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.

Application

FEES 1.1.2

This manual applies in the following way:

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

(a) every applicant for Part IV permission (including an incoming firm applying for top-up permission);
(b) every Treaty firm that wishes to exercise a Treaty right to qualify for authorisation under Schedule 4 to the Act (Treaty rights), except those providing cross border services only, in respect of regulated activities for which it does not have an EEA right;
(c) every applicant for a certificate under article 54 of the Regulated Activities Order;
(d) every applicant for an authorisation order for, or for recognition of, a collective investment scheme;
(e) every operator of a scheme making a notification under section 264 or section 270 of the Act;
(f) every person seeking to become a designated professional body;
(g) every applicant for recognition as a recognised body under Part XVIII of the Act (Recognised investment exchanges and clearing houses);
(h) every applicant for listing (under the listing rules);
(i) every applicant for approval as a sponsor (under the listing rules);
(j) every issuer (under the listing rules) of tranches from debt issuance programmes and securitised derivative tranches;
(k) every issuer (under the listing rules) involved in specific events or transactions during the year where documentation is subject to transaction vetting by the FSA;
(l) under the prospectus rules every issuer, offeror or person requesting approval or vetting of the documents arising in relation to specific events or transactions that it might be involved in during the year;
(m) every applicant to be listed as a designated investment exchange;
(n) every firm applying for variation of its Part IV permission;
(o) every firm applying for or being concerned in an application for permission to use an advanced prudential calculation approach or guidance on the availability of such a permission (including any future proposed amendments to those approaches); and
(p) every firm or person referred to in category (u) of Column 1 of FEES 3.2.7 R.

(2) FEES 1, 2 and 4 apply to:

(a) every firm (except an ICVC or UCITS qualifier);
(b) every manager of an authorised unit trust;
(c) every ACD of an ICVC;
(d) every person who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme;
(e) every designated professional body;
(f) every recognised body;
(g) under the Listing Rules every issuer of shares, depositary receipts and securitised derivatives;
(h) under the Listing Rules every sponsor; and
(i) under the Disclosure Rules and Transparency Rules every issuer of shares, depositary receipts and securitised derivatives.

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

(a) every firm which is subject to the Compulsory Jurisdiction of the Financial Ombudsman Service; and
(b) every other person who is subject to the Compulsory Jurisdiction in relation to relevant complaints.

(4) FEES 1, 2 and 6 apply to:

(a) every participant firm;
(b) the FSCS; and
(c) the Society.

FEES 1.1.3

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

Export chapter as

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 FSA, case fees to FOS Ltd or a share of the FSCS levy.

01/01/2006
Future version of FEES 2.1.4 after 01/06/2010

FEES 2.1.5

Paragraph 17 of Schedule 1 and section 99 to the Act enable the FSA to charge fees to cover its costs and expenses in carrying out its functions. The corresponding provisions for the FSCS levy and FOS levies and case fees are set out in FEES 6.1, and FEES 5.2 respectively.

01/01/2006
Future version of FEES 2.1.5 after 01/05/2009

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 and FOS levy and case fees, which are dealt with in FEES 5 and FEES 6) are:

(1) a funding requirement derived from:

(a) the FSA's financial management and reporting framework;
(b) the FSA's budget; and
(c) adjustments for audited variances between budgeted and actual expenditure in the previous accounting year, and reserves movements (in accordance with the FSA's reserves policy);

(2) mechanisms for applying penalties received during previous financial years for the benefit of fee payers;
(3) fee-blocks, which are broad groupings of fee payers offering similar products and services and presenting broadly similar risks to the FSA's regulatory objectives;
(4) a costing system to allocate an appropriate part of the funding requirement to each fee-block; and
(5) tariff bases, which, when combined with fee tariffs, allow the calculation of fees.

01/01/2006
Future version of FEES 2.1.7 after 01/06/2010

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 2.2

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, before the end of the date on which it is due, under the relevant provision in FEES 4, 5, or 6, that person must pay an additional amount as follows:

(1) if the fee was not paid in full before the end of the due date, an administrative fee of £250; plus
(2) interest on any unpaid part of the fee at the rate of 5% per annum above the Bank of England's repo rate from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.

FEES 2.2.2

The FSA, (for periodic fees, FOS and FSCS levies), FOS Ltd (for FOS case fees), expect to issue invoices at least 30 days before the date on which the relevant amounts fall due. FOS case fees are invoiced on a monthly basis. Accordingly it will generally be the case that a person will have at least 30 days from the issue of the invoice before an administrative fee becomes payable.

Recovery of Fees

FEES 2.2.3

Paragraph 17(4) of Schedule 1 and section 99(5) to the Act permit the FSA to recover fees (and, where relevant, FOS levies), and section 213(6) permits the FSCS to recover shares of the FSCS levy payable, as a debt owed to the FSA and FSCS respectively, and the FSA and FSCS, as relevant, will consider taking action for recovery (including interest) through the civil courts. Also, the FOS Ltd (in respect of case fees) may take steps to recover any money owed to it (including interest).

01/01/2006
Future version of FEES 2.2.3 after 01/05/2009

FEES 2.2.4

In addition, the FSA may be entitled to take regulatory action in relation to the non-payment of fees and FOS levies. FSA may also take regulatory action in relation to the non-payment of FOS case fees or share of the FSCS levy, after reference of the matter to FSA by FOS Ltd or FSCS respectively. What action (if any) that is taken by the FSA will be decided upon in the light of the particular circumstances of the case.

01/01/2006
Future version of FEES 2.2.4 after 01/06/2010

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 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 or FOS levy would be inequitable, the FSA, the FSCS or FOS Ltd, as relevant, may (unless FEES 2.3.2B R applies) reduce or remit all or part of the fee or levy in question which would otherwise be payable.

FEES 2.3.2

If it appears to the FSA, the FSCS (in relation to any FSCS levy only) or FOS Ltd (in relation to any FOS case fee only), that in the exceptional circumstances of a particular case to which FEES 2.3.1R does not apply, the retention by the FSA, the FSCS, or FOS Ltd, as relevant, of a fee, FSCS levy or FOS levy which has been paid would be inequitable, the FSA, the FSCS or FOS Ltd, 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) and FEES 4 (Periodic fees) are stated net of VAT. Where VAT is applicable this must also be included.

01/04/2009
Future version of FEES 2.4.1 after 01/06/2010

Export chapter as

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 3.1.2

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 3.1.7

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, 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) 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.

01/01/2006
Future version of FEES 3.2.3 after 06/08/2009

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 fee is an integral part of an application for, or an application for a variation of, a Part IV permission Any application received by the FSA without the accompanying appropriate fee, in full and without deduction (see FEES 3.2.1 R), will not be treated as an application made, incomplete or otherwise, in accordance with section 51(3)(a) or section 44, of the Act. Where this is the case, the FSA will contact the applicant to point out that the application cannot be progressed until the appropriate fee has been received. In the event that the appropriate authorisation fee, in full and without deduction, is not forthcoming, the application will be returned to the applicant and no application will have been made.
(2) With the exception of persons seeking to become a designated professional body, all applications, notifications, requests for vetting or admission approval will be treated as incomplete until the relevant fee is fully paid and the FSA will not consider an application, notification, request for vetting or admission approval until the relevant fee is fully paid. Persons seeking to become a designated professional body have 30 days after the designation order is made to pay the relevant fee.

01/01/2006
Future version of FEES 3.2.5 after 01/05/2009

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) 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
(2)

On or before the date the application is made

(2)

If the only change is that the A.12 activity group tariff applied to the firm's business before the variation and the A.13 activity group will apply after variation, no fee is payable(3) In all other cases, other than applications by credit unions, the fee payable is 250, unless the variation involves only the reduction (and no other increases) in the scope of a Part IV permission in which case no fee is payable.

(q)

A 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).

FEES 3 Annex 1

Authorisation fees payable

01/01/2006

Part 1 - Authorisation fees payable R

Application type (see Part 2)

Amount payable

(a)

Credit unions - registration of common bond

200

(b)

Version 1 credit unions - authorisation

300

(c)

Version 2 credit unions - authorisation

1,800

(d)

Straightforward

1,500

(e)

Moderately complex

5,000

(f)

Complex

25,000

Part 2 - Complexity Groupings Straightforward Cases R

Straightforward cases

Activity grouping

Description

A.3

Friendly societies only

A.4

Friendly societies only

A.12

Advisory arrangers, dealers or brokers (holding or controlling client money and/or assets)

A.13

Advisory only firms and advisory arrangers, dealers or brokers (not holding or controlling client money and/or assets)

A.14

Corporate finance advisers

A.18

Home finance providers, advisers and arrangers (excluding home finance providers)

A.19

General insurance mediation

Moderately Complex Cases R

Moderately complex cases

Activity grouping

Description

A.1

E-money issuers only

A.2

Home finance providers and administrators

A.3

UK ISPVs

A.4

UK ISPVs

A.5

Managing agents at Lloyd's

A.7

Fund managers

A.9

Operators, trustees and depositaries of, operators of personal pension schemes and operators of stakeholder pension schemes

A.10

Firms dealing as principal

Service companies

Complex Cases R

Complex cases

Activity grouping

Description

A.1

Deposit acceptors (excluding e-money issuers and credit unions)

A.3

Insurers - general (excluding friendly societies and UK ISPVs)

A.4

Insurers - life (excluding friendly societies and UK ISPVs)

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 is from an applicant:

(1)

which is a new legal entity intending to carry on the business, using the same business plan, of an existing firm with no outstanding regulatory obligations cancelling its Part IV permission, and

(2)

which is to:

(a)

have the same or narrower permission, and the same branches (if any), as the firm;

(b)

assume all of the rights and obligations in connection with the regulated activities carried on by the firm;

(c)

continue the same compliance arrangements and compliant client asset and client money procedures, as the firm, subject to any changes required only as a result of the change of legal status;

(d)

continue with a risk profile and arrangements for controlling and monitoring risk which will not be materially different from those of the firm; and

(e)

have the individuals within the firm that are responsible for insurance mediation activity perform the same role for the applicant.

FEES 3 Annex 2

Application and notification fees payable in relation to collective investment schemes

01/01/2006

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

4,400

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 2008/09

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 2008/09

Modified eligible liabilities (m)

Number of traders as at 31 December 2007

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 2008/09 ()

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

Export chapter as

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

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 1-8. 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.

01/01/2006
Future version of FEES 4.1.3 after 01/11/2009

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.

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 in the case of listed issuers, as notified to issuers annually, for the relevant year.

01/01/2006
Future version of FEES 4.1.6 after 01/06/2009

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 is extended, during the course of the financial year must pay a fee which is calculated by:

(1) identifying each of the tariffs set out in Part 1 of FEES 4 Annex 2R for the relevant financial year that apply to the firm only after the permission is received or extended, but ignoring:

(a) the A.13 activity group if, before the variation, the A.12 activity group applied to the firm's business; or
(b) the A.12 activity group if, before the variation, the A.13 activity group applied to the firm's business;

(2) calculating the amount for each of those tariffs which is the higher of:

(a) the minimum fee specified for the tariff; and
(b) the result of applying the tariff to the projected valuation, for its first year (as provided to the FSA in the course of the firm's application), of the business to which the tariff relates;

(3) adding together the amounts calculated under (2); and
(4) 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 permission is extended. That information will be used to calculate the periodic fee for the remainder of the financial year in which the firm was authorised or its permission was extended (adjusted in accordance with FEES 4.2.7 R) and to calculate the periodic fee for the following financial year.

01/06/2006
Future version of FEES 4.2.7A after 01/11/2009

FEES 4.2.7B

(1) This rule deals with the calculation of:

(a) a firm's fees for the FSA financial year following the FSA financial year in which the firm obtained permission or had its permission extended (the second financial year); and
(b) the tariff base for the fee block or fee blocks that relate to that permission or extension, as the case may be.

(2) Unless this rule says otherwise, the tariff base for a firm's second financial year is calculated using projected valuations for its second 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, 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 receives its permission or extension of permission, as the case may be, the firm must use that data.
(b) Unless (a) applies, if a firm:

(i) receives its permission or extension of permission, as the case may be, between 1 April and 31 December inclusive; and
(ii) is, but for this rule, required to calculate its tariff base 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 its permission or extension of permission, as the case may be, between 1 April and 31 December inclusive; and
(ii) the firm's tariff base, but for this rule, is calculated by reference to the firm's financial year ended in the calendar year ending 31 December prior to the FSA financial year or the twelve months ending 31 December prior to 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 permission, or had its permission extended, 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 permission or extension to the 31 December, as the case may be.

(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 is modified in relation to the calculation of that firm's valuation date in its second financial year.

01/04/2009
Future version of FEES 4.2.7B after 01/06/2009

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.

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 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)).

01/01/2006
Future version of FEES 4.2.9 after 01/11/2009

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) or FEES 4.3.6R (4) (Time and method for payment) applies, that date would otherwise fall on or before the 30th day after the date on which the FSA has sent written notification to that person of the fee payable on that date, in which case he must pay on or before the 30th day after the date on which the FSA sends the notification.

01/01/2006
Future version of FEES 4.2.10 after 01/11/2009

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 Firm extends permission

(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; less
(2) any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2.

01/01/2006
Future version of FEES 4.3.1 after 01/11/2009

FEES 4.3.2

(1) The amount payable by each firm will depend upon the category (or categories) of regulated activities it is engaged in (fee-blocks), and on the amount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in in respect of the FCA and in respect of the PRA FEES 4 Annex 1, while FEES 4 Annex 2 sets out the tariff rates for the relevant financial year.
(2) Incoming EEA firms, and incoming Treaty firms receive a discount to reflect the reduced scope of the FSA's responsibilities in respect of them. The level of the discount varies from fee-block to fee-block, according to the division of responsibilities between the FSA and Home state regulators for firms in each fee-block (see FEES 4.3.11 G and FEES 4.3.12 R ).

01/01/2006
Future version of FEES 4.3.2 after 01/06/2009

Calculation of periodic fee

FEES 4.3.3

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society) calculated as follows:

(1) identify each of the tariffs set out in Part 1 of FEES 4 Annex 2 which apply to the business of the firm for the period specified in that annex;
(2) for each of those tariffs, calculate the sum payable in relation to the business of the firm for that period, applying any minimum fee discount as may be applicable (see FEES 4.3.16 R);
(3) add together the amounts calculated under (2); and
(4) apply any applicable payment charge or discount specified in FEES 4.2.4 R, provided that:

(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.

01/01/2006
Future version of FEES 4.3.3 after 01/11/2009

Modification for firms with new or extended permissions

FEES 4.3.4

(1) A firm which becomes authorised during the course of a financial year will be required to pay a proportion of the periodic fee which reflects the proportion of the year for which it will have a permission - see FEES 4.2.5 G and FEES 4.2.6 R.
(2) Similarly a firm which extends its permission so that its business then falls within additional fee blocks will be required to pay a further periodic fee under this section for those additional fee blocks, but discounted to reflect the proportion of the year for which the firm has the extended permission - see FEES 4.2.6 R and FEES 4.2.7 R.
(3) These provisions apply (with some changes) to incoming EEA firms and incoming Treaty firms.
(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), 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.
(5) Paragraphs (1) and (2) do not apply to any Solvency 2 fee (as defined in Part 1 of FEES 4 Annex 2) and such fee is not taken into account for the purposes of the split in (1). Instead any Solvency 2 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 and incoming Treaty firms

FEES 4.3.11

The FSA recognises that its responsibilities in respect of an incoming EEA firm or of an incoming Treaty firm are reduced compared with a firm which is incorporated in the United Kingdom. Accordingly the periodic fees which would otherwise be applicable to incoming EEA firms and incoming Treaty firms are reduced.

01/01/2006
Future version of FEES 4.3.11 after 01/11/2009

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.

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); an issuer makes an application for de-listing; or a sponsor notifies FSA of its intention to be removed from the list of approved sponsors; and
(b) the firm, issuer or sponsor makes the application or notification referred to in (a) before the start of the period to which the fee relates;

FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission, de-listing or removal from the list of approved sponsors, took effect immediately before the start of the period to which the fee relates.
(2) But (1) does not apply if, due to the continuing nature of the business, the variation, cancellation, de-listing or removal is not to take effect within three months of the start of the period to which the fee relates.

FEES 4.3.14

Where a firm has applied to cancel its Part IV permission, or the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission, the due dates for payment of periodic fees are modified by FEES 4.3.6R (3) and FEES 4.3.6R (4) respectively.

01/01/2006
Future version of FEES 4.3.14 after 01/06/2009

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 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) which A acquired from B, for the period following that in which the acquisition occurred, FEES 4.2.1 R applies to A, in relation to that following period, as if the acquisition had occurred immediately before the relevant valuation date.

Minimum fee discount

FEES 4.3.16

(1) A firm (other than a firm in (2) or a credit union) in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block in which it is a minimum fee payer. [deleted]
(2) A firm (other than a credit union) liable to pay only minimum fees in each fee block it is in must pay 100% of the highest total minimum fee payable within any one fee block and must pay at least 50% of the total minimum fee payable in any other fee blocks in which it is a minimum fee payer. [deleted]
(3) A credit union in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block, other than fee block A.1, in which they are a minimum fee payer. [deleted]

01/01/2006
Future version of FEES 4.3.16 after 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 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 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;
OR
(2) its permission includes
ONLY either one or both of:
safeguarding and administering of investments (without arranging); and
arranging safeguarding and administration of assets;
OR
(3) the firm is a venture capital firm.
Class (1) firms are subdivided into three classes:
- class (1)A, where the funds managed by the firm belong to one or more occupational pension schemes;
- class (1)B, where:
(a) the firm is not a class (1)A firm; and
(b) the firm's permission includes NEITHER of the following:
safeguarding and administering investments (without arranging);
arranging safeguarding and administration of assets; and
(c) the firm EITHER:
has a requirement that prohibits the firm from holding or controlling client money, or both; OR
if it does not have such a requirement, only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client; and
- class (1)C, where the firm is not within class (1)A or class (1)B.

A.8

Not applicable.

