FEES 1
Fees Manual
FEES 1.1
Application and Purpose
- 01/01/2006
FEES 1.1.1
See Notes
Application
FEES 1.1.2
See Notes
This manual applies in the following way:
- (1) FEES 1, 2 and 3 apply to:
- (a) every applicant for Part IV permission (including an incoming firm applying for top-up permission);
- (b) every Treaty firm that wishes to exercise a Treaty right to qualify for authorisation under Schedule 4 to the Act (Treaty rights), 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; and
- (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).
- (2) FEES 1, 2 and 4 apply to:
- (a) every firm (except an ICVC or UCITS qualifier);
- (b) every manager of an authorised unit trust;
- (c) every ACD of an ICVC;
- (d) every person who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme;
- (e) every designated professional body;
- (f) every recognised body;
- (g) under the Listing Rules every issuer of shares, depositary receipts and securitised derivatives;
- (h) under the Listing Rules every sponsor; and
- (i) under the Disclosure Rules and Transparency Rules every issuer of shares, depositary receipts and securitised derivatives.
- (3) FEES 1, 2 and 5 apply to:
- (a) every firm which is subject to the Compulsory Jurisdiction of the Financial Ombudsman Service; and
- (b) every other person who is subject to the Compulsory Jurisdiction in relation to relevant complaints.
- (4) FEES 1, 2 and 6 apply to:
- (a) every participant firm;
- (b) the FSCS; and
- (c) the Society.
FEES 1.1.3
See Notes
Purpose
FEES 1.1.4
See Notes
FEES 2
General Provisions
FEES 2.1
Introduction
- 01/01/2006
Application
FEES 2.1.1
See Notes
FEES 2.1.2
See Notes
FEES 2.1.3
See Notes
Purpose
FEES 2.1.4
See Notes
FEES 2.1.5
See Notes
FEES 2.1.6
See Notes
The FSA fees payable will vary from one financial year to another, and will reflect the FSA's funding requirement for that period and the other key components, as described in FEES 2.1.7G. Periodic fees, which will normally be payable on an annual basis, will provide the majority of the funding required to enable the FSA to undertake its statutory functions.
FEES 2.1.7
See Notes
The key components of the FSA fee mechanism (excluding the FSCS levy and FOS levy and case fees, which are dealt with in FEES 5 and FEES 6) are:
- (1) a funding requirement derived from:
- (a) the FSA's financial management and reporting framework;
- (b) the FSA's budget; and
- (c) adjustments for audited variances between budgeted and actual expenditure in the previous accounting year, and reserves movements (in accordance with the FSA's reserves policy);
- (2) mechanisms for applying penalties received during previous financial years for the benefit of fee payers;
- (3) fee-blocks, which are broad groupings of fee payers offering similar products and services and presenting broadly similar risks to the FSA's regulatory objectives;
- (4) a costing system to allocate an appropriate part of the funding requirement to each fee-block; and
- (5) tariff bases, which, when combined with fee tariffs, allow the calculation of fees.
FEES 2.1.8
See Notes
FEES 2.1.9
See Notes
FEES 2.1.10
See Notes
- 01/01/2006
FEES 2.2
Late Payments and Recovery of Unpaid Fees
- 01/01/2006
Late Payments
FEES 2.2.1
See Notes
If a person does not pay the total amount of a periodic fee (including fees relating to 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
See Notes
Recovery of Fees
FEES 2.2.3
See Notes
Paragraph 17(4) of Schedule 1 and section 99(5) to the Act permit the FSA to recover fees (and, where relevant, FOS levies), and section 213(6) permits the FSCS to recover shares of the FSCS levy payable, as a debt owed to the FSA and FSCS respectively, and the FSA and FSCS, as relevant, will consider taking action for recovery (including interest) through the civil courts. Also, the FOS Ltd (in respect of case fees) may take steps to recover any money owed to it (including interest).
FEES 2.2.4
See Notes
In addition, the FSA may be entitled to take regulatory action in relation to the non-payment of fees and FOS levies. FSA may also take regulatory action in relation to the non-payment of FOS case fees or share of the FSCS levy, after reference of the matter to FSA by FOS Ltd or FSCS respectively. What action (if any) that is taken by the FSA will be decided upon in the light of the particular circumstances of the case.
FEES 2.3
Relieving Provisions
- 01/01/2006
Remission of Fees
FEES 2.3.1
See Notes
FEES 2.3.2
See Notes
FEES 2.3.2A
See Notes
FEES 2.3.2B
See Notes
FEES 2.3.3
See Notes
- 06/10/2006
- Past version of FEES 2.3.3 before 06/10/2006
FEES 3
Application, Notification and Vetting Fees
FEES 3.1
Introduction
- 01/01/2006
Application
FEES 3.1.1
See Notes
FEES 3.1.2
See Notes
Purpose
FEES 3.1.3
See Notes
FEES 3.1.4
See Notes
FEES 3.1.5
See Notes
- (1) The rates set for authorisation fees represent an appropriate proportion of the costs of the FSA in processing the application or exercise of Treaty rights.
- (2) The fees for collective investment schemes reflect the estimated costs to the FSA of assessing applications and notifications. The level of fees payable in respect of an application or a notification will vary depending upon the provision of the Act under which it is made. This fee is adjusted when the scheme concerned is an umbrella scheme.
- (3) Application fees for recognised bodies are calculated from a tariff structure intended to reflect the estimated cost of processing an application of that type and complexity.
FEES 3.1.6
See Notes
FEES 3.1.7
See Notes
FEES 3.1.8
See Notes
- 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
See Notes
A person in column (1) of the table in FEES 3.2.7 R as the relevant fee payer for a particular activity must pay to the FSA a fee for each application or request for vetting or admission approval made, or notification or notice of exercise of a Treaty right given, as is applicable to it, as set out or calculated in accordance with the provisions referred to in column (2) of that table:
- (1) in full and without deduction; and
- (2) on or before the date given in column (3) of that table.
