FEES Fees Manual

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FEES 1

Fees Manual

FEES 1.1

Application and Purpose

01/01/2006

FEES 1.1.1

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 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. FEES 7 relates to the CFEB levy.

Application

FEES 1.1.2

This manual applies in the following way:

(1) FEES 1, 2 and 3 apply to the fee payers listed in column 1 of the Table of application, notification and vetting fees in FEES 3.2.7 R.

(a) [deleted]
(b) [deleted]
(c) [deleted]
(d) [deleted]
(e) [deleted]
(f) [deleted]
(g) [deleted]
(h) [deleted]
(i) [deleted]
(j) [deleted]
(k) [deleted]
(l) [deleted]
(m) [deleted]
(n) [deleted]
(o) [deleted]
(p) [deleted]
(q) [deleted]
(r) [deleted]
(s) [deleted]

(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 (LR) every sponsor;
(i) under the Disclosure Rules and Transparency Rules (DTR) every issuer of shares, depositary receipts and securitised derivatives; and
(j) every fee-paying payment service provider.

(3) FEES 1, 2 and 5 apply to:

(a) every firm and fee-paying payment service provider 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 other than a person with an interim RSRB permission (and no other permissions) because he has submitted an application for interim permission in accordance with article 32(1) of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (SI 2009/1342) and that permission has been given;
(b) the FSCS; and
(c) the Society.

(5) FEES 1, 2 and 7 apply to:

(a) every person having a Part IV permission;
(b) an incoming EEA firm;
(c) an incoming Treaty firm;
(d) the Society. the Society;

FEES 1, 2 and 7 do not apply to an incoming EEA firm or an incoming Treaty firm that has not established a branch in the United Kingdom.

FEES 1.1.3

The relevant provisions of FEES 5 and FEES 2 are applied to VJ participants by the standard terms (see DISP 4).

01/01/2006
Future version of FEES 1.1.3 after 01/07/2011

Purpose

FEES 1.1.4

The purpose of this manual is to set out the fees applying to the persons set out in FEES 1.

01/01/2006
Future version of FEES 1.1.4 after 01/04/2013

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Legal Instruments that change this Chapter Fees Manual

FEES 2

General Provisions

FEES 2.1

Introduction

01/01/2006

Application

FEES 2.1.1

This chapter applies to every person who is required to pay a fee or share of a levy to the FSA, FOS Ltd or FSCS, as the case may be, by a provision of the Handbook.

01/01/2006
Future version of FEES 2.1.1 after 01/07/2011

FEES 2.1.2

FEES 2.2.1R does not apply in respect of any fee payable under FEES 3 (Application, notification and vetting fees).

01/01/2006
Future version of FEES 2.1.2 after 01/04/2013

FEES 2.1.3

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.

01/01/2006
Future version of FEES 2.1.3 after 01/04/2013

Purpose

FEES 2.1.4

The purpose of this chapter is to set out the general provisions applicable to those who are required to pay fees or levies to the FSA, case fees to the FOS Ltd or a share of the FSCS levy.

FEES 2.1.5

Paragraph 17 of Schedule 1 to and section 99 of the Act and regulation 92 of the Payment Services Regulations enable the FSA to charge fees to cover its costs and expenses in carrying out its functions. The corresponding provisions for the FSCS levy, FOS levies and case fees and CFEB levies are set out in FEES 6.1, FEES 5.2 and FEES 7.1.4 G respectively. Fee-paying payment service providers are not required to pay the FSCS levy but are liable for FOS levies.

FEES 2.1.5A

Regulation 92 of the Payment Services Regulations provides that the functions of the FSA under the regulations are treated for the purposes of paragraph 17 of Schedule 1 to the Act as functions conferred on the FSA under the Act. Paragraphs 17(2) and (3) however, have not been included by the Payment Services Regulations. These are, respectively, the FSA obligation to ensure that the amount of penalties received or expected to be received are not to be taken into account in determining the amount of any fee payable and the provision that allows fees to be raised to repay borrowed monies in respect of expenses incurred, before or after the coming into force of the Act or the Bank of England Act 1998.

01/05/2009
Future version of FEES 2.1.5A after 10/02/2011

FEES 2.1.6

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.

01/01/2006
Future version of FEES 2.1.6 after 01/04/2013

FEES 2.1.7

The key components of the FSA fee mechanism (excluding the FSCS levy, the FOS levy and case fees, and the CFEB levy which are dealt with in FEES 5, FEES 6 and FEES 7) 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

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).

01/01/2006
Future version of FEES 2.1.8 after 01/04/2013

FEES 2.1.9

By basing fee-blocks on categories of business, the FSA aims to minimise cross-sector subsidies. The membership of the fee-blocks is identified in the FEES provisions relating to the type of fees concerned.

01/01/2006
Future version of FEES 2.1.9 after 01/04/2013

FEES 2.1.10

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 2.1.11

Whilst paragraph 17(2) of Schedule 1 to the Act has not been applied to the fee-raising power of the FSA under the Payment Services Regulations, regulation 92(2) of these regulations requires the FSA to apply amounts paid to it by way of penalties imposed under the regulations towards expenses incurred in carrying out its functions under the regulations, or for any incidental purpose.

01/05/2009
Future version of FEES 2.1.11 after 10/02/2011

FEES 2.2

Late Payments and Recovery of Unpaid Fees

01/01/2006

Late Payments

FEES 2.2.1

If a person does not pay the total amount of a periodic fee (including fees relating to transaction reports to the FSA using the FSA's Transaction Reporting System (see SUP 17)), FOS levy or case fee, or share of the FSCS levy or CFEB levy, before the end of the date on which it is due, under the relevant provision in FEES 4, 5, 6 or 7, 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

The FSA, (for periodic fees, FOS and FSCS levies and CFEB levies), and the 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

Paragraph 17(4) and paragraph 19B of Schedule 1 to and section 99(5) of the Act permit the FSA to recover fees (including fees relating to payment services and, where relevant, FOS levies and CFEB 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 the 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

In addition, the FSA may be entitled to take regulatory action in relation to the non-payment of fees, FOS levies and CFEB levies. The 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 the FSA by the FOS Ltd or the 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 and levies

FEES 2.3.1

If it appears to the FSA, the FSCS (in relation to any FSCS levy only) or the FOS Ltd (in relation to any FOS case fee only), that in the exceptional circumstances of a particular case, the payment of any fee, FSCS levy, FOS levy or CFEB levy would be inequitable, the FSA, the FSCS or the 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

If it appears to the FSA, the FSCS (in relation to any FSCS levy only) or the 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, the FSCS, the FOS Ltd or the CFEB, as relevant, of a fee, FSCS levy, FOS levy or CFEB levy which has been paid would be inequitable, the FSA, the FSCS, the FOS Ltd or the CFEB, may (unless FEES 2.3.2B R applies) refund all or part of that fee or levy.

FEES 2.3.2A

A poor estimate or forecast by a fee or levy 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 or levy payer may give rise to such a claim.

FEES 2.3.2B

The FSA or the FSCS 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 or levy payer in respect of a particular period, due to a mistake of fact or law by the fee or levy payer, if the claim is made by the fee or levy payer more than 2 years after the beginning of the period to which the overpayment relates.

FEES 2.4

VAT

01/04/2009

FEES 2.4.1

All fees payable or any stated hourly rate under FEES 3 (Application, notification and vetting fees), FEES 4 (Periodic fees) and FEES 7 (The CFEB levy) are stated net of VAT. Where VAT is applicable this must also be included.

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Legal Instruments that change this Chapter General Provisions

FEES 3

Application, Notification and Vetting Fees

FEES 3.1

Introduction

01/01/2006

Application

FEES 3.1.1

This chapter applies to every person set out in FEES 1.1.2R (1).

01/01/2006
Future version of FEES 3.1.1 after 10/02/2011

FEES 3.1.1A

A reference to firm in this chapter includes a reference to a fee-paying payment service provider but not one which is a small e-money issuer.

01/05/2009
Future version of FEES 3.1.1A after 10/02/2011

FEES 3.1.2

This chapter does not apply to an EEA firm that wishes to exercise an EEA right.

01/01/2006
Future version of FEES 3.1.2 after 10/02/2011

Purpose

FEES 3.1.3

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.