A.9 Operators, Trustees and Depositaries of collective investment schemes and Operators of personal pension schemes or stakeholder pension schemes

(1) its permission:
(a) includes one or more of the following:
establishing, operating or winding up a regulated collective investment scheme;
establishing, operating or winding up an unregulated collective investment scheme;
acting as trustee of an authorised unit trust scheme;
acting as the depositary or sole director of an open-ended investment company;
establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme (but only if the firm does not fall within activity group A1 or A4);
AND
(b) PROVIDED the firm is NOT one of the following:
a corporate finance advisory firm;
a firm in which the above activities are limited to carrying out corporate finance business;
a venture capital firm;
OR
(2) if the fee-payer has none of the regulated activities above within its permission, but ALL the remaining regulated activities in its permission are limited to carrying out trustee activities.

A.10 Firms dealing as principal

its permission includes dealing in investments as principal;
BUT NOT if one or more of the following apply:
the firm is acting exclusively as a matched principal broker;
the above activity is limited either to acting as an operator of a collective investment scheme, establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme, or to carrying out trustee activities;
the firm is a corporate finance advisory firm;
the above activity is otherwise limited to carrying out corporate finance business;
the firm is subject to a limitation to the effect that the firm, in carrying on this regulated activity, is limited to entering into transactions in a manner which, if the firm was an unauthorised person, would come within article 16 of the Regulated Activities Order (Dealing in contractually based investments);
the above activity is limited to not acting as a market maker;
the firm is an oil market participant, energy market participant or a local;
its permission includes either:
- effecting contracts of insurance; or
- carrying out contracts of insurance.

A.11

Not applicable.

A.12 Advisory arrangers, dealers or brokers (holding or controlling client money or assets, or both)

its permission:
(a) includes one or more of the following, in relation to one or more designated investments:
dealing in investments as agent;
arranging (bringing about) deals in investments;
making arrangements with a view to transactions in investments;
dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local;
advising on investments (except pension transfers and pension opt-outs);
advising on pension transfers and pension opt-outs;
advising on syndicate participation at Lloyd's;
(b) BUT NONE of the following:
effecting contracts of insurance; or
carrying out contracts of insurance;
AND
(c) CAN HAVE one or more of the following:
safeguarding and administering of assets;
arranging safeguarding and administration of assets;
the ability to hold or control client money, or both:
- that is, there is no requirement which prohibits the firm from doing this; and
- provided that the client money in question does not only arise from an agreement under which commission is rebated to a client;
AND
(d) PROVIDED the fee-payer is NOT any of the following:
a corporate finance advisory firm;
a firm for whom all of the applicable activities above are otherwise limited to carrying out corporate finance business;
a firm whose activities are limited to carrying out venture capital business;
a firm whose activities are limited to acting as an operator of a regulated collective investment scheme;
a firm whose activities are limited to carrying out trustee activities;
a service company.

A.13 Advisory arrangers, dealers or brokers (not holding or controlling client money or assets, or both)

(1) it is an authorised professional firm and ALL the regulated activities in its permission are limited to non-mainstream regulated activities;
OR
(2) its permission:
(a) includes one or more of the following, in relation to one or more designated investments:
dealing in investments as agent;
arranging (bringing about) deals in investments;
making arrangements with a view to transactions in investments;
dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local;
advising on investments (except pension transfers and pension opt-outs);
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.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:
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 + 30A + 30B + 32AA1 + 32AA2
plus
In foreign currency, one-third of:
E21B + 60% of E22A + E23D + E23E + E23F + E30A + E30B + E32AA1 + E32AA2 + C21B + 60% of C22A + C23D + C23E + C23F + C30A + C30B + C32AA1 + C32AA2

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 C45D from 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 to the Bank of England as required by the Bank of England Act 1998).
(2) E refers to assets and liabilities denominated in euro (as referred to in column 2 of Form BT) and C refers to assets and liabilities denominated in currencies other than sterling and euro (as referred to in column 3 of Form BT). In accordance with Form BT, assets and liabilities in currencies other than sterling are to be recorded in sterling.
(3) The figures reported on the Form BT relate to business conducted out of offices in the United Kingdom.

For e-money issuers:
Outstanding balance of e-money liabilities
For credit unions:
Deposits with the credit union (share capital)

LESS
the credit union's bank deposits (investments + cash at bank)
Note:
Only United Kingdom business is relevant for calculating credit unions' MELs.

For building societies:
deposit liabilities (including debt securities up to five years original maturity)
(that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B1.1+B1.2+B2.0a+B2.0b+B2.10+B2.13+B2.14+B2.15+B2.16)
LESS amounts in respect of:
sterling repo liabilities with the Bank of England
(that is, ONLY the amounts in sterling (in column 5) for item B2.5a)
balances held with the Bank of England (excluding cash ratio deposits)
(that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for item B6.2a, less the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for item OW1.1)
market loans to banks, building societies (balances with and loans to, plus CDs, Commercial paper)
(that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B6.3.a+B6.4.a+B6.4b+B6.5a+B6.5b+B6.12a)
investments with banks and building societies (bonds, notes and other debt instruments up to five years original maturity) (that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B6.6a1+B6.6a2+B6.10a1+B6.10a2)

Note:
All references in the definition for building society MELs are to entries in the MFS1 which is submitted monthly by all building societies to the FSA.

A.2

NUMBER OF MORTGAGES OR OTHER HOME FINANCE TRANSACTIONS ENTERED INTO AND ADMINISTERED
The number of new mortgage contracts, home purchase plans or home reversion plans entered into;
AND
The number of mortgage contracts, home purchase plans or home reversion plans 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 or home reversion plans 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
Except for UK ISPVs:
Amount of new regular premium business (yearly premiums including reassurances ceded but excluding cancellations and reassurances accepted), times ten;
Plus
amounts of new single premium business (total including reassurances ceded but excluding cancellations and reassurances accepted). Group protection business (life and private health insurance) must be included;
Less
premiums relating to pension fund management;
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) For UK ISPVs the tariff base is not relevant and a flat fee set out in FEES 4 Annex 2 is payable.
(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);
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 (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 2007.
(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

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 or home reversion plans entered into in the twelve months ending 31 December.
AND
Number of mortgages, home purchase plans or home reversion plans 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 2009 to 31 March 2010

Part 1
This table shows the tariff rates applicable to each fee block

(1)

For each activity group specified in the table below, the fee is the total of the sums payable for each of the tariff bands applicable to the firm's business, calculated as follows:

(a)

the relevant minimum fee; plus

(b)

an additional fee calculated by multiplying the firm's tariff base by the appropriate rates applying to each tranche of the tariff base, as indicated.

(2)

A firm may apply the relevant tariff bases and rates to non-UK business, as well as to its UK business, if:

(a)

it has reasonable grounds for believing that the costs of identifying the firm's UK business separately from its non-UK business in the way described in Part 2 of FEES 4 Annex 1 are disproportionate to the difference in fees payable; and

(b)

it notifies the FSA in writing at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated), or, if earlier, at the time it pays the fees concerned.

(3)

For a firm which has not complied with FEES 4.4.2 R (Information on which fees are calculated) for this period:

(a)

the fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10;

(b)

an additional administrative fee of £250 is payable; and

(c)

the minimum total fee (including the administrative fee in (b)) is £430.

Activity group

Fee payable

A.1

Minimum fee (£)

£160

million of Modified Eligible Liabilities (MELs)

Fee (/m or part m of MELS)

0 - 0.5

>0.5 - 2

additional flat fee of 380

>2 -10

additional flat fee of 530

>10 - 200

24.72

>200 - 2,000

24.69

>2,000 - 10,000

24.61

>10,000 - 20,000

24.43

>20,000

24.26

For a firm in A.1 which has a limitation on its permission to the effect that it may accept deposits from wholesale depositors only, the fee is calculated as above less 30%.

A.2

Minimum fee ()

525

No. of mortgages

Fee (/mortgage)

0 - 50

51 - 500

4.92

501 - 1,000

1.98

1,001 - 50,000

1.48

50,001 - 500,000

0.51

>500,000

0.11

A.3

Gross premium income (GPI)

Minimum fee ()

430

million of GPI

Fee (/m or part m of GPI)

0 - 0.5

>0.5 - 2

2,134.95

>2 - 5

1,983.75

>5 - 20

1,860.84

>20 - 75

592.39

>75 - 150

519.31

>150

73.20

PLUS

Gross technical liabilities (GTL)

Minimum fee ()

million of GTL

Fee (/m or part m of GTL)

0 - 1

>1 - 5

51.03

>5 - 50

47.30

>50 - 100

43.89

>100 - 1,000

13.83

>1,000

5.54

PLUS

Solvency 2 Special Project Fee (the Solvency 2 fee)

Minimum fee ()

There is only a single tariff band.

The fee is calculated in accordance with Part 4 of this Annex. The percentage for this fee block (by which periodic fees are multiplied as described in Part 4) is 3.2%.

For UK ISPV's the tariff rates are not relevant and a flat fee of 430is payable in respect of the period 1 April 2008 to 31 March 2009.

A.4

Adjusted annual gross premium income (AGPI)

Minimum fee ()

215

million of AGPI

Fee (/m or part m of AGPI)

0 - 1

>1 - 50

637.87

>50 - 1,000

594.67

>1,000 - 2,000

408.20

>2,000

280.26

PLUS

Mathematical reserves (MR)

Minimum fee ()

215

million of MR

Fee (/m or part m of MR)

0 - 1

>1 - 10

33.55

>10 - 100

30.71

>100 - 1,000

20.79

>1,000 - 5,000

14.63

>5,000 - 15,000

11.36

>15,000

8.83

PLUS

Solvency 2 Special Project Fee (Solvency 2 fee)

Minimum fee ()

There is only a single tariff band.

The fee is calculated in accordance with Part 4 of this Annex. The percentage for this fee block (by which periodic fees are multiplied as described in Part 4) is 1.41%.

For UK ISPV's the tariff rates are not relevant and a flat fee of 430is payable in respect of the period 1 April 2008 to 31 March 2009.

A.5

Minimum fee ()

580

million of Active Capacity (AC)

Fee (/m or part m of AC)

0 - 50

>50 - 150

114.91

>150 - 250

96.71

>250

28.37

A.6

Flat Fee ()

1,284,725

A.7

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

Minimum fee ()

1,210

million of Funds under Management (FuM)

Fee (/m or part m of FuM)

0 - 10

>10 - 100

50.28

>100 - 2,500

16.17

>2,500 - 10,000

9.00

>10,000

1.02

For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%.
For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.

A.8

This activity group does not apply for this period.

A.9

Minimum fee ()

1,890

million of Gross Income (GI)

Fee (/m or part m of GI)

0 - 1

>1 - 5

842.83

>5 - 15

828.57

>15 - 40

820.36

>40

809.18

A.10

Minimum fee ()

2,310

No. of traders

Fee (/trader)

0 - 2

3 - 5

2,564.00

6 - 10

1,852.00

11 - 50

1,712.00

51 - 200

1,482.00

>200

1,196.00

A.11

This activity group does not apply for this period.

A.12

Minimum fee ()

1,960

No. of persons

Fee (/person)

0 - 1

2 - 4

1,125.00

5 - 10

570.00

11 - 25

418.00

26 - 150

221.00

151 - 1,500

167.00

>1,500

112.00

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

A.13

For class (2) firms:

Minimum fee ()

1,850

No. of persons

Fee (/person)

0 - 1

2 - 4

1,002.00

5 - 10

978.00

11 - 25

939.00

26 - 500

835.00

501 - 4,000

767.00

>4000

724.00

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

A.14

Minimum fee ()

1,335.00

No. of persons

Fee (/person)

0 - 1

1,258.00

3 - 4

1,194.00

5 - 10

1,098.00

11 - 100

1,042.00

101 - 200

729.00

>200

438.00

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

Minimum fee ()

745

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

>100 - 1,000

5.18

>1,000 - 5,000

4.33

>5,000 - 10,000

3.46

>10,000 - 20,000

2.60

>20,000

2.18

A.19

Minimum fee ()

450

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

>100 - 1,000

4.31

>1,000 - 5,000

3.77

>5,000 - 15,000

2.60

>15,000 - 100,000

1.04

>100,000

0.42

B. Market operators

20,000

B. Service companies

Bloomberg LP

37,000

EMX Co Ltd

27,000

LIFFE Services Ltd

27,000

[row deleted]

OMGEO Ltd

27,000

Reuters Ltd

37,000

Swapswire Ltd

27,000

Thomson Financial Ltd

27,000

B. MTF operators

As set out in 0R (Periodic fees for MTF operators).

Part 2
This table shows the permitted deductions that apply

Activity group

Nature of deduction

Amount of deduction

A.1

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.2

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.3

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 fee (as defined in Part 1)

A.4

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 fee (as defined in Part 1)

A.5

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.6

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.7

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.9

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.10

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.12

Financial penalties received

1.4% of the fee payable by the firm for then activity group (see Part 1)

A.13

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.14

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.18

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

A.19

Financial penalties received

1.4% of the fee payable by the firm for the activity group (see Part 1)

Part 3

This table shows the modifications to fee tariffs that apply to incoming EEA firms and incoming Treaty firms which have established branches in the UK.

Activity group

Percentage deducted from the tariff payable under Part 1 applicable to the firm

Minimum amount payable

A.1

80%

100

A.3

100%

nil

A.4

25%

100

A.7

100

A.9

100

A.10

10%

100

A.12

10%

100

A.13

10%

100

A.19

10%

100

B. MTF operators

Not applicable

The modifications to fee tariffs payable by an incoming EEA firm or an incoming Treaty firm which has established a branch in the UK apply only in relation to the relevant regulated activities of the firm which are passported activities or Treaty activities and which are carried on in the UK.

Part 4

This table shows the calculation of the Solvency 2 fee for firms falling into fee block A.3 or A.4

(1)

The Solvency 2 fee forms part of the periodic fee payable under fee block A.3 and A.4 (the insurance fee blocks).

(2)

The Solvency 2 fee is only payable by a firm if:

(a)

it was in one or both of the insurance fee blocks at the start of the financial year 2008/9;

(b)

FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period) does not apply with respect to the fee block in (a); and

(c)

it has not notified the FSA before the start of the financial year 2008/9 that it intends to migrate out of the United Kingdom for regulatory purposes before the proposed Solvency II Directive is implemented.

(3)

The Solvency 2 fee is payable by the top ten firms in the list of firms that fall into (2). A firm's ranking in this list is measured by reference to the amount of the periodic fees payable by it under FEES 4.3 in respect of the financial year 2007/8 with respect to the insurance fee blocks.

(4)

The fee for a particular insurance fee block is calculated by multiplying the periodic fee payable by the firm with respect to that fee block (ignoring the Solvency 2 fee) by the percentage specified in Part 1.

(5)

The total Solvency 2 fee payable by a firm (taking into account amounts payable under both insurance fee blocks) is capped at 50,000.

(6)

For the purpose of (3) firms falling into (2) that are in the same group at the start of the financial year 2008/9 must be treated as a single firm, so that the total number of firms liable to pay the Solvency 2 fee may be greater than 20.

(7)

Where (6) applies, the Solvency 2 fee payable by the firms in the group concerned for a particular insurance fee block is calculated by multiplying the total amount of the periodic fees payable by those firms with respect to that fee block (ignoring the Solvency 2 fee) by the percentage specified in Part 1. All those firms are liable jointly and severally to pay the Solvency 2 fee. No incoming EEA firm or incoming Treaty firm that has established a branch in the UK is liable to pay any such joint fee.

(8)

Where (7) applies, (5) is applied to the group as a whole so that the total joint Solvency 2 fee payable by the group is capped at 50,000.

(9)

The definition of a group is restricted for the purpose of calculating the Solvency 2 fee to parent undertakings and their subsidiary undertakings.

(10)

In calculating the fee to which the percentage in (4) or (7) is applied, no account is taken of any change in the fee that takes place after the Solvency 2 fee has been billed.

(11)

The Solvency 2 fee is not reduced under the table in FEES 4.2.6 R (Modifications for persons becoming subject to periodic fees during the course of a financial year). Instead the fee to which the percentage in (4) or (7) is applied takes account of any reduction under that table. The same applies for the reductions in Part 3 of this Annex (Modifications to fee tariffs that apply to incoming EEA firms and incoming Treaty firms).

FEES 4 Annex 3

Transaction reporting fees

01/01/2006

Transaction reporting fees for the period from 1 April 2009 to 31 March 2010

This table shows the fees payable for firms using the FSA's Transaction Reporting System.

Fee type

Fee amount

Transaction charge

Number of transactions per annum

Fee per transaction

For the first 1,000

1,001 - 1,000,000

1.91p

1,000,001 - 4,000,000

1.70p

4,000,001 - 8,000,000

1.49p

8,000,001 - 13,000,000

1.28p

13,000,001 - 20,000,000

1.06p

>20,000,000

0.85p

Firms using the Transaction Reporting System will be additionally invoiced for:

(a)

[deleted]

(b)

[deleted]

(c)

an annual enrolment fee of £200 per registration held on 1 April each year for users of the FSA's Transaction Reporting System.

FEES 4 Annex 4

Periodic fees in relation to collective investment schemes payable for the period 1 April 2008 to 31 March 2009

Part 1 - Periodic fees payable

Scheme type

Basic fee (£)

Total funds/sub-funds aggregate

Fund factor

Fee (£)

ICVC,
AUT,
Section 264 of the Act
Section 270 of the Act

670

1-2
3-6
7-15
16-50
>50

1
2.5
5
11
22

670
1,675
3,350
7,370
14,740

Section 272 of the Act

2,730

1-2
3-6
7-15
16-50
>50

1
2.5
5
11
22

2,730
6,825
13,650
30,030
60,060

Fees are charged according to the number of funds or sub-funds operated by a firm as at 31 March 2009. Where a new collective investment scheme becomes authorised during a year, fees are charged according to the number of funds or sub-funds operated by a firm as at the date of authorisation. Where more than one fund or sub-fund is operated, the number of funds (not including the umbrella or parent fund) produces a 'fund factor' in accordance with the table above, which is then applied to a basic fee to produce one total fee per operator. Fund factors are applied per operator rather than per scheme so that the fees relate to the number of funds rather than the number of schemes. This means that, for example, an authorised fund manager of three schemes pays the same as an operator or authorised fund manager of one scheme with three sub-funds (as only the sub-funds are counted).
Schemes set up under section 264 of the Act are charged according to the number of funds or sub-funds which a firm is operating and marketing into the UK as at 31 March immediately before the start of the period to which the fee applies. For example, for 2008/09 fees a reference to 31 March means 31 March 2008.