FEES 3.2.2
See Notes
Method of payment
FEES 3.2.3
See Notes
- (1) Unless (2) applies, the sum payable under FEES 3.2.1 R must be paid by bankers draft, cheque or other payable order.
- (2) FSA does not specify a method of payment for a person seeking to become a recognised body or a designated professional body or to be added to the list of designated investment exchanges.
FEES 3.2.4
See Notes
FEES 3.2.5
See Notes
- (1) The appropriate authorisation fee is an integral part of an application for, or an application for a variation of, a Part IV permission Any application received by the FSA without the accompanying appropriate fee, in full and without deduction (see FEES 3.2.1 R), will not be treated as an application made, incomplete or otherwise, in accordance with section 51(3)(a) or section 44, of the Act. Where this is the case, the FSA will contact the applicant to point out that the application cannot be progressed until the appropriate fee has been received. In the event that the appropriate authorisation fee, in full and without deduction, is not forthcoming, the application will be returned to the applicant and no application will have been made.
- (2) With the exception of persons seeking to become a designated professional body, all applications, notifications, requests for vetting or admission approval will be treated as incomplete until the relevant fee is fully paid and the FSA will not consider an application, notification, request for vetting or admission approval until the relevant fee is fully paid. Persons seeking to become a designated professional body have 30 days after the designation order is made to pay the relevant fee.
FEES 3.2.6
See Notes
FEES 3.2.7
See Notes
Table of application, notification and vetting fees
(1) Fee payer | (2) Fee payable | Due date | ||||
(a) | Any applicant for Part IV permission (including an incoming firm applying for top-up permission) | (1) | Unless (2) applies, in respect of a particular application, the highest of the tariffs set out in FEES 3 Annex 1 part 1 which apply to that application. | On or before the application is made | ||
(2) | In respect of a particular application which is: | |||||
(i) | a straightforward or moderately complex case for the purposes of FEES 3 Annex 1 part 1, and | |||||
(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 (q) in this table, in which case the fee payable under that category. | On or before the date that relevant documentation is first submitted to the FSA | |||
(m) | Under the prospectus rules, an issuer or person requesting approval or vetting of the documents arising in relation to specific events or transactions that it might be involved in during the year | FEES 3 Annex 5, part 2, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category. | On or before the date that relevant documentation is first submitted to the FSA | |||
(n) | Applicants to be added to the list of designated investment exchanges | 50,000 | On or before the date the application is made | |||
(o) | Either: | (1) | (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 | On or before the date the application is made | ||
(2) | If the only change is that the A.12 activity group tariff applied to the firm's business before the variation and the A.13 activity group will apply after variation, no fee is payable(3) In all other cases, other than applications by credit unions, the fee payable is 250, unless the variation involves only the reduction (and no other increases) in the scope of a Part IV permission in which case no fee is payable. | |||||
(q) |
A significant transaction, being one where: |
50,000 | On or before the date 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; | |||||
(ii) | the issuer has a market capitalisation in excess of 5 billion and is involved in a class 1 transaction or a transaction requiring vetting of an equity prospectus or equivalent document; or | |||||
(iii) | the issuer is proposing a Depositary Receipt issue intended to raise more than 5 billion. | |||||
(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. |
FEES 3 Annex 1
Authorisation fees payable
- 01/01/2006
See Notes
Application type (see Part 2) | Amount payable | |
(a) | Credit unions - registration of common bond | 200 |
(b) | Version 1 credit unions - authorisation | 300 |
(c) | Version 2 credit unions - authorisation | 1,800 |
(d) | Straightforward | 1,500 |
(e) | Moderately complex | 5,000 |
(f) | Complex | 25,000 |
Straightforward cases | |
Activity grouping | Description |
A.3 | Friendly societies only |
A.4 | Friendly societies only |
A.12 | Advisory arrangers, dealers or brokers (holding or controlling client money and/or assets) |
A.13 | Advisory only firms and advisory arrangers, dealers or brokers (not holding or controlling client money and/or assets) |
A.14 | Corporate finance advisers |
A.18 | Home finance providers, advisers and arrangers (excluding home finance providers) |
A.19 | General insurance mediation |
Moderately complex cases | |
Activity grouping | Description |
A.1 | E-money issuers only |
A.2 | Home finance providers and administrators |
A.3 | UK ISPVs |
A.4 | UK ISPVs |
A.5 | Managing agents at Lloyd's |
A.7 | Fund managers |
A.9 | Operators, trustees and depositaries of, operators of personal pension schemes and operators of stakeholder pension schemes |
A.10 | Firms dealing as principal |
B. | Service companies |
Complex cases | |
Activity grouping | Description |
A.1 | Deposit acceptors (excluding e-money issuers and credit unions) |
A.3 | Insurers - general (excluding friendly societies and UK ISPVs) |
A.4 | Insurers - life (excluding friendly societies and UK ISPVs) |
If the Treaty firm wishes to undertake the permitted activities in question through its branch in the United Kingdom, the fee is 50% of the fee that would be payable under FEES 3.2.7 R for an applicant for Part IV permission. |
If the Treaty firm wishes to undertake the permitted activities in question by providing services in the United Kingdom, the fee is 25% of the fee which would be payable under FEES 3.2.7 R for an applicant for Part IV permission. |
The activity group definitions are set out in FEES 4 Annex 1R. |
An application involving only a simple change of legal status for the purposes of FEES 3.2.7 R is from an applicant: | ||
