the due dates for payment of periodic fees are modified by FEES 4.3.6R (3) and FEES 4.3.6R (4) respectively.
Firms acquiring businesses from other firms
FEES 4.3.15
See Notes
- (1) This rule applies if a firm (A) acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise, in relation to which a periodic fee would have been payable by B.
- (2) If, before the date on which A acquires the business, B had paid any periodic fee payable for the period in which the acquisition occurred, FEES 4.2.6 R to FEES 4.2.7 R do not apply to A in relation to the business acquired from B.
- (3) If the acquisition occurs after the valuation date applicable to the business (as set out in FEES 4 Annex 1) which A acquired from B, for the period following that in which the acquisition occurred, FEES 4.2.1 R applies to A, in relation to that following period, as if the acquisition had occurred immediately before the relevant valuation date.
Minimum fee discount
FEES 4.3.16
See Notes
- (1) A firm (other than a firm in (2) or a credit union) in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block in which it is a minimum fee payer. [deleted]
- (2) A firm (other than a credit union) liable to pay only minimum fees in each fee block it is in must pay 100% of the highest total minimum fee payable within any one fee block and must pay at least 50% of the total minimum fee payable in any other fee blocks in which it is a minimum fee payer. [deleted]
- (3) A credit union in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block, other than fee block A.1, in which they are a minimum fee payer. [deleted]
FEES 4.4
Information on which Fees are calculated
- 01/01/2006
FEES 4.4.1
See Notes
A firm (other than the Society) must notify to the
FSA the value (as at the valuation date specified in Part 3 of FEES 4 Annex 1) of each element of business on which the periodic fee payable by the firm is to be calculated.
FEES 4.4.2
See Notes
A firm (other than the Society) must send to the
FSA
in writing the information required under FEES 4.4.1 R as soon as reasonably practicable, and in any event within two months, after the date specified as the valuation date in Part 3 of FEES 4 Annex 1.
FEES 4.4.3
See Notes
FEES 4.4.4
See Notes
In most cases a firm will provide the information required by this section as part of its compliance with the provisions of SUP. To the extent that the
FSA
does not obtain sufficient, or sufficiently detailed, information it may seek this by using its general information gathering powers (see SUP 2 (Information gathering by the
FSA
on its own initiative)).
FEES 4.4.5
See Notes
For an incoming EEA firm or an incoming Treaty firm, the information required under FEES 4.4 is limited to the regulated activities of the firm which are carried on in the United Kingdom.
FEES 4 Annex 1
Activity groups, tariff bases and valuation dates applicable
- 01/01/2006
See Notes
| Part 1 This table shows how the regulated activities for which a firm has permission are linked to activity groups (fee-blocks). A firm can use the table to identify which fee-blocks it falls into based on its permission. |
| Activity group | Fee payer falls in the activity group if |
| A.1 Deposit acceptors | its permission includes accepting deposits or issuing e-money; BUT DOES NOT include either of the following: effecting contracts of insurance; carrying out contracts of insurance. |
| A.2 Mortgage lenders and administrators | its permission includes one or more of the following: entering into a regulated mortgage contract; or administering a regulated mortgage contract; or agreeing to carry on a regulated activity which is within either of the above. |
| A.3 Insurers - general | its permission includes one or more of the following: effecting contracts of insurance; carrying out contracts of insurance; in respect of specified investments that are: - general insurance contracts; or - long-term insurance contracts other than life policies. |
| A.4 Insurers - life | its permission includes one or more of the following: effecting contracts of insurance; carrying out contracts of insurance; in respect of specified investments including life policies; entering as provider into a funeral plan contract. |
| A.5 Managing agents at Lloyd's | its permission includes managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's. |
| A.6 The Society of Lloyd's | it is the Society of Lloyd's. |
| Note for authorised professional firms: Generally, for fee-blocks A.7 to A.19 below, only those regulated activities that are not limited to non-mainstream regulated activities should be taken into account in determining which fee-block(s) fee-payers belong to for the purpose of charging periodic fees. However, in the case that all the regulated activity within a firm permission are limited to non-mainstream regulated activities, then that firm's will be allocated to fee-block A.13 alone. This does not prevent a fee being payable by an authorised professional firm under FEES 3.2.7 R (p) where it applies to vary its Part IV permission such that it would normally be allocated to fee-block(s) other than A.13 if the variation was granted. |
|
| A.7 Fund managers | (1) its permission includes managing investments; OR (2) its permission includes ONLY either one or both of: safeguarding and administering of investments (without arranging); and arranging safeguarding and administration of assets; OR (3) the firm is a venture capital firm. Class (1) firms are subdivided into three classes: - class (1)A, where the funds managed by the firm belong to one or more occupational pension schemes; - class (1)B, where: (a) the firm is not a class (1)A firm; and (b) the firm's permission includes NEITHER of the following: safeguarding and administering investments (without arranging); arranging safeguarding and administration of assets; and (c) the firm EITHER: has a requirement that prohibits the firm from holding or controlling client money, or both; OR if it does not have such a requirement, only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client; and - class (1)C, where the firm is not within class (1)A or class (1)B. |
| A.8 | Not applicable. |
| A.9 Operators, Trustees and Depositaries of collective investment schemes and Operators of personal pension schemes or stakeholder pension schemes | (1) its permission: (a) includes one or more of the following: establishing, operating or winding up a regulated collective investment scheme; establishing, operating or winding up an unregulated collective investment scheme; acting as trustee of an authorised unit trust scheme; acting as the depositary or sole director of an open-ended investment company; establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme (but only if the firm does not fall within activity group A1 or A4); AND (b) PROVIDED the firm is NOT one of the following: a corporate finance advisory firm; a firm in which the above activities are limited to carrying out corporate finance business; a venture capital firm; OR (2) if the fee-payer has none of the regulated activities above within its permission, but ALL the remaining regulated activities in its permission are limited to carrying out trustee activities. |
| A.10 Firms dealing as principal | its permission includes dealing in investments as principal; BUT NOT if one or more of the following apply: the firm is acting exclusively as a matched principal broker; the above activity is limited either to acting as an operator of a collective investment scheme, establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme, or to carrying out trustee activities; the firm is a corporate finance advisory firm; the above activity is otherwise limited to carrying out corporate finance business; the firm is subject to a limitation to the effect that the firm, in carrying on this regulated activity, is limited to entering into transactions in a manner which, if the firm was an unauthorised person, would come within article 16 of the Regulated Activities Order (Dealing in contractually based investments); the above activity is limited to not acting as a market maker; the firm is an oil market participant, energy market participant or a local; its permission includes either: - effecting contracts of insurance; or - carrying out contracts of insurance. |
| A.11 | Not applicable. |
| A.12 Advisory arrangers, dealers or brokers (holding or controlling client money or assets, or both) | its permission: (a) includes one or more of the following, in relation to one or more designated investments: dealing in investments as agent; arranging (bringing about) deals in investments; making arrangements with a view to transactions in investments; dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local; advising on investments (except pension transfers and pension opt-outs); providing basic advice on a stakeholder product giving basic advice on a stakeholder product; advising on pension transfers and pension opt-outs; advising on syndicate participation at Lloyd's; (b) BUT NONE of the following: effecting contracts of insurance; or carrying out contracts of insurance; AND (c) CAN HAVE one or more of the following: safeguarding and administering of assets; arranging safeguarding and administration of assets; the ability to hold or control client money, or both: - that is, there is no requirement which prohibits the firm from doing this; and - provided that the client money in question does not only arise from an agreement under which commission is rebated to a client; AND (d) PROVIDED the fee-payer is NOT any of the following: a corporate finance advisory firm; a firm for whom all of the applicable activities above are otherwise limited to carrying out corporate finance business; a firm whose activities are limited to carrying out venture capital business; a firm whose activities are limited to acting as an operator of a regulated collective investment scheme; a firm whose activities are limited to carrying out trustee activities; a service company. |
| A.13 Advisory arrangers, dealers or brokers (not holding or controlling client money or assets, or both) | (1) it is an authorised professional firm and ALL the regulated activities in its permission are limited to non-mainstream regulated activities; OR (2) its permission: (a) includes one or more of the following, in relation to one or more designated investments: dealing in investments as agent; arranging (bringing about) deals in investments; making arrangements with a view to transactions in investments; dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local; advising on investments (except pension transfers and pension opt-outs); providing basic advice on a stakeholder product; advising on pension transfers and pension opt-outs; advising on syndicate participation at Lloyd's; (b) BUT NONE of the following: effecting contracts of insurance; carrying out contracts of insurance; safeguarding and administration of assets; arranging safeguarding and administration of assets; AND (c) MUST EITHER, in connection with its designated investment business: have a requirement that prohibits the firm from holding or controlling client money, or both; OR if it does not have such a requirement, only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client; AND (d) PROVIDED the fee-payer is NOT any of the following: a corporate finance advisory firm; a firm for whom all of the applicable activities above are otherwise limited to carrying out corporate finance business; a firm whose activities are limited to carrying out venture capital business; a firm whose activities are limited to acting as an operator of a regulated collective investment scheme; a firm whose activities are limited to carrying out trustee activities; a service company. |
| A.14 Corporate finance advisers | the firm is carrying on corporate finance business PROVIDED the fee-payer is NOT a venture capital firm. |
| A.15 | Not applicable. |
| A.16 Pensions review levy firms | it was liable to pay the Pensions Levy to PIA in 2001/2002. |
| A.17 | Not applicable. |
| A.18 Mortgage lenders, advisers and arrangers | its permission includes one or more of the following: entering into a regulated mortgage contract; or arranging (bringing about) regulated mortgage contracts; or making arrangements with a view to regulated mortgage contracts; or advising on regulated mortgage contracts; or agreeing to carry on a regulated activity which is within any of the above. |
| A.19 General insurance mediation | its permission includes one or more of the following in relation to a non-investment insurance contract: dealing in investments as agent; or arranging (bringing about) deals in investments; or making arrangements with a view to transactions in investments; or assisting in the administration and performance of a contract of insurance; or advising on investments; or agreeing to carry on a regulated activity which is within any of the above. |
| B. Market operators | Firms that have been prescribed as an operator of a prescribed market under the Financial Services and Markets Act 2000 (Prescribed Markets and Qualifying Investments) Order 2001 (SI 2001/996). |
| B. Service companies | it is a service company. |
| Part 2 This table indicates the tariff base for each fee-block. The tariff base is the means by which we measure the 'amount of business' conducted by a firm. Note that where the tariff base is the number of approved persons it may be that a particular firm has permission for relevant activities as described in Part 1 but the type of activity that the firm undertakes is not one requiring a person to be approved to undertake a relevant customer function (for example firms only giving basic advice on stakeholder products). In these circumstances, the firm will be required to pay a minimum fee only (see FEES 4 Annex 2 Part 1). |
| Activity group | Tariff-base |
| A.1 | MODIFIED ELIGIBLE LIABILITIES For banks: Part 1: Liabilities In sterling: 2 + 3 + 4 + 5A + 5B + 6B + 6C + 6D + 6E + 6F + 6G + 6H + 6J + 7B + 7C + 7D + 7E + 7F + 7G + 7H + 7J + 8 + 10 + 60% of 11A + 44 plus In foreign currency, one-third of: E2 + E3 + E4 + E5A + E5B + E6B + E6C + E6D + E6E + E6F + E6G + E6H + E6J + E7B + E7C + E7D + E7E + E7F + E7G + E7H + E7J + E8 + E10 + 60% of E11A + E44 + C2 + C3 + C4 + C5A + C5B + C6B + C6C + C6D + C6E + C6F + C6G + C6H + C6J + C7B + C7C + C7D + C7E + C7F + C7G + C7H + C7J + C8 + C10 + 60% of C11A: less Assets In sterling: 21B + 60% of 22A + 23D + 23E + 23F + 30A + 30B + 31A + 31B + 32AA plus In foreign currency, one-third of: E21B + 60% of E22A + E23D + E23E + E23F + E30A + E30B + E31A + E31B + E32AA + C21B + 60% of C22A + C23D + C23E + C23F + C30A + C30B + C31A + C31B + C32AA |
| Part 2: Non-resident office offset The fee base is adjusted by deducting from the amount calculated in accordance with part 1 above, the Non-Resident Office Offset amount obtained by subtracting item 45D from item 45BAin the Form BT. The Non-Resident Office Offset amount, if it would otherwise have been a negative number, is zero. Notes: (1) All references in the above formula are to entries on Form BT (that is, the Balance Sheet Form completed to provide information required following the Banking Statistics Review 1997 and returned by banks to the Bank of England as required by the Bank of England Act 1998). (2) E refers to assets and liabilities denominated in euro (as referred to in column 2 of Form BT) and C refers to assets and liabilities denominated in currencies other than sterling and euro (as referred to in column 3 of Form BT). In accordance with Form BT, assets and liabilities in currencies other than sterling are to be recorded in sterling. (3) The figures reported on the Form BT relate to business conducted out of offices in the United Kingdom. |