FEES 4 Annex 5

Periodic fees for designated professional bodies payable in relation to the period 1 April 2009 to 31 March 2010

Table. Fees payable by Designated Professional Bodies

Name of Designated Professional Body

Amount payable

Due date

The Law Society of England & Wales

£50,985

30 April 2009

£31,455

1 September 2008

The Law Society of Scotland

£15,890

1 July 2008

The Law Society of Northern Ireland

£14,220

1 July 2008

The Institute of Actuaries

£10,160

1 July 2008

The Institute of Chartered Accountants in England and Wales

£33,720

1 July 2008

The Institute of Chartered Accountants of Scotland

£12,030

1 July 2008

The Institute of Chartered Accountants in Ireland

£10,940

1 July 2008

The Association of Chartered Certified Accountants

£19,600

1 July 2008

The Council for Licensed Conveyancers

£11,720

1 July 2008

Royal Institution of Chartered Surveyors

£15,010

1 July 2008

Notes

(1) The FSA register includes details of exempt professional firms carrying out insurance mediation activity.

FEES 4 Annex 6

Periodic fees for recognised investment exchanges and recognised clearing houses payable in relation to the period 1 April 2009 to 31 March 2010

In this Annex:

- the term recognised body includes a body which was a recognised investment exchange or a recognised clearing house recognised under the Financial Services Act 1986 and which is a recognised body as a result of Regulation 9 of the Recognition Requirements Regulations; and

- the term recognition order includes a recognition order made by the FSA under section 37 or section 39 of the Financial Services Act 1986 or a recognition order made by the Treasury under section 40 of the Financial Services Act 1986.

Part 1 - Periodic fees for UK recognised bodies

Name of UK recognised body

Amount payable

Due date

Euroclear UK & Ireland Limited

£244,500

30 April 2009

£228,000

1 September 2008

ICE Futures Europe Ltd

£192,500

30 April 2009

£208,000

1 September 2008

LIFFE Administration and Management

£300,000

30 April 2009

£325,500

1 September 2008

LCH Clearnet Limited

£281,000

30 April 2009

£276,500

1 September 2008

The London Metal Exchange Limited

£184,500

30 April 2009

£195,500

1 September 2008

London Stock Exchange plc

£269,500

30 April 2009

£190,000

1 September 2008

SWX Europe Ltd

£77,000

30 April 2009

£84,500

1 September 2008

EDX London Ltd

£48,000

30 April 2009

£44,000

1 September 2008

PLUS Markets Plc

£77,000

30 April 2009

£79,000

1 September 2008

European Central Counterparty Limited

£125,000

30 April 2009

ICE Clear Europe Limited

£125,000

30 April 2009

Any other UK recognised investment exchange recognised as such by a recognition order made in the period

£150,000

30 days after the date on which the recognition order is made

Any other UK recognised clearing house recognised as such by a recognition order made in the period

£250,000

30 days after the date on which the recognition order is made

Part 2 - Periodic fees for overseas recognised bodies

Name of overseas recognised body

Amount payable

Due date

Cantor Financial Futures Exchange

£25,000

1 July 2008

The Chicago Mercantile Exchange

£25,000

1 July 2008

Chicago Board of Trade

£25,000

1 July 2008

EUREX (Zurich)

£25,000

1 July 2008

National Association of Securities and Dealers Automated Quotations (NASDAQ)

£25,000

1 July 2008

NQLX LLC

£25,000

1 July 2008

New York Mercantile Exchange Inc.

£25,000

1 July 2008

The Swiss Stock Exchange

£25,000

1 July 2008

Sydney Futures Exchange Limited

£25,000

1 July 2008

US Futures Exchange LLC

£25,000

1 July 2008

ICE Futures US Inc

£25,000

1 July 2008

RMX Risk Management Exchange AG

£25,000

1 July 2008

SIS x-clear AG

£25,000

1 July 2008

Eurex Clearing AG

£25,000

1 July 2008

ICE Clear US Inc

£25,000

1 July 2008

CME Clearing

£25,000

1 July 2008

Any other overseas investment exchange recognised as such by a recognition order made in the period

£25,000

30 days after the date on which the recognition order is made

Any other overseas clearing house recognised as such by a recognition order made in the period

£25,000

30 days after the date on which the recognition order is made

FEES 4 Annex 7

Annex 7, Periodic fees in relation to the Listing Rules for the period 1 April 2008 to 31 March 2009

Fee type

Fee amount

Annual fees for the period 1 April 2008 to 31 March 2009

Annual Issuer Fees - all listed issuers of shares, depositary receipts and securitised derivatives. This fee represents the total annual fee for a listed issuer - no additional annual fee is due under the disclosure rules and transparency rules.

(1) For all issuers of securitised derivatives, depositary receipts and global depositary receipts the fees payable are set out in Table 1.
(2) For all other issuers, fees to be determined according to market capitalisation are as set out in Table 2. The fee is calculated as follows:
(a) the relevant minimum fee; plus
(b) the cumulative total of the sums payable for each of the bands calculated by multiplying each relevant tranche of the firm's market capitalisation by the rate indicated for that tranche. Where issuers have more than one type of share in issue, the highest market capitalisation of all of its securities in issue is used.
(3) Notwithstanding (2), overseas issuers with a listing of equity securities which is not a primary listing will only pay 80% of the fee otherwise payable under (2).

Annual fees are charged in annual cycles beginning on 1 April of a year and ending on 31 March of the following year. For fees purposes issuers should take into account only equity ordinary shares, including those issued by suspended issuers.

Table 1

Annual fees for issuers of securitised derivatives, depositary receipts and global depositary receipts

Issuer

Fee amount

Issuers of securitised derivatives

£3,425

Issuers of depositary receipts and global depositary receipts

£4,110

Table 2
Tiered annual fees for all other issuers

Fee payable

Minimum fee (£)

£3,425

£ million of Market Capitalisation

Fee (£/£m or part £m of Market Capitalisation)

0 - 100

>100 - 250

15.06600

>250 - 1,000

6.02600

>1,000 - 5,000

2.00500

>5,000 - 25,000

0.03770

>25,000

0.01008

FEES 4 Annex 8

Periodic fees in relation to the disclosure rules and transparency rules for the period 1 April 2008 to 31 March 2009

Annual fees for the period 1 April 2008 to 31 March 2009

All non-listed issuers of shares, depositary receipts and securitised derivatives. Annual fees for listed issuers in respect of Disclosure Rules and Transparency Rules obligations are incorporated in the annual fee for listed issuers under the Listing Rules.

(1) For all non-listed issuers of securitised derivatives, depositary receipts and global depositary receipts the fees payable are set out in Table 1.

(2) For all other non-listed issuers, fees to be determined according to market capitalisation as set out in Table 2. The fee is calculated as follows:

(a)

the relevant minimum fee; plus

(b)

the cumulative total of the sums payable for each of the bands calculated by multiplying each relevant tranche of the firm's market capitalisation by the rate indicated for that tranche.

Fees from other fee schedules contained in other sections of the sourcebook may be applicable to a single submission.

Table 1
Annual fees for non-listed issuers of securitised derivatives, depositary receipts and global depositary receipts

Issuer

Fee amount

Issuers of securitised derivatives

£2,740

Issuers of depositary receipts and global depositary receipts

£3,288

Table 2

Fee payable

Minimum fee (£)

2,740

£ million of Market Capitalisation

Fee (£/£m or part £m of Market Capitalisation)

0 - 100

>100 - 250

12.0528

>250 - 1,000

4.8208

>1,000 - 5,000

1.6040

>5,000 - 25,000

0.0302

>25,000

0.0081

FEES 4 Annex 9

Periodic fees in respect of securitised derivatives for the period from 1 April 2008 to 31 March 2009

01/06/2008
Future version of FEES 4 Annex 9 after 01/06/2009

Part 1

This table shows the fee amount applicable to firms and market operators in respect of certain securitised derivatives.

For the purposes of this Annex relevant contracts are all transactions entered into by firms in securitised derivatives entered into on or settled through LIFFE or Eurex Clearing AG, and the relevant period is 1 January 2007 to 31 December 2007 inclusive.

The fee shown in the table below for firms (but not for market operators) will be subject to a deduction of 1.4%, as if that fee were a periodic fee charged under FEES 4.3.3 R, and the deduction were a deduction set out in Part 2 of FEES 4 Annex 2 R.

Fee amount for firms

Number of relevant contracts entered into by the firm during the relevant period

Fee amount

0 - 100

£0

101 - 1,000

£150

1,001 - 100,000

£700

100,001 - 1,000,000

£1,900

1,000,001 - 5,000,000

£4,800

5,000,001 - 20,000,000

£8,800

>20,000,000

£13,400

Fee amount for market operators

Market operators providing facilities for trading in securitised derivatives that do not identify those using an International Securities Identity Number.

£10,000

01/06/2008
Future version of Periodic fees after 01/06/2009

FEES 4 Annex 10

Periodic fees for MTF operators payable in relation to the period 1 April 2009 to 31 March 2010

01/04/2009
Future version of FEES 4 Annex 10 after 01/06/2010

Name of MTF operator

Fee payable (£)

Due date 30 April 2009

Barclays Bank Plc

2,600

BATS Trading Ltd

38,000

BGC Brokers L.P

2,600

Cantor Index Limited

5,600

CantorCO2e Limited

2,600

Chi-X Europe Limited

38,000

EuroMTS Limited

20,000

GFI Brokers Limited

2,600

GFI Securities Limited

2,600

ICAP Electronic Broking Limited

4,400

ICAP Energy Limited

2,600

ICAP Europe Limited

2,600

ICAP HydeTanker Derivatives Limited

2,600

ICAP Securities Limited

2,600

ICAP WCLK Limited

2,600

Liquidnet Europe Limited

20,000

MF Global UK Limited

2,300

My Treasury Limited

2,600

NASDAQ OMX Europe Limited

38,000

NYMEX

20,000

TFS-ICAP Limited

2,600

Tradeweb Europe Limited

9,200

Tradition (UK) Limited

2,600

Tradition Financial Services Limited

2,600

Tullett Prebon (Europe) Limited

2,600

Tullett Prebon (Securities) Limited

2,600

Turquoise Services Limited

38,000

Any other firm whose permission includes operating a multilateral trading facility, including:

(a) an EEA firm; or

(b) a firm that, during the course of the relevant financial year, receives permission for operating a multilateral trading facility or whose permission is extended to include this activity.

In the case of an EEA firm that:

(a) has not carried on the activity of operating a multilateral trading facility in the UK at any time in the calendar year ending 31 December 2008; and

(b) notifies the FSA of that fact by the end of March 2009;

the fee is zero.

Information required under (b) is to be treated as information required under FEES 4.4 (Information on which Fees are calculated)

In any other case: £2000

In the case of a firm that, during the course of the relevant financial year, receives permission for operating a multilateral trading facility or whose permission is extended to include this activity, within 30 days of receiving that permission or extension.

In any other case, 30 April 2009

01/04/2009
Future version of Periodic fees after 01/06/2010

Export chapter as

FEES 5

Financial Ombudsman Service Funding

FEES 5.1

Application and Purpose

01/01/2006

Application

FEES 5.1.1

This chapter applies to:

(1) every firm which is subject to the Compulsory Jurisdiction and (apart from FEES 5.3, 5.4 and 5.8) every licensee which is subject to the Consumer Credit Jurisdiction of the Financial Ombudsman Service; and
(2) every other person who is subject to the Compulsory Jurisdiction in relation to relevant complaints.

FEES 5.1.2

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

01/01/2006
Future version of FEES 5.1.2 after 01/07/2011

FEES 5.1.3

References in this chapter to "firms" are to be construed, where relevant, as including:

(1) in accordance with the Ombudsman Transitional Order, unauthorised persons subject to the Compulsory Jurisdiction in relation to relevant complaints (see Transitional Provisions 6 and 7 of DISP); and
(2) as a result of section 226 of the Act, unauthorised persons who were formerly firms in respect of complaints about acts or omissions which occurred at the time when they were firms, provided that the Compulsory Jurisdiction rules were in force in relation to the activity in question.

01/01/2006

FEES 5.1.3A

References in this chapter to licensees are to be construed, where relevant, as a result of section 226A of the Act, as including persons who were formerly licensees in respect of complaints about acts or omissions which occurred at the time when they were licensees, provided the complaint falls within a description specified in the Consumer Credit Jurisdiction rules in force at the time of the act or omission.

06/04/2007

Exemption

FEES 5.1.4

A firm which is exempt under DISP 1.1.12 R is also exempt from FEES 5.1 to FEES 5.6.

FEES 5.1.4A

A firm will only be exempt from FEES 5.7 for any given financial year if it met the conditions in DISP 1.1.12 R on 31 March of the immediately preceding financial year.

01/11/2007
Past version of FEES 5.1.4A before 01/11/2007

FEES 5.1.5

A firm which ceases to be exempt under FEES 5.1.4 R is to be treated, for the purposes of its contribution to the general levy, as a firm to which FEES 5.8 applies.

01/01/2006

FEES 5.1.6

A firm which becomes exempt under FEES 5.1.4 R during the course of a financial year is to be treated for the purposes of its contribution to the general levy, as a firm to which FEES 5.9 applies.

01/01/2006

Purpose

FEES 5.1.7

The purpose of this chapter is to set out the requirements on firms to pay annual fees (through a general levy and supplementary levy invoiced and collected by the FSA on behalf of FOS Ltd) and case fees (invoiced and collected directly by FOS Ltd) in order to fund the operation of the Financial Ombudsman Service. This chapter also contains a requirement on firms to pay a supplementary levy towards the costs of establishing the Financial Ombudsman Service. It also provides for unauthorised persons to pay case fees to FOS Ltd in respect of any relevant complaints which it handles.

01/01/2006
Future version of FEES 5.1.7 after 01/06/2009

FEES 5.1.8

This chapter also explains the way that the Consumer Credit Jurisdiction will be funded by a combination of contributions collected by the Office of Fair Trading which are paid to FOS Ltd and case fees invoiced and collected directly by FOS Ltd from licensees.

06/04/2007

FEES 5.2

Introduction

01/01/2006

FEES 5.2.1

Paragraph 9 of Schedule 17 to the Act (The Ombudsman Scheme) requires FOS Ltd to adopt an annual budget which has been approved by the FSA. The annual budget must distinguish between the costs of operating the Compulsory Jurisdiction, the Consumer Credit Jurisdiction and the Voluntary Jurisdiction.

06/04/2007
Past version of FEES 5.2.1 before 06/04/2007

FEES 5.2.2

Section 234 of the Act (Industry Funding) enables the FSA to require the payment to it or to FOS Ltd, by firms or any class of firm, of specified amounts (or amounts calculated in a specified way) to cover the costs of:

(1) the establishment of the Financial Ombudsman Service; and
(2) its operation in relation to the Compulsory Jurisdiction.

06/04/2007
Past version of FEES 5.2.2 before 06/04/2007

FEES 5.2.2A

Section 234A (1) of the Act (Funding by consumer credit licensees etc.) enables FOS Ltd from time to time and with the approval of the FSA to determine a sum which is to be raised by way of contributions under that section to cover the costs of:

(1) the establishment of the Financial Ombudsman Service so far as it relates to the Consumer Credit Jurisdiction;
(2) its operation in relation to the Consumer Credit Jurisdiction; and
(3) a component to cover the costs of collection of the contributions to that sum (collection costs).

06/04/2007

FEES 5.2.2B

FOS Ltd must notify the Office of Fair Trading of every determination made under section 234A(1) and the Office of Fair Trading must give a general notice of every determination so notified. The Office of Fair Trading may by general notice impose requirements on

(1) licensees under standard licences which cover to any extent the carrying on of a type of business specified in an order made under section 226A(2)(e) of the Act; or
(2) persons who make applications for:

(a) standard licences covering to any extent business of such a type; or
(b) the renewal of standard licences on terms covering to any extent the carrying on of a business of such a type;

to pay contributions to the Office of Fair Trading for the purpose of raising sums determined by FOS Ltd in accordance with the provisions of section 234A (6) and (7) of the Act.

06/04/2007

FEES 5.2.3

Paragraph 15 of Schedule 17 to the Act enables FOS Ltd to require firms subject to the Compulsory Jurisdiction and any other respondents to a complaint to pay specified fees to it in respect of complaints closed by the Financial Ombudsman Service.

01/01/2006

FEES 5.2.3A

Paragraph 16C of Schedule 17 to the Act enables FOS Ltd to require licensees subject to the Consumer Credit Jurisdiction and any other respondents to a complaint to pay specified fees to it in respect of complaints closed by the Financial Ombudsman Service.

06/04/2007

FEES 5.2.4

The Ombudsman Transitional Order provides for unauthorised persons to be charged fees in respect of any relevant complaints against them which the Financial Ombudsman Service handles.

01/01/2006

FEES 5.2.5

Paragraph 18 of Schedule 17 to the Act enables FOS Ltd to require VJ participants to pay to it such amounts at such times as it specifies in the standard terms.

01/01/2006

FEES 5.2.6

The relevant provisions of the rules in FEES 5 and FEES 2 will be applied to VJ participants through the standard terms made by FOS Ltd under paragraph 18 of Schedule 17 to the Act (see DISP 4).

01/01/2006

FEES 5.2.7

This chapter sets out the framework for the funding arrangements of the Financial Ombudsman Service, including the method by which fees will be calculated. Details of the actual fees payable will vary from year to year, depending on the annual budget of the Financial Ombudsman Service. These details will be set out in an annex to this chapter (FEES 5 Annex 1). A new annex will be prepared and consulted on for each financial year.

01/01/2006
Future version of FEES 5.2.7 after 17/12/2010

FEES 5.3

The general levy

01/01/2006

FEES 5.3.1

Each financial year, the FSA and FOS Ltd will consult on the amount of the annual budget of the Financial Ombudsman Service which is to be raised by the general levy.

01/01/2006
Future version of FEES 5.3.1 after 17/12/2010

FEES 5.3.2

For the purposes of the general levy, a firm will fall into one or more of the industry blocks set out in FEES 5 Annex 1 depending on the business activities which it conducts.