(1) | which is a new legal entity intending to carry on the business, using the same business plan, of an existing firm with no outstanding regulatory obligations cancelling its Part IV permission, and | |
(2) | which is to: | |
(a) | have the same or narrower permission, and the same branches (if any), as the firm; | |
(b) | assume all of the rights and obligations in connection with the regulated activities carried on by the firm; | |
(c) | continue the same compliance arrangements and compliant client asset and client money procedures, as the firm, subject to any changes required only as a result of the change of legal status; | |
(d) | continue with a risk profile and arrangements for controlling and monitoring risk which will not be materially different from those of the firm; and | |
(e) | have the individuals within the firm that are responsible for insurance mediation activity perform the same role for the applicant. |
FEES 3 Annex 2
Application and notification fees payable in relation to collective investment schemes
- 01/01/2006
See Notes
Legislative provision | Nature and purpose of fee | Payable by | Amount of fee | Umbrella scheme factor (note 1) |
Part 1 Application fees payable for firms to be subject to CIS | ||||
Regulation 12 of the OEIC Regulations | On application for an order declaring a scheme to be an ICVC | An applicant | 1,200 | 2 |
Section 242 of the Act | On application for an order declaring a scheme to be an AUT | An applicant | 1,200 | 2 |
Section 272 of the Act | On application for an order declaring a scheme to be an individually recognised overseas scheme | An application | 14,000 | 2 |
Part 2 Application fees payable for firms to be subject to COLL | ||||
Regulation 12 of the Act | On application for an order declaring a scheme to be an ICVC, where the scheme is: | An applicant | 2 | |
UCITS scheme | 1,200 | |||
Non-UCITS retail scheme | 1,500 | |||
Qualified investor scheme | 2,400 | |||
Section 242 of the Act | On application for an order declaring a scheme to be an AUT, where the scheme is: | An applicant | 2 | |
UCITS scheme | 1,200 | |||
Non-UCITS retail scheme | 1,500 | |||
Qualified investor scheme | 2,400 | |||
Section 272 of the Act | On application for an order declaring a scheme to be an individually recognised overseas scheme | An applicant | 14,000 | 2 |
Part 3 (notifications) | ||||
Section 264 of the Act | On giving notice under section 264 of the Act | The operator | 600 | 2 |
Section 270 of the Act | On giving notice under section 270 of the Act | The operator | 600 | 2 |
Part 4 (Alternative Investment Funds: fees payable for making a notification to the FCA to market an AIF) |
Notes: | |
1. | For an umbrella scheme the fee is multiplied by the factor shown in the final column of the table. |
FEES 3 Annex 3
Application fees payable in connection with Recognised Investment Exchanges and Recognised Clearing Houses
See Notes
Description of applicant | Amount payable | Due date | |
Part 1 (UK recognised bodies) | |||
Applicant for recognition as a UK RIE | 100,000 | Date the application is made | |
Applicant for recognition as a UK RCH | 100,000 | Date the application is made | |
Additional fees for applicant who proposes to: | |||
- | act as a central counterparty | 25,000 | Date the application is made |
- | offer safeguarding and administration services | 25,000 | Date the application is made |
- | use substantially new and untested information technology systems in the performance of its relevant functions | 25,000 | Date the application is made |
Part 2 (overseas recognised bodies) | |||
Applicant for recognition as a recognised overseas investment exchange | 50,000 | Date the application is made | |
Applicant for recognition as a recognised overseas clearing house | 50,000 | Date the application is made | |
Additional fees for applicant who proposes to: | |||
- | act as a central counterparty | 25,000 | Date the application is made |
- | offer safeguarding and administration services | 25,000 | Date the application is made |
FEES 3 Annex 4
Application fees in relation to listing rules
See Notes
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. |
Sponsor Application Fees | |
Fee type | Fee amount |
Application for approval as sponsor | 4,000 |
FEES 3 Annex 5
Document vetting and approval fees in relation to listing and prospectus rules
- 01/01/2006
See Notes
Part 1
Fee type | Fee amount | |
Transaction vetting fees Transaction vetting fees relate to specific events or transactions that an issuer might be involved in during the year. |
||
Eligibility | New applicants | 1,300 |
Category 1 | Class 1 transactions Listing particulars for Depositary Receipts |
5,700 |
Category 2 | Listing particulars for issuers of specialist securities | 2,500 |
Category 3 | All other vetting only transactions | 2,500 |
Category 4 | Supplementary listing particulars | 500 |
Part 2
These fees relate to approval or vetting of the documents referred to in the second column of this table arising in relation to specific events or transactions that an issuer, offeror or person requesting admission might be involved in during the year.
Category 1 | Equity prospectus Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4) Depositary Receipt prospectus |
5,700 |
Category 2 | Equity registration document | 4,000 |
Category 3 | Equity securities note and summary Summary document referred to in PR 1.2.3R(8) |
2,500 |
Category 4 | Non-equity prospectus or base prospectus (excluding drawdown prospectus or base prospectus) Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4) |
2,500 |
Category 5 | Non-equity registration document | 1,750 |
Category 6 | Non-equity securities note and summary Summary document referred to in PR 1.2.3R(8) |
600 |
Category 7 | Supplementary prospectus | 500 |
Category 8 | Drawdown prospectus or base prospectus | 600 |
Where a fee in category 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 significant transactions and thus attract a higher fee, as set out in 3.2.7(q) R.
FEES 3 Annex 6
Fees payable for a permission or guidance on its availability in connection with the Basel Capital Accord
See Notes
(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) | ||
(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 | 94 | 72 | 51 |
Group 4 | 0 - 5,000 | 0 - 25 | 42 | 30 | 24 |
(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. |
Fees payable in relation to the counterparty credit risk internal model method.