|
| For e-money issuers: Outstanding balance of e-money liabilities For credit unions: Deposits with the credit union (share capital) |
|
| LESS the credit union's bank deposits (investments + cash at bank) Note: Only United Kingdom business is relevant for calculating credit unions' MELs. |
|
| For building societies: deposit liabilities (including debt securities up to five years original maturity) (that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B1.1+B1.2+B2.0a+B2.0b+B2.10+B2.13+B2.14+B2.15+B2.16) LESS amounts in respect of: sterling repo liabilities with the Bank of England (that is, ONLY the amounts in sterling (in column 5) for item B2.5a) balances held with the Bank of England (excluding cash ratio deposits) (that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for item B6.2a, less the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for item OW1.1) market loans to banks, building societies (balances with and loans to, plus CDs, Commercial paper) (that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B6.3.a+B6.4.a+B6.4b+B6.5a+B6.5b+B6.12a) investments with banks and building societies (bonds, notes and other debt instruments up to five years original maturity) (that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B6.6a1+B6.6a2+B6.10a1+B6.10a2) |
|
| Note: All references in the definition for building society MELs are to entries in the MFS1 which is submitted monthly by all building societies to the FSA. |
|
| A.2 | NUMBER OF MORTGAGES ENTERED INTO AND ADMINISTERED The number of new mortgage contracts entered into; AND The number of mortgage contracts being administered, multiplied by 0.05 for mortgage outsourcing firms and by 0.5 for all other firms. Notes: (1) Mortgage outsourcing firms are firms with permission for administering regulated mortgage contracts, but not to enter the contract as lender. (2) In this context a 'mortgage' means a loan secured by a first charge over residential property in the United Kingdom. For the measure of the number of contracts being administered, each first charge counts as one contract, irrespective of the number of loans involved. (3) Mortgages administered include those that the firm administers on behalf of other firms. |
| A.3 | GROSS PREMIUM INCOME AND GROSS TECHNICAL LIABILITIES For insurers: The amount of premium receivable which must be included in the documents required to be deposited under IPRU(INS) 9.6 in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP; |
| less, premiums relating to pension fund management business where the firm owns the investments and there is no transfer of risk; | |
| AND the amount of gross technical liabilities (IPRU(INS) Appendix 9.1 - Form 15, line 19) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP; less, the amount of gross technical liabilities relating to pension fund management business where the firm owns the investments and there is no transfer of risk. |
|
| Notes: (1) in the case of either: (a) a pure reinsurer carrying on general insurance business through a branch in the United Kingdom; or (b) an insurer whose head office is not in an EEA State carrying on general insurance business through a branch in the United Kingdom; or (c) a non-EEA insurer other than a Swiss general insurer which has permission to carry on direct insurance business and which has made a deposit in an EEA state other than the United Kingdom in accordance with IPRU(INS) 8.1(2), the amount only includes premiums received and gross technical liabilities held in respect of its United Kingdom business; (2) for a Swiss general insurance company, premiums and gross technical liabilities include those relevant to the operations of the company's United Kingdom branch; and (3) a firm need not include premiums and gross technical liabilities relating to pure protection contracts which it reports, and pays a fee on, in the A.4 activity group. |
|
| For friendly societies: Either: (a) the value of contributions as income under Schedule 7: Part I item 1(a) to the Friendly Societies (Accounts and Related Provisions) Regulations 1994 (SI 1994/1983) (the regulations) for a non-directive friendly society, included within the income and expenditure account; or (b) the value of gross premiums written under Schedule 1: Part I items I.1(a) and II.1.(a) of the regulations for a directive friendly society included within the income and expenditure account. |
|
| Notes: (1) In both (a) and (b) above only premium receivable in respect of United Kingdom business are relevant. (2) For UK ISPVs the tariff base is not relevant and a flat fee set out in FEES 4 Annex 2R is payable. |
|
| A.4 | ADJUSTED GROSS PREMIUM INCOME AND MATHEMATICAL RESERVES Except for UK ISPVs: Amount of new regular premium business (yearly premiums including reassurances ceded but excluding cancellations and reassurances accepted), times ten; Plus amounts of new single premium business (total including reassurances ceded but excluding cancellations and reassurances accepted). Group protection business (life and private health insurance) must be included; Less premiums relating to pension fund management business where the firm owns the investments and there is no transfer of risk. For each of the above, business transacted through independent practitioners or tied agents (either single or multi-tie) will be divided by two in calculating the adjusted gross premium income; |
| AND the amount of mathematical reserves (IPRU(INS) Appendix 9.1R - Form 14, Line 11) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP; Less mathematical reserves relating to pension fund management business where the firm owns the investment and there is no transfer of risk. Notes: (1) [deleted] (2) Only premiums receivable and mathematical reserves held in respect of United Kingdom business are relevant. (3) For UK ISPVs the tariff base is not relevant and a flat fee set out in FEES 4 Annex 2 is payable. |
|
| A.5 | ACTIVE CAPACITY The capacity of the syndicate(s) under management in the year in question. This includes the capacity for syndicate(s) that are not writing new business, but have not been closed off in the year in question. |
| A.6 | Not applicable. |
| A.7 | FUNDS UNDER MANAGEMENT (FuM) The total value, in pounds sterling, of all assets (see note (a) below) in portfolios which the firm manages, on a discretionary basis (see note (b) below), in accordance with its terms of business, less: (a) funds covered by the exclusion contained in article 38 (Attorneys) of the Regulated Activities Order; (b) funds covered by the exclusion contained in article 66(3) (Trustees, nominees and personal representatives) of the Regulated Activities Order; (c) funds covered by the exclusion contained in article 68(6) (Sale of goods or supply of services) of the Regulated Activities Order; (d) funds covered by the exclusion contained in article 69(5) (Groups and joint enterprises) of the Regulated Activities Order; and (e) the value of those parts of the managed portfolios in respect of which the responsibility for the discretionary management has been formally delegated to another firm (and which firm will include the value of the assets in question in its own FuM total); any such deduction should identify the firm to which management responsibility has been delegated. |
| Notes on FuM (a) For the purposes of calculating the value of funds under management, assets means all assets that consist of or include any investment which is a designated investment or those assets in respect of which the arrangements for their management are such that the assets may consist of or include such investments, and either the assets have at any time since 29 April 1988 done so or the arrangements have at any time (whether before or after that date) been held out as arrangements under which the assets would do so. (b) Assets managed on a non-discretionary basis, being assets that the firm has a contractual duty to keep under continuous review but in respect of which prior specific consent of the client must be obtained for proposed transactions, are NOT included as this activity is covered in those charged to fees in activity groups A.12 and A.13. (c) In respect of collective investment schemes, assets means the total value of the assets of the scheme. (d) For an OPS firm, the FuM should also be reduced by the value of the assets held as a result of a decision taken in accordance with article 4(6) of The Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001 (investments in collective investment scheme or bodies corporate which have as their primary purpose the acquisition, directly, or indirectly, of relevant investments, as defined in that article). (e) Only assets that are managed from an establishment maintained by the firm in the United Kingdom are relevant. |
|
| A.8 | Not applicable. |
| A.9 | GROSS INCOME For operators (including ACDs and managers of unit trusts but excluding operators of a personal pension scheme or a stakeholder pension scheme): gross income from the activity relating to fee-block A.9 is defined as: the amount of the annual charge on funds invested in regulated or unregulated collective investment scheme received or receivable in the latest accounting period (this is calculated as a % of funds invested, typically 1% p.a.); PLUS the front-end or exit charge levied on sales or redemptions of collective investment schemes (typically 4-5% of sales/redemptions) in that same accounting period; |
| PLUS any additional initial or management charges levied through a product wrapper such as a PEP or an ISA; BUT EXCLUDING box management profits. For depositaries (including trustees of collective investment schemes and ICVC depositaries): The amount of the annual charge levied on funds in regulated collective investment schemes for which they act as depositary (typically a % of the total funds for which they act as depositary). For operators of a personal pension scheme or a stakeholder pension scheme: The amount of the charges levied on the personal pension scheme or stakeholder pension scheme for which they act as operator: including up-front charges, fund related charges, transaction related charges and periodic charges; but excluding charges made to an investor in respect of third party suppliers; for example, charges for stock broking, borrowing, banking services and charges for arranging third party legal services, surveys or environmental screening in connection with property. Note: Only the gross income corresponding to United Kingdom business is relevant. |
|
| A.10 | NUMBER OF TRADERS Any employee or agent, who: ordinarily acts within the United Kingdom on behalf of an authorised person liable to pay fees to the FSA in its fee-block A.10 (firms dealing as principal); and who, as part of their duties in relation to those activities of the authorised person, commits the firm in market dealings or in transactions in securities or in other specified investments in the course of regulated activities. |
| A.11 | Not applicable. |
| A.12 | APPROVED PERSONS The number of persons approved to undertake one, or more, of the following customer function: CF21 Investment adviser function; CF22 Investment adviser (trainee) function; CF24 Pension transfer specialist function; CF25 Adviser on syndicate participation at Lloyd's function; or CF26 Customer trading function. |
| A.13 | APPROVED PERSONS The number of persons approved to undertake one, or more, of the following customer function: CF21 Investment adviser function; CF22 Investment adviser (trainee) function; CF24 Pension transfer specialist function; CF25 Adviser on syndicate participation at Lloyd's function; or CF26 Customer trading function. |
| A.14 | APPROVED PERSONS The number of persons approved to undertake the following controlled function: CF23 Corporate finance adviser function. |
| A.15 | Not applicable. |
| A.16 | Percentage share of the amount paid towards PIA's 2001/2002 pensions review levy by fee-payers in fee-block A.16. |
| A.17 | Not applicable. |
| A.18 | ANNUAL INCOME (a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (eg administration charges, overriders, profit shares) due to the firm in respect of or in relation to mortgage mediation activity (or activities which would have been mortgage mediation activity if they had been carried out after 30 October 2004); Plus (b) for any mortgage mediation activity carried out by the firm for which it receives payment from the lender on a basis other than that in (a), the value of all new mortgage advances resulting from that activity multiplied by 0.004; Plus (c) if the firm is a mortgage lender, the value of all new mortgage advances which are or would be regulated mortgage contracts if they had been made after 30 October 2004 (other than those made as a result of mortgage mediation activity by another firm), multiplied by 0.004. For mortgage outsourcing firms whose permission does not include advising on regulated mortgage contracts the relevant amounts are multiplied by 0.15. Notes on annual income: (1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form. (2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of mortgage mediation activity that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (eg employees' salaries, overheads) should not be deducted. (3) The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation. (4) Reference to a "firm" above also includes reference to any person who carried out activities which would be mortgage mediation activity if they had been carried out after 30 October 2004. (5) Mortgage outsourcing firms are firms whose permission includes administering regulated mortgage contracts, but not entering into a regulated mortgage contract. |
| A.19 | ANNUAL INCOME (a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (eg administration charges, overriders, profit shares) due to the firm in respect of or in relation to insurance mediation activity (or activities which would have been insurance mediation activity if they had been carried out after 13 January 2005) in relation to general insurance contracts or pure protection contracts; Plus (b) in relation to the activities set out in (a), for any insurance mediation activity carried out by the firm for which it receives payment from the insurer on a basis other than that in (a), the amount of premiums receivable on the contracts of insurance resulting from that activity multiplied by 0.07; Plus (c) if the firm is an insurer, in relation to the activities set out in (a), the amount of premiums receivable on its contracts of insurance multiplied by 0.07, excluding those contracts of insurance which: (i) result from insurance mediation activity by another firm, where a payment has been made by the insurer to the firm under (a); or (ii) the insurer reports in, and pays a fee under, the A.4 activity group; or (iii) are not general insurance contracts or pure protection contracts. Notes on annual income: (1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form. (2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of insurance mediation activity that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (eg employees' salaries, overheads) should not be deducted. (3) The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation. (4) Reference to a "firm" above also includes reference to any person who carried out activities which would be insurance mediation activity (in respect of general insurance contracts or pure protection contracts) if they had been carried out after 13 January 2005. |