01/01/2006

FEES 5.3.3

The FSA will determine, following consultation, the amount to be raised from each industry block. This will be based on the budgeted costs and numbers of Financial Ombudsman Service staff required to deal with the volume of complaints which the Financial Ombudsman Service expects to receive about the firms in each industry block. Modified arrangements have been made for certain types of small firms (see FEES 5.5.3 R to FEES 5.5.5 G).

01/01/2006

FEES 5.3.4

Part 2 of FEES 5 Annex 1 sets out the fee tariffs for each industry block.

01/01/2006
Future version of FEES 5.3.4 after 17/12/2010

FEES 5.3.5

The FSA will specify a minimum levy for firms in each industry block.

01/01/2006

FEES 5.3.6

A firm must pay to the FSA a general levy towards the costs of operating the Compulsory Jurisdiction of the Financial Ombudsman Service.

01/01/2006

FEES 5.3.7

Under the standard terms, VJ participants will be required to pay to FOS Ltd an amount calculated on a similar basis towards the costs of operating the Voluntary Jurisdiction of the Financial Ombudsman Service. FOS Ltd will be responsible for invoicing and collecting this amount.

01/01/2006
Future version of FEES 5.3.7 after 01/07/2011

FEES 5.3.8

A firm's general levy is calculated as follows:

(1) identify each of the tariff bases set out in Part 2 of FEES 5 Annex 1 which apply to the relevant business of the firm for the relevant year;
(2) for each of those tariff bases, calculate the sum payable in relation to the relevant business of the firm for that year;
(3) add together the amounts calculated under (2).

01/01/2006
Future version of FEES 5.3.8 after 17/12/2010

FEES 5.3.9

For the purpose of FEES 5.3.6 R and FEES 5.3.8 R, a member of the Society of Lloyd's or a managing agent at Lloyd's will not in that capacity be treated as a firm. But the Society of Lloyd's will pay a general levy in respect of Lloyd's insurance business conducted with eligible complainants.

01/01/2006

FEES 5.3.10

For the purpose of FEES 5.3, references to relevant business for a firm which falls in industry block 16 or 17 and which so elects under Part 2 of FEES 5 Annex 1, are references to the firm's total amount of annual income reported in accordance with Part 2 of FEES 4.

01/01/2006
Future version of FEES 5.3.10 after 17/12/2010

FEES 5.4

Information requirement

01/01/2006

FEES 5.4.1

(1) A firm must provide the FSA by the end of February each year (or, if the firm has become subject to the Financial Ombudsman Service part way through the financial year, by the date requested by the FSA) with a statement of the total amount of relevant business (measured in accordance with the appropriate tariff base(s)) which it conducted, as at or in the year to 31 December of the previous year as appropriate, in relation to the tariff base for each of the relevant industry blocks set out in part 2 of FEES 5 Annex 1.
(2) Paragraph (1) does not apply if the firm pays a general levy on a flat fee basis only.
(3) If a firm cannot provide a statement of the total amount of relevant business as required by FEES 5.4.1 R, it must provide the best estimate of the amount of relevant business that it conducted.
(4) For the purpose of FEES 5.4.1 R, references to relevant business for a firm which falls in industry block 16 or 17 and which so elects under part 2 of FEES 5 Annex 1, are references to the firm's total amount of annual income reported in accordance with Part 2 of FEES 4 Annex 1.
(5) If a firm does not submit a complete statement by the date on which it is due in accordance with this rule and any prescribed submission procedures:

(a) the firm must pay an administrative fee of 250 (but not if it is already subject to an administrative fee under FEES 4 Annex 2, Part 1 or FEES 6.5.16 R for the same financial year); and
(b) the general levy and any supplemental levy will be calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10 (or, if a firm has become subject to the Financial Ombudsman Service part way through the financial year, on the basis of the information provided to FSA for the purposes of FEES 4.4.2 R) or on any other reasonable basis, making such adjustments as seem appropriate in subsequent levies once the true figures are known.

01/01/2006
Future version of FEES 5.4.1 after 01/06/2009

FEES 5.4.2

Failure to submit a statement in accordance with the rules in this chapter may also lead to the imposition of a financial penalty and other disciplinary sanctions (see DEPP 6.6.1 G to DEPP 6.6.5 G).

28/08/2007
Past version of FEES 5.4.2 before 28/08/2007

FEES 5.4.3

SUP 16.3 (General provisions on reporting) contains further rules on the method of submission of reports under FEES 5.4.1 R.

01/01/2006

FEES 5.4.4

A firm should not provide a statement of relevant business if it deals only with eligible complainants who are not private individuals. Relevant business is defined in the Glossary as business done with private individuals only. So FEES 5.4.1 R does not apply in relation to business done with other types of eligible complainant described in DISP 2.7.3R (2), DISP 2.7.6R (12)(a) and DISP 2.7.6R (12)(a); the funding of FOS Ltd in relation to that business is by special case fee only (see FEES 5.5.6 R).

FEES 5.5

Case fees

01/01/2006

Standard case fee

FEES 5.5.1

A firm or licensee must pay to FOS Ltd the standard case fee specified in part 3 of FEES 5 Annex 1 in respect of each chargeable case relating to that firm or licensee which is closed by the Financial Ombudsman Service, unless a special case fee is payable or has been paid in respect of that case under FEES 5.5.6 R to FEES 5.5.12 R.

FEES 5.5.2

The standard case fee, which will be subject to consultation each year, will be calculated by dividing the annual budget for the Compulsory Jurisdiction, less the amount to be raised by the general levy, by the estimated number of chargeable cases which the Financial Ombudsman Service expects to close in the relevant financial year.

01/01/2006

FEES 5.5.2A

For the purposes of the Consumer Credit Jurisdiction, the standard case fee, which will be subject to consultation each year, will be calculated by dividing the annual budget for the Consumer Credit Jurisdiction, less the amount to be raised by the sum determined by FOS Ltd under section 234A of the Act, by the estimated number of chargeable cases which the Financial Ombudsman Service expects to close in the relevant financial year.

06/04/2007

FEES 5.5.3

A credit union which is subject to the minimum levy in an industry block is not required to pay a standard case fee in respect of chargeable cases relating to that industry block.

01/01/2006

FEES 5.5.4

Any firm falling into either industry block 13 or industry block 15 in part 2 of FEES 5 Annex 1 is not required to pay the standard case fee in respect of chargeable cases relating to those industry blocks.

01/01/2006
Future version of FEES 5.5.4 after 17/12/2010

FEES 5.5.5

The firms in industry blocks 13 and 15 are cash plan health providers and small friendly societies. These arrangements have been made in respect of these firms to take account of the fact that the amount at issue is likely to be small relative to the case fee. Instead, the full unit cost of handling complaints against these firms will be recovered through the general levy in accordance with the relevant tariff-base and no case fee will be payable. Similar arrangements have been made under FEES 5.5.3 R in respect of small credit unions.

01/01/2006

Special case fees: complaints from small businesses

FEES 5.5.6

A firm must pay to FOS Ltd a special case fee, as specified in part 3 of FEES 5 Annex 1 in respect of each chargeable case relating to that firm closed by the Financial Ombudsman Service which was referred to the Financial Ombudsman Service by eligible complainants who fall within DISP 2.7.3R (2), DISP 2.7.6R (12)(a) and DISP 2.7.6R (12)(a).

Special case fees: firms which cease to be authorised and persons which cease to be licensees

FEES 5.5.7

A firm which ceases to be authorised must pay to FOS Ltd a special case fee, as specified in part 3 of FEES 5 Annex 1, in respect of each chargeable case relating to that firm closed by the Financial Ombudsman Service which concerned an act or omission occurring when the firm was authorised and where the complaint was made after its authorisation ceased.

01/01/2006
Future version of FEES 5.5.7 after 17/12/2010

FEES 5.5.7A

DISP 5.5.7R applies to persons which cease to be licensees in the same way as it applies to firms which cease to be authorised.

06/04/2007
Future version of FEES 5.5.7A after 17/12/2010

Special case fees: relevant complaints against persons who were subject to a former scheme

FEES 5.5.8

An unauthorised person who is subject to the Compulsory Jurisdiction in relation to a relevant complaint must pay to FOS Ltd a special case fee as specified in part 3 of FEES 5 Annex 1 in respect of each chargeable case relating to that unauthorised person closed by the Financial Ombudsman Service.

01/01/2006
Future version of FEES 5.5.8 after 17/12/2010

FEES 5.5.9

Under the Ombudsman Transitional Order, FOS Ltd can handle complaints about members of a former scheme which that scheme could have handled before commencement, even if the unauthorised person concerned does not become authorised by the FSA after that date. Where FOS Ltd handles such complaints, the unauthorised person concerned will be required to pay a special case fee.

01/01/2006

Special case fees for 2001/02

FEES 5.5.10

A firm which was a member of PIA before commencement must pay to FOS Ltd a special case fee, as specified in FEES 5 Annex 1, in respect of each chargeable case relating to that firm received by the Financial Ombudsman Service after commencement and before 31 March 2002.

01/01/2006
Future version of FEES 5.5.10 after 17/12/2010

FEES 5.5.11

FEES 5.5.10 R does not apply in relation to a chargeable case which relates to a complaint which proceeded or would have proceeded under a former scheme other than the PIAOB scheme.

01/01/2006

FEES 5.5.12

A firm which was not a member of a former scheme before the commencement day must pay to FOS Ltd a special case fee, as specified in FEES 5 Annex 1, in respect of each chargeable case which relates to business conducted by the firm after the commencement day and which is closed by the Financial Ombudsman Service before 31 March 2002.

01/01/2006
Future version of FEES 5.5.12 after 17/12/2010

FEES 5.5.13

The relevant provisions of FEES 5.5 will be applied to VJ participants through the standard terms.

01/01/2006

FEES 5.5.14

A firm which was, before commencement, a member of PIA and a former scheme other than the PIAOB scheme will not, on account of the exclusion in FEES 5.5.11 R, be required to pay the special case fee specified by FEES 5.5.10 R in respect of all chargeable cases relating to it but only those which arise in respect of investment business matters which would have been eligible under the PIAOB scheme.

01/01/2006

Case fee exemption

FEES 5.5.15

Notwithstanding the above, a firm or licensee will only be liable for, and FOS will only invoice for, the standard case fee or, as the case may be, the special case fee, in respect of the fourth and subsequent chargeable cases in any financial year.

FEES 5.5.16

A case fee exemption provision was first applied in the financial year 1 April 2004 to 31 March 2005. For that financial year only, each authorised firm was invoiced for a standard case fee for the third and subsequent chargeable case received by the Financial Ombudsman Service, subject to the annual levy having been invoiced and paid by the firm within the Financial Ombudsman Services normal credit terms. For the financial year commencing 1 April 2005 and for subsequent financial years, the case fee exemption provision contained in FEES 5.5.15 R applies. This provision is not retrospectively applicable to financial years prior to 1 April 2005.

06/07/2006

FEES 5.6

The supplementary levy

01/01/2006

FEES 5.6.1

For the purposes of calculating the supplementary levy, the FSA will apportion the establishment costs between the industry blocks in the same proportions as the operating costs for the purposes of the general levy. The supplementary levy will therefore be raised from firms on the same basis and at the same time as the general levy (see part 2 of FEES 5 Annex 1).

01/01/2006

FEES 5.6.2

The establishment costs will be recovered via the supplementary levy over the first three full financial years of the Financial Ombudsman Service's operation.

01/01/2006

FEES 5.6.3

The amount of establishment costs to be raised each year through the supplementary levy will be specified in part 2 of FEES 5 Annex 1.

01/01/2006

FEES 5.6.4

The supplementary levy will be identified separately from the general levy for the purposes of invoicing firms and VJ participants.

01/01/2006

FEES 5.6.5

A firm must pay to the FSA a supplementary levy towards the costs of establishing the Financial Ombudsman Service.

01/01/2006

FEES 5.6.6

A firm's supplementary levy is a sum payable in accordance with the fee tariffs set out in part 2 of FEES 5 Annex 1 and will be calculated by following the steps set out in FEES 5.3.8 R.

01/01/2006

FEES 5.6.7

Under the standard terms, VJ participants will also be required to pay an amount calculated on a similar basis towards the costs of establishing the Voluntary Jurisdiction of the Financial Ombudsman Service.

01/01/2006

FEES 5.7

Payment

01/01/2006

FEES 5.7.1

A firm must pay annually to the FSA the general levy and any supplementary levy to which it is subject, on or before the later of 1 April and 30 calendar days after the date when the invoice is issued by the FSA.

01/01/2006
Future version of FEES 5.7.1 after 01/06/2009

FEES 5.7.2

A firm or licensee must pay to FOS Ltd any standard case fee or special case fee which it is liable to pay under FEES 5.5.1 R, FEES 5.5.6 R, FEES 5.5.7 R, FEES 5.5.8 R, FEES 5.5.10 R, or FEES 5.5.12 R, as appropriate, in respect of chargeable cases for which it is invoiced by FOS Ltd within 30 calendar days of the date when the invoice is issued by FOS Ltd.

06/04/2007
Past version of FEES 5.7.2 before 06/04/2007

FEES 5.7.3

A firm or an unauthorised person who is subject to the Compulsory Jurisdiction in relation to a relevant complaint must pay any standard case fee or special case fee within 30 calendar days of the date when the invoice is issued by FOS Ltd.

01/01/2006

FEES 5.7.4

A firm liable to pay fees under FEES 5.7.1 R must do so using one of the methods set out in FEES 4.2.4 R save that no additional amount or discount is applicable.

01/01/2006

FEES 5.8

Joining the Financial Ombudsman Service

01/01/2006

FEES 5.8.1

A firm which becomes subject to the Financial Ombudsman Service part way through a financial year must pay a rateable proportion of the general levy and the supplementary levy as indicated in Table FEES 4.2.6 R, as if that table applied to the quarter in which a firm becomes subject to the Financial Ombudsman Service.

01/01/2006
Future version of FEES 5.8.1 after 01/06/2009

FEES 5.8.2

(1) This rule deals with the calculation of:

(a) a firm's general levy in the 12 months ending on the 31 March in which it obtains permission, or its permission is extended, and the following 12 months ending on the 31 March, and

(b) the tariff base for the industry blocks that relate to that permission or extension, as the case may be.

(2) Unless this rule says otherwise, the tariff base is calculated using the projected valuation for its first and second year of the business to which the tariff relates.

(3) The rest of this rule only applies to a firm that becomes authorised, or extends its permission, on or after 1 April 2009.

(a) If the tariff base is calculated using data from a period that begins on or after the date that the firm receives its permission or extension of permission, as the case may be, the firm must use that data.

(b) If a firm satisfies the following conditions it must calculate its tariff base under (c) for the FSA financial year following the FSA financial year it obtained permission:

(i) the firm receives its permission or extension of permission, as the case may be, between 1 April and 31 December inclusive; and

(ii) the firm's tariff base, but for this rule, is calculated by reference to the firm's financial year ended in the calendar year ending 31 December or the twelve months ending 31 December prior to the FSA financial year.

(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 permission, or had its permission extended, 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 permission or extension to the 31 December, as the case may be.

(d) Where a firm is required to use the method in (c) it must notify the FSA of its intention to do so by the date specified in FEES 5.4 (Information requirement).

(e) Where a firm is required to use actual data under this rule FEES 4 Annex 1R Part 3 is modified in relation to the calculation of that firms valuation date in its second financial year.

01/04/2009
Future version of FEES 5.8.2 after 01/06/2009

Application of FEES 5.8.2R

FEES 5.8.3

The table below sets out the period within which a firm's tariff base is calculated (the data period) for second year levies calculated under FEES 5.8.2R. 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 levies.

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 5.8.2R

Data period under FEES 5.8.2R

Insurers - general

Relevant annual gross premium income

31 March 2009 - so projected valuations will be used

1 November to 31 December 2009.

Fund managers (including those holding client money/assets and not holding client money/assets

Relevant funds under management

Valued at 31 December

Advisory arrangers, dealers or brokers holding and controlling client money and/or assets

Number of relevant persons approved to perform the customer function with certain exclusions

Relevant approved persons as at 31 December

01/04/2009

FEES 5.9

Leaving the Financial Ombudsman Service

01/01/2006

FEES 5.9.1

Where a firm ceases to be authorised part way through a financial year:

(1) it will remain liable to pay standard case fees in respect of chargeable cases against it closed by the Financial Ombudsman Service for the remainder of that financial year; and

(2) it must pay the special case fee specified under FEES 5.5.7 R in respect of any other chargeable cases against it closed by the Financial Ombudsman Service.

01/01/2006

FEES 5.9.1A

DISP 5.9.1 R applies to persons ceasing to be licensees part way through a financial year in the same way as it applies to firms which cease to be authorised.

06/04/2007
Future version of FEES 5.9.1A after 01/11/2009

FEES 5.9.2

Firms which cease to be authorised and therefore subject to the Compulsory Jurisdiction part way through the year will not receive a refund of their general levy (or supplementary levy) except in exceptional circumstances. Firms will continue to be liable for any case fees relating to chargeable cases closed by the Financial Ombudsman Service after they cease to be authorised. Firms will be charged the standard case fee where the complaint was closed by the Financial Ombudsman Service before the end of the year in which their authorisation ceased. The special case fee will apply to any complaint closed after the end of that year since the firm will no longer be contributing to the general levy.

01/01/2006
Future version of FEES 5.9.2 after 01/06/2009

FEES 5.9.3

Licensees will also continue to be liable for any case fees relating to chargeable cases closed by the Financial Ombudsman Service after they cease to be licensees. Licensees will be charged the standard case fee where the complaint was closed by the Financial Ombudsman Service before the end of the year in which they ceased to be licensees. The special case fee will apply to any complaint closed after the end of that year since the licensee will no longer be contributing to any sum determined under section 234A of the Act.

06/04/2007

FEES 5 Annex 1

Annual Fees Payable in Relation to 2009/10

Introduction: annual budget
1. The annual budget for 2008/09 approved by the FSA is 62.6m.
Part 1: General levy and supplementary levy
2. The total amount expected to be raised through the general levy in 2008/09 will be 17.2m (net of 1.8m to be raised from consumer credit firms.

Part 2: Fee tariffs for general levy and supplementary levy
3. No establishment costs will be raised in 2008/09 by the supplementary levy.