54,000
FEES 4
Periodic fees
FEES 4.1
Introduction
- 01/01/2006
Application
FEES 4.1.1
See Notes
Purpose
FEES 4.1.2
See Notes
Background
FEES 4.1.3
See Notes
FEES 4.1.4
See Notes
- (1) The periodic fees for collective investment schemes reflect the estimated costs to the FSA of considering proposals to change regulated collective investment schemes, maintaining up to date records about them, and related policy work.
- (2) The provision of the Transaction Reporting System facilities for firms reporting transactions under SUP 17 incurs costs to the FSA. These costs depend upon the amount the facility is used. Accordingly the income which the FSA receives from these transactions reporting fees will be set and accounted for separately from the fee-block tariffs, and are set out in FEES 4 Annex 3.
FEES 4.1.5
See Notes
FEES 4.1.6
See Notes
FEES 4.1.7
See Notes
FEES 4.2
Obligation to pay periodic fees
- 01/01/2006
General
FEES 4.2.1
See Notes
A person shown in column (1) of the table in FEES 4.2.11 R as the relevant fee payer must pay each periodic fee applicable to it, calculated in accordance with the provisions referred to in column (2) of that table, as adjusted by any relevant provision in this chapter:
- (1) in full and without deduction (unless permitted or required by a provision in FEES); and
- (2) on or before the date given in column (3) of that table, unless FEES 4.2.10 R applies.
FEES 4.2.2
See Notes
- (1) A relevant fee payer will be required to pay a periodic fee for every year during which they have the status in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, for every year during which it is a regulated collective investment scheme) subject to any reductions or exemptions applicable under this chapter. If a person is the relevant fee payer for more than one status listed in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, the relevant fee payer for more than one regulated collective investment scheme) he will be required to pay a fee in relation to each.
- (2) A recognised body may also have obligations to pay fees to the FSA under other rules arising from legislation other than the Act. For example a recognised body may have an obligation to pay a fee as an approved operator of a relevant system under the Uncertificated Securities Regulations 1995 (SI 1995/3272).
FEES 4.2.3
See Notes
Method of payment
FEES 4.2.4
See Notes
- (1) Unless (2) applies, a periodic fee must be paid using either direct debit, credit transfer (BACS/CHAPS), cheque, switch or by credit card (Visa/Mastercard only). Any payment by permitted credit card must include an additional 2% of the sum paid.
- (2) The FSA does not specify a method of payment for a recognised body or a designated professional body.
FEES 4.2.5
See Notes
- 01/01/2006
Modifications for persons becoming subject to periodic fees during the course of a financial year
FEES 4.2.6
See Notes
- (1) Unless (2) applies, if the event, as described in column 4 of the table in FEES 4.2.11 R, giving rise to, or giving rise to an increase in, the fee payable in FEES 4.2.1 R, occurs on or after 1 July of the relevant financial year, the periodic fee required under FEES 4.2.1 R is modified for:
- (a) firms (other than ICVCs and UCITS qualifiers) in accordance with FEES 4.2.7 R and FEES 4.2.8 R;
- (b) for all other fee payers in column (1) of the table in FEES 4.2.11 R, in accordance with the table below.
Period in which event (in column 4 of the table in FEES 4.2.11 R) occurs | Proportion of periodic fee payable |
1 April to 30 June inclusive | 100% |
1 July to 30 September inclusive | 75% |
1 October to 31 December inclusive | 50% |
1 January to 31 March inclusive | 25% |
- (2) For recognised bodies, if the recognition order is made during the course of the relevant financial year, the periodic fee required is set out in Column (4) of the table in FEES 4.2.11 R.
FEES 4.2.7
See Notes
A firm (other than 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.
FEES 4.2.7A
See Notes
FEES 4.2.8
See Notes
Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period
FEES 4.2.9
See Notes
The FSA will not refund periodic fees if, after the start of the period to which they relate:
- (1) a fee payer ceases to have the status set out in column (1) of the table in FEES 4.2.11 R; or
- (2) a firm reduces its permission so that it then falls out of the fee-block previously applied to it,
(but see FEES 2.3 (Relieving Provisions) and FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period)).
Extension of Time
FEES 4.2.10
See Notes
A person need not pay a periodic fee on the date on which it is due under the relevant provision in FEES 4.2.1 R, if:
- (1) that date falls during a period during which circumstances of the sort set out in GEN 1.3.2 R (Emergencies) exist, and that person has reasonable grounds to believe that those circumstances impair its ability to pay the fee, in which case he must pay it on or before the fifth business day after the end of that period; or
- (2) unless FEES 4.3.6R (3) or FEES 4.3.6R (4) (Time and method for payment) applies, that date would otherwise fall on or before the 30th day after the date on which the FSA has sent written notification to that person of the fee payable on that date, in which case he must pay on or before the 30th day after the date on which the FSA sends the notification.
FEES 4.2.11
See Notes
Table of periodic fees
1 Fee payer | 2 Fee payable | 3 Due date | 4 Events occurring during the period leading to modified periodic fee | ||
Any firm (except an ICVC or a UCITS qualifier) | As specified in FEES 4.3.1 R | (1) | Unless (2) applies, on or before the relevant dates specified in FEES 4.3.6 R | Firm receives permission; or Firm extends permission | |
(2) | If an event specified in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event, or if later the dates specified in FEES 4.3.6 R. | ||||
Any firm which reports 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 | ||
Sponsors | 10,000 per year for the period from 1 April to 31 March the following year (see Note) | Within 30 days of the date of the invoice | Approval of sponsor | ||
All non-listed issuers (in DTR) of shares, depositary receipts and securitised derivatives. | FEES 4 Annex 8 | Within 30 days of the date of the invoice | Non-listed issuer (in DTR) becomes subject to disclosure rules and transparency rules | ||
All firms reporting transactions in securitised derivatives to the FSA in accordance with SUP 17, and market operators who provide facilities for trading in securitised derivatives. | FEES 4 Annex 9 R | Within 30 days of the date of the invoice | Not applicable |
FEES 4.3
Periodic fee payable by firms (other than ICVCs and UCITS qualifiers)
- 01/01/2006
- Future version of FEES 4.3 after 23/07/2013
FEES 4.3.1
See Notes
The periodic fee payable by a firm (except an ICVC or a UCITS qualifier) is:
- (1) each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R, using information obtained in accordance with FEES 4.4; less
- (2) any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2.