| B. Market operators | Not applicable. |
| B. Service companies | Not applicable. |
| Part 3 | This table indicates the valuation date for each fee-block. A firm can calculate its tariff data by applying the tariff bases set out in Part 2 with reference to the valuation dates shown in this table. |
| Activity group | Valuation date |
| IN THIS TABLE, REFERENCES TO SPECIFIC DATES OR MONTHS ARE REFERENCES TO THE LATEST ONE OCCURRING BEFORE THE START OF THE PERIOD TO WHICH THE FEE APPLIES, UNLESS OTHERWISE SPECIFIED - E.G. FOR 2004/05 FEES (1 APRIL 2004 TO 31 MARCH 2005), A REFERENCE TO DECEMBER MEANS DECEMBER 2003. | |
| Where a firm's tariff data is in a currency other than sterling, it should be converted into sterling at the exchange rate prevailing on the relevant valuation date. | |
| A.1 | For banks: Modified eligible liabilities (MELs), valued at: for a firm which reports monthly, the average of the MELs for October, November and December; for a firm which reports quarterly, the MELs for December. For e-money issuer: MELs, valued at the end of the financial year ended in the calendar year ending 31 December. For credit unions: MELs, valued at December or as disclosed by the most recent annual return made prior to that date. For building societies: MELs, valued at the average of the MELs for October, November and December. |
| A.2 | Number of mortgages entered into in the twelve months ending 31 December. AND Number of mortgages being administered on 31 December. |
| A.3 | Annual gross premium income (GPI), for the financial year ended in the calendar year ending 31 December. AND Gross technical liabilities (GTL) valued at the end of the financial year ended in the calendar year ending 31 December. |
| A.4 | Adjusted annual gross premium income (AGPI) for the financial year ended in the calendar year ending 31 December. AND Mathematical reserves (MR) valued at the end of the financial year ended in the calendar year ending 31 December. |
| A.5 | Active capacity (AC), in respect of the Underwriting Year (as reported to the Society of Lloyd's) which is current at the beginning of the period to which the fee relates. [Note: this is the Underwriting Year which is already in progress at the start of the fee period - e.g. for 2004/05 fees, the fee period will begin on 1 April 2004, which is in the 2004 Underwriting Year, so the AC for that Underwriting Year is the relevant measure.] |
| A.6 | Not applicable. |
| A.7 | Funds under management (FuM), valued at 31 December. |
| A.8 | Not applicable. |
| A.9 | Annual gross income (GI), valued at the most recent financial year ended before 31 December. |
| A.10 | Number of traders as at 31 December. |
| A.11 | Not applicable. |
| A.12 | Relevant approved persons as at 31 December. |
| A.13 | Relevant approved persons as at 31 December. |
| A.14 | Relevant approved persons as at 31 December. |
| A.15 | Not applicable. |
| A.16 | Not applicable. |
| A.17 | Not applicable. |
| A.18 | Annual income (AI) for the financial year ended in the calendar year ending 31 December. |
| A.19 | Annual income (AI) for the financial year ended in the calendar year ending 31 December. |
| B. Market operators | Not applicable. |
| B. Service companies | Not applicable. |
FEES 4 Annex 2
Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2007 to 31 March 2008
See Notes
| Part 1 | ||
| This table shows the tariff rates applicable to each fee block | ||
| (1) | For each activity group specified in the table below, the fee is the total of the sums payable for each of the tariff bands applicable to the firm's business, calculated as follows: | |
| (a) | the relevant minimum fee; plus | |
| (b) | an additional fee calculated by multiplying the firm's tariff base by the appropriate rates applying to each tranche of the tariff base, as indicated. | |
| (2) | A firm may apply the relevant tariff bases and rates to non-UK business, as well as to its UK business, if: | |
| (a) | it has reasonable grounds for believing that the costs of identifying the firm's UK business separately from its non-UK business in the way described in Part 2 of FEES 4 Annex 1 are disproportionate to the difference in fees payable; and | |
| (b) | it notifies the FSA in writing at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated), or, if earlier, at the time it pays the fees concerned. | |
| (3) | For a firm which has not complied with FEES 4.4.2 R (Information on which fees are calculated) for this period: | |
| (a) | the fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10; | |
| (b) | an additional administrative fee of 250 is payable; and | |
| (c) | the minimum total fee (including the administrative fee in (b)) is 400. | |
| Activity group | Fee payable | |
| A.1 | Minimum fee () | 150 |
| million of Modified Eligible Liabilities (MELs) | Fee (/m or part m of MELS) | |
| 0 - 0.5 | 0 | |
| >0.5 - 2 | additional flat fee of 360 | |
| >2 -10 | additional flat fee of 510 | |
| >10 - 200 | 30.96 | |
| >200 - 2,000 | 30.93 | |
| >2,000 - 10,000 | 30.88 | |
| >10,000 - 20,000 | 30.76 | |
| >20,000 | 30.52 | |
| For a firm in A.1 which has a limitation on its permission to the effect that it may accept deposits from wholesale depositors only, the fee is calculated as above less 30%. | ||
| Minimum fee (m of MELs) | Fee () | |
| if 0 - 2,000 | 0 | |
| if >2,000 | 2,000 | |
| million of MELs | Fee (/m or part m of MELs) | |
| 0 - 5,000 | 0 | |
| >5,000 - 10,000 | 0.69 | |
| >10,000 - 20,000 | 0.63 | |
| >20,000 | 0.59 | |
| A.2 | Minimum fee () | 450 |
| No. of mortgages | Fee (/mortgage) | |
| 0 - 50 | 0 | |
| 51 - 500 | 4.36 | |
| 501 - 1,000 | 1.75 | |
| 1,001 - 50,000 | 1.32 | |
| 50,001 - 500,000 | 0.44 | |
| >500,000 | 0.09 | |
| A.3 | Gross premium income (GPI) | |
| Minimum fee () | 410 | |
| million of GPI | Fee (/m or part m of GPI) | |
| 0 - 0.5 | 0 | |
| >0.5 - 2 | 1,778.54 | |
| >2 - 5 | 1,652.58 | |
| >5 - 20 | 1,550.19 | |
| >20 - 75 | 493.49 | |
| >75 - 150 | 432.61 | |
| >150 | 60.98 | |
| PLUS | ||
| Gross technical liabilities (GTL) | ||
| Minimum fee () | 0 | |
| million of GTL | Fee (/m or part m of GTL) | |
| 0 - 1 | 0 | |
| >1 - 5 | 43.55 | |
| >5 - 50 | 40.36 | |
| >50 - 100 | 37.46 | |
| >100 - 1,000 | 11.80 | |
| >1,000 | 4.73 | |
| For UK ISPVs the tariff rates are not relevant and a flat fee of 400 is payable in respect of the period 1 January 2007 to 31 March 2007 to be invoiced with the fee for the financial period 2007/8. | ||
| A.4 | Adjusted annual gross premium income (AGPI) | |
| Minimum fee () | 205 | |
| million of AGPI | Fee (/m or part m of AGPI) | |
| 0 - 1 | 0 | |
| >1 - 50 | 756.42 | |
| >50 - 1,000 | 705.19 | |
| >1,000 - 2,000 | 484.07 | |
| >2,000 | 332.35 | |
| PLUS | ||
| Mathematical reserves (MR) | ||
| Minimum fee () | 205 | |
| million of MR | Fee (/m or part m of MR) | |
| 0 - 1 | 0 | |
| >1 - 10 | 37.70 | |
| >10 - 100 | 34.51 | |
| >100 -1,000 | 23.37 | |
| >1,000 - 5,000 | 16.43 | |
| >5,000 - 15,000 | 12.78 | |
| >15,000 | 9.93 | |
| For UK ISPVs the tariff rates are not relevant and a flat fee of 400 is payable in respect of the period 1 January 2007 to 31 March 2007 to be invoiced with the fee for the financial period 2007/8. | ||
| A.5 | Minimum fee () | 550 |
| million of Active Capacity (AC) | Fee (/m or part m of AC) | |
| 0 - 50 | 0 | |
| >50 - 150 | 99.36 | |
| >150 - 250 | 83.62 | |
| >250 | 24.53 | |
| A.6 | 1,068,000 | |
| A.7 | For class 1(C), (2) and (3) firms: | |
| Minimum fee () | 1,150 | |
| million of Funds under Management (FuM) | Fee (/m or part m of FuM) | |
| 0 - 10 | 0 | |
| >10 - 100 | 52.68 | |
| >100 - 2,500 | 16.94 | |
| >2,500 - 10,000 | 9.43 | |
| >10,000 | 1.06 | |
| For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%. For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%. |
||
| A.8 | This activity group does not apply for this period. | |
| A.9 | Minimum fee () | 1,800 |
| million of Gross Income (GI) | Fee (/m or part m of GI) | |
| 0 - 1 | 0 | |
| >1 - 5 | 1,074.59 | |
| >5 - 15 | 1,056.41 | |
| >15 - 40 | 1,045.94 | |
| >40 | 1,031.68 | |
| A.10 | Minimum fee () | 2,200 |
| No. of traders | Fee (/trader) | |
| 0 - 2 | 0 | |
| 3 - 5 | 2,069 | |
| 6 - 10 | 1,495 | |
| 11 - 50 | 1,382 | |
| 51 - 200 | 1,196 | |
| >200 | 965 | |
| In addition, the fee specified below is payable by UK domestic firms. The permitted deductions in Part 2 of FEES 4 Annex 2 do not apply to this fee. | ||
| Minimum fee (No. of traders) | Fee () | |
| if 0 - 100 | 0 | |
| if >100 | 1,000 | |
| No. of traders | Fee (/trader) | |
| 0 -125 | 0 | |
| 126 - 250 | 72.71 | |
| >250 | 52.84 | |
| A.11 | This activity group does not apply for this period. | |
| A.12 | Minimum fee () | 1,715 |
| No. of persons | Fee (/person) | |
| 0 - 1 | 0 | |
| 2 - 4 | 1,018 | |
| 5 - 10 | 515 | |
| 11 - 25 | 377 | |
| 26 - 150 | 205 | |
| 151 - 1,500 | 156 | |
| >1,500 | 104 | |
| For a professional firm in A.12 the fee is calculated as above less 10%. | ||
| A.13 | For class (2) firms: | |
| Minimum fee () | 1,605 | |
| No. of persons | Fee (/person) | |
| 0 - 1 | 0 | |
| 2 - 4 | 878 | |
| 5 - 10 | 856 | |
| 11 - 25 | 821 | |
| 26 - 500 | 757 | |
| 501 - 4,000 | 696 | |
| >4000 | 657 | |
| For class (1) firms: 1,605 For a professional firm in A.13 the fee is calculated as above less 10%. |
||
| A.14 | Minimum fee () | 1,220 |
| No. of persons | Fee (/person) | |
| 0 - 1 | 0 | |
| 2 | 1,101 | |
| 3 - 4 | 1,030 | |
| 5 - 10 | 947 | |
| 11 - 100 | 899 | |
| 101 - 200 | 629 | |
| >200 | 378 | |
| A.15 | This activity group does not apply for this period. | |
| A.16 | 0 | |
| A.17 | This activity group does not apply for this period. | |
| A.18 | Minimum fee () | 635 |
| thousands of Annual Income (AI) | Fee (/ thousand or part thousand of AI) | |
| 0 - 100 | 0 | |
| >100 - 1,000 | 5.38 | |
| >1,000 - 5,000 | 4.48 | |
| >5,000 - 10,000 | 3.59 | |
| >10,000 - 20,000 | 2.69 | |
| >20,000 | 2.25 | |
| A.19 | Minimum fee () | 400 |
| thousands of Annual Income (AI) | Fee (/ thousand or part thousand of AI) | |
| 0 - 100 | 0 | |
| >100 - 1,000 | 3.80 | |
| >1,000 - 5,000 | 3.32 | |
| >5,000 - 15,000 | 2.40 | |
| >15,000 - 100,000 | 0.96 | |
| >100,000 | 0.39 | |
| B. Market operators | 20,000 | |
| B. Service companies | Bloomberg LP | 31,500 |
| EMX Co Ltd | 21,000 | |
| LIFFE Services Ltd | 21,000 | |
| Ofex plc | 70,000 | |
| OMGEO Ltd | 21,000 | |
| Reuters Ltd | 31,500 | |
| Swapswire Ltd | 21,000 | |
| Thomson Financial Ltd | 21,000 | |
| Part 2 | ||
| This table shows the permitted deductions that apply: | ||
| Activity group | Nature of deduction | Amount of deduction |
| A.3 | Financial penalties received | 1.2% of the fee payable by the firm for the activity group (see Part 1) |
| A.4 | Financial penalties received | 3.1% of the fee payable by the firm for the activity group (see Part 1) |
| A.5 | Financial penalties received | 1.2% of the fee payable by the firm for the activity group (see Part 1) |
| A.6 | Financial penalties received | 1.2% of the fee payable by the firm for the activity group (see Part 1) |
| A.10 | Financial penalties received | 100% of the fee payable by the firm for the activity group (see Part 1) |
| A.12 | Financial penalties received | 5.6% of the fee payable by the firm for then activity group (see Part 1) |
| A.13 | Financial penalties received | 0.9% of the fee payable by the firm for the activity group (see Part 1) |
| A.14 | Financial penalties received | 1.8% of the fee payable by the firm for the activity group (see Part 1) |
| E. | Financial penalties received | 3% of the fee payable by the firm for the activity group (see Part 1) |
| Part 3 | ||
| This table shows the modifications to fee tariffs that apply to incoming EEA firms and incoming Treaty firms. | ||
| Activity group | Percentage deducted from the tariff payable under Part 1 applicable to the firm | Minimum amount payable |
| A.1 | 80% (except for a firm operating on a cross-border services basis only) | 100 (except for a firm operating on a cross-border services basis only) |
| For a firm operating on a cross-border services basis only, 100% | For a firm operating on cross-border services basis only, nil | |
| A.3 | 100% | nil |
| A.4 | 25% | 100 |
| A.7 | 5% | 100 |
| A.9 | 5% | 100 |
| A.10 | 10% | 100 |
| A.12 | 10% | 100 |
| A.13 | 10% | 100 |
| A.19 | 10% | 100 |
| The modifications to fee tariffs payable by an incoming EEA firm or an incoming Treaty firm apply only in relation to the relevant regulated activities of the firm which are passported activities or Treaty activities and which are carried on in the UK. | ||
FEES 4 Annex 3
Transaction reporting fees
- 01/01/2006
Transaction reporting fees for the period from 1 April 2007 to 31 March 2008
See Notes
This table shows the fees payable for
firms using the FSA's Transaction Reporting System.
| Fee type | Fee amount (including VAT) | |
| Transaction charge | Number of transactions per annum | Fee per transaction (inc. VAT) |
| For the first 1,000 | 0p | |
| 1,001 - 1,000,000 | 3p | |
| 1,000,001 - 4,000,000 | 2.75p | |
| 4,000,001 - 8,000,000 | 2.5p | |
| 8,000,001 - 13,000,000 | 2.25p | |
| 13,000,001 - 20,000,000 | 2p | |
| >20,000,000 | 1.75p | |
| Firms using the Transaction Reporting System will be additionally invoiced for: | ||
| (a) | [deleted] | |
| (b) | [deleted] | |
| (c) | an annual enrolment fee of £235 (including VAT) per registration held on 1 April each year for users of the FSA's Transaction Reporting System. | |
FEES 4 Annex 4
Periodic fees in relation to collective investment schemes payable for the period 1 April 2006 to 31 March 2007
See Notes
Part 1 - Periodic fees payable
Fees are charged according to the number of funds or sub-funds operated by a firm as at 31 March 2006. Where a new collective investment scheme becomes authorised during a year, fees are charged according to the number of funds or sub-funds operated by a firm as at the date of authorisation. Where more than one fund or sub-fund is operated the number of funds (not including the umbrella or parent fund) produces a 'fund factor' in accordance with the table above which is then applied to a basic fee to produce one total fee per operator. Fund factors are applied per operator rather than per scheme so that the fees relate to the number of funds rather than the number of schemes. This means that, for example, an authorised fund manager of three schemes pays the same as an operator or authorised fund manager of one scheme with three sub-funds (as only the sub-funds are counted).
| Scheme type | Basic fee (£) | Total funds/sub-funds aggregate | Fund factor | Fee (£) |
| ICVC, AUT, Section 264 of the Act Section 270 of the Act |
620 | 1-2 3-6 7-15 16-50 >50 |
1 2.5 5 11 22 |
620 1,550 3,100 6,820 13,640 |
| Section 272 of the Act | 2,540 | 1-2 3-6 7-15 16-50 >50 |
1 2.5 5 11 22 |
2,540 6,350 12,700 27,940 55,880 |
FEES 4 Annex 5
Periodic fees for designated professional bodies payable in relation to the period 1 April 2007 to 31 March 2008
See Notes
Table. Fees payable by Designated Professional Bodies
Notes
(1) The FSA register includes details of exempt professional firms carrying out insurance mediation activity.