01/01/2006
Future version of FEES 3.1.3 after 17/12/2010

FEES 3.1.4

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.

01/01/2006
Future version of FEES 3.1.4 after 10/02/2011

FEES 3.1.5

(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.
(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

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).

01/01/2006
Future version of FEES 3.1.6 after 01/04/2013

FEES 3.1.6A

Application fees for authorisation or registration under the Payment Services Regulations are set out in FEES 3 Annex 8R. The fee depends on the type of payment services a firm wishes to provide and whether it will be a small payment institution or an authorised payment institution. The fee may also depend on the number of agents it has.

01/05/2009

FEES 3.1.7

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. (For more information, contact the Firm Contact Centre (020 7066 3954) or visit the FSA website How do I get authorised: http://www.fsa.gov.uk/Pages/Doing/how/index.shtml.) 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 the FSA website How do I get authorised: http://www.fsa.gov.uk/Pages/Doing/how/index.shtml 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.

06/10/2007
Past version of FEES 3.1.8 before 06/10/2007

FEES 3.2

Obligation to pay fees

01/01/2006

General

FEES 3.2.1

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 request for support relating to compatibility of its systems with FSA systems, or admission approval made, or notification or notice of exercise of a Treaty right given, or other matter 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

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.

01/01/2006
Future version of FEES 3.2.2 after 01/04/2013

Method of payment

FEES 3.2.3

(1) Unless (2) or (3) 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.
(3) The sum payable under FEES 3.2.1 R by a firm applying for a variation of its Part IV permission (FEES 3.2.7 R(p)) must be paid by any of the methods described in (1) or by Maestro/Switch or credit card (Visa/Mastercard only). Any payment by a permitted credit card must include an additional 2% of the sum paid.

FEES 3.2.4

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.

01/01/2006
Future version of FEES 3.2.4 after 01/02/2011

FEES 3.2.5

(1) The appropriate authorisation or registration fee is an integral part of an application for, or an application for a variation of, a Part IV permission or authorisation, registration or variation under the Payment Services Regulations. 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 or regulation 5(3) or 12(3) of the Payment Services Regulations. 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

Fees paid under this chapter are not refundable.

01/01/2006
Future version of FEES 3.2.6 after 01/04/2013

FEES 3.2.7

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

(ii)

only involves a simple change of legal status as set out in 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, except for a firm providing cross border services only

(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 (v) or super 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 (v) or super 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)

Either:

(1)

Unless (2) applies, FEES 3 Annex 6.

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.

(i)

a firm applying to the FSA for permission to use one of the advanced prudential calculation approaches listed in FEES 3 Annex 6 R (or guidance on its availability), including any future proposed amendments to those approaches or (in the case of any application being made for such permission to the FSA as EEA consolidated supervisor under the) any firm making such an application; or

(2)

(a)

Unless (b) applies a firm submitting a second application for the permission 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

(ii)

in the case of an application to a Home State regulator other than the FSA 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, any firm to which the FSA would have to apply any decision to permit the use of that approach.

(b)

No fee is payable by a firm in relation to a successful application for a permission 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 where the Home State regulator has requested the assistance of the FSA as described in paragraph (o)(ii) of column 1 except in the cases specified in FEES 3 Annex 6.

(p)

A firm applying for a variation of its Part IV permission

(1)

Unless (2) or (3) 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)

If the firm is in the A.1 fee-block at the date of the application and the variation involves adding any of the regulated activities of meeting of repayment claims or managing dormant account funds (including the investment of such funds), the fee is 50% of the fee in FEES 3 Annex 1 R that applies to that application

(4)

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 supertransaction, being one where:

50,000

On or before the date that the relevant documentation is first submitted to the FSA.

(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, a transaction requiring vetting of an equity prospectus or equivalent document or a transaction requiring vetting of a prospectus in relation to a Depositary Receipt.

(r)

Providers of reporting or trade matching systems applying for recognition under MiFID as an Approved Reporting Mechanism.

100,000

Having received its application, within 30 days after the FSA has notified the applicant that it is to commence testing of the applicants systems.

(s)

In the case of an insurance business transfer scheme, a transferor.

Note - for the purpose of this paragraph an insurance business transfer scheme consists of a single transferor and a single transferee. Where however such a scheme is part of a single larger scheme, that larger scheme is treated as a single insurance business transfer scheme. If an insurance business transfer scheme includes more than one transferor in accordance with this paragraph, the transferors are liable to pay the fee under column (2) jointly.

Either (1) or (2) as set out below:

On or before any application is made to the FSA for the appointment of a person as an independent expert.

(1)

In the case of an insurance business transfer scheme involving long term insurance business, 18,500; or

(2)

in the case of an insurance business transfer scheme not involving long term insurance business, 10,000.

(t)

A firm, a third party acting on a firm's behalf, an operator of a regulated market or an operator of an MTF applying to the FSA to report transaction reports directly to the FSA other than through the FSA's Transaction Reporting System (see FEES 4.2.11 R and FEES 4 Annex 3 for the fees payable for firms using the FSA's Transaction Reporting System).

100,000

Having received its application, within 30 days after the FSA has notified the applicant that it is to commence testing of the applicants systems.

(u)

Any of the following:

As set out in FEES 3 Annex 7.

Within 30 days of the date of the invoice.

(i)

an operator of an approved reporting mechanism;

(ii)

a firm;

(iii)

a third party acting on behalf of a firm;

(iv)

a market operator; or

(v)

an MTF operator;

that satisfies the following conditions:

(1)

it provides transaction reports directly to the FSA; and

(2)

having made changes to its reporting systems, it asks the FSA to support the testing of the compatibility of its systems with the FSA's systems.

(v)

A significant transaction, being one where:

20,000

On or before the date that the relevant documentation is first submitted to the FSA .

(i)

the issuer has a market capitalisation in excess of 500 million and is producing an equity prospectus, a prospectus in relation to a Depository Receipt or a document in relation to a class 1 transaction; or

(ii)

the issuer is producing a document for vetting in relation to a reverse takeover, a hostile takeover or a significant restructuring.
A significant transaction does not include a super transaction.

(w)

A listed issuer that requests or whose representative requests the FSA to amend the Official List, or any records held by the FSA in relation to the Official List, otherwise than pursuant to an application for listing.

FEES 3 Annex 4 part 3

On or before the date the request is made.

(x)

(i)

An issuer or person who:

5,000

On or before the date the relevant documentation is first submitted to the FSA.

(1)

is a fee payer under one or more of the categories set out in (ii); and

(2)

requests the FSA's approval or vetting of a document that includes a mineral expert's report.

(ii)

The categories are (1), (m) (q), and (v) of this table.

(iii)

A fee under this category is payable in addition to any fee payable under the categories set out in (ii).

(y)

An applicant for authorisation as an authorised payment institution under regulation 5 of the Payment Services Regulations

The highest of the tariffs set out in FEES 3 Annex 8 which apply to that application.
Where an application only involves a simple change of legal status as set out in FEES 3 Annex 1 Part 6, the fee payable is 50% of the tariff that would otherwise be payable in FEES 3 Annex 8R

On or before the date the application is made.

(z)

An application by a small payment institution for authorisation as an authorised payment institution because regulation 15 of the Payment Services Regulations applies

The highest of the tariffs set out in FEES 3 Annex 8R which apply to that application.

On or before the date the application is made.

(za)

An applicant for registration as a small payment institution under regulation 12 of the Payment Services Regulations

FEES 3 Annex 8R, paragraph (1). Where an application only involves a simple change of legal status as set out in FEES 3 Annex 1 R Part 6, the fee payable is 50% of the tariff that would otherwise be payable in FEES 3 Annex 8R.

On or before the date the application is made.

(zb)

An authorised payment institution applying to vary its authorisation under regulation 8 of the Payment Services Regulations.

(1)

If the payment services carried on by the authorised payment institution prior to the variation only fall within paragraph (f) or (g) of Part 1 of Schedule 1 to the Payment Services Regulations and any of the payment services in paragraphs (a) to (e) of that Schedule will apply after variation, the fee is 50% of the highest of the tariffs set out in FEES 3 Annex 8R which apply to that application.

On or before the date the application is made.