FEES 4.3.2
See Notes
- (1) The amount payable by each firm will depend upon the category (or categories) of regulated activities it is engaged in (fee-blocks), and on the amount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in in respect of the FCA and in respect of the PRA FEES 4 Annex 1, while FEES 4 Annex 2 sets out the tariff rates for the relevant financial year.
- (2) Incoming EEA firms, and incoming Treaty firms receive a discount to reflect the reduced scope of the FSA's responsibilities in respect of them. The level of the discount varies from fee-block to fee-block, according to the division of responsibilities between the FSA and Home state regulators for firms in each fee-block (see FEES 4.3.11 G and FEES 4.3.12 R ).
Calculation of periodic fee
FEES 4.3.3
See Notes
The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society) calculated as follows:
- (1) identify each of the tariffs set out in Part 1 of FEES 4 Annex 2 which apply to the business of the firm for the period specified in that annex;
- (2) for each of those tariffs, calculate the sum payable in relation to the business of the firm for that period, applying any minimum fee discount as may be applicable (see FEES 4.3.16 R);
- (3) add together the amounts calculated under (2); and
- (4) apply any applicable payment charge or discount specified in FEES 4.2.4 R, provided that:
Modification for firms with new or extended permissions
FEES 4.3.4
See Notes
- (1) A firm which becomes authorised during the course of a financial year will be required to pay a proportion of the periodic fee which reflects the proportion of the year for which it will have a permission - see FEES 4.2.5 G and FEES 4.2.6 R.
- (2) Similarly a firm which extends its permission so that its business then falls within additional fee blocks will be required to pay a further periodic fee under this section for those additional fee blocks, but discounted to reflect the proportion of the year for which the firm has the extended permission - see FEES 4.2.6 R and FEES 4.2.7 R.
- (3) These provisions apply (with some changes) to incoming EEA firms and incoming Treaty firms.
Amount payable by the Society of Lloyd's
FEES 4.3.5
See Notes
Time of payment
FEES 4.3.6
See Notes
- (1) If the firm's, periodic fee for the previous financial year was at least £50,000, the firm must pay:
- (a) an amount equal to 50% of the periodic fee payable for the previous year, by 30 April in the financial year to which the sum due under FEES 4.2.1 R relates; and
- (b) the balance of the periodic fee due for the current financial year by 1 September in the financial year to which that sum relates.
- (2) If the firm's, periodic fee for the previous financial year was less than £50,000, the firm must pay the periodic fee due in full by 1 August or, if later, within 30 days of the date of the invoice in the financial year to which that sum relates.
- (3) f 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).
Groups of firms
FEES 4.3.7
See Notes
A firm which is a member of a group may pay all of the amounts due from other firms in the same group under FEES 4.2.1 R, if:
- (1) it notifies the FSA in writing of the name of each other firm within the group for which it will pay; and
- (2) it pays the fees, in accordance with this chapter, as a single amount as if that were the amount required from the firm under FEES 4.2.1 R.
FEES 4.3.8
See Notes
FEES 4.3.9
See Notes
If the payment made does not satisfy in full the periodic fees payable by all of the members of the group notified to the FSA under FEES 4.3.7 R, the FSA will apply the sum received among the firms which have been identified in the notification given under FEES 4.3.7R (1) in proportion to the amounts due from them. Each firm will remain responsible for the payment of the outstanding balance attributable to it.
FEES 4.3.10
See Notes
Incoming EEA firms and incoming Treaty firms
FEES 4.3.11
See Notes
FEES 4.3.12
See Notes
For an incoming EEA firm or an incoming Treaty firm, the calculation required by FEES 4.3.3 R is modified as follows:
- (1) the tariffs set out in Part 1 of FEES 4 Annex 2 are applied only to the regulated activities of the firm which are carried on in the United Kingdom; and
- (2) those tariffs are modified in accordance with Part 3 of and, if applicable, Part 3 of FEES 4 Annex 2.
Firms Applying to Cancel or Vary Permission Before Start of Period
FEES 4.3.13
See Notes
- (1) If:
- (a) a firm makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 6.3.15 D (3) (Variation of permission) and SUP 6.4.5 D (Cancellation of permission); an issuer makes an application for de-listing; or a sponsor notifies FSA of its intention to be removed from the list of approved sponsors; and
- (b) the firm, issuer or sponsor makes the application or notification referred to in (a) before the start of the period to which the fee relates;
- FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission, de-listing or removal from the list of approved sponsors, took effect immediately before the start of the period to which the fee relates.
- (2) But (1) does not apply if, due to the continuing nature of the business, the variation, cancellation, de-listing or removal is not to take effect within three months of the start of the period to which the fee relates.