(2) In addition to the periodic fees shown above, the sum of 31,400 will be due from the designated professional bodies, divided between the bodies in proportion to the number of exempt professional firms each has on the FSA register on 14 January 2006. This is a contribution towards the costs of developing this part of the FSA register.
| Name of Designated Professional Body | Amount payable | Due date |
| The Law Society of England & Wales | £50,680 | 30 April 2007 |
| [to be determined] | 1 September 2007 | |
| The Law Society of Scotland | £16,090 | 1 July 2006 |
| The Law Society of Northern Ireland | £14,500 | 1 July 2006 |
| The Institute of Actuaries | £10,190 | 1 July 2006 |
| The Institute of Chartered Accountants in England and Wales | £36,150 | 1 July 2006 |
| The Institute of Chartered Accountants of Scotland | £12,290 | 1 July 2006 |
| The Institute of Chartered Accountants in Ireland | £11,050 | 1 July 2006 |
| The Association of Chartered Certified Accountants | £21,160 | 1 July 2006 |
| The Council for Licensed Conveyancers | £11,890 | 1 July 2006 |
| Royal Institution of Chartered Surveyors | £12,320 | 1 July 2006 |
(1) The FSA register includes details of exempt professional firms carrying out insurance mediation activity.
(2) In addition to the periodic fees shown above, the sum of 31,400 will be due from the designated professional bodies, divided between the bodies in proportion to the number of exempt professional firms each has on the FSA register on 14 January 2006. This is a contribution towards the costs of developing this part of the FSA register.
FEES 4 Annex 6
Periodic fees for recognised investment exchanges and recognised clearing houses payable in relation to the period 1 April 2007 to 31 March 2008
See Notes
| In this Annex: |
| - the term recognised body includes a body which was a recognised investment exchange or a recognised clearing house recognised under the Financial Services Act 1986 and which is a recognised body as a result of Regulation 9 of the Recognition Requirements Regulations; and |
| - the term recognition order includes a recognition order made by the FSA under section 37 or section 39 of the Financial Services Act 1986 or a recognition order made by the Treasury under section 40 of the Financial Services Act 1986. |
| Name of UK recognised body | Amount payable | Due date |
| CRESTCo Limited | £229,000 | 30 April 2007 |
| £175,500 | 1 September 2006 | |
| ICE Futures Ltd | £148,500 | 30 April 2007 |
| £134,500 | 1 September 2006 | |
| LIFFE Administration and Management | £252,500 | 30 April 2007 |
| £105,000 | 1 September 2006 | |
| LCH Clearnet Limited | £290,500 | 30 April 2007 |
| £228,500 | 1 September 2006 | |
| The London Metal Exchange Limited | £166,500 | 30 April 2007 |
| £103,000 | 1 September 2006 | |
| London Stock Exchange plc | £332,000 | 30 April 2007 |
| £296,500 | 1 September 2006 | |
| virt-x Exchange Ltd | £40,000 | 30 April 2007 |
| £(25,000) | 1 September 2006 | |
| EDX London Ltd | £32,000 | 30 April 2007 |
| £(16,000) | 1 September 2006 | |
| NYMEX Europe Limited | £67,500 | 30 April 2007 |
| £60,000 | 1 September 2006 | |
| Any other UK recognised investment exchange recognised as such by a recognition order made in the period | £150,000 | 30 days after the date on which the recognition order is made |
| Any other UK recognised clearing house recognised as such by a recognition order made in the period | £250,000 | 30 days after the date on which the recognition order is made |
| Name of overseas recognised body | Amount payable | Due date |
| Cantor Financial Futures Exchange | £11,000 | 1 July 2006 |
| The Chicago Mercantile Exchange | £11,000 | 1 July 2006 |
| Chicago Board of Trade | £11,000 | 1 July 2006 |
| EUREX (Zurich) | £11,000 | 1 July 2006 |
| National Association of Securities and Dealers Automated Quotations (NASDAQ) | £11,000 | 1 July 2006 |
| NQLX LLC | £11,000 | 1 July 2006 |
| New York Mercantile Exchange Inc. | £11,000 | 1 July 2006 |
| The Swiss Stock Exchange | £11,000 | 1 July 2006 |
| Sydney Futures Exchange Limited | £11,000 | 1 July 2006 |
| Warenterminborse Hannover | £11,000 | 1 July 2006 |
| US Futures Exchange LLC | £11,000 | 1 July 2006 |
| SIS x-clear AG | £37,000 | 1 July 2006 |
| Any other overseas investment exchange recognised as such by a recognition order made in the period | £11,000 | 30 days after the date on which the recognition order is made |
| Any other overseas clearing house recognised as such by a recognition order made in the period | £37,000 | 30 days after the date on which the recognition order is made |
FEES 4 Annex 7
Periodic fees in relation to the Listing Rules for the period 1 April 2006 to 31 March 2007
See Notes
| Fee type | Fee amount |
| Annual fees for the period 1 April 2006 to 31 March 2007 | |
| Annual Issuer Fees - all listed issuers of shares, depositary receipts and securitised derivatives. This fee represents the total annual fee for a listed issuer - no additional annual fee is due under the disclosure rules and transparency rules. | (1) For all issuers of securitised derivatives, depositary receipts and global depositary receipts the fees payable are set out in Table 1. (2) For all other issuers, fees to be determined according to market capitalisation as set out in Table 2. The fee is calculated as follows: (a) the relevant minimum fee; plus (b) the cumulative total of the sums payable for each of the bands calculated by multiplying each relevant tranche of the firm's market capitalisation by the rate indicated for that tranche. Where issuers have more than one type of share in issue, the highest market capitalisation of all of its securities in issue is used. (3) Notwithstanding (2), overseas issuers with a listing of equity securities which is not a primary listing will only pay 80% of the fee otherwise payable under (2). |
| Annual fees are charged in annual cycles beginning on 1 April of a year and ending on 31 March of the following year. For fees purposes issuers should take into account only equity ordinary shares, including those issued by suspended issuers. | |
Annual fees for issuers of securitised derivatives, depositary receipts and global depositary receipts
Table 2
Tiered annual fees for all other issuers
| Issuer | Fee amount |
| Issuers of securitised derivatives | £3,075 |
| Issuers of depositary receipts and global depositary receipts | £3,690 |
Tiered annual fees for all other issuers
| Fee payable | |
| Minimum fee (£) | £3,075 |
| £ million of Market Capitalisation | Fee (£/£m or part £m of Market Capitalisation) |
| 0 - 100 | 0 |
| >100 - 250 | 12.40 |
| >250 - 1,000 | 4.96 |
| >1,000 - 5,000 | 1.65 |
| >5,000 - 25,000 | 0.031 |
| >25,000 | 0.0083 |
FEES 4 Annex 8
Periodic fees in relation to the disclosure rules and transparency rules for the period 1 April 2006 to 31 March 2007
See Notes
| Annual fees for the period 1 April 2006 to 31 March 2007 | ||
| All non-listed issuers of shares, depositary receipts and securitised derivatives. Annual fees for listed issuers in respect of Disclosure Rules and Transparency Rules obligations are incorporated in the annual fee for listed issuers under the Listing Rules. | (1) For all non-listed issuers of securitised derivatives, depositary receipts and global depositary receipts the fees payable are set out in Table 1. | |
| (2) For all other non-listed issuers, fees to be determined according to market capitalisation as set out in Table 2. The fee is calculated as follows: | ||
| (a) | the relevant minimum fee; plus | |
| (b) | the cumulative total of the sums payable for each of the bands calculated by multiplying each relevant tranche of the firm's market capitalisation by the rate indicated for that tranche. | |
| Fees from other fee schedules contained in other sections of the sourcebook may be applicable to a single submission. | ||
Annual fees for non-listed issuers of securitised derivatives, depositary receipts and global depositary receipts
| Issuer | Fee amount |
| Issuers of securitised derivatives | £2,460 |
| Issuers of depositary receipts and global depositary receipts | £2,952 |
| Fee payable | |
| Minimum fee (£) | 2,460 |
| £ million of Market Capitalisation | Fee (£/£m or part £m of Market Capitalisation) |
| 0 - 100 | 0 |
| >100 - 250 | 9.92 |
| >250 - 1,000 | 3.968 |
| >1,000 - 5,000 | 1.32 |
| >5,000 - 25,000 | 0.0248 |
| >25,000 | 0.00664 |
FEES 5
Financial Ombudsman Service Funding
FEES 5.1
Application and Purpose
- 01/01/2006
Application
FEES 5.1.1
See Notes
This chapter applies to:
- (1) every firm which is subject to the Compulsory Jurisdiction of the Financial Ombudsman Service; and
- (2) every other person who is subject to the Compulsory Jurisdiction in relation to relevant complaints.
FEES 5.1.2
See Notes
The relevant provisions of FEES 5 are applied to VJ participants by the standard terms (see DISP 4).
FEES 5.1.3
See Notes
References in this chapter to "firms" are to be construed, where relevant, as including:
- (1) in accordance with the Ombudsman Transitional Order, unauthorised persons subject to the Compulsory Jurisdiction in relation to relevant complaints (see Transitional Provisions 6 and 7 of DISP); and
- (2) as a result of section 226 of the Act, unauthorised persons who were formerly firms in respect of complaints about acts or omissions which occurred at the time when they were firms, provided that the Compulsory Jurisdiction rules were in force in relation to the activity in question.
- 01/01/2006
Exemption
FEES 5.1.4
See Notes
FEES 5.1.4A
See Notes
A firm will only be exempt from FEES 5.7 for any given financial year if it met the conditions in
DISP 1.1.7 R
on 31 March of the immediately preceding financial year.
FEES 5.1.5
See Notes
A firm which ceases to be exempt under FEES 5.1.4 R is to be treated, for the purposes of its contribution to the general levy, as a firm to which FEES 5.8 applies.
- 01/01/2006
FEES 5.1.6
See Notes
A firm which becomes exempt under FEES 5.1.4 R during the course of a financial year is to be treated for the purposes of its contribution to the general levy, as a firm to which FEES 5.9 applies.
- 01/01/2006
Purpose
FEES 5.1.7
See Notes
The purpose of this chapter is to set out the requirements on firms to pay annual fees (through a general levy and supplementary levy invoiced and collected by the FSA on behalf of FOS Ltd) and case fees (invoiced and collected directly by FOS Ltd) in order to fund the operation of the Financial Ombudsman Service. This chapter also contains a requirement on firms to pay a supplementary levy towards the costs of establishing the Financial Ombudsman Service. It also provides for unauthorised persons to pay case fees to FOS Ltd in respect of any relevant complaints which it handles.
FEES 5.2
Introduction
- 01/01/2006
FEES 5.2.1
See Notes
Paragraph 9 of Schedule 17 to the Act (The Ombudsman Scheme) requires FOS Ltd to adopt an annual budget which has been approved by the FSA. The annual budget must distinguish between the costs of operating the Compulsory Jurisdiction and the Voluntary Jurisdiction.
FEES 5.2.2
See Notes
Section 234 of the Act (Industry Funding) enables the FSA to require the payment to it or to FOS Ltd, by firms or any class of firm, of specified amounts (or amounts calculated in a specified way) to cover the costs of:
- (1) the Financial Ombudsman Service; and
- (2) its operation in relation to the Compulsory Jurisdiction.
FEES 5.2.3
See Notes
Paragraph 15 of Schedule 17 to the Act enables FOS Ltd to require firms subject to the Compulsory Jurisdiction and any other respondents to a complaint to pay specified fees to it in respect of complaints closed by the Financial Ombudsman Service.
- 01/01/2006
FEES 5.2.4
See Notes
The Ombudsman Transitional Order provides for unauthorised persons to be charged fees in respect of any relevant complaints against them which the Financial Ombudsman Service handles.
- 01/01/2006
FEES 5.2.5
See Notes
Paragraph 18 of Schedule 17 to the Act enables FOS Ltd to require VJ participants to pay to it such amounts at such times as it specifies in the standard terms.
- 01/01/2006
FEES 5.2.6
See Notes
The relevant provisions of the rules in FEES 5 and FEES 2 will be applied to VJ participants through the standard terms made by FOS Ltd under paragraph 18 of Schedule 17 to the Act (see DISP 4).
- 01/01/2006
FEES 5.2.7
See Notes
This chapter sets out the framework for the funding arrangements of the Financial Ombudsman Service, including the method by which fees will be calculated. Details of the actual fees payable will vary from year to year, depending on the annual budget of the Financial Ombudsman Service. These details will be set out in an annex to this chapter (FEES 5 Annex 1). A new annex will be prepared and consulted on for each financial year.
FEES 5.3
The general levy
- 01/01/2006
FEES 5.3.1
See Notes
Each financial year, the FSA and FOS Ltd will consult on the amount of the annual budget of the Financial Ombudsman Service which is to be raised by the general levy.