(2)

Where the authorised payment institution:

(i)

already has authorisation to provide payment services within any one or more of paragraphs (a) to (e) of Part 1 of Schedule 1 to the Payment Services Regulations and wishes to add one or more other services in (a) to (g); or

(ii)

has authorisation to provide payment services in either paragraph (f) or (g) of Part 1 of Schedule 1 to the Payment Services Regulations and wishes to extend its authorisation to include the other paragraph ((f) or (g));

the fee payable is 250 irrespective of the number of agents it has.

(3)

In cases where the variation involves only the reduction (and no increases) of the types of payment services to be carried on after the variation, no fee is payable.

(zc)

A small payment institution applying to vary its registration under regulation 12 of the Payment Services Regulations

(1)

If the payment services carried on by the small payment institution prior to the variation only fall within paragraph (f) or (g) of Part 1 of Schedule 1 to the Payment Services Regulations and any of the payment services in paragraphs (a) to (e) of that Schedule will apply after variation, the fee is 50% of the highest of the tariffs set out in FEES 3 Annex 8R which apply to that application.

On or before the date the application is made.

(2)

Where the small payment institution:

(i)

is already registered to provide payment services within any one or more of paragraphs (a) to (e) of Part 1 of Schedule 1 to the Payment Services Regulations and wishes to add one or more other of the services in (a) to (g);

(ii)

is registered to provide payment services in either paragraph (f) or (g) of Part 1 of Schedule 1 to the Payment Services Regulations and wishes to extend its registration to include the other paragraph ((f) or (g));

the fee payable is 250 irrespective of the number of agents it has.

(3)

In cases where the variation involves only the reduction (and no increases) of the types of payment services to be carried on after the variation, no fee is payable.

(zd)

A financial institution notifying the FSA in accordance with regulation 121(2)(a) of the Payment Services Regulations.

50% of the highest of the tariffs set out in FEES 3 Annex 8R, paragraphs (2) to (5) which apply to that application.

On or before the date the application is made.

(ze)

Any person to which the Special Project Fee for restructuring applies under FEES 3 Annex 9.

Special Project Fee for restructuring in accordance with FEES 3 Annex 9.

30 days of the date of the invoice.

(zf)

An applicant for a ceding insurer's waiver.

20,000

On or before the date the application is made.

FEES 3 Annex 1

Authorisation fees payable

01/01/2006

Part 1 - Authorisation fees payable

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 (unless otherwise specified in Part 2)

(e)

Moderately complex

5,000 (unless otherwise specified in Part 2)

(f)

Complex

25,000

Part 2 - Complexity Groupings Straightforward Cases

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).

In the case of applicants for interim RSRB permission within this activity group the specified amount payable is 1,000.

A.19

General insurance mediation

Moderately Complex Cases

Moderately complex cases

Activity grouping

Description

A.1

E-money issuers only

A.2

Home finance providers and administrators.
In the case of applicants for interim RSRB permission within this activity group the specified amount payable is 3,000.

A.3

UK ISPVs

[deleted]

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

Service companies

Complex Cases R

Complex cases

Activity grouping

Description

A.1

Deposit acceptors (excluding e-money issuers and credit unions) and dormant account fund operators

A.3

Insurers - general (excluding friendly societies and UK ISPVs)

A.4

Insurers - life (excluding friendly societies)

MTF operators

Part 4 - Authorisation Fees for Treaty Firms R

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.

Part 5 - Activity Groupings R

The activity group definitions are set out in FEES 4 Annex 1R.

Part 6 - Change of legal status

An application involving only a simple change of legal status for the purposes of FEES 3.2.7 R, FEES 3.2.7R (y) and FEES 3.2.7R (za) 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, authorisation or registration under the Payment Services Regulations and

(2)

which is to:

(a)

have the same or narrower permission, scope of authorisation or registration under the Payment Services Regulations and the same branches (if any), as the firm;

(b)

assume all of the rights and obligations in connection with the regulated activities and payment services 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

Legislative provision

Nature and purpose of fee

Payable by

Amount of fee

Umbrella factor (note 1)

Part 1 [deleted]

[deleted]

Part 2 Application fees payable for firms to be subject to COLL

Regulation 12 of the OEIC Regulations

On application for an order declaring a scheme to be an ICVC, where the scheme is:

An applicant

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

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

Part 3 (notifications)

Section 264 of the Act

On giving notice under section 264 of the Act

The operator

600

Section 270 of the Act

On giving notice under section 270 of the Act

The operator

600

Part 4 (Alternative Investment Funds: fees payable for making a notification to the FCA to market an AIF)

Notes:

For an umbrella 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

01/01/2006
Future version of FEES 3 Annex 3 after 22/12/2011

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 and administration fees in relation to listing rules

01/04/2009
Past version of FEES 3 Annex 4 before 01/04/2009

Part 1

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 Categories 6 or 8 of FEES 3 Annex 5 Part 2 applies.

Part 2

Sponsor Application Fees

Fee type

Fee amount

Application for approval as sponsor

15,000

Part 3

Fee type

Fee amount

Administration fee where the FSA makes amendments to the Official List, or any records held by the FSA in relation to the Official List, as a result of a request made by a listed issuer or its representative.

225 plus, if the request relates to more than one issue of securities, 100 per each additional issue of securities (with its own International Securities Identification Number).

FEES 3 Annex 5

Document vetting and approval fees in relation to listing and prospectus rules

01/01/2006

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

1,430

Category 1

Class 1 transactions
Listing particulars for Depositary Receipts

6,270

Category 2

Listing particulars for issuers of specialist securities

2,750

Category 3

All other vetting only transactions

2,750

Category 4

Supplementary listing particulars

550

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

6,270

Category 2

Equity registration document

3,520

Category 3

Equity securities note and summary
Summary document referred to in PR 1.2.3R(8)

2,750

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)

2,750

Category 5

Non-equity registration document

1,925

Category 6

Non-equity securities note and summary
Summary document referred to in PR 1.2.3R(8)

660

Category 7

Supplementary prospectus and any details produced in a document in relation to LR 16.3.6 R.

550

Category 8

Drawdown prospectus or base prospectus

660

For the purposes of categories 1-3 of this fee schedule, equity does not include convertible securities or depositary receipts. These are treated as non-equity.
Where a fee in category 6 or 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 super or significant transactions and thus attract a higher fee, as set out in FEES 3.2.7 R(q) and FEES 3.2.7 R(v).

FEES 3 Annex 6

Fees payable for a permission or guidance on its availability in connection with the Basel Capital Accord

01/06/2008
Past version of FEES 3 Annex 6 before 01/06/2008

Part 1 Fees payable other than in relation to the counterparty credit risk internal model method.

(1)

Paragraphs (2) and (3) deal with an application made to the FSA rather than a request for assistance under the Capital Requirements Regulations 2006.

(2)

For firms falling into a group (Group 1) in which there are five or more significant overseas entities to which the application relates and the application is for permission to use one of the advanced prudential calculation approaches listed in Tables 1 or 2 or guidance on the availability of such a permission the fees in Table 1 are applicable.

(3)

For all other firms the fees in Table 2 are applicable.

(4)

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 any firm referred to in FEES 3.2.7 R (o)(ii) meets the following conditions:

(i)

it is a UK domestic firm and has permission to accept deposits; and

(ii)

the firm does not fall within Group 4 as defined in Table 2.

(5)

If however the application or request is in relation to the use of the advanced IRB approach and the FSA (in the case of (2) or (3)) or the relevant Home State regulator (in the case of (4)) has already granted permission for the use of the foundation IRB approach at the time of the application then Table 3 applies.

Table 1

Application group

Description of group

Application fee

Advanced IRB ('000)

Foundation IRB ('000)

AMA ('000)

Group 1

Five or more significant overseas entities as described in more detail in the definition of Group 1 in the introduction to Part 1 of this Annex

268

232

181

Table 2

Application group

Description of group

Application fee

Modified eligible liabilities (m)

Number of traders as at the 31 December prior to the FSA financial year in which the fee is payable

Advanced IRB ('000)

Foundation IRB ('000)

AMA ('000)

Group 2

>40,000

>200

232

198

146

Group 3

>5,000 - 40,000

26 - 200

Group 4

0 - 5,000

0 - 25

(1)

[Deleted]

(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.