Industry block

Tariff base

General levy payable by firm

1-Deposit acceptors, home finance providers and home finance administrators (excluding firms in block 14)

Number of accounts relevant to the activities in DISP 2.6.1 R as at 31 December
For an e-money firm, the tariff base includes the number of e-money accounts multiplied by 0.15. (7)

0.023 per relevant account, subject to a minimum levy of 100

2-Insurers - general (excluding firms in blocks 13 & 15)

Relevant annual gross premium income

0.126 per 1,000 of relevant annual gross premium income, subject to a minimum levy of 100

3-The Society (of Lloyd's)

Not applicable

28,000 to be allocated by the Society

4-Insurers - life (excluding firms in block 15)

Relevant adjusted annual gross premium income

0.049 per 1,000 of relevant adjusted annual gross premium income, subject to a minimum levy of 100

5-Fund managers (including those holding client money/assets and not holding client money/assets)

Relevant funds under management

Levy of 200

6-Operators, trustees and depositaries of collective investment schemes and operators of personal pension schemes or stakeholder pension schemes

Flat fee

Levy of 50

7-Dealers as principal

Flat fee

Levy of 50

8-Advisory arrangers, dealers or brokers holding and controlling client money and/or assets

Number of relevant persons approved to perform the customer function (CF30), but excluding those persons solely acting in the capacity of an investment manager or solely advising clients in connection with corporate finance business or performing functions relating to these.

80 per relevant approved person subject to a minimum levy of 80

9-Advisory arrangers, dealers or brokers not holding and controlling client money and/or assets

40 per relevant approved person subject to a minimum levy of 40

10-Corporate finance advisers

Flat fee

Levy of 50

11-

N/A for 2008/09

12-

N/A for 2008/09

13-Cash plan health providers

Flat fee

Levy of 50

14-Credit unions

Flat fee

Levy of 50

15-Friendly societies whose tax-exempt business represents 95% or more of their total relevant business

Flat fee

Levy of 50

16- Home finance providers, advisers and arrangers (excluding firms in blocks 13, 14 & 15)

Flat fee

Levy of 60

17 - General insurance mediation (excluding firms in blocks 13, 14 & 15)

Flat fee

Levy of 60

Notes

[not used]

The industry blocks in the table are based on the equivalent activity groups set out in Part 1 of FEES 4 Annex 1.

Where the tariff base in the table is defined in similar terms as that for the equivalent activity group in Part 2 of FEES 4 Annex 1, it must be calculated in the same way as that tariff base - taking into account only the firm's relevant business.

(1) An e-money account is, subject to (2), e-money that has been issued by an e-money firm and which can reasonably be regarded as being held by the owner of the e-money as a single balance and under the same arrangements.
(2) An account that would be an e-money account under (1) will not be one where, as at 31 December, it carries a nil balance and/or has been inactive for a period of 12 months or more.

Part 3: Case Fees
Table: Standard case fees and special case fees

Compulsory jurisdiction - case fee table

case fee

standard case fee

500

(for the fourth chargeable case and any subsequent chargeable case in this financial year 2009/10)

special case fee

500

(for the fourth chargeable case and any subsequent chargeable case in this financial year 2009/10)

The definitions of standard case fee and special case fee are in FEES 5.5, (case fees) in the FSA Handbook.

The definition of a chargeable case is in the Glossary to the FSA Handbook

Part 3A: Case fees licencees
Table: Consumer credit jurisdiction - standard case fee

Consumer credit jurisdiction - case fee table

case fee

standard case fee

500

(for the fourth chargeable case and any subsequent chargeable case in this financial year 2009/10)

special case fee

500

(for the fourth chargeable case and any subsequent chargeable case in this financial year 2009/10)

The definitions of standard case fee and special case fee are in FEES 5.5, (case fees) in the FSA Handbook.

The definition of a chargeable case is in the Glossary to the FSA Handbook

Part 4: VJ participants
Table: Fee tariffs and case fees for VJ participants

Voluntary jurisdiction - general levy tariff and case fee table

industry block and business activity

tariff basis

tariff rate

minimum levy

case fee (Note 1)

deposit acceptors, mortgage lenders and administrators, including debit/credit/charge card issuers and electronic money institutions

number of relevant accounts, adjusted in respect of e-money accounts on the same basis as for industry block 1 in Part 2 of FEES 5 Annex 1 R
(Note 2)

0.027

100

500

VJ participants undertaking insurance activities subject only to prudential regulation

per 1,000 of relevant annual gross premium income

0.126

100

500

VJ participants undertaking insurance activities subject to prudential and conduct of business regulation

Per 1,000 of relevant adjusted annual gross premium income

0.025

100

500

intermediaries

n/a

500

Freight-forwarding companies

n/a

500

National Savings & Investments

n/a

10,000

500

Post Office Limited

n/a

10,000

500

10V

Persons not covered by 1V to 9V undertaking activities which would be regulated activities or consumer credit activities if they were carried on from an establishment in the United Kingdom

n/a

500

Notes
*note on case fees:
(1) The standard case fee and the special case fee are both 500.As for the compulsory jurisdiction, VJ participants will only be charged for the fourth and subsequent chargeable case in this financial year 2009/10. note on relevant accounts:
(2) The FSA's consultation paper CP08/18 (chapter 7) contains a proposal to amend the definition of relevant accounts in relation to e-money accounts. (www.fsa.gov.uk/pubs/cp/cp08_18.pdf)

Export chapter as

FEES 6

Financial Services Compensation Scheme Funding

FEES 6.1

Application

01/01/2006

FEES 6.1.1

This chapter applies to:

(1) every participant firm;

(2) the FSCS; and

(3) the Society.

01/01/2006
Future version of FEES 6.1.1 after 01/07/2009

FEES 6.1.2

(1) Firms which are not participant firms (such as certain types of incoming EEA firms, service companies and ICVCs) are not required to contribute towards the funding of the compensation scheme.

(2) Although a member is a participant firm for the purposes of most provisions of COMP, a member is excluded from the definition of participant firm for the purposes of FEES 6 (see definition of participant firm in Glossary). This is because the fees levied in relation to the carrying on of insurance market activities by members will be imposed on Society rather than individually on each member (see FEES 6.3.24 R).

01/01/2006
Future version of FEES 6.1.2 after 01/04/2013

Purpose

FEES 6.1.3

The purpose of this chapter is to set out the requirements on participant firms to pay levies imposed by the FSCS to provide funding for its functions.

01/01/2006
Future version of FEES 6.1.3 after 01/04/2013

General structure

FEES 6.1.4

Section 213(3)(b) of the Act requires the FSA to make rules to enable the FSCS to impose levies on authorised persons in order to meet its expenses. These expenses include in particular expenses incurred, or expected to be incurred, in paying compensation, borrowing or insuring risks.

01/01/2006
Future version of FEES 6.1.4 after 01/04/2013

FEES 6.1.5

The FSCS may impose two types of levy: a management expenses levy, and a compensation costs levy. The FSCS has discretion as to the timing of the levies imposed.

FEES 6.1.6

In calculating a compensation costs levy, the FSCS may include anticipated compensation costs for defaults expected to be determined in the 12-month period following the date of the levy. The total of all management expenses levies attributable to a financial year will be restricted to the amount set out on an annual basis in FEES 6 Annex 1.

01/01/2006
Future version of FEES 6.1.6 after 01/04/2013

FEES 6.1.7

In order to allocate a share of the amount to be funded by an individual participant firm, the funding arrangements are split into five classes: the deposit class; the life and pensions class; the investment class; the home finance class and the general insurance class. The business carried on by a participant firm determines into which class, or classes, it falls.

FEES 6.1.8

Within each class there are one or more sub-classes. These relate to different types of activity carried on by participant firms within each class. Within a class, individual participant firms are allocated for funding purposes to one or more sub-classes, depending on their business activities. This, together with the provisions on the allocation of levies to sub-classes up to their levy limits, meets a requirement of section 213(5) of the Act that the FSA, in making rules to enable the FSCS to impose levies, must take account of the desirability of ensuring that the amount of the levies imposed on a particular class of authorised person reflects, so far as practicable, the amount of claims made, or likely to be made, in respect of that class of person. The deposit class is made up of a single sub-class. This means that a reference to a sub-class will, unless the context otherwise requires, include a reference to the deposits class.

The management expenses levy

FEES 6.1.9

Section 223 of the Act (Management expenses) prevents the FSCS from recovering, through a levy, any management expenses attributable to a particular period in excess of the limit set in COMP as applicable to that period. 'Management expenses' are defined in section 223(3) to mean expenses incurred or expected to be incurred by the FSCS in connection with its functions under the Act, except:

(1) expenses incurred in paying compensation; and

(2) expenses incurred as a result of the FSCS making the arrangements to secure continuity of insurance set out in COMP 3.3.1 R and COMP 3.3.2 R or taking the measures set out in COMP 3.3.3 R and COMP 3.3.4 R when a relevant person is an insurer in financial difficulties.

01/01/2006
Future version of FEES 6.1.9 after 06/08/2010

FEES 6.1.10

A management expenses levy under COMP may consist of two elements. The first is a base costs levy, for the base costs of running the compensation scheme in a financial year, that is, costs which are not dependent upon the level of activity of the compensation scheme and which therefore are not referable to any specific default. Included in this category are items such as the salary of the members of the board of the FSCS, the costs of the premises which the FSCS occupies, and its audit fees. It would also likely include the cost of any insurance cover secured by FSCS against the risk of it paying claims out in circumstances where the levy limit of the particular class to which the claim would otherwise be attributable has exceeded its levy limit for the year, as the insurance cover is likely to benefit all classes which may have costs allocated to them if the levy limit of another class is breached. The amount that each participant firm pays towards a base costs levy is calculated by reference to the regulatory costs paid by the firm. All participant firms are liable to contribute towards a base costs levy.

FEES 6.1.11

The second element of a management expenses levy is a specific costs levy for the "specific costs" of running the compensation scheme in a financial year. These costs depend on the number of claims and types of default, and include the salaries of the staff of the FSCS and legal and other professional fees paid in respect of particular defaults. It also may include the cost of any insurance cover that FSCS secures against the risk of FSCS paying out claims above a given level in any particular sub-class (but below the levy limit for that sub-class for the year) or the cost of commercial borrowing to allow FSCS to pay claims attributable to a particular sub-class in advance of the next levy. Where a levy limit has been reached and FSCS secures borrowing in order to pay claims allocated to another sub-class in accordance with the rules on allocation in FEES 6.5.2R, the costs of borrowing are attributable to the sub-class whose levy limit has been reached. The specific costs are allocated to the sub-class which is responsible for those costs under COMP, on the basis of the protected claims against that person. The FSCS may include in a specific costs levy the specific costs that the FSCS expects to incur (including in respect of defaults not yet declared at the date of the levy) during the financial year of the compensation scheme to which the levy relates. The amount that each participant firm pays towards the specific costs levy is calculated by reference to the amount of business conducted by the firm in each of the sub-classes to which the FSCS has allocated specific costs. Each sub-class has a separate "tariff base" for this purpose, set out in FEES 6 Annex 3 R. Participant firms may be exempt from contributing to the specific costs levy.

FEES 6.1.13

The FSA intends to consult in January each year on the amount which it will set as the limit on the management expenses attributable to the forthcoming financial year of the FSCS.

01/01/2006
Future version of FEES 6.1.13 after 01/04/2013

The compensation costs levy

FEES 6.1.14

The compensation costs levy is made up of the compensation costs which the FSCS has incurred and has not yet recovered from participant firms (less any recoveries it has made using the rights that have been assigned to it), together with those compensation costs it expects to incur (including in respect of defaults yet to be declared) over the 12 months following the date of the levy.

01/01/2006
Future version of FEES 6.1.14 after 01/04/2013

FEES 6.1.15

Compensation costs are principally the costs incurred in paying compensation. Costs incurred in securing continuity of long-term insurance in safeguarding eligible claimants when insurers are in financial difficulties, and in making payments or giving indemnities under COMP 11.2.3 R are also treated as compensation costs. For funding purposes, these costs are allocated by the FSCS, and met by participant firms, in the same way as specific costs up to relevant levy limits and then in accordance with the allocation provisions in FEES 6.5.2 R.

FEES 6.1.16

If a participant firm is a member of more than one sub-class, the total compensation costs levy and specific costs levy for that firm will be the aggregate of the individual levies calculated for the firm in respect of each of the sub-classes. Each sub-class has a levy limit which is the maximum amount of compensation costs which may be allocated to a particular sub-class in a financial year for the purposes of a levy. Once the costs attributable to a particular sub-class have exceeded the levy limit the excess costs are allocated to the other sub-class in the same class, up to the levy limit of that other sub-class, and thereafter allocated to a 'general retail pool' of all the other sub-classes whose levy limits have not been reached (with the exception of the home finance providers). The amount of the excess cost to be allocated to each particular sub-class in the general retail pool is calculated pro-rata in accordance with the relative size of the levy limit of that sub-class to the sum of the levy limits of the remainder of the sub-classes in the general retail pool whose levy limits have not been reached. In the case of the deposits class, once the costs attributable to that class have exceeded the levy limit the excess costs are allocated to the general retail pool. The use made by FSCS of borrowing facilities to provide liquidity until the next levy does not affect this allocation of costs.

FEES 6.1.16A

FSCS may consider obtaining insurance cover, if available, against the risk that the value of claims FSCS pays out exceeds the levy limits of, or given levels within, particular classes or sub-classes. Any costs associated with the insurance would be allocated proportionally to the classes or sub-classes intended to benefit from that insurance.

01/04/2008

Incoming EEA firms

FEES 6.1.17

Incoming EEA firms which obtain cover or 'top up' under the provisions of COMP 14 are firms whose Home State scheme provides no or limited compensation cover in the event that they are determined to be in default. Under FEES 6.6, the FSCS is required to consider whether incoming EEA firm's should receive a discount on the amount that they would otherwise pay as their share of the levy, to take account of the availability of their Home State cover. The amount of any discount is recoverable from the other members of the incoming EEA firm's sub-class.

FEES 6.2

Exemption

01/01/2006

FEES 6.2.1

(1) A participant firm which does not conduct business that could give rise to a protected claim by an eligible claimant and has no reasonable likelihood of doing so is exempt from a specific costs levy, or a compensation costs levy, or both, provided that:

(a) it has notified the FSCS in writing that those conditions apply; and

(b) the conditions in fact continue to apply.

(2) The exemption takes effect from the date on which the notice was received by the FSCS, subject to FEES 6.2.6 R.

01/01/2006
Future version of FEES 6.2.1 after 01/04/2013

FEES 6.2.2

FEES 6.2.1 R does not apply to a participant firm that may be subject to a claim under COMP 3.2.4 R.

01/01/2006

FEES 6.2.3

A participant firm to which FEES 6.2.2 R applies must report annual eligible income in accordance with FEES 6.5.13 R. Such a participant firm may take advantage of the option to report its annual income attributable to business conducted with or on behalf of eligible claimants.

01/01/2006

FEES 6.2.4

A participant firm which is exempt under FEES 6.2.1 R must notify the FSCS in writing as soon as reasonably practicable if the conditions in FEES 6.2.1 R no longer apply.

01/01/2006
Future version of FEES 6.2.4 after 01/04/2013

FEES 6.2.5

A participant firm to which the conditions in FEES 6.2.1 R no longer apply will then become subject to FEES 6.3.

01/01/2006
Future version of FEES 6.2.5 after 01/04/2013

FEES 6.2.6

If a participant firm ceases to conduct business that could give rise to a protected claim by an eligible claimant and notifies the FSCS of this under FEES 6.2.1R (1), it will be treated as a participant firm to which FEES 6.7.6 R applies until the end of the financial year of the compensation scheme in which the notice was given.

01/01/2006
Future version of FEES 6.2.6 after 01/04/2013

FEES 6.2.7

The financial year of the compensation scheme is the twelve months ending on 31 March. The effect of FEES 6.2.6 R and FEES 6.2.1R (2) is that if a firm fails to notify FSCS of an exemption under FEES 6.2.1 R by 31 March it will be treated as non-exempt for the whole of the next financial year.

FEES 6.2.8

For the purposes of FEES 6.2.1 R a participant firm will only be exempt from a specific costs levy or compensation costs levy for any given financial year if it met the conditions in FEES 6.2.1 R on 31 March of the immediately preceding financial year.

01/04/2007
Future version of FEES 6.2.8 after 01/04/2013

FEES 6.3

The FSCS's power to impose levies

01/01/2006

General limits on levies

FEES 6.3.1

The FSCS may at any time impose a management expenses levy or a compensation costs levy, provided that the FSCS has reasonable grounds for believing that the funds available to it to meet relevant expenses are, or will be, insufficient, taking into account:

(1) in the case of a management expenses levy, the level of the FSCS's anticipated expenditure in respect of those expenses in the financial year of the compensation scheme in relation to which the levy is imposed; and

(2) in the case of a compensation costs levy, the level of the FSCS's anticipated expenditure in respect of compensation costs in the 12 months following the levy.

01/01/2006
Future version of FEES 6.3.1 after 12/10/2010

FEES 6.3.2

The calculation of levies will also take into account previous levies, where funds raised in anticipation of meeting liabilities prove either more or less than the amount actually required.

01/01/2006
Future version of FEES 6.3.2 after 01/04/2013

FEES 6.3.3

The FSCS may impose one or more levies in a financial year to meet either its management expenses or its compensation costs. The FSCS may also impose interim levies, as part of its overall levy commitment. This flexibility allows the FSCS to phase its financing over the course of a financial year and thus avoid collecting levies from firms before the money is actually needed. The FSCS has committed itself in the Memorandum of Understanding with the FSA (the text of which can be found on the FSA website www.fsa.gov.uk) to publish regularly an indicative timetable for its levy procedures.

01/01/2006
Future version of FEES 6.3.3 after 12/10/2010

FEES 6.3.4

The discretion over levying in COMP also gives the FSCS, if it thinks this appropriate, the ability to use third parties as its agents in raising and collecting the levies.

01/01/2006
Future version of FEES 6.3.4 after 01/04/2013

Limits on compensation costs levies on sub-classes and classes

FEES 6.3.5

The maximum amount of compensation costs for which the FSCS can levy each sub-class and class in any one financial year of the compensation scheme is limited to the amounts set out in the table in FEES 6 Annex 2.