FEES 5.3.2
See Notes
For the purposes of the general levy, a firm will fall into one or more of the industry blocks set out in FEES 5 Annex 1 depending on the business activities which it conducts.
- 01/01/2006
FEES 5.3.3
See Notes
The
FSA
will determine, following consultation, the amount to be raised from each industry block. This will be based on the budgeted costs and numbers of Financial Ombudsman Service staff required to deal with the volume of complaints which the Financial Ombudsman Service expects to receive about the firms in each industry block. Modified arrangements have been made for certain types of small firms (see FEES 5.5.3 R to FEES 5.5.5 G).
- 01/01/2006
FEES 5.3.4
See Notes
Part 2 of
FEES 5 Annex 1 sets out the fee tariffs for each industry block.
FEES 5.3.5
See Notes
- 01/01/2006
FEES 5.3.6
See Notes
A firm must pay to the
FSA
a general levy towards the costs of operating the Compulsory Jurisdiction of the Financial Ombudsman Service.
- 01/01/2006
FEES 5.3.7
See Notes
Under the standard terms, VJ participants will be required to pay to FOS Ltd an amount calculated on a similar basis towards the costs of operating the Voluntary Jurisdiction of the Financial Ombudsman Service. FOS Ltd will be responsible for invoicing and collecting this amount.
FEES 5.3.8
See Notes
A firm's general levy is calculated as follows:
- (1) identify each of the tariff bases set out in Part 2 of FEES 5 Annex 1 which apply to the relevant business of the firm for the relevant year;
- (2) for each of those tariff bases, calculate the sum payable in relation to the relevant business of the firm for that year;
- (3) add together the amounts calculated under (2).
FEES 5.3.9
See Notes
For the purpose of FEES 5.3.6 R and FEES 5.3.8 R, a member of the Society of Lloyd's or a managing agent at Lloyd's will not in that capacity be treated as a firm. But the Society of Lloyd's will pay a general levy in respect of Lloyd's insurance business conducted with eligible complainants.
- 01/01/2006
FEES 5.3.10
See Notes
For the purpose of FEES 5.3, references to relevant business for a firm which falls in industry block 16 or 17 and which so elects under Part 2 of
FEES 5 Annex 1, are references to the firm's total amount of annual income reported in accordance with Part 2 of FEES 4.
FEES 5.4
Information requirement
- 01/01/2006
FEES 5.4.1
See Notes
- (1) A firm must provide the FSA by the end of February each year (or, if the firm has become subject to the Financial Ombudsman Service part way through the financial year, by the date requested by the FSA) with a statement of the total amount of relevant business (measured in accordance with the appropriate tariff base(s)) which it conducted, as at or in the year to 31 December of the previous year as appropriate, in relation to the tariff base for each of the relevant industry blocks set out in part 2 of FEES 5 Annex 1.
- (2) Paragraph (1) does not apply if the firm pays a general levy on a flat fee basis only.
- (3) If a firm cannot provide a statement of the total amount of relevant business as required by FEES 5.4.1 R, it must provide the best estimate of the amount of relevant business that it conducted.
- (4) For the purpose of FEES 5.4.1 R, references to relevant business for a firm which falls in industry block 16 or 17 and which so elects under part 2 of FEES 5 Annex 1, are references to the firm's total amount of annual income reported in accordance with Part 2 of FEES 4 Annex 1.
- (5) If a firm does not submit a complete statement by the date on which it is due in accordance with this rule and any prescribed submission procedures:
- (a) the firm must pay an administrative fee of 250 (but not if it is already subject to an administrative fee under FEES 4 Annex 2, Part 1 or FEES 6.5.16 R for the same financial year); and
- (b) the general levy and any supplemental levy will be calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10 (or, if a firm has become subject to the Financial Ombudsman Service part way through the financial year, on the basis of the information provided to FSA for the purposes of FEES 4.4.2 R) or on any other reasonable basis, making such adjustments as seem appropriate in subsequent levies once the true figures are known.
FEES 5.4.2
See Notes
FEES 5.4.3
See Notes
SUP 16.3 (General provisions on reporting) contains further rules on the method of submission of reports under FEES 5.4.1 R.
- 01/01/2006
FEES 5.4.4
See Notes
A firm should not provide a statement of relevant business if it deals only with eligible complainants who are not private individuals. Relevant business is defined in the Glossary as business done with private individuals only. So FEES 5.4.1 R does not apply in relation to business done with other types of eligible complainant described in
DISP 2.4.3 R (1)(b), (c) and (d); the funding of FOS Ltd in relation to that business is by special case fee only (see FEES 5.5.6 R).
FEES 5.5
Case fees
- 01/01/2006
Standard case fee
FEES 5.5.1
See Notes
A firm must pay to FOS Ltd the standard case fee specified in part 3 of FEES 5 Annex 1 in respect of each chargeable case relating to that firm which is closed by the Financial Ombudsman Service, unless a special case fee is payable or has been paid in respect of that case under FEES 5.5.6 R to FEES 5.5.12 R.
FEES 5.5.2
See Notes
The standard case fee, which will be subject to consultation each year, will be calculated by dividing the annual budget for the Compulsory Jurisdiction, less the amount to be raised by the general levy, by the estimated number of chargeable cases which the Financial Ombudsman Service expects to close in the relevant financial year.
- 01/01/2006
FEES 5.5.3
See Notes
A credit union which is subject to the minimum levy in an industry block is not required to pay a standard case fee in respect of chargeable cases relating to that industry block.
- 01/01/2006
FEES 5.5.4
See Notes
Any firm falling into either industry block 13 or industry block 15 in part 2 of
FEES 5 Annex 1 is not required to pay the standard case fee in respect of chargeable cases relating to those industry blocks.
FEES 5.5.5
See Notes
The firms in industry blocks 13 and 15 are cash plan health providers and small friendly societies. These arrangements have been made in respect of these firms to take account of the fact that the amount at issue is likely to be small relative to the case fee. Instead, the full unit cost of handling complaints against these firms will be recovered through the general levy in accordance with the relevant tariff-base and no case fee will be payable. Similar arrangements have been made under FEES 5.5.3 R in respect of small credit unions.
- 01/01/2006
Special case fees: complaints from small businesses
FEES 5.5.6
See Notes
A firm must pay to FOS Ltd a special case fee, as specified in part 3 of FEES 5 Annex 1 in respect of each chargeable case relating to that firm closed by the Financial Ombudsman Service which was referred to the Financial Ombudsman Service by eligible complainants who fall within
DISP 2.4.3 R (1)(b), (c) or (d).
Special case fees: firms which cease to be authorised
FEES 5.5.7
See Notes
A firm which ceases to be authorised must pay to FOS Ltd a special case fee, as specified in part 3 of FEES 5 Annex 1, in respect of each chargeable case relating to that firm closed by the Financial Ombudsman Service which concerned an act or omission occurring when the firm was authorised and where the complaint was made after its authorisation ceased.
Special case fees: relevant complaints against persons who were subject to a former scheme
FEES 5.5.8
See Notes
An unauthorised person who is subject to the Compulsory Jurisdiction in relation to a relevant complaint must pay to FOS Ltd a special case fee as specified in part 3 of FEES 5 Annex 1 in respect of each chargeable case relating to that unauthorised person closed by the Financial Ombudsman Service.
FEES 5.5.9
See Notes
Under the Ombudsman Transitional Order, FOS Ltd can handle complaints about members of a former scheme which that scheme could have handled before commencement, even if the unauthorised person concerned does not become authorised by the FSA after that date. Where FOS Ltd handles such complaints, the unauthorised person concerned will be required to pay a special case fee.
- 01/01/2006
Special case fees for 2001/02
FEES 5.5.10
See Notes
A firm which was a member of PIA before commencement must pay to FOS Ltd a special case fee, as specified in FEES 5 Annex 1, in respect of each chargeable case relating to that firm received by the Financial Ombudsman Service after commencement and before 31 March 2002.
FEES 5.5.11
See Notes
FEES 5.5.10 R does not apply in relation to a chargeable case which relates to a complaint which proceeded or would have proceeded under a former scheme other than the PIAOB scheme.
- 01/01/2006
FEES 5.5.12
See Notes
A firm which was not a member of a former scheme before the commencement day must pay to FOS Ltd a special case fee, as specified in FEES 5 Annex 1, in respect of each chargeable case which relates to business conducted by the firm after the commencement day and which is closed by the Financial Ombudsman Service before 31 March 2002.
FEES 5.5.13
See Notes
- 01/01/2006
FEES 5.5.14
See Notes
A firm which was, before commencement, a member of PIA and a former scheme other than the PIAOB scheme will not, on account of the exclusion in FEES 5.5.11 R, be required to pay the special case fee specified by FEES 5.5.10 R in respect of all chargeable cases relating to it but only those which arise in respect of investment business matters which would have been eligible under the PIAOB scheme.
- 01/01/2006
Case fee exemption
FEES 5.5.15
See Notes
Notwithstanding the above, a firm will only be liable for, and FOS will only invoice for, the standard case fee or, as the case may be, the special case fee, in respect of the third and subsequent chargeable cases in any financial year.
FEES 5.5.16
See Notes
A case fee exemption provision was first applied in the financial year 1 April 2004 to 31 March 2005. For that financial year only, each authorised firm was invoiced for a standard case fee for the third and subsequent chargeable case received by the Financial Ombudsman Service, subject to the annual levy having been invoiced and paid by the firm within the Financial Ombudsman Services normal credit terms. For the financial year commencing 1 April 2005 and for subsequent financial years, the case fee exemption provision contained in FEES 5.5.15 R applies. This provision is not retrospectively applicable to financial years prior to 1 April 2005.
- 06/07/2006
FEES 5.6
The supplementary levy
- 01/01/2006
FEES 5.6.1
See Notes
For the purposes of calculating the supplementary levy, the FSA will apportion the establishment costs between the industry blocks in the same proportions as the operating costs for the purposes of the general levy. The supplementary levy will therefore be raised from firms on the same basis and at the same time as the general levy (see part 2 of FEES 5 Annex 1).
- 01/01/2006
FEES 5.6.2
See Notes
The establishment costs will be recovered via the supplementary levy over the first three full financial years of the Financial Ombudsman Service's operation.
- 01/01/2006
FEES 5.6.3
See Notes
The amount of establishment costs to be raised each year through the supplementary levy will be specified in part 2 of FEES 5 Annex 1.
- 01/01/2006
FEES 5.6.4
See Notes
The supplementary levy will be identified separately from the general levy for the purposes of invoicing firms and VJ participants.
- 01/01/2006
FEES 5.6.5
See Notes
A firm must pay to the FSA a supplementary levy towards the costs of establishing the Financial Ombudsman Service.
- 01/01/2006
FEES 5.6.6
See Notes
A firm's supplementary levy is a sum payable in accordance with the fee tariffs set out in part 2 of FEES 5 Annex 1 and will be calculated by following the steps set out in FEES 5.3.8 R.
- 01/01/2006
FEES 5.6.7
See Notes
Under the standard terms, VJ participants will also be required to pay an amount calculated on a similar basis towards the costs of establishing the Voluntary Jurisdiction of the Financial Ombudsman Service.
- 01/01/2006
FEES 5.7
Payment
- 01/01/2006
FEES 5.7.1
See Notes
A firm must pay annually to the FSA the general levy and any supplementary levy to which it is subject, on or before the later of 1 April and 30 calendar days after the date when the invoice is issued by the FSA.
FEES 5.7.2
See Notes
A firm must pay to FOS Ltd any standard case fee or special case fee which it is liable to pay under FEES 5.5.1 R, FEES 5.5.6 R, FEES 5.5.7 R, FEES 5.5.8 R, FEES 5.5.10 R, or FEES 5.5.12 R, as appropriate, in respect of chargeable cases for which it is invoiced by FOS Ltd within 30 calendar days of the date when the invoice is issued by FOS Ltd.
FEES 5.7.3
See Notes
A firm or an unauthorised person who is subject to the Compulsory Jurisdiction in relation to a relevant complaint must pay any standard case fee or special case fee within 30 calendar days of the date when the invoice is issued by FOS Ltd.
- 01/01/2006
FEES 5.7.4
See Notes
A firm liable to pay fees under FEES 5.7.1 R must do so using one of the methods set out in FEES 4.2.4 R save that no additional amount or discount is applicable.
- 01/01/2006
FEES 5.8
Joining the Financial Ombudsman Service
- 01/01/2006
FEES 5.8.1
See Notes
A firm which becomes subject to the Financial Ombudsman Service part way through a financial year must pay a rateable proportion of the general levy and the supplementary levy as indicated in Table FEES 4.2.6 R, as if that table applied to the quarter in which a firm becomes subject to the Financial Ombudsman Service.
FEES 5.9
Leaving the Financial Ombudsman Service
- 01/01/2006
FEES 5.9.1
See Notes
Where a firm ceases to be authorised part way through a financial year:
(1) it will remain liable to pay standard case fees in respect of chargeable cases against it closed by the Financial Ombudsman Service for the remainder of that financial year; and
(2) it must pay the special case fee specified under FEES 5.5.7 R in respect of any other chargeable cases against it closed by the Financial Ombudsman Service.
- 01/01/2006
FEES 5.9.2
See Notes
Firms which cease to be authorised and therefore subject to the Compulsory Jurisdiction part way through the year will not receive a refund of their general levy (or supplementary levy) except in exceptional circumstances. Firms will continue to be liable for any case fees relating to chargeable cases closed by the Financial Ombudsman Service after they cease to be authorised. Firms will be charged the standard case fee where the complaint was closed by the Financial Ombudsman Service before the end of the year in which their authorisation ceased. The special case fee will apply to any complaint closed after the end of that year since the firm will no longer be contributing to the general levy.