Table 3 (Advanced IRB approach where the FSA or Home State regulator has already given permission to use the foundation IRB approach)

Application group

Advanced IRB Application fee ()

Group 1

67,000

Group 2

58,000

Group 3

23,500

Group 4

10,500

The four application groups have the same meaning as they do in Tables 1 and 2.

Part 2
Fees payable in relation to the counterparty credit risk internal model method.
54,000

FEES 3 Annex 7

Fees where changes are made to firms transaction reporting systems and the FSA is asked to check that these systems remain compatible with FSA systems

01/04/2009

Hourly rate (£)

Method of calculating fee

68.09

The fee is calculated as follows:

(1)

Determine the number of hours, or part of an hour, taken by the FSA (or any person acting on behalf of the FSA) to test the fee payers transaction reporting systems for compatibility with the relevant FSA systems.

(2)

Then multiply the figure in the first column by the number of hours or part hours obtained under (1). The resulting figure is the fee.

(3)

The number of hours or part hours referred to in (1) shall be the number of hours or part hours as recorded on the FSA's systems.

01/04/2009

FEES 3 Annex 8

Fees payable for authorisation as an authorised payment institution or registration as a small payment institution in accordance with the Payment Services Regulations

01/05/2009
Future version of FEES 3 Annex 8 after 01/06/2012

Authorisation and registration fees payable

Application type for authorisation or registration under Part 2 of the Payment Services Regulations

Amount payable

(1)

small payment institution

500

(2)

authorised payment institution - where the applicant is applying for authorisation to provide payment services in paragraph(s) (f) (money remittance) and/or (g) (consent given by electronic device) of Part 1 of Schedule 1 to the Payment Services Regulations

1,500

authorised payment institution - where the applicant is applying for authorisation to provide payment services in any one or more of paragraph(s):

5,000

(a)

(cash placed on payment account);

(b)

(cash withdrawals enabled);

(c)

(execution of direct debts, etc);

(d)

(execution of direct debits, etc where credit line available);

(e)

(issuing payments and transactions)

of Part 1 of Schedule 1 to the Payment Services Regulations.

(4) authorised payment institution - where the applicant has or intends to have between 2,500 and 5,000 agents

12,500

(5) authorised payment institution - where the applicant has or intends to have more than 5,000 agents

25,000

FEES 3 Annex 9

Special Project Fee for restructuring

01/06/2009

(1) R

The Special Project Fee for restructuring (the SPFR) is only payable by a person in one of the following categories:

(a)

if it is in any of the A fee-blocks (as defined in Part 1 of FEES 4 Annex 1), except if it is in fee-block A.16 only; or

(b)

if it is in fee-block G.3 (as defined in FEES 4 Annex 11); or

(c)

if it is a recognised investment exchange; or

(d)

if it is a recognised clearing house; or

(e)

if it is in any of the B fee-blocks (as defined in Part 1 of FEES 4 Annex 1).

(2) R

The SPFR becomes payable by a person falling into (1)(a) or (b) if it engages in, or prepares to engage in, activity which involves it undertaking or making arrangements with a view to any of the following:

(a)

raising additional capital; or

(b)

a significant restructuring of the firm or the group to which it belongs, including:

(i) mergers or acquisitions;

(ii) reorganising the firm's group structure; and

(iii) reattribution.

(3) R

No SPFR is payable under (2) if the transaction only involves the firm seeking to raise capital within the group to which it belongs.

(4) R

Where the transaction in (2) involves raising capital outside the group to which the firm belongs, any SPFR in relation to that transaction is only payable by the largest firm in that group. The largest firm is the one that pays the highest periodic fee in the FSA financial year (the 12 months ending 31 March) in which the bill is raised. For the purpose of the calculation in (9), all time spent and fees and disbursements incurred in relation to the group are added together.

(5) R

The definition of group is limited for the purposes of calculating the SPFR to parent undertakings and their subsidiary undertakings.

(6) R

The SPFR also becomes payable by any person falling into (1) if any of the following circumstances apply to it:

(a)

an insolvency order is in effect as respects the person or the person is being voluntarily wound up or steps are being taken for the making of an insolvency order or voluntary winding up of, or with respect to, the person by someone entitled to take such steps; or

(b)

the Bank of England or the Treasury have exercised a stabilisation power in respect of the person under the Banking Act 2009.

(7) R

In (6):

(a)

references to an insolvency order or winding up include the equivalent process in any jurisdiction outside the United Kingdom; and

(b)

references to an insolvency order include such an order made under the Banking Act 2009.

(8) R

No SPFR is payable:

(a)

if the amount calculated in accordance with (9) totals less than 50,000; or

(b)

for time spent giving guidance to the person in relation to the same matter if the FSA has charged that person for that guidance.

(9) R

The SPFR is calculated as follows:

(a)

Determine the number of hours, or part of an hour, taken by the FSA in relation to regulatory work conducted as a consequence of the activities referred to in (2) or (6).

(b)

Next, multiply the applicable rate in the table at (11) by the number of hours or part hours obtained under (a).

(c)

Then add any fees and disbursements invoiced to the FSA by any person in respect of services performed by that person for the FSA in relation to assisting the FSA in performing the regulatory work referred to in (a).

(d)

The resulting figure is the fee.

(e)

The number of hours or part hours referred to in (a) are the number of hours or part hours as recorded on the FSA's systems in relation to the regulatory work referred to in (a).

(10) R

The first column in the table at (11) sets out the relevant pay grades of those employed by the FSA and the second column sets out the hourly rates chargeable in respect of those pay grades.

(11) R

Table of hourly rates:

FSA pay grade

Hourly rate ()

Administrator

Associate

Technical Specialist

Manager

Any other person employed by the FSA

135

(12) G

The obligation to pay the SPFR is ongoing. Accordingly, there is no limitation on the number of times that the FSA may invoice a person for the SPFR in relation to the same events or circumstances referred to in (2) or (6). If the FSA does so, there is a single floor under (8)(a) and not a separate one for each instalment. Therefore, for example, if a person is subject to an administration order, the FSA may invoice the person on a periodic basis for all the related regulatory work, but may only do so once the total fee (including disbursements) equals 50,000.

(13) G

If the SPFR is payable, the full amount calculated under (9) is payable not just the excess over 50,000.

(14) G

The SPFR is a single fee. Therefore the SPFR may be payable under both (2) and (6). If it is payable under both, there is only a single floor under (8)(a), not two separate ones.

Export chapter as

Legal Instruments that change this Chapter Application, Notification and Vetting Fees

FEES 4

Periodic fees

FEES 4.1

Introduction

01/01/2006

Application

FEES 4.1.1

This chapter applies to every person set out in FEES 1.1.2R (2).

01/01/2006
Future version of FEES 4.1.1 after 01/04/2013

FEES 4.1.1A

A reference to firm in this chapter includes a reference to a fee-paying payment service provider.

01/11/2009
Future version of FEES 4.1.1A after 01/06/2011

Purpose

FEES 4.1.2

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.

01/01/2006
Future version of FEES 4.1.2 after 01/04/2013

Background

FEES 4.1.3

Most of the detail of the periodic fees that are payable by firms is set out in FEES 4 Annexes 1 to 11. 2 G provides guidance on the calculation of certain tariffs. Most of the provisions of the Annexes will vary from one financial year to another. Accordingly fresh FEES 4 Annexes will come into force, following consultation, for each financial year.

FEES 4.1.4

(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.
(3) The periodic fees for fee-paying payment service providers, are set out in FEES 4 Annex 11. This annex sets out the activity groups, tariff base, valuation dates and, where applicable, the flat fees due for these firms.

FEES 4.1.5

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.

01/01/2006
Future version of FEES 4.1.5 after 01/04/2013

FEES 4.1.6

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 FEES 4 Annex 11 as applicable.

01/11/2009
Past version of FEES 4.1.6 before 01/11/2009

FEES 4.1.7

In the case of periodic fees for firms, fees are calculated individually for each firm, but they may be paid on a group basis, if the group so wishes.

01/01/2006
Future version of FEES 4.1.7 after 01/04/2013

FEES 4.2

Obligation to pay periodic fees

01/01/2006

General

FEES 4.2.1

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.

01/01/2006
Future version of FEES 4.2.1 after 01/04/2013

FEES 4.2.2

(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).