Levy for compensation costs paid in error

FEES 6.3.10

The FSCS may include in a compensation costs levy the costs of compensation paid by the FSCS in error, provided that the payment was made in good faith.

01/01/2006
Future version of FEES 6.3.10 after 06/12/2009

Management of funds

FEES 6.3.11

The FSCS must hold any amount collected from a specific costs levy or compensation costs levy to the credit of the classes and relevant sub-classes, in accordance with the allocation established under FEES 6.4.6 R and FEES 6.5.2 R.

FEES 6.3.12

Any funds received by the FSCS by way of levy or otherwise for the purposes of the compensation scheme are to be managed as the FSCS considers appropriate, and in doing this the FSCS must act prudently.

01/01/2006
Future version of FEES 6.3.12 after 01/04/2013

FEES 6.3.13

Interest earned by the FSCS in the management of funds held to the credit of a sub-class must be credited to that sub-class, and must be set off against the management expenses or compensation costs allocated to that sub-class.

FEES 6.3.14

The FSCS must keep accounts which show:

(1) the funds held to the credit of each class and relevant sub-class; and

(2) the liabilities of that class and relevant sub-class.

FEES 6.3.15

The FSCS may use the money collected from firms within one class to pay compensation costs in respect of any sub-class within that class, so long as it ensures that this is done without prejudice to the participant firms from whom the money has been collected.

01/04/2008
Past version of FEES 6.3.15 before 01/04/2008

FEES 6.3.15A

FEES 6.3.15R deals with how FSCS may use money available to it and does not affect the rules on allocation in FEES 6.5.2R. Therefore the requirement that the procedure in FEES 6.3.15 R should not prejudice the participant firms does not apply to an allocation under FEES 6.5.2R.

01/04/2008

FEES 6.3.16

FEES 6.3.15 R means that, for example:

(1) when crediting interest under FEES 6.3.13 R, the FSCS should regard any money collected from one sub-class which has been used to pay the compensation costs of another sub-class within the same class as standing to the credit of the first sub-class;

(2) the FSCS should not raise a levy under FEES 6.3.1 R on a sub-class solely because, as a result of the FSCS's action under FEES 6.3.15 R, there appear to be insufficient funds available to the credit of the sub-class to meet its expenses; and

(3) (2) would not be applicable to the extent that the funds used are in respect of costs allocated to the sub-class in accordance with the rules on allocation in FEES 6.5.2 R(1) and (2).

01/04/2008
Past version of FEES 6.3.16 before 01/04/2008

FEES 6.3.17

(1) The FSCS may use any money held to the credit of one class (the creditor class) to pay compensation costs in respect of or allocated to another class (the debtor class) if the FSCS has reasonable grounds to believe that this would be more economical than borrowing funds from a third party or raising a levy.

(2) Where the FSCS acts in accordance with (1), it must ensure that:

(a) the creditor class is reimbursed by the debtor class as soon as possible;

(b) the debtor class pays interest at a rate equivalent to the Bank of England's repo rate from time to time in force; and

(c) the amount lent by the creditor class to the debtor class is taken into account by the FSCS when considering whether to impose a compensation costs levy on the creditor class under FEES 6.3.1 R.

FEES 6.3.18

FEES 6.3.17 R deals with how FSCS may use money available to it and does not affect the rules on allocation in FEES 6.5.2 R. Therefore FEES 6.3.17R(2) (a), (b) and (c) do not apply where the costs otherwise attributable to one debtor class are allocated to the creditor class in accordance with the rules on allocation in FEES 6.5.2 R.

FEES 6.3.19

Unless FEES 6.3.20 R applies, any recoveries made by the FSCS in relation to protected claims must be credited to the sub-classes to which the related compensation costs were allocated.

FEES 6.3.20

(1) This rule applies where the FSCS makes recoveries in relation to protected claims where related compensation costs would have been met by a sub-class (sub-class A) had the levy limit for sub-class A not been reached and have therefore been met by another sub-class or sub-classes.
(2) This rule applies even though the recovery is made in a subsequent financial year.
(3) Recoveries referred to in (1) must be applied in the following order of priority:

(a) (if the compensation costs were allocated to the general retail pool (see FEES 6.5.2 R(2)) to the classes and sub-classes to which the costs were allocated in accordance FEES 6.5.2 R(2) in the same proportion as those classes and respective sub-classes contributed, up to the total amount of that allocation plus interest at a rate equivalent to the Bank of England's repo rate from time to time in force;
(b) (if the compensation costs were allocated to the other sub-class in the same class as sub-class A) to that other sub-class up to the total amount of that allocation plus interest at a rate equivalent to the Bank of England's repo rate from time to time in force; and
(c) sub-class A.

FEES 6.3.20A

Recoveries under FEES 6.3.20 R are net of the costs of recovery.

01/04/2008
Future version of FEES 6.3.20A after 01/04/2013

FEES 6.3.21

If the FSCS has more funds to the credit of a sub-class than the FSCS believes will be required to meet levies on that sub-class for the next 12 months, it may refund the surplus to members or former members of the sub-class on any reasonable basis.

Adjustments to calculation of levy shares

FEES 6.3.22

The FSCS may adjust the calculation of a participant firm's share of any levy to take proper account of:

(1) any excess, not already taken into account, between previous levies of that type imposed in relation to previous periods and the relevant costs actually incurred in that period; or

(2) participant firms that are exempt from the levy under FEES 6.2; or

(3) amounts that the FSCS has not been able to recover from participant firms as a result of FEES 6.3.5 R; or

(4) amounts that the FSCS has not been able to recover from participant firms after having taken reasonable steps; or

(5) FEES 2.3 (Relieving Provisions), FEES 6.4.8 R (New participant firms), FEES 6.5.9 R (New participant firms), FEES 6.3.23 R (Remission of levy or additional administrative fee) or FEES 6.6 (Incoming EEA firms); or

(6) anything else that the FSCS believes on reasonable grounds should be taken into account.

FEES 6.3.22A

The FSCS may not adjust the calculation of a participant firm's share of any levy under FEES 6.3.22 R on the grounds that it would be inequitable for that firm to pay that share or part of it or on the grounds that it would be inequitable for the FSCS to retain that share or part of it.

01/11/2008
Future version of FEES 6.3.22A after 01/04/2013

FEES 6.3.22B

The reason for FEES 6.3.22A R is that any such claim should be dealt with under FEES 2.3 (Relieving Provisions).

01/11/2008
Future version of FEES 6.3.22B after 01/04/2013

Firms acquiring businesses from other firms

FEES 6.3.22C

(1) This rule applies to the calculation of the levies of a firm (A) if:

(a) either:

(i) A acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise; or

(ii) A became authorised as a result of B's simple change of legal status (as defined in FEES 3 Annex 1 Part 6);

(b) B is no longer liable to pay a levy; and

(c) that acquisition or change takes place after the date to which, or as of which, A's most recent statement of business under FEES 6.5.13 R is drawn up so far as concerns the sub-classes covered by B's business.

(2) A must pay an additional amount equal to the levy that would have been payable by B in relation to the relevant business and relevant sub-classes if the acquisition or change in status had not taken place and B had remained liable to pay levies. The amount is based on the most recent information supplied by B under FEES 6.5.13 R. A is included in the sub-classes applicable to the relevant business.

(3) This rule only applies with respect to those financial years of the FSCS for which A's levies are calculated on the basis of a statement of business under FEES 6.5.13 R drawn up to a date, or as of a date, before the acquisition or change in legal status took place.

01/01/2009
Future version of FEES 6.3.22C after 01/04/2013

Remission of levy or additional administrative fee

FEES 6.3.23

If a participant firm's share of a levy or an additional administrative fee under FEES 6.7.4 R would be so small that, in the opinion of the FSCS, the costs of collection would be disproportionate to the amount payable, the FSCS may treat the participant firm as if its share of the levy or additional administrative fee amounted to zero.

01/01/2006
Future version of FEES 6.3.23 after 01/04/2013

Levies on the Society of Lloyd's

FEES 6.3.24

The FSCS may impose a levy on the Society to be calculated as the aggregate of the levies that would be imposed on each member if this chapter applied to members, as follows:

(1) a proportionate share of a base costs levy in respect of the compensation scheme's costs for the period from 1 January 2004 to the end of the compensation scheme's financial year and a share of such levies for all subsequent financial years; and

(2) a specific costs levy and a compensation costs levy in respect of costs arising out of a relevant person being in default, arrangements made under COMP 3.3.1 R or measures taken under COMP 3.3.3 R where:

(a) the default occurs or the circumstances giving rise to the arrangements being made or the measures being taken, as the case may be, occur; and

(b) the protected contracts of insurance in connection with which the costs arise were entered into;

on or after 1 January 2004.

FEES 6.4

Management expenses

01/01/2006

Obligation on participant firm to pay

FEES 6.4.1

A participant firm must pay to the FSCS a share of each management expenses levy.

01/01/2006
Future version of FEES 6.4.1 after 01/04/2013

Limit on management expenses

FEES 6.4.2

The total of all management expenses levies attributable to a particular period of the compensation scheme may not exceed the limit applicable to that period set out in FEES 6 Annex 1.

01/01/2006
Future version of FEES 6.4.2 after 01/04/2013

Participant firm's share

FEES 6.4.3

A participant firm's share of a management expenses levy consists of one or more of: (1) a share of a base costs levy and (2) a share of a specific costs levy.

FEES 6.4.4

The FSCS must ensure that each participant firm's share of a management expenses levy separately identifies the firm's share of the base costs levy and specific costs levy.

Base costs levy

FEES 6.4.5

Unless FEES 6.3.22 R applies, the FSCS must calculate a participant firm's share of a base costs levy by:

(1) identifying the base costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme, but has not yet levied;
(2) calculating the amount of the participant firm's regulatory costs as a proportion of the total regulatory costs relating to all participant firms for the relevant financial year; and
(3) applying the proportion calculated in (2) to the figure in (1).

01/01/2006
Future version of FEES 6.4.5 after 01/04/2013

Specific costs levy

FEES 6.4.6

The FSCS must allocate any specific costs levy amongst the relevant sub-classes in proportion to the amount of relevant costs arising from, or expected to arise from, claims in respect of the different activities represented by those sub-classes.

FEES 6.4.7

The FSCS must calculate a participant firm's share of a specific costs levy (subject to FEES 6.3.22 R (Adjustments to calculation of levy shares) by:

(1) identifying each of the relevant sub-classes to which the participant firm belongs, using the statement of business most recently supplied under FEES 6.5.13 R;

(2) identifying the management expenses other than base costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme, allocated to the sub-classes identified in (1), but not yet levied;

(3) calculating, in relation to each relevant sub-class FF, the participant firm's tariff base as a proportion of the total tariff base of all participant firms in the sub-class, using the statement of business most recently supplied under FEES 6.5.13 R;

(4) applying the proportion calculated in (3) to the figure in (2); and

(5) if more than one class or sub-class is relevant, adding together the figure in (4) for each sub-class.

New participant firms

FEES 6.4.8

A firm which becomes a participant firm part way through a financial year of the compensation scheme will not be liable to pay a share of a specific costs levy made in that year.

01/01/2006
Future version of FEES 6.4.8 after 01/04/2013

FEES 6.4.10

Since a firm that becomes a participant firm in the course of a financial year of the compensation scheme will already be obtaining a discount in relation to the base costs levy through the modified fee provisions of FEES 4.2.6 R, no rule is necessary in COMP for discounts on the base costs levy.

Specific costs levy for newly authorised firms

FEES 6.4.10A

(1) This rule deals with the calculation of:

(a) a participant firm's specific costs levy in the financial year of the FSCS following the FSCS financial year in which it became a participant firm; or

(b) a participant firm's specific costs levy in the financial year of the FSCS in which it had its permission extended, and the following FSCS financial year; and

(c) the tariff base for the class or sub-classes that relate to the relevant permissions or extensions, as the case may be.

(2) Unless this rule says otherwise the tariff base is calculated, where necessary, using the projected valuation of the business to which the tariff relates.

(3) The rest of this rule only applies to a firm that becomes a participant firm, or extends its permission, on or after 1 April 2009.

(a) If a participant firm's tariff base is calculated using data from a period that begins on or after it became a participant firm or on or after the date that the participant firm receives its extension of permission, as the case may be, the participant firm must use that data.

(b) If a participant firm satisfies the following conditions it must calculate its tariff base under (c) for the FSCS financial year following the FSCS financial year it became a participant firm:

(i) it became a participant firm or receives its extension of permission, as the case may be, between 1 April and 31 December inclusive; and

(ii) its tariff base, but for this rule, is calculated by reference to the financial year ended in the calendar year ending 31 December or the twelve months ending 31 December before the FSCS financial year.

(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 became a participant firm or had its permission extended, and ending on the 31 December before the start of the FSCS 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 participant firm became a participant firm or had its permission extended to the 31 December, as the case may be.

(d) Where a participant firm is required to use the method in (c) it must notify the FSCS of its intention to do so by the date specified in FEES 6.5.13 R (Reporting Requirements).

(e) Where a participant firm is required to use actual data under this rule FEES 6 Annex 3 R is disapplied, to the extent it is incompatible, in relation to the calculation of that participant firm's valuation date in its second financial year.

01/04/2009
Future version of FEES 6.4.10A after 01/04/2013

Application of FEES 6.4.10AR

FEES 6.4.10B

The table below sets out the period within which a participant firm's tariff base is calculated ("the data period") for second year levies calculated under FEES 6.4.10B. The example is based on a participant firm that extends its permission on 1 November 2009 and has a financial year ending 31 March.

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

Type of permission acquired on 1 November

Tariff base

Valuation date but for FEES 6.5.13BR

Data period under FEES 6.5.13bR

Accepting deposits

Protected deposits

As at 31 December 2009

Effecting contracts of insurance

(Insurers - general)

Relevant net premium income

The firm's tariff base calculated in the year 2009 - so projected valuation will be used.

1 November to 31 December 2009

Dealing in investments as agent in relation to General Insurance Intermediation

Annual eligible income

Financial year ended 31 March 2009 - so projected valuations will be used.

1 November to 31 December 2009

01/04/2009
Future version of FEES 6.4.10B after 01/04/2013

FEES 6.5

Compensation costs

01/01/2006

FEES 6.5.1

The compensation costs levy is made up of compensation costs incurred by the FSCS, together with any compensation costs which can reasonably be anticipated as arising in the 12 months following the levy date, and which in each case have not already been subject to a levy.

01/01/2006

FEES 6.5.2

The FSCS must allocate any compensation costs levy to the sub-classes in proportion to the amount of compensation costs arising from, or expected to arise from, claims in respect of the different activities represented by those sub-classes up to the levy limit of each relevant sub-class and thereafter in the following order:

(1) any excess must be allocated to the other sub-class in the same class up to the levy limit of that other sub-class (except in the deposit class, for which there is only one sub-class); and any excess must be allocated to the other sub-class in the same class up to the levy limit of that other sub-class (except in the deposit class, for which there is only one sub-class); and
(2) any excess above the levy limit of the class must be allocated to each other sub-class, other than the home finance provision sub-class E1, whose levy limit has not been reached (the 'general retail pool'), in proportion to the relative sizes of the levy limits of those remaining sub-classes in the general retail pool.

FEES 6.5.2A

The use made by FSCS of borrowing facilities to provide liquidity until the next levy does not affect the allocation of costs incurred or anticipated.

01/04/2008
Future version of FEES 6.5.2A after 01/04/2013

FEES 6.5.2B

The calculation of the relative sizes of the levy limits for the purpose of FEES 6.5.2R (2) (including any allocations caused by the exhaustion of a receiving sub-class) is based on the original levy limit for the sub-classes (as set out in FEES 6 Annex 2) and not the remaining capacity in each sub-class.

01/04/2008

FEES 6.5.2C

When FSCS allocates excess compensation costs levies otherwise attributable to a class which has reached its levy limit, in accordance with FEES 6.5.2R (2), a sub-class to which any excess has been allocated (the 'receiving sub-class') may, as a result of that allocation, itself reach its levy limit. In that case, the effect of FEES 6.5.2 R is that any resulting excess levy beyond the levy limit of the receiving sub-class is to be allocated amongst the remaining sub-classes whose levy limits have not been reached, to the exclusion of the receiving sub-class. This process is repeated until the compensation costs levy has been met in full or the general retail pool has been exhausted.

01/04/2008

FEES 6.5.3

If a participant firm which is in default has carried on a regulated activity other than in accordance with a permission, the FSCS must allocate any compensation costs or specific costs arising out of that activity to the relevant sub-class which covers that activity or if a levy limit of the relevant sub-class or class has been exceeded, FSCS must allocate any compensation costs levy on the same basis as set out in FEES 6.5.2 R.

FEES 6.5.4

If the relevant person in default is an appointed representative, the FSCS must allocate any compensation costs or specific costs arising out of a regulated activity for which his principal has not accepted responsibility to the relevant sub-class for that activity or if a levy limit of the relevant sub-class or class has been exceeded, FSCS must allocate any compensation costs levy on the same basis as set out in FEES 6.5.2 R.

FEES 6.5.5

(1) A participant firm must pay to the FSCS a share of each compensation costs levy unless either the firm is exempt under FEES 6.2 (Exemption) or the FSCS has chosen to exercise its discretion under FEES 6.3.23 R in respect of that firm.

(2) If a levy relates solely to costs allocated in excess of a particular levy limit (1) does not apply to a participant firm member of the sub-class or class whose levy limit has been exceeded.

FEES 6.5.6

The FSCS must calculate each participant firm's share of a compensation costs levy (subject to FEES 6.3.22 R (Adjustments to calculation of levy shares)) by:

(1) identifying each of the sub-classes to which each participant firm belongs, using the statement of business most recently supplied under FEES 6.5.13R (1);

(2) identifying the compensation costs falling within FEES 6.5.1 R allocated, in accordance with FEES 6.5.2 R, to the sub-classes identified in (1);

(3) calculating, in relation to each relevant sub-class, the participant firm's tariff base as a proportion of the total tariff base of all participant firms in the sub-class, using the statement of business most recently supplied under FEES 6.5.13 R;

(4) applying the proportion calculated in (3) to the figure in (2); and

(5) if more than one class or sub-class is relevant, adding together the figure in (4) for each sub-class.