FEES 5 Annex 1
Annual Fees Payable in Relation to 2006/07
See Notes
Introduction: annual budget
1. The annual budget for 2006/07 approved by the FSA is 59.2m.
Part 1: General levy and supplementary levy
2. The total amount expected to be raised through the general levy in 2006/07 will be 15.8m.
Part 2: Fee tariffs for general levy and supplementary levy
3. No establishment costs will be raised in 2006/07 by the supplementary levy.
Part 3: Case fees
Table: Standard case fees and special case fees
Part 4: VJ participants
Table: Fee tariffs and case fees for VJ participants
1. The annual budget for 2006/07 approved by the FSA is 59.2m.
Part 1: General levy and supplementary levy
2. The total amount expected to be raised through the general levy in 2006/07 will be 15.8m.
Part 2: Fee tariffs for general levy and supplementary levy
3. No establishment costs will be raised in 2006/07 by the supplementary levy.
| Industry block | Tariff base | General levy payable by firm |
| 1-Deposit acceptors, mortgage lenders and administrators (excluding firms in block 14) | Number of accounts relevant to the activities in DISP 2.6.1 R | 0.0059 per relevant account, subject to a minimum levy of 100 |
| 2-Insurers - general (excluding firms in blocks 13 & 15) | Relevant annual gross premium income | 0.055 per 1,000 of relevant annual gross premium income, subject to a minimum levy of 100 |
| 3-The Society (of Lloyd's) | Not applicable | 28,000 to be allocated by the Society |
| 4-Insurers - life (excluding firms in block 15) | Relevant adjusted annual gross premium income | 0.124 per 1,000 of relevant adjusted annual gross premium income, subject to a minimum levy of 100 |
| 5-Fund managers (including those holding client money/assets and not holding client money/assets) | Relevant funds under management | 0.0007 per 1,000 of relevant funds under management, subject to a minimum levy of 100 |
| 6-Operators, trustees and depositaries of collective investment schemes and operators of personal pension schemes or stakeholder pension schemes | Flat fee | Levy of 75 |
| 7-Dealers as principal | Flat fee | Levy of 50 |
| 8-Advisory arrangers, dealers or brokers holding and controlling client money and/or assets | Number of relevant approved persons (controlled functions 21, 22, 24, 25, 26) | 160 per relevant approved person (controlled functions 21, 22, 24, 25, 26), subject to a minimum levy of 160 |
| 9-Advisory arrangers, dealers or brokers not holding and controlling client money and/or assets | Number of relevant approved persons (controlled functions 21, 22, 24, 25, 26) | 45 per relevant approved person (controlled functions 21, 22, 24, 25, 26), subject to a minimum levy of 50 |
| 10-Corporate finance advisers | Flat fee | Levy of 50 |
| 11- | N/A for 2006/07 | |
| 12- | N/A for 2006/07 | |
| 13-Cash plan health providers | Flat fee | Levy of 50 |
| 14-Credit unions | Flat fee | Levy of 50 |
| 15-Friendly societies whose tax-exempt business represents 95% or more of their total relevant business | Flat fee | Levy of 50 |
| 16-Mortgage lenders, advisers and arrangers (excluding firms in blocks 13, 14 & 15) | Flat fee | Levy of 50 |
| 17 - General insurance mediation (excluding firms in blocks 13, 14 & 15) | Flat fee | Levy of 50 |
| 4 | [not used] |
| 5 | The industry blocks in the table are based on the equivalent activity groups set out in Part 1 of FEES 4 Annex 1. |
| 6 | Where the tariff base in the table is defined in similar terms as that for the equivalent activity group in Part 2 of FEES 4 Annex 1, it must be calculated in the same way as that tariff base - taking into account only the firm's relevant business. |
Table: Standard case fees and special case fees
| Compulsory jurisdiction - case fee table | ||
| case fee | ||
| standard case fee | 400 | (for the third chargeable complaint and any subsequent chargeable complaint in this financial year 2007/08) |
| special case fee | 400 | (for the third chargeable complaint and any subsequent chargeable complaint in this financial year 2007/08) |
| The definitions of standard case fee and special case fee are in FEES 5.5 in the FSA Handbook. | ||
| The definition of a chargeable case is in the Glossary to the FSA Handbook. | ||
Table: Fee tariffs and case fees for VJ participants
| Voluntary jurisdiction - general levy tariff and case fee table | |||||
| industry block and business activity | tariff basis | tariff rate | minimum levy | case fee* | |
| 1V | deposit acceptors, mortgage lenders and administrators, including debit/charge card issuers | number of relevant accounts | 0.009 | 100 | 400 |
| 2V | VJ participants undertaking insurance activities subject only to prudential regulation | per 1,000 of relevant annual gross premium income | 0.065 | 100 | 400 |
| 3V | VJ participants undertaking insurance activities subject to prudential and conduct of business regulation | Per 1,000 of relevant adjusted annual gross premium income | 0.142 | 100 | 400 |
| 6V | intermediaries | n/a | n/a | 50 | 400 |
| 8V | National Savings & Investments | n/a | n/a | 10,000 | 400 |
| 9V | Persons not covered by 1V to 8V undertaking activities which would be consumer credit activities if they were carried on from an establishment in the United Kingdom | n/a | n/a | 100 | 400 |
| *note on case fees As for the compulsory jurisdiction, VJ participants will only be charged for the third and subsequent chargeable case in this financial year 2007/08. |
|||||
FEES 6
Financial Services Compensation Scheme Funding
FEES 6.1
Application
- 01/01/2006
FEES 6.1.1
See Notes
FEES 6.1.2
See Notes
(1) Firms which are not participant firms (such as certain types of incoming EEA firms, service companies and ICVCs) are not required to contribute towards the funding of the compensation scheme.
(2) Although a member is a participant firm for the purposes of most provisions of COMP, a member is excluded from the definition of participant firm for the purposes of FEES 6 (see definition of participant firm in Glossary). This is because the fees levied in relation to the carrying on of insurance market activities by members will be imposed on Society rather than individually on each member (see FEES 6.3.24 R).
Purpose
FEES 6.1.3
See Notes
The purpose of this chapter is to set out the requirements on participant firms to pay levies imposed by the FSCS to provide funding for its functions.
General structure
FEES 6.1.4
See Notes
Section 213(3)(b) of the Act requires the
FSA
to make rules to enable the FSCS to impose levies on authorised persons in order to meet its expenses. These expenses include in particular expenses incurred, or expected to be incurred, in paying compensation, borrowing or insuring risks.
FEES 6.1.5
See Notes
The FSCS may impose two types of levy: a management expenses levy, and a compensation costs levy. In the first three full years of the operation of the compensation scheme, the FSCS may impose an establishment costs levy as part of a management expenses levy. The FSCS has discretion as to the timing of the levies imposed.
FEES 6.1.6
See Notes
In calculating a compensation costs levy, the FSCS may include anticipated compensation costs for defaults expected to be determined in the 12-month period following the date of the levy. The total of all management expenses levies attributable to a financial year will be restricted to the amount set out on an annual basis in FEES 6 Annex 1.
FEES 6.1.7
See Notes
In order to allocate a share of the amount to be funded by an individual participant firm, the funding arrangements are split into five sub-schemes: the accepting deposits sub-scheme; the insurance business sub-scheme; the designated investment business sub-scheme; the mortgage advice and arranging sub-scheme and the general insurance mediation sub-scheme. The business carried on by a participant firm determines into which sub-scheme, or sub-schemes, it falls.
FEES 6.1.8
See Notes
Within each sub-scheme there are one or more contribution groups These relate to different types of activity carried on by participant firms within each sub-scheme Within a sub-scheme individual participant firms are allocated for funding purposes to one or more contribution groups, depending on their business activities. This meets a requirement of section 213(5) of the Act that the FSA, in making rules to enable the FSCS to impose levies, must take account of the desirability of ensuring that the amount of the levies imposed on a particular class of authorised person reflects, so far as practicable, the amount of claims made, or likely to be made, in respect of that class of person.
The management expenses levy
FEES 6.1.9
See Notes
Section 223 of the Act (Management expenses) prevents the FSCS from recovering, through a levy, any management expenses attributable to a particular period in excess of the limit set in COMP as applicable to that period. 'Management expenses' are defined in section 223(3) to mean expenses incurred or expected to be incurred by the FSCS in connection with its functions under the Act, except:
(1) expenses incurred in paying compensation; and
(2) expenses incurred as a result of the FSCS making the arrangements to secure continuity of insurance set out in COMP 3.3.1 R and COMP 3.3.2 R or taking the measures set out in COMP 3.3.3 R and COMP 3.3.4 R when a relevant person is an insurer in financial difficulties.
FEES 6.1.10
See Notes
A management expenses levy under COMP may consist of three elements. The first is a base costs levy, for the base costs of running the compensation scheme in a financial year, that is, costs which are not dependent upon the level of activity of the compensation scheme and which therefore are not referable to any specific default. Included in this category are items such as the salary of the members of the board of the FSCS, the costs of the premises which the FSCS occupies, and its audit fees. The amount that each participant firm pays towards a base costs levy is calculated by reference to the regulatory costs paid by the firm. All participant firms are liable to contribute towards a base costs levy.
FEES 6.1.11
See Notes
The second element of a management expenses levy is a specific costs levy for the "specific costs" of running the compensation scheme in a financial year. These costs depend on the number of claims and types of default, and include the salaries of the staff of the FSCS and legal and other professional fees paid in respect of particular defaults. The specific costs are allocated to the contribution group or groups of which the relevant person in default was a member, or which is responsible for those costs under COMP, on the basis of the protected claims against that person. The FSCS may include in a specific costs levy the specific costs that the FSCS expects to incur (including in respect of defaults not yet declared at the date of the levy) during the financial year of the compensation scheme to which the levy relates. The amount that each participant firm pays towards the specific costs levy is calculated by reference to the amount of business conducted by the firm in each of the contribution groups to which the FSCS has allocated specific costs. Each contribution group has a separate "tariff base" for this purpose, set out in FEES 6.5.8 G to FEES 6.5.11 R. Participant firms may be exempt from contributing to the specific costs levy.
FEES 6.1.12
See Notes
The third element of a management expenses levy is the costs of establishing the FSCS. The FSCS may impose an establishment costs levy only until the end of the third full financial year of operation of the compensation scheme. The amount that each participant firm pays towards the establishment costs levy is calculated on the same basis as the base costs levy, and all participant firms are liable to contribute.
- 01/01/2006
FEES 6.1.13
See Notes
The FSA intends to consult in January each year on the amount which it will set as the limit on the management expenses attributable to the forthcoming financial year of the FSCS.
The compensation costs levy
FEES 6.1.14
See Notes
The compensation costs levy is made up of the compensation costs which the FSCS has incurred and has not yet recovered from participant firms (less any recoveries it has made using the rights that have been assigned to it), together with those compensation costs it expects to incur (including in respect of defaults yet to be declared) over the 12 months following the date of the levy.
FEES 6.1.15
See Notes
Compensation costs are principally the costs incurred in paying compensation. Costs incurred in securing continuity of long-term insurance in safeguarding eligible claimants when insurers are in financial difficulties, and in making payments or giving indemnities under COMP 11.2.3 R are also treated as compensation costs. For funding purposes, these costs are allocated by the FSCS, and met by participant firms, in the same way as specific costs: see FEES 6.5.6 R.
FEES 6.1.16
See Notes
If a participant firm is a member of more than one contribution group, the total compensation costs levy and specific costs levy for that firm will be the aggregate of the individual levies calculated for the firm in respect of each of the contribution groups.
Incoming EEA firms
FEES 6.1.17
See Notes
Incoming EEA firms which obtain cover or 'top up' under the provisions of COMP 14 are firms whose Home State scheme provides no or limited compensation cover in the event that they are determined to be in default. Under FEES 6.6, the FSCS is required to consider whether incoming EEA firm's should receive a discount on the amount that they would otherwise pay as their share of the levy, to take account of the availability of their Home State cover. The amount of any discount is recoverable from the other members of the incoming EEA firm's
contribution group
FEES 6.2
Exemption
- 01/01/2006
FEES 6.2.1
See Notes
(1) A participant firm which does not conduct business that could give rise to a protected claim by an eligible claimant and has no reasonable likelihood of doing so is exempt from a specific costs levy, or a compensation costs levy, or both, provided that:
(a) it has notified the FSCS in writing that those conditions apply; and
(b) the conditions in fact continue to apply.
(2) The exemption takes effect from the date on which the notice was received by the FSCS, subject to FEES 6.2.6 R.
FEES 6.2.2
See Notes
FEES 6.2.1 R does not apply to a participant firm that may be subject to a claim under COMP 3.2.4 R.
- 01/01/2006
FEES 6.2.3
See Notes
A participant firm to which FEES 6.2.2 R applies must report annual eligible income in accordance with FEES 6.5.13 R. Such a participant firm may take advantage of the option to report its annual income attributable to business conducted with or on behalf of eligible claimants.
- 01/01/2006
FEES 6.2.4
See Notes
A participant firm which is exempt under FEES 6.2.1 R must notify the FSCS in writing as soon as reasonably practicable if the conditions in FEES 6.2.1 R no longer apply.
FEES 6.2.5
See Notes
A participant firm to which the conditions in FEES 6.2.1 R no longer apply will then become subject to FEES 6.3.
FEES 6.2.6
See Notes
If a participant firm ceases to conduct business that could give rise to a protected claim by an eligible claimant and notifies the FSCS of this under FEES 6.2.1R (1), it will be treated as a participant firm to which FEES 6.7.6 R applies until the end of the financial year of the compensation scheme in which the notice was given.
FEES 6.2.7
See Notes
The financial year of the compensation scheme is the twelve months ending on 31 March.