01/01/2006
Future version of FEES 4.2.2 after 01/04/2013

FEES 4.2.3

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.

01/01/2006
Future version of FEES 4.2.3 after 01/04/2013

Method of payment

FEES 4.2.4

(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

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

(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.

01/01/2006
Future version of FEES 4.2.6 after 01/04/2013

FEES 4.2.7

A firm (other than an ICVC or UCITS qualifier) which becomes authorised, or whose permission and/or payment service activities are 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 and/or FEES 4 Annex 11 as appropriate for the relevant financial year that apply to the firm only after the permission is received or extended or payment service activities are authorised 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 (but not the minimum fee under Part 1A of FEES 4 Annex 2) specified for the tariff (where this applies); 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;

(3) adding together the amounts calculated under (2);
(4) working out whether a minimum fee is payable under Part 1A of FEES 4 Annex 2 R and if so how much (except that that minimum fee is not payable again by a firm whose permission is extended if the fee was already payable before the extension);
(5) adding together the amounts calculated under (3) and (4) and then adding this sum to any applicable flat rate fee; and
(6) modifying the result as indicated by the table in FEES 4.2.6 R (except that FEES 4 Annex 10 (Periodic fees for MTF operators) deals with a firm that receives permission for operating a multilateral trading facility or has its permission extended to include this activity during the course of the relevant financial year and FEES 4.2.6 R does not apply).

FEES 4.2.7A

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 its permission and/or payment service activities are 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 and/or payment service activities were extended (adjusted in accordance with FEES 4.2.7 R) and to calculate the periodic fee for the following financial year. Projected valuations are not relevant for those fee payers that are only required to pay fixed fees.

FEES 4.2.7B

(1) This rule deals with the calculation of:

(a) a firm's fees for its second financial year. This is the FSA financial year following the FSA financial year in which it was given permission or was authorised under the Payment Services Regulations or had its permission and/or payment services activities extended (the relevant permissions); and
(b) the tariff base for the fee block or fee blocks that relate to each of the relevant permissions.

(2) Unless this rule says otherwise, the tariff base for a firm's second financial year is calculated using projected valuations 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.
(3) This rule does not apply to a firm with a permission for operating a multilateral trading facility.
(4) A reference to the FSA financial year means the 12 months ending with 31 March.
(5) The rest of this rule only applies to a firm that becomes authorised, or extends its permission and/or payment services activities, on or after 1 April 2009.

(a) If a firm's tariff base is calculated using data from a period that begins on or after the date that the firm obtains the relevant permission to which that tariff base relates, the firm must use that data.
(b) Unless (a) applies, if a firm:

(i) receives a relevant permission between 1 April and 31 December inclusive; and
(ii) is, but for this rule, required to calculate its tariff base for that relevant permission by reference to the average of its modified eligible liabilities for October, November and December;

it must calculate that tariff base as at the December before the start of the FSA financial year.
(c) If a firm satisfies the following conditions it must calculate its tariff base under (d):

(i) the firm receives a relevant permission between 1 April and 31 December inclusive; and
(ii) the firm's tariff base for that relevant permission is, but for this rule, calculated by reference to the firm's financial year ended in the calendar year ending on the 31 December before the start of the FSA financial year or the twelve months ending 31 December before the start of the the FSA financial year.

(d) If a firm satisfies the conditions in (c) it must calculate its tariff base as follows:

(i) it must use actual data in relation to the business to which the tariff relates rather than projected valuations;
(ii) the tariff is calculated by reference to the period beginning on the date it acquired the relevant permission relating to the tariff, and ending on the 31 December before the start of the FSA financial year; and
(iii) the figures are annualised by increasing them by the same proportion as the period of 12 months bears to the period starting from when the firm received its relevant permission to 31 December.

(e) Where a firm is required to use the method in (d) it must notify the FSA of this by the date specified in FEES 4.4 (Information on which Fees are calculated).
(f) Where a firm is required to use actual data under this rule FEES 4 Annex 1 Part 3 and FEES 4 Annex 11 Part 4 are modified in relation to the calculation of that firm's valuation date in its second financial year.

Application of FEES 4.2.7BR

FEES 4.2.7C

The table below sets out the period within which a firm's tariff base is calculated (the data period) for second year fees calculated under FEES 4.2.7B R. The example is based on a firm that acquires permission on 1 November 2009 and has a financial year ending 31 March. Where valuation dates fall before the firm receives permission it should use projected valuations in calculating its fees.

References in this table to dates or months are references to the latest one occurring before the start of the FSA's financial year unless otherwise stated.

Type of permission acquired on 1 November

Tariff base

Valuation date but for FEES 4.2.7BR

Data period under FEES 4.2.7BR

Accepting deposits (monthly reporting firms)

Modified eligible liabilities (MELs)

Average of the MELs for October, November, December - so projected valuations will be used

MELs for December 2009.

Accepting deposits (quarterly reporting firms)

MELs

December 2009

December 2009.

Entering into a home finance transaction

Number of mortgages, home purchase plans or home reversion plans entered into

12 months ending 31 December 2009 - so projected valuations will be used

1 November to 31 December 2009.

Effecting contracts of insurance
(Insurers - general)

Gross premium income and gross technical liabilities

31 March 2009 - so projected valuations will be used

1 November to 31 December 2009.

01/04/2009
Future version of FEES 4.2.7C after 01/04/2013

FEES 4.2.8

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, and which are not provided on a cross border services basis. For payment services the adjustment only applies to the business to which the calculation made in FEES 4.3.12A R relates.

Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period

FEES 4.2.9

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 or payment services activities 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

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), FEES 4.3.6R (4) or FEES 4.3.6R (4A) (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

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) or (3) apply, on or before the relevant dates specified in FEES 4.3.6 R

Firm receives permission, or becomes authorised or registered under the Payment Services Regulations; or firm extends permission or its payment service activities

(2)

Unless (3) applies, 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.

(3)

Where the permission is for operating a multilateral trading facility, the date specified in FEES 4 Annex 10 (Periodic fees for MTF operators).

Any firm which reports 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

(2)

If an event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event

Any manager of an authorised unit trust;

In relation to each unit trust the amount specified in FEES 4 Annex 4

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), unless the conditions set out below apply.
The first condition is that the listed issuer, or a related entity, has already paid a periodic fee in respect of the period concerned. The second condition is that the listed issuer is subject to listing rules as a result of a reverse takeover, or that the listed issuer is a newly formed entity, created as a result of a restructuring.

FEES 4 Annex 7

Within 30 days of the date of the invoice

Listed issuer (in LR) becomes subject to listing rules

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

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; plus
(1A) any periodic fee applicable to it calculated in accordance with FEES 4.3.3A R using information relating to its UK business obtained in accordance with FEES 4.4 (or by other means in the case of the Bank of England); less
(2) any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2 or Parts 6 and/or 7 of FEES 4 Annex 11. For the purposes of this deduction, any deduction available in Part 2 of FEES 4 Annex 2 shall not be applied to any fee calculated in accordance with FEES 4.3.3A R and any deduction available in Part 6 and/or 7 of FEES 4 Annex 11 shall not be applied to any fees calculated in accordance with FEES 4.3.3 R.

FEES 4.3.2

(1) The amount payable by each firm will depend upon the category (or categories) of regulated activities or payment services 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 (and guidance on calculating certain of the tariffs is at FEES 4 Annex 12 G), while FEES 4 Annex 2 sets out the tariff rates for the relevant financial year. In the case of firms that provide payment services, the relevant fee blocks, tariffs and rates are set out in FEES 4 Annex 11.
(2) Incoming EEA firms, incoming Treaty firms and EEA authorised payment institutions 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, FEES 4.3.12 R and FEES 4.3.12A R).

Calculation of periodic fee (excluding fee-paying payment service providers)

FEES 4.3.3

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society and fee-paying payment service providers) 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;
(3) add together the amounts calculated under (2);
(4) work out whether a minimum fee is payable under Part 1A of FEES 4 Annex 2 R and if so how much;
(5) add together the amounts calculated under (3) and (4); and
(6) apply any applicable payment charge specified in FEES 4.2.4 R, provided that:

(a) for payment by direct debit, successful collection of the amount due is made at the first attempt by the FSA; or
(b) for payment by credit transfer, the amount due is received by the FSA on or before the due date.