FEES 4.3.14
See Notes
Firms acquiring businesses from other firms
FEES 4.3.15
See Notes
- (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
See Notes
- (1) A firm (other than a firm in (2) or a credit union) in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block in which it is a minimum fee payer. [deleted]
- (2) A firm (other than a credit union) liable to pay only minimum fees in each fee block it is in must pay 100% of the highest total minimum fee payable within any one fee block and must pay at least 50% of the total minimum fee payable in any other fee blocks in which it is a minimum fee payer. [deleted]
- (3) A credit union in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block, other than fee block A.1, in which they are a minimum fee payer. [deleted]
FEES 4.4
Information on which Fees are calculated
- 01/01/2006
FEES 4.4.1
See Notes
FEES 4.4.2
See Notes
FEES 4.4.3
See Notes
FEES 4.4.4
See Notes
FEES 4.4.5
See Notes
FEES 4 Annex 1
Activity groups, tariff bases and valuation dates applicable
- 01/01/2006
See Notes
Part 1 This table shows how the regulated activities for which a firm has permission are linked to activity groups (fee-blocks). A firm can use the table to identify which fee-blocks it falls into based on its permission. |
Activity group | Fee payer falls in the activity group if |
A.1 Deposit acceptors | its permission includes accepting deposits or issuing e-money; BUT DOES NOT include either of the following: effecting contracts of insurance; carrying out contracts of insurance. |
A.2 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. |
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. |
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For e-money issuers: Outstanding balance of e-money liabilities For credit unions: Deposits with the credit union (share capital) |
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LESS the credit union's bank deposits (investments + cash at bank) Note: Only United Kingdom business is relevant for calculating credit unions' MELs. |
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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) |
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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. |
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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; |
less, premiums relating to pension fund management business where the firm owns the investments and there is no transfer of risk; | |
AND the amount of gross technical liabilities (IPRU(INS) Appendix 9.1 - Form 15, line 19) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP; less, the amount of gross technical liabilities relating to pension fund management business where the firm owns the investments and there is no transfer of risk. |
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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. |
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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. |
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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. |
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A.4 | ADJUSTED GROSS PREMIUM INCOME AND MATHEMATICAL RESERVES Except for UK ISPVs: Amount of new regular premium business (yearly premiums including reassurances ceded but excluding cancellations and reassurances accepted), times ten; Plus amounts of new single premium business (total including reassurances ceded but excluding cancellations and reassurances accepted). Group protection business (life and private health insurance) must be included; Less premiums relating to pension fund management business where the firm owns the investments and there is no transfer of risk. For each of the above, business transacted through independent practitioners or tied agents (either single or multi-tie) will be divided by two in calculating the adjusted gross premium income; |
AND the amount of mathematical reserves (IPRU(INS) Appendix 9.1R - Form 14, Line 11) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP; Less mathematical reserves relating to pension fund management business where the firm owns the investment and there is no transfer of risk. Notes: (1) [deleted] (2) Only premiums receivable and mathematical reserves held in respect of United Kingdom business are relevant. (3) For UK ISPVs the tariff base is not relevant and a flat fee set out in FEES 4 Annex 2 is payable. |
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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. |
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A.8 | Not applicable. |
A.9 | GROSS INCOME For operators (including ACDs and managers of unit trusts but excluding operators of a personal pension scheme or a stakeholder pension scheme): gross income from the activity relating to fee-block A.9 is defined as: the amount of the annual charge on funds invested in regulated or unregulated collective investment scheme received or receivable in the latest accounting period (this is calculated as a % of funds invested, typically 1% p.a.); PLUS the front-end or exit charge levied on sales or redemptions of collective investment schemes (typically 4-5% of sales/redemptions) in that same accounting period; |
PLUS any additional initial or management charges levied through a product wrapper such as a PEP or an ISA; BUT EXCLUDING box management profits. For depositaries (including trustees of collective investment schemes and ICVC depositaries): The amount of the annual charge levied on funds in regulated collective investment schemes for which they act as depositary (typically a % of the total funds for which they act as depositary). For operators of a personal pension scheme or a stakeholder pension scheme: The amount of the charges levied on the personal pension scheme or stakeholder pension scheme for which they act as operator: including up-front charges, fund related charges, transaction related charges and periodic charges; but excluding charges made to an investor in respect of third party suppliers; for example, charges for stock broking, borrowing, banking services and charges for arranging third party legal services, surveys or environmental screening in connection with property. Note: Only the gross income corresponding to United Kingdom business is relevant. |
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A.10 | NUMBER OF TRADERS Any employee or agent, who: ordinarily acts within the United Kingdom on behalf of an authorised person liable to pay fees to the FSA in its fee-block A.10 (firms dealing as principal); and who, as part of their duties in relation to those activities of the authorised person, commits the firm in market dealings or in transactions in securities or in other specified investments in the course of regulated activities. |
A.11 | Not applicable. |
A.12 | APPROVED PERSONS The number of persons approved to perform the customer function (CF 30), 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 related to these. |
A.13 | APPROVED PERSONS The number of persons approved to perform the customer function (CF 30), 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 related to these. |
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. |
A.19 | ANNUAL INCOME (a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (eg administration charges, overriders, profit shares) due to the firm in respect of or in relation to insurance mediation activity (or activities which would have been insurance mediation activity if they had been carried out after 13 January 2005) in relation to general insurance contracts or pure protection contracts; Plus (b) in relation to the activities set out in (a), for any insurance mediation activity carried out by the firm for which it receives payment from the insurer on a basis other than that in (a), the amount of premiums receivable on the contracts of insurance resulting from that activity multiplied by 0.07; Plus (c) if the firm is an insurer, in relation to the activities set out in (a), the amount of premiums receivable on its contracts of insurance multiplied by 0.07, excluding those contracts of insurance which: (i) result from insurance mediation activity by another firm, where a payment has been made by the insurer to the firm under (a); or (ii) the insurer reports in, and pays a fee under, the A.4 activity group; or (iii) are not general insurance contracts or pure protection contracts. Notes on annual income: (1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form. (2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of insurance mediation activity that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (eg employees' salaries, overheads) should not be deducted. (3) The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation. (4) Reference to a "firm" above also includes reference to any person who carried out activities which would be insurance mediation activity (in respect of general insurance contracts or pure protection contracts) if they had been carried out after 13 January 2005. |