Sub-classes and tariff bases for compensation cost levies and specific costs levies

FEES 6.5.7

When calculating a participant firm's share of a compensation costs levy or specific costs levy allocated to each sub-class the FSCS must use the sub-classes and tariff bases as set out in the table in FEES 6 Annex 3 R.

(1) [deleted]

(2) [deleted]

(3) [deleted]

(4) [deleted]

(5) [deleted]

FEES 6.5.8

Guidance on parts of FEES 6 Annex 3 R can be found in FEES 6 Annex 4.

New participant firms

FEES 6.5.9

A firm which becomes a participant firm part way through a financial year of the compensation scheme will not be liable to pay a share of a compensation costs levy made in that year.

Compensation costs levy for newly authorised firms

FEES 6.5.9A

FEES 6.4.10AR applies to the calculation of a participant firm's compensation costs levy and its tariff base as it applies to the calculation of its specific costs levy.

01/04/2009
Future version of FEES 6.5.9A after 01/04/2013

FEES 6.5.9B

The example table in FEES 6.4.10B G can be applied to the calculation of the tariff bases under FEES 6.5.9AR.

01/04/2009
Future version of FEES 6.5.9B after 01/04/2013

Membership of several classes or sub-classes

FEES 6.5.12

A participant firm may belong to more than one class, and more than one sub-class within the same class.

Reporting requirements

FEES 6.5.13

(1) Unless exempt under FEES 6.2.1 R, a participant firm must provide the FSCS by the end of February each year (or, if it has become a participant firm part way through the financial year, by the date requested by the FSA) with a statement of:

(a) sub-classes to which it belongs; and

(b) the total amount of business (measured in accordance with the appropriate tariff base or tariff bases) which it conducted, in respect of the most recent valuation period (as specified by FEES 6 Annex 3 R (Financial Services Compensation Scheme - classes and sub-classes)) ending before the relevant year in relation to each of those sub-classes.

(2) In this rule the relevant year means the year in which the month of February referred to in (1) falls.

(3) This rule does not apply in relation to the home finance provision sub-class E1. Therefore any reference in the Handbook to information that is or must be supplied under this rule must be read, in the case of sub-class E1, as if it referred to the corresponding provisions relating to FSA periodic fees.

FEES 6.5.13A

For example, when the tariff base for a particular sub-class is based on a firm's annual eligible income the valuation period for that sub-class is the firm's last financial year ending in the year to 31 December preceding the financial year of the FSCS for which the calculation is being made. In the case of a firm in sub-class A1 (Deposits) its valuation period will be 31 December.

01/11/2008
Future version of FEES 6.5.13A after 01/04/2013

FEES 6.5.14

If the information in FEES 6.5.13 R has been provided to the FSA under other rule obligations, a participant firm will be deemed to have complied with FEES 6.5.13 R.

01/01/2006
Future version of FEES 6.5.14 after 01/04/2013

FEES 6.5.15

Where a participant firm can identify that a protected deposit was made by a person who is not an eligible claimant, it may exclude the amount of that deposit from the tariff base, provided that it notifies the FSCS of the amount of the deposit so excluded and provides the FSCS with such information about the deposit as the FSCS may reasonably require.

01/01/2006
Future version of FEES 6.5.15 after 06/08/2009

FEES 6.5.16

If a participant firm does not submit a complete statement by the date on which it is due in accordance with FEES 6.5.13 R and any prescribed submission procedures:

(1) the firm must pay an administrative fee of £250 (but not if it is already subject to an administrative fee under FEES 4 Annex 2 Part 1 or FEES 5.4.1 R for the same financial year); and

(2) the compensation costs levy and any specific costs levy will be calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10 (or, if it has become a participant firm part way through a financial year, on the basis of the information provided to the FSA for the purposes of FEES 4.4.2 R) or on any other reasonable basis, making such adjustments as seem appropriate in subsequent levies once the true figures are known.

01/01/2006
Future version of FEES 6.5.16 after 01/04/2013

FEES 6.6

Incoming EEA firms

01/01/2006

FEES 6.6.1

If an incoming EEA firm, which is a BCD credit institution, an IMD insurance intermediary or MiFID investment firm, is a participant firm, the FSCS must give the firm such discount (if any) as is appropriate on the share of any levy it would otherwise be required to pay, taking account of the nature of the levy and the extent of the compensation coverage provided by the firm's Home State scheme.

FEES 6.7

Payment of levies

01/01/2006

FEES 6.7.1

A participant firm must pay its share of any levy made by the FSCS:

(1) in one payment; or

(2) where the FSCS agrees, quarterly, at the beginning of each quarter, by direct debit agreement.

01/01/2006
Future version of FEES 6.7.1 after 01/04/2013

FEES 6.7.2

The amount paid under a direct debit arrangement will be adjusted on a continuous basis to take account of interim levies and other adjustments made during the course of the financial year.

01/01/2006
Future version of FEES 6.7.2 after 01/04/2013

FEES 6.7.3

A participant firm's share of a levy to which FEES 6.7.1R (1) applies is due on, and payable within 30 days of, the date when the invoice is issued.

01/01/2006
Future version of FEES 6.7.3 after 01/04/2013

FEES 6.7.4

If a participant firm does not pay its share of a levy subject to a direct debit agreement as required by FEES 6.7.1R (2), the entire amount of the levy becomes due and payable to the FSCS, and additional administrative fees are payable at the rate set out in FEES 2.2.1 R.

01/01/2006
Future version of FEES 6.7.4 after 01/04/2013

FEES 6.7.5

A participant firm liable to pay its share of the levy under FEES 6.7.1 R must do so using one of the methods set out in FEES 4.2.4 R save that no additional amount or discount is applicable.

01/01/2006
Future version of FEES 6.7.5 after 01/04/2013

FEES 6.7.6

If a firm ceases to be a participant firm part way through a financial year of the compensation scheme:

(1) it will remain liable for any unpaid levies which the FSCS has already made on the firm;

(2) the FSCS may make a levy upon it (which may be before or after the firm has ceased to be a participant firm, but must be before it ceases to be an authorised person) for the costs which it would have been liable to pay had the FSCS made a levy on all participant firms at the time of the levy on the firm;

(3) the FSCS may make a levy upon the firm (which may be before or after the firm has ceased to be a participant firm, but must be before it ceases to be an authorised person) for the purpose of meeting its expenses in relation to compensation costs and/or management expenses incurred or expected to be incurred at any time in the future in respect of defaults which have already occurred;

(4) the FSCS may estimate any costs referred to in (3) by any method or approach it considers appropriate, and adjust them to reflect the time value of money based on the funding arrangements in place in relation to the default; and

(5) paragraphs (3) and (4) apply notwithstanding any other provision in this chapter.

FEES 6 Annex 1

Financial Services Compensation Scheme - Management Expenses Levy Limit

01/04/2006
Past version of FEES 6 Annex 1 before 01/04/2006

This table belongs to FEES 6.4.2 R

Period

Limit on total of all management expenses levies attributable to that period (£)

1 December 2001 to 1 April 2002

£4,209,000

1 April 2002 to 31 March 2003

£13,228,000

1 April 2003 to 31 March 2004

£13,319,000

1 April 2004 to 31 March 2005

£17,590,000

1 April 2005 to 31 March 2006

£27,030,000

1 April 2006 to 31 March 2007

£37,060,000

1 April 2007 to 31 March 2008

£37,520,000

1 April 2008 to 31 March 2009

£1,000,000,000 provided that £600,000,000 may be recovered in respect of specific costs relating to the declaration by the FSA on 27 September 2008 that Bradford & Bingley plc is in default only.

1 April 2009 to 31 March 2010

£1,000,000,000

FEES 6 Annex 2

Financial Services Compensation Scheme - annual levy limits

06/11/2007

This table belongs to FEES 6.3.5 R and FEES TP 2.5.2R

Class

Sub-class

Levy Limit (£ million)

Deposit

1,840

Life and Pensions

Life and Pensions Provision

690

Life and Pensions Intermediation

100

General insurance

General Insurance Provision

775

General Insurance Intermediation

195

Investment

Fund management

270

Investment Intermediation

100

Home Finance

Home Finance Provision

Home Finance Intermediation

FEES 6 Annex 3

Financial Services Compensation Scheme - classes and sub-classes

06/11/2007

This table belongs to FEES 6.5.7 R and FEES TP 2.5.2R

Class A

Deposit

Legal basis for activity in class A

accepting deposits.
BUT does not include any fee payer who either effects or carries out contracts of insurance.

Tariff base

Protected deposits as at 31 December

Class B

General Insurance

Sub-class B1

General Insurance Provision

Legal basis for activity in sub-class B1

effecting contracts of insurance; and/or

carrying out contracts of insurance;

that are general insurance contracts.

Sub-class B2

General Insurance Intermediation

Legal basis for activity in sub-class B2

Any of the following in respect of general insurance contracts:

dealing in investments as agent;

arranging (bringing about) deals in investments;

making arrangements with a view to transactions in investments;

assisting in the administration and performance of a contract of insurance;

advising on investments;

agreeing to carry on a regulated activity which is within any of the above.

Tariff base

Sub-class B1: Relevant net premium income.

Sub-class B2: annual eligible income where the annual income is calculated in accordance with that for fee-block A19 in part 2 of FEES 4 Annex 1, excluding annual eligible income for pure protection contracts.

Class C

Life and Pensions

Sub-class C1

Life and Pensions Provision

Legal basis for activity in sub-class C1

effecting contracts of insurance; and/or

carrying out contracts of insurance;

that are long-term insurance contract (including pure protection contracts).

Sub-class C2

Life and Pensions Intermediation

Legal basis for activity in sub-class C2

Any of the following:

dealing in investments as agent;

arranging (bringing about) deals in investments;

making arrangements with a view to transactions in investments;

assisting in the administration and performance of a contract of insurance;

advising on investments;

advising on pension transfers and pension opt-outs;

providing basic advice on a stakeholder product;

agreeing to carry on a regulated activity which is within any of the above;

in relation to any of the following:

long-term insurance contracts (including pure protection contracts);

rights under a stakeholder pension scheme or a personal pension scheme.

Tariff base

Sub-class C1: Relevant net premium income

Sub-class C2: Number of approved persons as at 31 December, calculated on the same basis as corresponding tariff base provisions for fee blocks A12, 13, and A14 in FEES 4 Annex 1 (even if the firm's approved persons are not counted for the purposes of those fee blocks), and multiplied by the firm's estimated proportion of business falling within sub-class C2 provided or deemed as provided in accordance with FEES 6.

Class D

Investment

Sub-class D1

Fund Management

Legal basis for activity in sub-class D1

Any of the following:

managing investments;

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 stakeholder pension scheme;

establishing, operating or winding up a personal pension scheme;

agreeing to carry on a regulated activity which is within any of the above.

Sub-class D2

Investment Intermediation

Legal basis for activity in sub-class D2

Any of the following activities in relation to designated investment business

dealing in investments as principal;

dealing in investments as agent;

arranging (bringing about) deals in investments;

making arrangements with a view to transactions in investments;

advising on investments;

providing basic advice on a stakeholder product;

safeguarding and administering investments;

arranging safeguarding and administering of assets;

operating a multilateral trading facility;

agreeing to carry on a regulated activity which is within any of the above;

BUT excluding activities that relate to long-term insurance contracts or rights under a stakeholder pension scheme or a personal pension scheme.

Tariff base

Sub-class D1: net income. Net income is equal to the net amount retained by the firm of all income due to the firm in respect of or in relation to activities falling within sub-class D1.

Gross income in respect of activities falling into fee block A9 must be calculated in accordance with the tariff base provisions for that fee block in FEES 4 Annex 1.

For the purposes of calculating net income, net amount retained means all the commission, fees, etc. in respect of activities falling within sub-class D1 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 (for example employees' salaries and overheads) must not be deducted.

In any case the calculation excludes any value attributable to activities which are simultaneously activities in sub-class D2 to the extent included there.

Sub-class D2: Number of approved persons or, for firms in fee block A10, number of traders, as at 31 December, calculated on the same basis as corresponding tariff base provisions for fee blocks A12, A13, A10 and A14 in FEES 4 Annex 1, and multiplied by the firm's estimated proportion of business falling within sub-class D2 (except fee block A10) provided or deemed as provided in accordance with FEES 6. To avoid double-counting, when calculating the number of traders FSCS must deduct the number of approved persons who are also traders attributed to the firm for the purposes of FSA fee block A12, A13 or A14.

Class E

Home Finance

Sub-class E1

Home Finance Provision

Legal basis for activity in sub-class E1

Any of the activities below:

entering into a home finance transaction;

administering a home finance transaction;

agreeing to carry on a regulated activity which is within any of the above.

Sub-class E2

Home Finance Intermediation

Legal basis for activity in sub-class E2

Any of the following activities:

arranging (bringing about) a home finance transaction;

making arrangements with a view to a home finance transaction;

advising on home finance transactions;

the activities of a home finance provider which would be arranging but for article 28A of the Regulated Activities Order (Arranging contracts or plans to which the arranger is party);

agreeing to carry on a regulated activity which is within any of the above.

Tariff base

Sub-class E1: FSA periodic fees

Sub-class: E2: annual eligible income where the annual income is calculated in accordance with fee-block A18 in part 2 of FEES 4 Annex 1

Notes

(1)

Any reference in this annex to a specified investment includes a reference to rights to or interests in investments in that specified investment.

(2)

This paragraph deals with a tariff base calculation for a sub-class based on the calculations for corresponding specified fee blocks where this is not possible because there are no corresponding fee blocks. In this case the calculation is based on whichever of the specified fee blocks FSCS may reasonably choose.

FEES 6 Annex 4

Guidance on the calculation of tariff bases

06/11/2007

This table belongs to FEES 6.5.8 G

Calculation of net income for firms who carry out discretionary fund management and are in sub-class D1

-1.1

The tariff base for sub-class D1 is calculated by taking gross income falling into sub-class D1 and then deducting commission, fees and similar amounts rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (for example employees' salaries and overheads) should not be deducted.

1.1

The calculation of gross income for the purpose of sub-class D1 should be based on the calculation of fees under fee block A9. Gross income for the activity of managing investments is the sum of the following:

(1)

the amount of the annual charge on all assets in portfolios which the firm manages on a discretionary basis received or receivable in the latest accounting period (this is calculated as a percentage of funds invested, typically 1% p.a.); plus

(2)

the front-end or exit charge levied on sales or redemptions of assets in portfolios which the firm manages on a discretionary basis (typically 4-5% of sales/redemptions) in that same accounting period; plus

(3)

the amount of performance management fees from the management of assets in portfolios which the firm manages on a discretionary basis received or receivable in that same accounting period; plus

(4)

any other income directly attributable to the management of assets in portfolios which the firm manages on a discretionary basis in that same accounting period, including commission and interest received.

1.2

Net income should exclude

income received or receivable from 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, as this activity is covered in sub-class D2 (the investment intermediation sub-class).

1.3

A firm should make appropriate arrangements to ensure that income is not double counted in relation to the activities it undertakes (for example, where it operates and manages a personal pension scheme or collective investment scheme).

Corresponding fee blocks

2.1

An example of a case covered by Note 2 in FEES 6 Annex 3R (Financial Services Compensation Scheme - classes and sub-classes) is as follows. The tariff base for sub-class C2 (Life and Pensions Intermediation) is based on approved persons, calculated on the same basis as the corresponding tariff base provisions for fee blocks A12, 13, and A14. However firms carrying on business originally falling within fee block A19 (e.g. in relation to pure protection contracts) can also fall into sub-class C2. The note means that FSCS may choose whether the calculation is based on the tariff base applicable to A12, A13, or A14.

Export chapter as

Transitional Provisions and Schedules

FEES TP 1

Transitional Provisions

FEES TP 1.1

(1)

(2)

Material to which the transitional provision applies

(3)

(4)

Transitional Provision

(5)

Transitional Provision: dates in force

(6)

Handbook provision: coming into force

FEES 3.2.7 R(p)

A firm does not have to pay a fee if:

2 October 2006 to 5 April 2007

1 June 2006

(1)

it is seeking only to increase the scope of its permission to include:

(a)

establishing, operating or winding up a personal pension scheme; or

(b)

(if the firm is in activity group A12 or A13) the designated investments:

(i)

personal pension scheme; or

(ii)

rights to or interests in a personal pension scheme, and

(2)

it was, as at 1 October 2006, carrying on what would become on 6 April 2007:

(a)

the regulated activity in (1)(a), or

(b)

a regulated activity in relation to the designated investments in (1)(b).

FEES 4 Annex 1 R Part 3, Activity group A9 (operators, trustees and depositaries of collective investment schemes)

References to gross income received in connection with operating a personal pension scheme or a stakeholder pension scheme include gross income received in connection with operating a personal pension scheme or a stakeholder pension scheme before 6 April 2007, if and to the extent that, if the same activities had been carried out in relation to the same scheme on 6 April 2007 those activities would have amounted to operating a personal pension scheme or a stakeholder pension scheme.

From 6 April 2007 to 30 April 2008

6 April 2007

FEES 4 Annex 1 R Part 3, Activity group A2

Any reference to the number of home purchase plans and/or home reversion plans must be read as including any home purchase plan or home reversion plan entered into or administered before 6 April 2007, as relevant, which would be a home purchase plan or a home reversion plan if entered into or administered on or after 6 April 2007.

From 6 April 2007 - 30 April 2008

6 April 2007

FEES TP 2

Transitional provisions relating to changes to the FSCS levy arrangements taking effect in 2007/8 and in 2008/9

2.1

Treatment of balances as at 1 April 2008

2.1.1

FSCS must calculate a levy balance as at 31 March 2008 attributable to each participant firm to which this rule applies (see FEES TP 2.1.19R), in respect of contribution groups in place as at 31 March 2008, in the following way:

(1)

identifying each of the relevant contribution groups to which a participant firm belongs;

(2)

identifying amounts held to the credit of each such contribution group;

(3)

identifying amounts held as a debit balance to each such contribution group;

(4)

calculating the net balance for each contribution group from (2) and (3);

(5)

calculating, in relation to each relevant contribution group, that participant firm's tariff base as a proportion of the total tariff base of all participant firms in the contribution group;

(6)

for each relevant contribution group applying the proportion in (5) to the figure in (4); and

(7)

the balance for the participant firm is calculated by adding together the figure in (6) for each relevant contribution group of which the participant firm is a member.