Calculation of periodic fee for fee-paying payments service providers

FEES 4.3.3A

The periodic fee referred to in FEES 4.3.1 R in relation to fee-paying payment service providers is calculated in accordance with FEES 4 Annex 11 R.

01/11/2009
Future version of FEES 4.3.3A after 01/06/2011

Modification for firms with new or extended permissions

FEES 4.3.4

(1) A firm which becomes authorised or registered 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 or the right to provide particular payment services - see FEES 4.2.5 G and FEES 4.2.6 R.
(2) Similarly a firm which extends its permission or its right to provide particular payment services 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 or payment services activity - 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.
(4) These provisions do not apply to a firm's periodic fees in relation to its permission for operating a multilateral trading facility obtained from the FSA during the course of a financial year.

Amount payable by the Society of Lloyd's

FEES 4.3.5

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.

01/01/2006
Future version of FEES 4.3.5 after 01/04/2013

Time of payment

FEES 4.3.6

(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), or its status as a payment institution under regulation 10 of the Payment Services Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 14 of the Payment Services Regulations (Supplementary provisions), 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 EG 8 (Variation and cancellation of permission on the FSA's own initiative and intervention against incoming firms), then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.
(4A) If the FSA has cancelled a firm's authorisation or registration under regulation 10 of the Payment Services Regulations or its registration under regulation 10 as applied by regulation 14 of the Payment Services Regulations, then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.
(5) Paragraphs (1) and (2) do not apply to any Solvency 2 fee or Solvency 2 Implementation fee (as defined in Part 1 of FEES 4 Annex 2) and such fees are not taken into account for the purposes of the split in (1). Instead any Solvency 2 fee or Solvency 2 Implementation fee is payable on the date specified in (1)(a) or (2) (depending on which applies to the rest of its periodic fee) or any earlier date required by (3) or (4).
(6) Paragraphs (1) and (2) do not apply to any periodic fee in relation to a firm's permission for operating a multilateral trading facility and such a fee is not taken into account for the purposes of the split in (1). Instead any fee for this permission is payable on the date specified in FEES 4 Annex 10 (Periodic fees for MTF operators).

Groups of firms

FEES 4.3.7

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.

01/01/2006
Future version of FEES 4.3.7 after 01/04/2013

FEES 4.3.8

A notification under FEES 4.3.7R (1) should be made in accordance with SUP 15.7 (Form and method of notification).

01/01/2006
Future version of FEES 4.3.8 after 01/04/2013

FEES 4.3.9

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.

01/01/2006
Future version of FEES 4.3.9 after 01/04/2013

FEES 4.3.10

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.

01/01/2006
Future version of FEES 4.3.10 after 01/04/2013

Incoming EEA firms, incoming Treaty firms and EEA authorised payment institutions

FEES 4.3.11

The FSA recognises that its responsibilities in respect of an incoming EEA firm, an incoming Treaty firm or an EEA authorised payment institution 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, incoming Treaty firms and EEA authorised payment institutions are reduced.

FEES 4.3.12

For an incoming EEA firm, (excluding MTF operators), 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.

FEES 4.3.12A

For a full credit institution or an e-money issuer which is a fee-paying payment service provider and an EEA firm, or for an EEA authorised payment institution, the calculation required by FEES 4.3.3A R is modified as follows:

(1) the tariffs set out in Part 5 of FEES 4 Annex 11 are only applied to the payment services of the firm which are carried on from an establishment in the United Kingdom, including payment services provided through any of its agents established in the United Kingdom; and
(2) those tariffs are modified in accordance with Part 7 of FEES 4 Annex 11.

01/11/2009
Future version of FEES 4.3.12A after 01/06/2011

Firms Applying to Cancel or Vary Permission Before Start of Period

FEES 4.3.13

(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), or applies to vary (by reducing its scope) or cancel its authorisation or registration (regulation 8 and 10(1) of the Payment Services Regulations including as applied by regulation 14 of the Payment Services Regulations); an issuer makes an application for de-listing; or a sponsor notifies the 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 or authorisation or registration under the Payment Services Regulations, 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

Where a firm has applied to cancel its Part IV permission, or its authorisation or registration under the Payment Services Regulations or the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission or the FSA has exercised its powers under regulation 10 (Cancellation of authorisation), including as applied by regulation 14 (Supplementary provisions) of the Payment Services Regulations to cancel a firm's authorisation or registration under the Payment Services Regulations, the due dates for payment of periodic fees are modified by FEES 4.3.6R (3), FEES 4.3.6R (4) and FEES 4.3.6R (4A) respectively.

Firms acquiring businesses from other firms

FEES 4.3.15

(1) This rule applies if:

(a) 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, unless no periodic fee was payable by A in the financial year that the business was acquired from B; or
(b) A became authorised or registered as a result of B's simple change of legal status (as defined in FEES 3 Annex 1 Part 6).

(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 and FEES 4 Annex 11) 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.

FEES 4.3.16

(1) [deleted]
(2) [deleted]
(3) [deleted]

01/06/2010
Past version of FEES 4.3.16 before 01/06/2010

FEES 4.4

Information on which Fees are calculated

01/01/2006

FEES 4.4.1

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.

01/01/2006
Future version of FEES 4.4.1 after 01/04/2013

FEES 4.4.2

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 (or FEES 4.2.7B R where applicable).

FEES 4.4.3

To the extent that a firm has provided the information required by this section to the FSA as part of its compliance with another provision of the Handbook, it is deemed to have complied with the provisions of this section.

01/01/2006
Future version of FEES 4.4.3 after 01/04/2013

FEES 4.4.4

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)).

01/01/2006
Future version of FEES 4.4.4 after 01/04/2013

FEES 4.4.5

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, except those provided on a cross border services basis.

FEES 4.4.6

The obligations of a firm to supply information as set out in FEES 4.4.1 R and FEES 4.4.2 R do not apply in respect of any of its payment services business.

01/11/2009

Information relating to payment services

FEES 4.4.7

An authorised payment institution, the Post Office Limited, government departments and local authorities or an EEA authorised payment institution must notify to the FSA the value (as at the valuation date specified in Part 4 of FEES 4 Annex 11) of each element of business on which the periodic fee payable by the firm is to be calculated, including any payment services carried on by its agents from an establishment in the United Kingdom.

01/11/2009
Future version of FEES 4.4.7 after 01/06/2011

FEES 4.4.8

An authorised payment institution, the Post Office Limited, government departments and local authorities or an EEA authorised payment institution must send to the FSA in writing the information required under FEES 4.4.7 D as soon as reasonably practicable, and in any event within two months, after the date specified as the valuation date in Part 4 of FEES 4 Annex 11.

01/11/2009
Future version of FEES 4.4.8 after 01/06/2011

FEES 4.4.9

To the extent that an authorised payment institution or an EEA authorised payment institution has provided the information required by FEES 4.4.7 D to the FSA as part of its compliance with another provision of the Handbook, it is deemed to have complied with the provisions of this section.

01/11/2009
Future version of FEES 4.4.9 after 01/06/2011

FEES 4 Annex 1

Activity groups, tariff bases and valuation dates applicable

01/01/2006

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, operating a dormant account fund or issuing e-money; BUT DOES NOT include either of the following:
effecting contracts of insurance;
carrying out contracts of insurance.

A.2 Home finance providers and administrators

its permission includes a regulated activity within one or more of the following:
entering into a home finance transaction; or
administering a home finance transaction; 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 (a firm falling within this category is a class (1) firm);
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 (a firm falling within this category is a class (2) firm);
OR
(3) the firm is a venture capital firm (a firm falling within this category is a class (3) firm if it is not a class (1) or (2) 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);
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 (a firm falling within this category is a class (1) firm);
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);
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;
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 firm falling within (2) and not (1) is a class 2 firm.

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 Home finance providers, advisers and arrangers

its permission includes a regulated activity within one or more of the following:
entering into a home finance transaction; or
arranging (bringing about) a home finance transaction; or
making arrangements with a view to a home finance transaction; or
advising on a home finance transaction; 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.

B. MTF operators

its permission includes operating a multilateral trading facility.