FEES 6.2.8
See Notes
For the purposes of FEES 6.2.1 R a participant firm will only be exempt from a specific costs levy or compensation costs levy for any given financial year if it met the conditions in FEES 6.2.1 R on 31 March of the immediately preceding financial year.
FEES 6.3
The FSCS's power to impose levies
- 01/01/2006
General limits on levies
FEES 6.3.1
See Notes
The FSCS may at any time impose a management expenses levy or a compensation costs levy, provided that the FSCS has reasonable grounds for believing that the funds available to it to meet relevant expenses are, or will be, insufficient, taking into account:
(1) in the case of a management expenses levy, the level of the FSCS's anticipated expenditure in respect of those expenses in the financial year of the compensation scheme in relation to which the levy is imposed; and
(2) in the case of a compensation costs levy, the level of the FSCS's anticipated expenditure in respect of compensation costs in the 12 months following the levy.
FEES 6.3.2
See Notes
The calculation of levies will also take into account previous levies, where funds raised in anticipation of meeting liabilities prove either more or less than the amount actually required.
FEES 6.3.3
See Notes
The FSCS may impose one or more levies in a financial year to meet either its management expenses or its compensation costs. The FSCS may also impose interim levies, as part of its overall levy commitment. This flexibility allows the FSCS to phase its financing over the course of a financial year and thus avoid collecting levies from firms before the money is actually needed. The FSCS has committed itself in the Memorandum of Understanding with the FSA (the text of which can be found on the FSA website www.fsa.gov.uk) to publish regularly an indicative timetable for its levy procedures.
FEES 6.3.4
See Notes
Limits on compensation costs levies on sub-schemes
FEES 6.3.5
See Notes
The FSCS must not require a participant firm in the accepting deposits sub-scheme to pay a share of a compensation costs levy allocated to that sub-scheme to the extent that:
(1) the share in question; plus
(2) all previous amounts paid by the firm either as its share of levies allocated to that sub-scheme, or under the Deposit Protection Scheme (deducting from those amounts any amount refunded under FEES 6.3.20 R to FEES 6.3.21 R or by the Deposit Protection Scheme);
amounts to more than 0.3% of the firm's protected deposits.
FEES 6.3.6
See Notes
The FSCS must not require a participant firm in the insurance business sub-scheme to pay a share of a compensation costs levy allocated to that sub-scheme in any financial year of the compensation scheme, to the extent that the share in question, together with all previous amounts paid by the firm as its share of compensation costs levies allocated to that sub-scheme in that financial year, amounts to more than 0.8% of the participant firm's relevant net premium income.
- 01/01/2006
FEES 6.3.7
See Notes
The maximum amount of compensation costs for which the FSCS can levy the designated investment business sub-scheme in any one financial year of the compensation scheme is limited to 400 million.
- 01/01/2006
FEES 6.3.8
See Notes
The FSCS must not require a participant firm in the mortgage advice and arranging sub-scheme to pay a share of a compensation costs levy allocated to that sub-scheme in any financial year of the compensation scheme, to the extent that:
(1) the share in question; plus
(2) all previous amounts paid by the firm as its share of compensation costs levies allocated to that sub-scheme in that financial year;
amounts to more than 0.8% of the participant firm's annual eligible income.
FEES 6.3.9
See Notes
The FSCS must not require a participant firm in the general insurance mediation sub-scheme to pay a share of a compensation costs levy allocated to that sub-scheme in any financial year of the compensation scheme, to the extent that:
(1) the share in question; plus
(2) all previous amounts paid by the firm as its share of the compensation costs levy allocated to that sub-scheme in that financial year;
amounts to more than 0.8% of the participant firm's annual eligible income.- 01/01/2006
Levy for compensation costs paid in error
FEES 6.3.10
See Notes
The FSCS may include in a compensation costs levy the costs of compensation paid by the FSCS in error, provided that the payment was made in good faith.
Management of funds
FEES 6.3.11
See Notes
The FSCS must hold any amount collected from a specific costs levy or compensation costs levy to the credit of the sub-schemes and relevant contribution groups, in accordance with the allocation established under FEES 6.4.6 R and FEES 6.5.2 R.
FEES 6.3.12
See Notes
Any funds received by the FSCS by way of levy or otherwise for the purposes of the compensation scheme are to be managed as the FSCS considers appropriate, and in doing this the FSCS must act prudently.
FEES 6.3.13
See Notes
Interest earned by the FSCS in the management of funds held to the credit of a contribution group must be credited to that contribution group, and must be set off against the management expenses allocated to that contribution group.
FEES 6.3.14
See Notes
The FSCS must keep accounts which show:
FEES 6.3.15
See Notes
The FSCS may use the money collected from firms within one sub-scheme to pay compensation costs in respect of any contribution group within that sub-scheme, so long as it ensures that this is done without prejudice to the participant firms from whom the money has been collected.
FEES 6.3.16
See Notes
FEES 6.3.15 R means that, for example:
(1) when crediting interest under FEES 6.3.13 R, the FSCS should regard any money collected from one
contribution group
which has been used to pay the compensation costs of another
contribution group
within the same as standing to the credit of the first
contribution group; and
(2) the FSCS should not raise a levy under FEES 6.3.1 R on a
contribution group
solely because, as a result of the FSCS's action under FEES 6.3.15 R, there appear to be insufficient funds available to the credit of the
contribution group
to meet its expenses.
FEES 6.3.17
See Notes
(1) The FSCS may use any money held to the credit of one sub-scheme (the creditor sub-scheme) to pay compensation costs in respect of or allocated to another sub-scheme (the debtor sub-scheme if the FSCS has reasonable grounds to believe that this would be more economical than borrowing funds from a third party or raising a levy.
(2) Where the FSCS acts in accordance with (1), it must ensure that:
(a) the creditor sub-scheme is reimbursed by the debtor sub-scheme as soon as possible;
(b) the debtor sub-scheme pays interest at a rate equivalent to the Bank of England's repo rate from time to time in force; and
(c) the amount lent by the creditor sub-scheme to the debtor sub-scheme is taken into account by the FSCS when considering whether to impose a compensation costs levy on the creditor sub-scheme under FEES 6.3.1 R.
FEES 6.3.18
See Notes
(1) The FSCS may use any money held to the credit of any sub-scheme to repay borrowing from a third party incurred to pay establishment costs, if in the opinion of the FSCS this would be to the benefit of participant firms.
(2) Where the FSCS acts in accordance with (1), it must ensure that:
(a) future establishment costs levies are used first to repay all amounts borrowed from the appropriate sub-schemes;
(b) interest is paid to the appropriate sub-schemes at a rate equivalent to the Bank of England's repo rate from time to time in force; and
(c) the amount lent by any sub-scheme is taken into account by the FSCS when considering whether to impose a levy under FEES 6.3.1 R.
FEES 6.3.19
See Notes
Unless FEES 6.3.20 R applies, any recoveries made by the FSCS in relation to protected claims must be credited to the contribution groups to which the related compensation costs were allocated.
FEES 6.3.20
See Notes
If the FSCS makes recoveries in relation to protected claims where the related compensation costs were allocated to the accepting deposits sub-scheme, or in relation to compensation paid out of a special contribution under the Deposit Protection Scheme, and if the FSCS refunds the recoveries under FEES 6.3.21 R, it must ensure that, as far as possible, the recoveries are refunded to the firms that contributed to the relevant compensation costs levy or special contribution (whether or not the firms are participant firms at the time that the recoveries are made).
FEES 6.3.21
See Notes
If the FSCS has more funds to the credit of a contribution group than the FSCS believes will be required to meet levies on that contribution group for the next 12 months, it may refund the surplus to members or former members of the contribution group on any reasonable basis.
Adjustments to calculation of levy shares
FEES 6.3.22
See Notes
The FSCS may adjust the calculation of a participant firm's share of any levy to take proper account of:
(1) any excess, not already taken into account, between previous levies of that type imposed in relation to previous periods and the relevant costs actually incurred in that period; or
(2) participant firms that are exempt from the levy under FEES 6.2; or
(3) amounts that the FSCS has not been able to recover from participant firms as a result of FEES 6.3.5 R FEES 6.3.6 R, FEES 6.3.8 R or FEES 6.3.9 R; or
(4) amounts that the FSCS has not been able to recover from participant firms after having taken reasonable steps; or
(5) FEES 6.4.8 R (New participant firms), FEES 6.3.23 R (Remission of levy or additional administrative fee) or FEES 6.6 (Incoming EEA firms); or
(6) anything else that the FSCS believes on reasonable grounds should be taken into account.
Remission of levy or additional administrative fee
FEES 6.3.23
See Notes
If a participant firm's share of a levy or an additional administrative fee under FEES 6.7.4 R would be so small that, in the opinion of the FSCS, the costs of collection would be disproportionate to the amount payable, the FSCS may treat the participant firm as if its share of the levy or additional administrative fee amounted to zero.
Levies on the Society of Lloyd's
FEES 6.3.24
See Notes
The FSCS may impose a levy on the Society to be calculated as the aggregate of the levies that would be imposed on each member if this chapter applied to members, as follows:
(1) a share of any unexpired portion of an establishment costs levy;
(2) a proportionate share of a base costs levy in respect of the compensation scheme's costs for the period from 1 January 2004 to the end of the compensation scheme's financial year and a share of such levies for all subsequent financial years; and
(3) a specific costs levy and a compensation costs levy in respect of costs arising out of a relevant person being in default, arrangements made under COMP 3.3.1 R or measures taken under COMP 3.3.3 R where:
on or after 1 January 2004.(a) the default occurs or the circumstances giving rise to the arrangements being made or the measures being taken, as the case may be, occur; and
(b) the protected contracts of insurance in connection with which the costs arise were entered into;
FEES 6.4
Management expenses
- 01/01/2006
Obligation on participant firm to pay
FEES 6.4.1
See Notes
Limit on management expenses
FEES 6.4.2
See Notes
The total of all management expenses levies attributable to a particular period of the compensation scheme may not exceed the limit applicable to that period set out in FEES 6 Annex 1.
Participant firm's share
FEES 6.4.3
See Notes
A participant firm's share of a management expenses levy consists of one or more of: (1) a share of a base costs levy; and (2) a share of a specific costs levy; and (3) a share of an establishment costs levy.
FEES 6.4.4
See Notes
The FSCS must ensure that each participant firm's share of a management expenses levy separately identifies the firm's share of the base costs levy,
specific costs levy
and establishment costs levy.
Base costs levy
FEES 6.4.5
See Notes
Unless FEES 6.3.22 R applies, the FSCS must calculate a participant firm's share of a base costs levy by:
- (1) identifying the base costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme, but has not yet levied;
- (2) calculating the amount of the participant firm's regulatory costs as a proportion of the total regulatory costs relating to all participant firms for the relevant financial year; and
- (3) applying the proportion calculated in (2) to the figure in (1).
Specific costs levy
FEES 6.4.6
See Notes
(1) The FSCS must (subject to (2)) allocate any specific costs levy amongst the sub-schemes and relevant contribution groups in proportion to the volume of relevant costs arising from, or expected to arise from, claims in respect of the different activities represented by those contribution groups.
(2) The FSCS must allocate any part of a specific costs levy that relates to IFA pensions review claims in accordance with FEES 6.5.17 R (IFA pensions review compensation levies).
FEES 6.4.7
See Notes
The FSCS must calculate a participant firm's share of a specific costs levy (subject to FEES 6.3.22 R (Adjustments to calculation of levy shares) and FEES 6.5.17 R (IFA pensions review compensation levies)) by:
(1) identifying each of the sub-schemes and relevant contribution groups within those sub-schemes to which the participant firm belongs, using the statement of business most recently supplied under FEES 6.5.13 R;
(2) identifying the management expenses other than base costs or establishment costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme, allocated to the contribution groups identified in (1), but not yet levied;
(3) calculating, in relation to each relevant contribution group FF, the participant firm's tariff base as a proportion of the total tariff base of all participant firms in the contribution group, using the statement of business most recently supplied under FEES 6.5.13 R;
(4) applying the proportion calculated in (3) to the figure in (2); and
(5) if more than one sub-scheme or contribution group is relevant, adding together the figure in (4) for each contribution group.
New participant firms
FEES 6.4.8
See Notes
A firm which becomes a participant firm part way through a financial year of the compensation scheme will not be liable to pay a share of a specific costs levy made in that year.
FEES 6.4.9
See Notes
New participant firms will normally have relevant tariff bases of nil as at 31 December in the financial year preceding that in which they join, so that they will not be required to pay a share of a specific costs levy (or a compensation costs levy because of FEES 6.5.6 R). FEES 6.4.8 R means that the FSCS does not have to estimate the tariff base of a new participant firm.
- 01/01/2006
FEES 6.4.10
See Notes
Since a firm that becomes a participant firm in the course of a financial year of the compensation scheme will already be obtaining a discount in relation to the base costs levy and the establishment costs levy through the modified fee provisions of FEES 4.2.6 R, no rule is necessary in COMP for discounts on the base costs levy or the establishment costs levy.
FEES 6.4.11
See Notes
The FSCS must calculate a participant firm's share of an establishment costs levy on the same basis as a base costs levy under FEES 6.4.5 R.
- 01/01/2006
FEES 6.4.12
See Notes
The FSCS may not impose an establishment costs levy after the end of the third full financial year of operation of the compensation scheme.
- 01/01/2006
FEES 6.5
Compensation costs
- 01/01/2006
FEES 6.5.1
See Notes
The compensation costs levy is made up of compensation costs incurred by the FSCS, together with any compensation costs which can reasonably be anticipated as arising in the 12 months following the levy date, and which in each case have not already been subject to a levy.