B. Market operators | Not applicable. |
B. Service companies | Not applicable. |
Part 3 | This table indicates the valuation date for each fee-block. A firm can calculate its tariff data by applying the tariff bases set out in Part 2 with reference to the valuation dates shown in this table. |
Activity group | Valuation date |
IN THIS TABLE, REFERENCES TO SPECIFIC DATES OR MONTHS ARE REFERENCES TO THE LATEST ONE OCCURRING BEFORE THE START OF THE PERIOD TO WHICH THE FEE APPLIES, UNLESS OTHERWISE SPECIFIED - E.G. FOR 2004/05 FEES (1 APRIL 2004 TO 31 MARCH 2005), A REFERENCE TO DECEMBER MEANS DECEMBER 2003. | |
Where a firm's tariff data is in a currency other than sterling, it should be converted into sterling at the exchange rate prevailing on the relevant valuation date. | |
A.1 | For banks: Modified eligible liabilities (MELs), valued at: for a firm which reports monthly, the average of the MELs for October, November and December; for a firm which reports quarterly, the MELs for December. For e-money issuer: MELs, valued at the end of the financial year ended in the calendar year ending 31 December. For credit unions: MELs, valued at December or as disclosed by the most recent annual return made prior to that date. For building societies: MELs, valued at the average of the MELs for October, November and December. |
A.2 | Number of mortgages, 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. |
FEES 4 Annex 2
Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2008 to 31 March 2009
See Notes
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 | |
>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 | 0 | |
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 | |
>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 () | 0 | |
million of GTL | Fee (/m or part m of GTL) | |
0 - 1 | 0 | |
>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 () | 0 | |
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 | 0 | |
>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 | 0 | |
>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 () | 0 | |
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 | 0 | |
>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 | 0 | |
>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%. |
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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 | 0 | |
>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 | 0 | |
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 | 0 | |
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 | 0 | |
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%. |
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A.14 | Minimum fee () | 1,335.00 |
No. of persons | Fee (/person) | |
0 - 1 | 0 | |
2 | 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 | 0 | |
>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 | 0 | |
>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 |
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 | 5% | 100 |
A.9 | 5% | 100 |
A.10 | 10% | 100 |
A.12 | 10% | 100 |
A.13 | 10% | 100 |
A.19 | 10% | 100 |
The modifications to fee tariffs payable by an incoming EEA firm or an incoming Treaty firm 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 2007/8with 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 10. | |
(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 2007 to 31 March 2008
See Notes
Fee type | Fee amount (including VAT) | |
Transaction charge | Number of transactions per annum | Fee per transaction (inc. VAT) |
For the first 1,000 | 0p | |
1,001 - 1,000,000 | 3p | |
1,000,001 - 4,000,000 | 2.75p | |
4,000,001 - 8,000,000 | 2.5p | |
8,000,001 - 13,000,000 | 2.25p | |
13,000,001 - 20,000,000 | 2p | |
>20,000,000 | 1.75p | |
Firms using the Transaction Reporting System will be additionally invoiced for: | ||
(a) | [deleted] | |
(b) | [deleted] | |
(c) | an annual enrolment fee of £235 (including VAT) per registration held on 1 April each year for users of the FSA's Transaction Reporting System. |
FEES 4 Annex 4
Periodic fees in relation to collective investment schemes payable for the period 1 April 2008 to 31 March 2009
See Notes
Scheme type | Basic fee (£) | Total funds/sub-funds aggregate | Fund factor | Fee (£) |
ICVC, AUT, Section 264 of the Act Section 270 of the Act |
640 | 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 | 2,620 | 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 |
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 2008 to 31 March 2009
See Notes
Name of Designated Professional Body | Amount payable | Due date |
The Law Society of England & Wales | £70,515 | 30 April 2008 |
£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 |
(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 2008 to 31 March 2009
See Notes
In this Annex: |
- the term recognised body includes a body which was a recognised investment exchange or a recognised clearing house recognised under the Financial Services Act 1986 and which is a recognised body as a result of Regulation 9 of the Recognition Requirements Regulations; and |
- the term recognition order includes a recognition order made by the FSA under section 37 or section 39 of the Financial Services Act 1986 or a recognition order made by the Treasury under section 40 of the Financial Services Act 1986. |
Name of UK recognised body | Amount payable | Due date |
Euroclear UK & Ireland Limited | £261,000 | 30 April 2008 |
£228,000 | 1 September 2008 | |
ICE Futures Europe Ltd | £177,000 | 30 April 2008 |
£208,000 | 1 September 2008 | |
LIFFE Administration and Management | £274,500 | 30 April 2008 |
£325,500 | 1 September 2008 | |
LCH Clearnet Limited | £285,500 | 30 April 2008 |
£276,500 | 1 September 2008 | |
The London Metal Exchange Limited | £173,500 | 30 April 2008 |
£195,500 | 1 September 2008 | |
London Stock Exchange plc | £349,000 | 30 April 2008 |
£190,000 | 1 September 2008 | |
SWX Europe Ltd | £69,500 | 30 April 2008 |
£84,500 | 1 September 2008 | |
EDX London Ltd | £52,000 | 30 April 2008 |
£44,000 | 1 September 2008 | |
PLUS Markets Plc | £75,000 | 30 April 2008 |
£79,000 | 1 September 2008 | |
European Central Counterparty Limited | £250,000 | 30 April 2008 |
ICE Clear Europe Limited | £250,000 | 30 April 2008 |
Any other UK recognised investment exchange recognised as such by a recognition order made in the period | £150,000 | 30 days after the date on which the recognition order is made |
Any other UK recognised clearing house recognised as such by a recognition order made in the period | £250,000 | 30 days after the date on which the recognition order is made |
Name of overseas recognised body | Amount payable | Due date |
Cantor Financial Futures Exchange | £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
See Notes
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. |
Issuer | Fee amount |
Issuers of securitised derivatives | £3,425 |
Issuers of depositary receipts and global depositary receipts | £4,110 |
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 | 0 |
>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
See Notes
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. |
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 |
Fee payable | |
Minimum fee (£) | 2,740 |
£ million of Market Capitalisation | Fee (£/£m or part £m of Market Capitalisation) |
0 - 100 | 0 |
>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
See Notes
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 |
FEES 5
Financial Ombudsman Service Funding
FEES 5.1
Application and Purpose
- 01/01/2006
Application
FEES 5.1.1
See Notes
This chapter applies to:
- (1) every firm which is subject to the Compulsory Jurisdiction 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
See Notes
FEES 5.1.3
See Notes
References in this chapter to "firms" are to be construed, where relevant, as including:
- (1) in accordance with the Ombudsman Transitional Order, unauthorised persons subject to the Compulsory Jurisdiction in relation to relevant complaints (see Transitional Provisions 6 and 7 of DISP); and
- (2) as a result of section 226 of the Act, unauthorised persons who were formerly firms in respect of complaints about acts or omissions which occurred at the time when they were firms, provided that the Compulsory Jurisdiction rules were in force in relation to the activity in question.