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 and building societies:
Part 1:
Liabilities
In sterling:
2 + 3 + 4 + 5A + 5B + 6B + 6C + 6D + 6E + 6F + 6G + 6H + 6J + 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 + E8 + E10 + 60% of E11A + E44 + C2 + C3 + C4 + C5A + C5B + C6B + C6C + C6D + C6E + C6F + C6G + C6H + C6J + C8 + C10 + 60% of C11A: less
Assets
In sterling:
21B + 60% of 22A + 23D + 23E + 23F + 23G +30A + 30B + 30C + 32AA1 + 32AA2 + 32BA
plus
In foreign currency, one-third of:
E21B + 60% of E22A + E23D + E23E + E23F + E23G + E30A + E30B + E30C + E32AA1 + E32AA2 + E32BA + C21B + 60% of C22A + C23D + C23E + C23F + C23G + C30A + C30B + C30C +C32AA1 + C32AA2 + C32BA

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 plus one-third of both E45D and C45Dfrom the sum of item 45BA, plus one-third of both E45BA and C45BA in 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 and building societies 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.

Note:
For a dormant account fund operator the tariff base is not relevant and the flat fee in FEES 4 Annex 2 R is payable.

A.2

NUMBER OF MORTGAGES OR OTHER HOME FINANCE TRANSACTIONS ENTERED INTO AND ADMINISTERED
The number of new mortgage contracts, home purchase plans, home reversion plans and regulated sale and rent back agreements entered into;
AND
The number of mortgage contracts, home purchase plans, home reversion plans and regulated sale and rent back agreements being administered, multiplied by 0.05 for mortgage outsourcing firms or other home finance 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.
Home finance outsourcing firms are firms with permission for administering a home finance transaction, but not entering into a home finance transaction.
(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, home purchase plans, home reversion plans and regulated sale and rent back agreements 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;

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.

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 (see 2 G)
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;
Less
premiums relating to Trustee Investment Plans.
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.
Less
mathematical reserves relating to Trustee Investment Plans.
Notes:
(1) [deleted]
(2) Only premiums receivable and mathematical reserves held in respect of United Kingdom business are relevant.
(3) An insurer must include in its calculation of adjusted gross premium income (AGPI) and mathematical reserves (MR) the value of MR and AGPI relating to all risks ceded to ISPVs.
(4) Trustee Investment Plans are the class of contract of insurance specified in Class III of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance) and which are invested in pooled funds beneficially owned by the insurer and not earmarked to individual beneficiaries by that insurer.

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 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.
But not any employees or agents who work solely in the firm's MTF operation.

A.11

Not applicable.

A.12

APPROVED PERSONS
The number of persons approved to perform the customer function (CF 30), but excluding those persons who work solely in the firm's MTF operation or solely acting in the capacity of an investment manager or solely advising clients in connection with corporate finance business or performing functions related to these.

A.13

A.14

APPROVED PERSONS
The number of persons approved to perform the customer function (CF 30) who advise clients in connection with corporate finance business or perform related functions.

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 home finance mediation activity (or activities which would have been mortgage mediation activity if they had been carried out after 30 October 2004 or home purchase mediation activity or home reversion mediation activity if they had been carried out on or after 6 April 2007 or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 2009);
Plus
(b) for any home finance mediation activity carried out by the firm for which it receives payment from the lender or provider on a basis other than that in (a), the value of all new mortgage advances and amounts provided under other home finance transactions resulting from that activity multiplied by 0.004;
Plus
(c) if the firm is a home finance provider, the value of all new mortgage advances and amounts provided under other home finance transactions which are or would be regulated mortgage contracts if they had been made after 30 October 2004 or home purchase plans or home reversion plans if they had been made on or after 6 April 2007 or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 2009(other than those made as a result of home finance mediation activity by another firm), multiplied by 0.004.
For mortgage outsourcing firms or home finance outsourcing firms whose permission does not include advising on a home finance transaction 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 home finance 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 or home purchase mediation activity or reversion mediation activity if they had been carried out on or after 6 April 2007or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 2009.
(5) Mortgage outsourcing firms are firms whose permission includes administering regulated mortgage contracts, but not entering into a regulated mortgage contract. Home finance outsourcing firms are firms whose permission includes administering a home finance transaction, but not entering into a home finance transaction.
(6) The same firm may receive income under paragraph (a) and (c).
(7) A firm must include in paragraph (a) any income it receives from home finance mediation activity carried on by another person with respect to any home finance transaction into which the firm has entered as lender, plan provider or home purchase provider.
(8) In calculating the net amount retained, a firm may not deduct amounts that it rebates to a person other than another firm, a person falling within the extended definition of firm in Note (4) or the firm's customer.
(9) A firm may only deduct amounts under paragraph (a) in calculating its net amount retained if the amount is to be deducted from income that the firm must include under paragraph (a). Therefore for example:
(a) if a mortgage lender (Firm A) pays a firm commission for arranging a regulated mortgage under which Firm A is a lender, Firm A may not take that expense into account in calculating its annual income if Firm A does not receive a fee from the borrower or another person in respect of that regulated mortgage; and
(b) if a mortgage lender (Firm A) pays a firm (Firm B) commission for arranging a regulated mortgage under which Firm A is a lender, Firm A receives a payment from the borrower under that transaction and the amount payable to Firm B exceeds the amount payable by the borrower, Firm A may not take that excess into account in calculating its annual income and must instead net the sum payable by the borrower to zero.
(10) A firm must include in paragraph (a) any survey and booking fees due to it in respect of or in relation to home finance mediation activity or which would been home finance mediation activity if they had been carried on or after the dates in paragraph (a).

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 or, in relation to connected travel insurance contracts, from 1 January 2009) 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:
(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, including a connected travel insurance intermediary, 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 or, in relation to connected travel insurance contracts, from 1 January 2009.
(5) The same firm may receive income under (A) and (C).
(6) A firm must include in (A) any income it receives from insurance mediation activity carried on by another person with respect to any general insurance contracts or pure protection contracts into which the firm has entered as insurer.
(7) In calculating the net amount retained, a firm may not deduct amounts that it rebates to a person other than another firm, a person falling within the extended definition of firm in Note (4) or the firm's customer.
(8) A firm may only deduct amounts under (A) in calculating its net amount retained if the amount is to be deducted from income that the firm must include under (A). Therefore for example:
(a) if an insurer (Firm A) pays a firm commission for arranging a general insurance contract or pure protection contract under which Firm A is the insurer, Firm A may not take that expense into account in calculating its annual income if Firm A does not receive a fee from the insured or another person in respect of that contract; and
(b) if an insurer (Firm A) pays a firm (Firm B) commission for arranging a general insurance contract or pure protection contract under which Firm A is the insurer, Firm A receives a payment from the insured under that transaction and the amount payable to Firm B exceeds the amount payable by the insured, Firm A may not take that excess into account in calculating its annual income and must instead net the sum payable by the insured to zero.

B. Market operators

Not applicable.

B. Service companies

Not applicable.

B. MTF operators

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, home purchase plans, home reversion plans and regulated sale and rent back agreements entered into in the twelve months ending 31 December.
AND
Number of mortgages, home purchase plans, home reversion plans and regulated sale and rent back agreements 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.

B. MTF operators

Not applicable

FEES 4 Annex 2

Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2010 to 31 March 2011

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 by multiplying the value of the firm's tariff base by the rate applicable to each tranche of the tariff base, as indicated (Note 1).

(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 R 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 430.

Note 1

In the case of activity group A.1 there are two tariff rates. The rate in column 1 is the general periodic fee. The rate in column 2 is the reclaim funds set-up fee and is payable by all firms except credit unions and e-money issuers. The total periodic fee for the A1 fee-block is determined by adding the amounts obtained under both columns.

In the case of activity groups A.3 and A.4 there are three tariff rates. The rate in column 1 applies to all firms in their respective fee-blocks. The rate in column 2 relates to the Solvency 2 Implementation fee and firms must determine their obligation to pay this fee by reference to Part 5 of this Annex. The rate in Column 3 relates to the Solvency 2 Special Project fee and firms must determine their obligation to pay this fee by reference to Part 4 of this annex. The total periodic fee for each of these fee-blocks is determined by adding the amounts obtained under all three columns, as applicable.