- 01/01/2006
FEES 6.5.2
See Notes
- (1) The FSCS must (subject to (2)) allocate any compensation costs levy to the individual sub-schemes and relevant contribution groups in proportion to the volume of compensation costs arising from, or expected to arise from, claims in respect of the different activities represented by those contribution groups.
- (2) The FSCS must allocate any part of a compensation costs levy that relates to IFA pensions review claims in accordance with FEES 6.5.17 R (IFA pensions review compensation levies).
FEES 6.5.3
See Notes
If a participant firm which is in default has carried on a regulated activity other than in accordance with a permission, the FSCS must allocate any compensation costs or specific costs arising out of that activity to the relevant contribution group which covers that activity.
FEES 6.5.4
See Notes
If the relevant person in default is an appointed representative, the FSCS must allocate any compensation costs or specific costs arising out of a regulated activity for which his principal has not accepted responsibility to the relevant contribution group for that activity
FEES 6.5.5
See Notes
A participant firm must pay to the FSCS a share of each compensation costs levy unless either the firm is exempt under FEES 6.2 (Exemption) or the FSCS has chosen to exercise its discretion under FEES 6.3.23 R in respect of that firm.
FEES 6.5.6
See Notes
The FSCS must calculate a participant firm's share of a compensation costs levy (subject to FEES 6.5.17 R (IFA pensions review compensation levies)) on the same basis as a specific costs levy under FEES 6.4.6 R, FEES 6.4.7 R and FEES 6.4.8 R.
FEES 6.5.7
See Notes
When calculating a participant firm's share of a compensation costs levy or specific costs levy allocated to:
(1) the accepting deposits sub-scheme or the insurance business sub-scheme, the FSCS must use the contribution groups and tariff bases as set out in the table in FEES 6.5.8 G;
(2) the investment business sub-scheme, the FSCS must (unless (3) applies) use as the contribution groups and tariff bases the correspondingly numbered activity groups and tariff bases set out in part 1 and part 2 of FEES 4 Ann 1 which are identified in FEES 6.5.9 R;
(3) the investment business sub-scheme, where any part of the levy relates to IFA pensions review claims, the FSCS must comply with FEES 6.5.17 R (IFA pensions review compensation levies);
(4) the mortgage advice and arranging sub-scheme, the FSCS must use the contribution group and tariff base set out in the table in FEES 6.5.10 R;
(5) the general insurance mediation sub-scheme, the FSCS must use the contribution group and tariff base set out in the table in FEES 6.5.11 R.
FEES 6.5.8
See Notes
Contribution Groups for the Accepting Deposits Sub-scheme and the Insurance Business Sub-scheme for the Financial Services Compensation Scheme (see FEES 6.5.7R (1))
| SUB-SCHEME | CONTRIBUTION GROUP (references to A1, A2 etc are to the FSA fee Blocks) | LEGAL BASIS FOR ACTIVITY (references to articles are to articles of the Regulated Activities Order) | TARIFF BASE |
| Accepting deposits | A1 - deposit takers | Accepting deposits (article 5) | Protected deposits (see FEES 6.5.15 R) |
| Insurance business | A3 - Insurance activities - General insurance | Effecting contracts of insurance and/or carrying out contracts of insurance (article 10) that are general insurance contracts | Relevant net premium income |
| Insurance business | A4 - insurance activities - Life Insurance | Effecting contracts of insurance and/or carrying out contracts of insurance (article 10) that are long-term insurance contracts | Relevant net premium income |
FEES 6.5.9
See Notes
The contribution groups and tariff bases for the investment business sub-scheme (see FEES 6.5.7R (2)). (The contribution groups, legal bases for activity and tariff bases are the same as the correspondingly numbered activity groups and tariff bases set out in Part 1 and Part 2 of FEES 4 Ann 1R, to the extent that they are covered by the scope of the FSCS.)
| SUB-SCHEME | CONTRIBUTION GROUP (references to A7 etc are to the activity groups in part 1 of FEES 4 Ann 1R) | LEGAL BASIS FOR ACTIVITY (this is merely a summary of the basis in part 1 of FEES 4 Ann 1R; references to articles are to articles of the Regulated Activities Order) | TARIFF BASE (this is merely a summary of the base in part 2 of FEES 4 Ann 1R) |
| Designated investment business | A7 - fund managers | Managing investments (article 37) | Funds under management |
| Designated investment business | A9 - managers of an AUT, ACDs and depositaries and operators of personal pension schemes or stakeholder pension schemes | Any of the following: (a) establishing, operating or winding up a collective investment scheme; (b) acting as a trustee of an authorised unit trust scheme; (c) acting as a depositary, or sole director of an open-ended investment company (article 51); (d) establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme. | Gross income |
| Designated investment business | A10 - dealing as principal | Dealing in investments as principal (article 14). | Number of traders |
| Designated investment business | A12 - advisory brokers (excluding corporate finance advisers) - holding either client money or assets | Any of the following: (a) dealing in investments as agent (article 21); (b) arranging (bringing about) deals in investments (article 25(1)); (c) making arrangements with a view to transactions in investments (article 25(2)); with permission to: (i) advise on investments (article 53); (ii) hold client money; and (iii) safeguarding and administering investments (article 40) | Number of approved persons |
| Designated investment business | A13 - advisory brokers (excluding corporate finance adviser) - not holding either client money or assets | Any of the following: (a) dealing in investments as agent (article 21); (b) arranging (bringing about) deals in investments (article 25(1)); (c) making arrangements with a view to transactions in investments (article 25(2)); with permission to advise on investments (article 53); but not to (i) hold client money; and (ii) safeguard and administer investments (article 40). | Number of approved persons |
| Designated investment business | A14 - corporate finance advisory firms | Permission includes a requirement that the firm must not conduct designated investment business other than corporate finance business | Number of approved persons |
FEES 6.5.10
See Notes
The contribution groups and tariff bases for the mortgage advisers and arrangers (see FEES 6.5.7R (4)
| SUB-SCHEME | CONTRIBUTION GROUP (REFERENCES TO A1, A2 ETC ARE TO THE FSA FEE BLOCKS) | LEGAL BASIS FOR ACTIVITY (references to articles are to articles of the Regulated Activities Order) | TARIFF BASE |
| Mortgage advice and arranging | A18 - Mortgage lenders, advisers and arrangers | Any of the following: (a) arranging (bringing about) regulated mortgage contracts; (b) making arrangements with a view to regulated mortgage contracts; (c) advising on regulated mortgage contracts; (d) agreeing to carry on a regulated activity which is within any of the above; and (e) the activities of a mortgage lender which would be arranging but for article 28A of the Regulated Activities Order (Arranging contracts to which the arranger is a party). | annual eligible income |
FEES 6.5.11
See Notes
The contribution groups and tariff bases for the general insurance intermediaries (see FEES 6.5.7R (5))
| SUB-SCHEME | CONTRIBUTION GROUP (REFERENCES TO A1, A2 ETC ARE TO THE FSA FEE BLOCKS) | LEGAL BASIS FOR ACTIVITY (references to articles are to articles of the Regulated Activities Order) | TARIFF BASE |
| General insurance mediation | A.19 General insurance mediation | Any of the following in relation to a non-investment insurance contract: (a) dealing in investments as agent; (b) arranging (bringing about) deals in investments; (c) making arrangements with a view to transactions in investments; (d) assisting in the administration and performance of a contract of insurance; (e) advising on investments; and (f) agreeing to carry on a regulated activity which is within any of the above | annual eligible income |
- 01/01/2006
FEES 6.5.12
See Notes
A participant firm may belong to more than one
sub-scheme,, and more than one
contribution group
within the same
sub-scheme.
FEES 6.5.13
See Notes
Unless exempt under FEES 6.2.1 R, a participant firm must provide the FSCS by the end of February each year (or, if it has become a participant firm part way through the financial year, by the date requested by the FSA) with a statement of:
(1) the contribution groups to which it belongs; and
(2) the total amount of business (measured in accordance with the appropriate tariff base or bases) which it conducted, as at 31 December of the previous year, in relation to each of those contribution groups.
FEES 6.5.14
See Notes
If the information in FEES 6.5.13 R has been provided to the
FSA
under other rule obligations, a participant firm will be deemed to have complied with FEES 6.5.13 R.
FEES 6.5.15
See Notes
Where a participant firm can identify that a protected deposit was made by a person who is not an eligible claimant, it may exclude the amount of that deposit from the tariff base, provided that it notifies the FSCS of the amount of the deposit so excluded and provides the FSCS with such information about the deposit as the FSCS may reasonably require.
FEES 6.5.16
See Notes
If a participant firm does not submit a complete statement by the date on which it is due in accordance with FEES 6.5.13 R and any prescribed submission procedures:
(1) the firm must pay an administrative fee of £250 (but not if it is already subject to an administrative fee under
FEES 4 Annex 2 Part 1 or
FEES 5.4.1 R for the same financial year); and
(2) the compensation costs levy and any specific costs levy will be calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10 (or, if it has become a participant firm part way through a financial year, on the basis of the information provided to the
FSA
for the purposes of FEES 4.4.2 R) or on any other reasonable basis, making such adjustments as seem appropriate in subsequent levies once the true figures are known.
IFA pensions review compensation levies
FEES 6.5.17
See Notes
The FSCS must allocate any part of a specific costs levy or compensation costs levy that relates to IFA pensions review claims:
(1) to participant firms which were liable to pay the PIA pensions review compensation costs levy in 2001/2002; and
(2) in the same percentage share as that levy (adjusted to distribute the share of any previous contributor, which is not a participant firm, among remaining participant firms in accordance with their percentage shares).
- 01/01/2006
FEES 6.6
Incoming EEA firms
- 01/01/2006
FEES 6.6.1
See Notes
If an incoming EEA firm, which is a BCD credit institution, an IMD insurance intermediary or ISD investment firm, is a participant firm, the FSCS must give the firm such discount (if any) as is appropriate on the share of any levy it would otherwise be required to pay, taking account of the nature of the levy and the extent of the compensation coverage provided by the firm's Home State scheme.
FEES 6.7
Payment of levies
- 01/01/2006
FEES 6.7.1
See Notes
A participant firm must pay its share of any levy made by the FSCS:
(1) in one payment; or
(2) where the FSCS agrees, quarterly, at the beginning of each quarter, by direct debit agreement.
FEES 6.7.2
See Notes
The amount paid under a direct debit arrangement will be adjusted on a continuous basis to take account of interim levies and other adjustments made during the course of the financial year.
FEES 6.7.3
See Notes
A participant firm's share of a levy to which FEES 6.7.1R (1) applies is due on, and payable within 30 days of, the date when the invoice is issued.
FEES 6.7.4
See Notes
If a participant firm does not pay its share of a levy subject to a direct debit agreement as required by FEES 6.7.1R (2), the entire amount of the levy becomes due and payable to the FSCS, and additional administrative fees are payable at the rate set out in FEES 2.2.1 R.
FEES 6.7.5
See Notes
A participant firm liable to pay its share of the levy under FEES 6.7.1 R must do so using one of the methods set out in FEES 4.2.4 R save that no additional amount or discount is applicable.
FEES 6.7.6
See Notes
If a firm ceases to be a participant firm part way through a financial year of the compensation scheme:
(2) the FSCS may make a levy upon it (which may be before or after the firm has ceased to be a participant firm, but must be before it ceases to be an authorised person) for the costs which it would have been liable to pay had the FSCS made a levy on all participant firms at the time of the levy on the firm;.
FEES 6 Annex 1
Financial Services Compensation Scheme - Management Expenses Levy Limit
See Notes
| This table belongs to FEES 6.4.2 R | |
| Period | Limit on total of all management expenses levies attributable to that period (£) |
| 1 December 2001 to 1 April 2002 | £4,209,000 |
| 1 April 2002 to 31 March 2003 | £13,228,000 |
| 1 April 2003 to 31 March 2004 | £13,319,000 |
| 1 April 2004 to 31 March 2005 | £17,590,000 |
| 1 April 2005 to 31 March 2006 | £27,030,000 |
| 1 April 2006 to 31 March 2007 | £37,060,000 |
| 1 April 2007 to 31 March 2008 | £37,520,000 |
Transitional Provisions and Schedules
FEES TP 1
Transitional Provisions
FEES TP 1.1
| (1) |
(2)
Material to which the transitional provision applies | (3) |
(4)
Transitional Provision |
(5)
Transitional Provision: dates in force |
(6)
Handbook provision: coming into force | |||
| 1. | FEES 3.2.7 R(p) | R | A firm does not have to pay a fee if: | 2 October 2006 to 5 April 2007 | 1 June 2006 | |||
| (1) | it is seeking only to increase the scope of its permission to include: | |||||||
| (a) | establishing, operating or winding up a personal pension scheme; or | |||||||
| (b) | (if the firm is in activity group A12 or A13) the designated investments: | |||||||
| (i) | personal pension scheme; or | |||||||
| (ii) | rights to or interests in a personal pension scheme, and | |||||||
| (2) | it was, as at 1 October 2006, carrying on what would become on 6 April 2007: | |||||||
| (a) | the regulated activity in (1)(a), or | |||||||
| (b) | a regulated activity in relation to the designated investments in (1)(b). | |||||||
| 2. | FEES 4 Annex 1 R Part 3, Activity group A9 (operators, trustees and depositaries of collective investment schemes) | R | References to gross income received in connection with operating a personal pension scheme or a stakeholder pension scheme include gross income received in connection with operating a personal pension scheme or a stakeholder pension scheme before 6 April 2007, if and to the extent that, if the same activities had been carried out in relation to the same scheme on 6 April 2007 those activities would have amounted to operating a personal pension scheme or a stakeholder pension scheme. | From 6 April 2007 to 30 April 2008 | 6 April 2007 | |||