2.1.2

This rule relates to a claim or other amount that could be the subject of a compensation costs levy or specific costs levy and is otherwise eligible for inclusion in a debit balance for a contribution group under FEES TP 2.1.1R(3). This rule deals with a case where there are insufficient funds standing to the credit of that contribution group's FSCS account to meet the claim. Such a claim may only be included in the debit balance in accordance with the requirements about the amounts that can be levied under compensation costs levies and specific costs levies under FEES 6 in the form FEES 6 was in force on 31 March 2008.

2.1.3

The credit balance referred to in FEES TP 2.1.1R(2) includes:

(1)

funds standing to the credit of the contribution group together with any interest receivable less any tax payable;

(2)

any amounts lent to another contribution group (together with any interest payable on that amount under FEES 6); and

(3)

any amount levied on or before 31 March 2008 but not received by 31 March 2008;

(all such amounts being calculated as at 31 March 2008).

2.1.4

(1)

The debit balance referred to in FEES TP 2.1.1R(3) includes:

(a)

any amounts borrowed by FSCS for the purpose of paying amounts for which a compensation costs levy may be imposed on the contribution group in question together with any interest payable;

(b)

any amounts borrowed from another contribution group (together with any interest payable on that amount under FEES 6); and

(c)

amounts that could be the subject of a compensation costs levy or specific costs levy that FSCS has not yet paid;

(all such amounts being calculated as at 31 March 2008).

(2)

If FSCS has decided to pay a claim, has decided the amount it will pay and (where applicable) has agreed the payment with the claimant it is eligible for inclusion under (1)(c). So is a claim for which FSCS has sent out a compensation cheque if the cheque has not been cleared by 31 March. A claim that has been made and settled will not be included as it will have already reduced the funds standing to the credit of the relevant contribution group. Claims made but not yet accepted or agreed by 31 March will not be included.

2.1.5

FEES TP 2.1.2R has a further limitation on what claims can be included as a debit for a contribution group under FEES TP 2.1.1R. They may be included if there are sufficient funds standing to the credit of the contribution group. Any excess can also be included but only up to the levy limit for the relevant contribution group. In calculating the amount that FSCS would have been able to levy, FSCS will take into account any levies already made in the financial year beginning on 31 March 2007 (and, if relevant, previous years). The caps for these purposes are the ones in force on 31 March 2008.

2.1.6

(1)

If a participant firm's levy balance calculated under FEES TP 2.1.1R(7) is a debit, it is to be added to the first compensation costs levy or management expenses levy made on or after 1 April 2008 in which the participant firm shares.

(2)

If a participant firm's levy balance calculated under FEES TP 2.1.1R(7) is a credit, it is to be refunded as follows:

(a)

by deduction from any compensation costs levy or management expenses levy in which the participant firm shares included in the invoice that includes the FSA's periodical fee referred to in (2)(b);

(b)

(as to any balance) by deduction from any FSA periodical fees payable under FEES 4.3 in respect of the financial year beginning on 1 April 2008 and the general levy payable in respect of the same financial year; and

(c)

(as to any balance) by payment to the participant firm.

2.1.7

Any amount that is added to a participant firm's levy under FEES TP 2.1.6R must not be taken into account for the purpose of calculating whether a levy limit of any sub-class has been exceeded and how much headroom there is between a levy limit and the amount already levied.

2.1.8

If it appears to the FSCS that in the exceptional circumstances of a particular case, refunding a participant firm's credit balance arising under FEES TP 2.1.1R by way of a deduction in accordance with FEES TP 2.1.6R would be inequitable, the FSCS may refund any part of that amount by payment to the participant firm.

2.1.9

FSCS may use the money collected from participant firms prior to 1 April 2008 in order to pay claims or management expenses after 31 March 2008 but only in so far as any such payments are treated as costs to be allocated to sub-classes in existence after 31 March 2008 and do not prejudice the calculation in FEES TP 2.1.1R.

2.1.10

Subject to FEES TP 2.1.16R, FSCS must calculate any levy after 31 March 2008 on the basis that all credit balances referred to in FEES TP 2.1R have been refunded to participant firms and all debit balances referred to in FEES TP 2.1R have been repaid and all management expenses levies made before 1 April 2008 have been spent.

2.1.11

For the purposes of the calculations in FEES TP 2.1R, FSCS may rely on information FSCS relied on in the 2007/8 financial year.

2.1.12

Subject to FEES TP 2.1.16R, if a participant firm provides, or is deemed to provide, incorrect information which is used for the purposes of FEES TP 2.1, then FSCS may take account of any resulting material overpayment or underpayment made under FEES TP 2.1 notified to it. If FSCS does take into account any such overpayment or underpayment it will be dealt with as follows:

(1)

FSCS must repay any such overpayment on or before 30 calendar days after the date when it decides to take such overpayment into account; and

(2)

the participant firm must repay such underpayment on or before 30 calendar days after the date when the invoice for it is issued by FSCS.

2.1.13

FSCS may, in its absolute discretion, refuse requests to recalculate a firm's levy balance calculated under FEES TP 2.1.1R on the basis of information corrected or re-submitted after 31 March 2009.

2.1.14

Any rebate or refund to a participant firm arising out of the recalculation of a participant firm's levy balance carried out in accordance with FEES TP 2.1.12R is to be allocated to the sub-class most closely analogous to the contribution group the firm belonged to before 1 April 2008 or, if applicable, in accordance with FEES TP 2.1.18R.

2.1.15

Any interest, arising between 31 March 2008 and the date that a credit balance is refunded to a participant firm under FEES TP 2.1.6R (including any interest attributable to the use of the funds in accordance with FEES TP 2.1.9R) is to be held for the benefit of the sub-class most closely analogous to the contribution group the firm belonged to before 1 April 2008 or, if applicable, in accordance with FEES TP 2.1.18R.

2.1.16

FEES TP 2.1 does not apply to the extent that it is inconsistent with the provisions of the compensation transitionals order.

2.1.17

If a participant firm fails to pay an amount due with respect to a debit balance under FEES TP 2.1.6R, that default is to be allocated to the sub-class most closely analogous to the contribution group the firm belonged to before 1 April 2008 for which the debit balance arises, or if applicable, in accordance with FEES TP 2.1.18R.

2.1.18

(1)

FEES TP 2.1.18R deals with a situation in which FEES TP 2.1 requires that a rebate, refund, receipt or default be allocated to the sub-class most closely analogous to the contribution group a participant firm belonged to before 1 April 2008 but where it is not possible to do this because the participant firm belonged to more than one relevant contribution group or because the contribution group maps onto more than one sub-class.

(2)

That sum will be divided between contribution groups and sub-classes in whatever way FSCS considers fair and consistent with the purpose of FEES TP 2.1.

2.1.19

FEES TP 2.1.1R does not apply to a participant firm that was not a participant firm on 1 April 2007 or that was exempt during FSCS's financial year beginning on that date. Subject to that, FEES TP 2.1.1R applies to a participant firm as at 31 March 2008 that has subsequently ceased to be a participant firm.

2.1.20

The purpose of FEES TP 2.1 is to help to ensure that there is a clean break between periods beginning on or after 1 April 2008 and periods before. The aim is to ensure that debit and credit balances for each contribution group as at 31 March 2008 are discharged and any credit balance in relation to a contribution group is returned to participant firms in that contribution group as at that date.

2.2

Split of business between life and pensions intermediation and investment intermediation

2.2.1

FEES TP 2.2 deals with the calculation of the tariff base of participant firms in sub-classes C2 (Life and Pensions intermediation) and D2 (Investment intermediation) in relation to the FSCS's financial years beginning on 1 April 2008 and 1 April 2009 (the applicable financial year).

2.2.2

If a participant firm would have fallen within both sub-classes C2 and D2 in the preceding financial year to 31 March it must provide FSCS, by 30 November of the year preceding the applicable financial year (or, if it has become a participant firm part way through the financial year by the date requested by FSCS), with an estimated breakdown of business carried on in its financial year ended in the calendar year ending on the 31 December preceding the applicable financial year which would have fallen within sub-classes C2 and D2. However, the firm must shorten the period covered by that breakdown to the extent necessary to ensure that the period it covers ends no later than one Month before the date by which the firm has to supply it. If the firm does not have a permission covering these activities for the whole of the period covered by the breakdown, it must use the projected valuation (as provided to the FSA in the course of the firm's application) of the business to which the tariff relates.

2.2.3

The breakdown in FEES TP 2.2.2R must show the ratio of business (in terms of income earned) between the two sub-classes, expressed as a percentage and rounded up or down to the nearest ten per cent so that the total figure is one hundred per cent. That percentage is then applied to the amount calculated for sub-classes C2 and D2.

2.2.4

Firms in contribution group A10 in the financial year to 31 March 2008 will be deemed to have an estimated breakdown of business of one hundred per cent in sub-class D2 and zero per cent in sub-class C2, unless otherwise notified to the FSCS by the date for submission in FEES 6.5.13 R. The same applies in relation to the financial year beginning 1 April 2009 in the case of a firm in FSA fee block A10 in the financial year to 31 March 2009.

2.2.4A

The deemed allocation of one hundred per cent of business to sub-class D2 and zero per cent in sub-class C2 does not apply to FSA fee blocks A12, A13 or A14.

2.2.5

If a participant firm does not provide the information required in FEES TP 2.2 by the date requested, the firm must pay the administrative fee in FEES 6.5.16 R (1) and FSCS must deem the firm in question to carry on one hundred per cent of its intermediation business in sub-class C2 and one hundred per cent in sub-class D2.

2.2.6

Information supplied under FEES TP 2.2 is treated as part of the information supplied under FEES 6.5.13 R.

2.2.7

If the split of a firm's business between sub-classes C2 and D2 was calculated under FEES TP 2.2 for the FSCS's financial year beginning on 1 April 2008 the same split applies for the financial year beginning on 1 April 2009. But this does not apply:

(a)

if the difference between the split for the two financial years would be equal to or greater than ten; or

(b)

to FEES TP 2.2.4R.

For these purposes the split for a financial year means the amount of the difference (expressed as a number) between the percentage figures for the two sub-classes for that year calculated under FEES TP 2.2.2R.

2.3

Incorrect information

2.3.1

If a participant firm provides, or is deemed to provide, information under FEES 6.5.13 R (2) which is incorrect then FSCS may take account of any material overpayment or underpayment notified to it in calculating the firm's share of the next FSCS levy in accordance with FEES 6.3.22 R. Any overpayment or overcharge will not be refunded or reduced in the year of the levy unless it appears to FSCS that in the exceptional circumstances of a particular case, the payment of, or retention by FSCS of, any such FSCS levy would be inequitable.

2.3.2

FEES TP 2.3 applies in relation to information supplied for the purpose of the FSCS's financial year beginning on 1 April 2008.

2.3.3

FEES TP 2.3.1R does not apply in relation to the calculations in FEES TP 2.1.

2.4

Allocation of recoveries

2.4.1

Any recoveries made by the FSCS after 31 March 2008 in relation to protected claims compensated prior to 1 April 2008, the costs of which were allocated to the relevant contribution group in place at the time, must be credited to the sub-class in place after 31 March 2008 to which the costs of the protected claim would have been allocated had it been compensated after that date, or if relevant, in accordance with FEES 6.3.20 R.

2.4.2

FEES TP 2.4.1R does not apply to the extent that it is inconsistent with the compensation transitionals order.

2.5

Interpretation

2.5.1

In FEES TP 2 'contribution group' means one of the groups of participant firms within a sub-scheme in existence prior to 1 April 2008 set out in FEES 6.5.7 R at the time, being groups that carried on business of a similar nature, to which compensation costs and specific costs were allocated in accordance with FEES 6.4 and FEES 6.5 in force at the time. Sub-scheme means one of the sub-schemes to which FSCS allocated liabilities for compensation costs prior to 1 April 2008, as described in FEES 6.5.7 R at the time.

2.5.2

For the purpose of FEES 6.5.13 R as it applies with respect to the FSCS's financial year beginning on 1 April 2008:

(1)

references in FEES 6.5.13 R to sub-classes must be read as references to sub-classes to which firms will belong after 31 March 2008; and

(2)

(where FEES TP provides for the tariff base for a sub-class to be calculated by reference to a contribution group prior to that date) FEES 6.5.13 R (1) must be read as also including a requirement for the supply of the necessary information in relation to that contribution group.

2.5.3

The amendments made to FEES 6.5.16 R by the Fees Manual (FSCS Funding) Instrument 2007 only have effect before 1 April 2008 for the purpose of FSCS's financial year beginning on 1 April 2008.

2.5.4

FEES 6 Annex 2 R and FEES 6 Annex 3 R (classes, sub-classes and tariff bases) are brought into force for the purpose of FEES TP and FEES 6.5.13 R in November 2007. However they do not have any other effect until 1 April 2008.

2.6

Past defaults

2.6.1

The changes made to the levy rules made by the Fees Manual (FSCS Funding) Instrument 2007 apply to any levy made after 31 March 2008. This is so even if:

(1)

the claim against the firm in default arose or relates to circumstances arising before that date;

(2)

the firm was in default before that date; or

(3)

the levy relates to arrangements or measures under COMP 3.3 made or taken before that date.

2.7

Transitional provisions for changes to relieving provisions

2.7.1

The amendments made in Part 1 of Annex B to the Financial Services Compensation Scheme (Amendment of Tariff Measures and Other Levy Rules) Instrument 2008 to FEES 2.3 and the addition of FEES 6.3.22A R (and consequential changes) (changes to Relieving Provisions) do not apply to any request made by a levy payer before 1 November 2008.

2.8

Effect of the tariff base changes for the financial year beginning on 1 April 2009 before that date

2.8.1

The amendments made to FEES 6 Annex 3 R (Financial Services Compensation Scheme - classes and sub-classes) and FEES TP 2 by Part 3 of Annex B to the Financial Services Compensation Scheme (Amendment of Tariff Measures and Other Levy Rules) Instrument 2008 have effect before 1 April 2009 for the purpose of the supply of information under FEES 6.5.13 R in relation to the FSCS's financial year beginning on 1 April 2009.

2.8.2

In particular, a firm in sub-classes C2 and D2 should provide the FSCS by 30 November 2008 with the estimated breakdown of business between those two sub-classes required by FEES TP 2.2.

FEES TP 3

Transitional provisions relating to changes to the FSCS levy arrangements taking effect in 2010/11

3.1

Effect of the tariff base changes made in 2008 in relation to the financial year 2010/11 before that date

3.1.1

The amendments made to FEES 6 and to FEES TP by Part 4 of Annex B to the Financial Services Compensation Scheme (Amendment of Tariff Measures and Other Levy Rules) Instrument 2008 have effect before 1 April 2010 for the purpose of the supply of information under FEES 6.5.13 R in relation to the FSCS's financial year beginning on 1 April 2010.

01/11/2008
Future version of FEES TP 3 after 01/04/2010

FEES TP 4

Transitional provisions relating to information requirements following changes to FEES 4 or 5

4.1

Effect of changes to FEES 4 or 5 in relation to the supply of information to the FSA

4.1.1

This rule applies where any rule, or amendment to a rule, in FEES 4 or FEES 5 ("a FEES rule") has been made but will only come into force in relation to a future financial year of the FSA or Financial Ombudsman Service ("the future year"), as the case may be.

4.1.2

Unless another rule expressly disapplies this rule, a FEES rule has immediate effect for the supply of information under FEES 4.4 or FEES 5.4 in relation to that future year.

4.1.3

A reference in this rule to an FSA or Financial Ombudsman Service financial year is a reference to the 12 months ending 31 March.

30/03/2009
Future version of FEES TP 4 after 01/04/2013

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FEES Fees Manual

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Fees Manual

Application and Purpose

Application

Purpose

General Provisions

Introduction

Application

Purpose

Late Payments and Recovery of Unpaid Fees

Late Payments

Recovery of Fees

Relieving Provisions

Remission of Fees and levies

VAT

Application, Notification and Vetting Fees

Introduction

Application

Purpose

Obligation to pay fees

General

Method of payment

Table of application, notification and vetting fees

Authorisation fees payable

Application and notification fees payable in relation to collective investment schemes

Application fees payable in connection with Recognised Investment Exchanges and Recognised Clearing Houses

Application and administration fees in relation to listing rules

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

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

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

Periodic fees

Introduction

Application

Purpose

Background

Obligation to pay periodic fees

General

Method of payment

Modifications for persons becoming subject to periodic fees during the course of a financial year

Application of FEES 4.2.7BR

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

Extension of Time

Periodic fee payable by firms (other than ICVCs and UCITS qualifiers)

Calculation of periodic fee

Modification for firms with new or extended permissions

Amount payable by the Society of Lloyd's

Time of payment

Groups of firms

Incoming EEA firms and incoming Treaty firms

Firms Applying to Cancel or Vary Permission Before Start of Period

Firms acquiring businesses from other firms

Minimum fee discount

Information on which Fees are calculated

Activity groups, tariff bases and valuation dates applicable

Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2009 to 31 March 2010

Transaction reporting fees

Transaction reporting fees for the period from 1 April 2009 to 31 March 2010

Periodic fees in relation to collective investment schemes payable for the period 1 April 2008 to 31 March 2009

Periodic fees for designated professional bodies payable in relation to the period 1 April 2009 to 31 March 2010

Periodic fees for recognised investment exchanges and recognised clearing houses payable in relation to the period 1 April 2009 to 31 March 2010

Annex 7, Periodic fees in relation to the Listing Rules for the period 1 April 2008 to 31 March 2009

Periodic fees in relation to the disclosure rules and transparency rules for the period 1 April 2008 to 31 March 2009

Periodic fees in respect of securitised derivatives for the period from 1 April 2008 to 31 March 2009

Periodic fees for MTF operators payable in relation to the period 1 April 2009 to 31 March 2010

Financial Ombudsman Service Funding

Application and Purpose

Application

Exemption

Purpose

Introduction

The general levy

Information requirement

Case fees

Standard case fee

Special case fees: complaints from small businesses

Special case fees: firms which cease to be authorised and persons which cease to be licensees

Special case fees: relevant complaints against persons who were subject to a former scheme