Activity group

Fee payable

A.1

Band width (£ million of Modified Eligible Liabilities (MELs))

Fee (£/£m or part £m of MELs)

Column 1
General Periodic fee

Column 2
Reclaim Fund Set-Up fee

>10 - 140

29.90

0.12

>140 - 630

29.90

0.12

>630 - 1,580

29.90

0.12

>1,580 - 13,400

37.38

0.12

>13,400

49.34

0.12

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, this fee is calculated as above less 30%.

The tariff rates in A.1 are not relevant for the permissions relating to operating a dormant account fund. Instead a flat fee of 6,018 is payable in respect of these permissions. The flat fee of £6,018 is made up of a portion of the general periodic fee of £6,000 and a reclaim fund set-up fee of £18.

A.2

Band width (No. of mortgages and/or home finance transactions)

Fee (£/mortgage)

>50 - 130

1.26

>130 - 320

1.26

>320 - 4,570

1.26

>4,570 - 37,500

1.26

>37,500

1.26

A.3

Gross premium income (GPI)

Column 1
General periodic fee

Column 2
Solvency 2 Implementation fee

Column 3
Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

50.00

25.00

Band Width (£ million of GPI)

Fee (£/£m or part £m of GPI)

>0.5 - 10.5

531.58

110.45

93.40

>10.5 - 30

531.58

110.45

93.40

>30 - 245

531.58

110.45

93.40

>245 - 1,900

531.58

110.45

93.40

>1,900

531.58

110.45

93.40

PLUS

Gross technical liabilities (GTL)

Column 1 General Periodic fee

Column 2 Solvency 2 Implementation fee

Column 3
Solvency 2 Special Project fee

Band Width (£ million of GTL)

Fee (£/£m or part £m of GTL)

>1 - 12.5

28.39

5.65

5.55

>12.5 - 70

28.39

5.65

5.55

>70 - 384

28.39

5.65

5.55

>384 - 3,750

28.39

5.65

5.55

>3,750

28.39

5.65

5.55

For UK ISPV's the tariff rates are not relevant and a flat fee of £430 is payable in respect of each FSA financial year (the 12 months ending 31 March).

A.4

Adjusted annual gross premium income (AGPI)

Column 1
General Periodic fee

Column 2
Solvency 2 Implementation fee

Column 3
Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

25.00

Band Width (£ million of AGPI)

Fee (£/£m or part £m of AGPI)

>1 - 5

706.46

137.00

114.60

>5 - 40

706.46

137.00

114.60

>40 - 260

706.46

137.00

114.60

>260 - 4,000

706.46

137.00

114.60

>4,000

706.46

137.00

114.60

PLUS

Mathematical reserves (MR)

Column 1
General Periodic fee

Column 2
Solvency 2 Implementation fee

Column 3(Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

25.00

Band Width (£ million of MR)

Fee (£/£m or part £m of MR)

>1 - 20

15.32

3.00

2.95

>20 - 270

15.32

3.00

2.95

>270 - 7,000

15.32

3.00

2.95

>7,000 - 45,000

15.32

3.00

2.95

>45,000

15.32

3.00

2.95

A.5

Band Width (£ million of Active Capacity (AC))

Fee (£/£m or part £m of AC)

>50 - 150

54.55

>150 - 250

54.55

>250 - 500

54.55

>500 - 1,000

54.55

>1,000

54.55

A.6

Flat fee

1,500,514

PLUS

Solvency 2 Special Project Flat fee (£)

249,603.72

PLUS

Solvency 2 Implementation Flat fee (£)

300,100.80

A.7

For class 1(C), (2) and (3) firms:

Band Width (£ million of Funds under Management (FuM))

Fee (£/£m or part £m of FuM)

>10 - 150

8.52

>150 - 2,800

8.52

>2,800 - 17,500

8.52

>17,500 - 100,000

8.52

>100,000

8.52

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

Band Width (£ million of Gross Income (GI))

Fee (£/£m or part £m of GI)

>1 - 4.5

1,052.62

>4.5 - 17

1,052.62

>17 - 145

1,052.62

> 145 - 750

1,052.62

>750

1,052.62

A.10

Band Width (No. of traders)

Fee (£/trader)

2 - 3

3,196.91

4 - 5

3,196.91

6 - 30

3,196.91

31 - 180

3,196.91

>180

3,196.91

A.11

This activity group does not apply for this period.

A.12

Band Width (No. of persons)

Fee (£/person)

2 - 5

426.35

6 - 35

426.35

36 - 175

426.35

176 - 1,600

426.35

>1,600

426.35

For a professional firm in A.12 the fee is calculated as above less 10%.

A.13

For class (2) firms:

Band Width (No. of persons)

Fee (£/person)

2 - 3

1,290.54

4 - 30

1,290.54

31 - 300

1,290.54

301 - 2,000

1,290.54

>2,000

1,290.54

For class (1) firms: 1,850 For a professional firm in A.13 the fee is calculated as above less 10%.

A.14

Band Width (No. of persons)

Fee (£/person)

2 - 4

1,340.87

5 - 25

1,340.87

26 - 80

1,340.87

81 - 199

1,340.87

>199

1,340.87

A.15

This activity group does not apply for this period.

A.16

This activity group does not apply for this period.

A.17

This activity group does not apply for this period.

A.18

Band Width (thousands of Annual Income (AI))

Fee (£/£ thousand or part £ thousand of AI)

>100 - 180

10.54

>180 - 1,000

10.54

>1,000 - 12,500

10.54

>12,500 - 50,000

10.54

>50,000

10.54

A.19

Band Width (£ thousands of Annual Income (AI))

Fee (£/£ thousand or part £ thousand of AI)

>100 - 325

2.43

>325 - 10,000

2.43

>10,000 - 50,750

2.43

>50,750 - 250,000

2.43

>250,000

2.43

B. Market operators

£35,000

B. Service companies

Bloomberg LP

£45,000

EMX Co Ltd

£35,000

LIFFE Services Ltd

£35,000

[row deleted]

OMGEO Ltd

£35,000

Reuters Ltd

£45,000

Swapswire Ltd

£35,000

B. MTF operators

As set out in FEES 4 Annex 10R (Periodic fees for MTF operators).

Part 1 A

(1)

This Part sets out the minimum fee applicable to the firms specified in (3) below.

(2)

The minimum fee payable by any firm referred to in (3) is £1,000 unless:

(a)

it is a credit union that meets the conditions in (4), in which case the minimum fee payable is as set out in (4); or

(b)

it is a non-directive friendly society that falls into the A.3 activity group but not the A.4 activity group and meets the conditions set out in (5)(a), in which case the minimum fee payable is £430; or.

(c)

it is a non-directive friendly society that falls into the A.4 activity group but not the A.3 activity group and meets the conditions in (5)(b), in which case the minimum fee payable is £430; or

(d)

it is a non-directive friendly society that falls into the A.3 and A.4 activity groups and meets the conditions in (5)(a) and (5)(b), in which case the minimum fee payable is £430;

(3)

A firm (including an incoming EEA firm and an incoming Treaty firm) is referred to in this paragraph if it falls within the following activity groups: A.1; A.2; A.3 (excluding UK ISPVs); A.4; A.5; A.7; A.9; A.10; A.12; A.13; A.14; A.18; and A.19 (Note 1).

(4)

The conditions referred to in (2)(a) are that the credit union has a tariff base (Modified Eligible Liabilities) of:

(a)

£0 to 0.5 million, in which case a minimum fee of 160 is payable; or

(b)

greater than £0.5millon but less than £2.0 million, in which case a minimum fee of £540 is payable.

(5)

The conditions referred to in (2) are that:

(a)

the non-directive friendly society falls into the A.3 activity group and has, for that activity, 0.5 million or less in gross premium income and holds gross technical liabilities of £1.0 million or less;

(b)

the non-directive friendly society falls into the A.4 activity group and has, for that activity, written £1.0 million or less in adjusted gross premium income and holds mathematical reserves of £1.0 million or less.

The figures for gross premium income, gross technical liabilities, adjusted gross premium income and mathematical reserves are the same as used for Part 1 of this Annex.

Note 1

In the case of a firm which is required to pay the Solvency 2 Implementation fee (see Part 5) and, where relevant, the Solvency 2 Special Project fee there is an additional minimum fee set out in Part 1.

Part 2
This table shows the permitted deductions that apply where financial penalties are received under the Act:

Activity group

Amount of deduction

Part 1A (minimum fee)