- 01/01/2006
FEES 5.1.3A
See Notes
- 06/04/2007
Exemption
FEES 5.1.4
See Notes
FEES 5.1.4A
See Notes
FEES 5.1.5
See Notes
- 01/01/2006
FEES 5.1.6
See Notes
- 01/01/2006
Purpose
FEES 5.1.7
See Notes
FEES 5.1.8
See Notes
- 06/04/2007
FEES 5.2
Introduction
- 01/01/2006
FEES 5.2.1
See Notes
- 06/04/2007
- Past version of FEES 5.2.1 before 06/04/2007
FEES 5.2.2
See Notes
Section 234 of the Act (Industry Funding) enables the FSA to require the payment to it or to FOS Ltd, by firms or any class of firm, of specified amounts (or amounts calculated in a specified way) to cover the costs of:
- (1) the 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
See Notes
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
See Notes
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
See Notes
- 01/01/2006
FEES 5.2.3A
See Notes
- 06/04/2007
FEES 5.2.4
See Notes
- 01/01/2006
FEES 5.2.5
See Notes
- 01/01/2006
FEES 5.2.6
See Notes
- 01/01/2006
FEES 5.2.7
See Notes
FEES 5.3
The general levy
- 01/01/2006
FEES 5.3.1
See Notes
Each financial year, the FSA and FOS Ltd will consult on the amount of the annual budget of the Financial Ombudsman Service which is to be raised by the general levy.
FEES 5.3.2
See Notes
- 01/01/2006
FEES 5.3.3
See Notes
- 01/01/2006
FEES 5.3.4
See Notes
FEES 5.3.5
See Notes
- 01/01/2006
FEES 5.3.6
See Notes
- 01/01/2006
FEES 5.3.7
See Notes
FEES 5.3.8
See Notes
A firm's general levy is calculated as follows:
- (1) identify each of the tariff bases set out in Part 2 of FEES 5 Annex 1 which apply to the relevant business of the firm for the relevant year;
- (2) for each of those tariff bases, calculate the sum payable in relation to the relevant business of the firm for that year;
- (3) add together the amounts calculated under (2).
FEES 5.3.9
See Notes
- 01/01/2006
FEES 5.3.10
See Notes
FEES 5.4
Information requirement
- 01/01/2006
FEES 5.4.1
See Notes
- (1) A firm must provide the FSA by the end of February each year (or, if the firm has become subject to the Financial Ombudsman Service part way through the financial year, by the date requested by the FSA) with a statement of the total amount of relevant business (measured in accordance with the appropriate tariff base(s)) which it conducted, as at or in the year to 31 December of the previous year as appropriate, in relation to the tariff base for each of the relevant industry blocks set out in part 2 of FEES 5 Annex 1.
- (2) Paragraph (1) does not apply if the firm pays a general levy on a flat fee basis only.
- (3) If a firm cannot provide a statement of the total amount of relevant business as required by FEES 5.4.1 R, it must provide the best estimate of the amount of relevant business that it conducted.
- (4) For the purpose of FEES 5.4.1 R, references to relevant business for a firm which falls in industry block 16 or 17 and which so elects under part 2 of FEES 5 Annex 1, are references to the firm's total amount of annual income reported in accordance with Part 2 of FEES 4 Annex 1.
- (5) If a firm does not submit a complete statement by the date on which it is due in accordance with this rule and any prescribed submission procedures:
- (a) the firm must pay an administrative fee of 250 (but not if it is already subject to an administrative fee under FEES 4 Annex 2, Part 1 or FEES 6.5.16 R for the same financial year); and
- (b) the general levy and any supplemental levy will be calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10 (or, if a firm has become subject to the Financial Ombudsman Service part way through the financial year, on the basis of the information provided to FSA for the purposes of FEES 4.4.2 R) or on any other reasonable basis, making such adjustments as seem appropriate in subsequent levies once the true figures are known.
FEES 5.4.2
See Notes
- 28/08/2007
- Past version of FEES 5.4.2 before 28/08/2007
FEES 5.4.3
See Notes
- 01/01/2006
FEES 5.4.4
See Notes
FEES 5.5
Case fees
- 01/01/2006
Standard case fee
FEES 5.5.1
See Notes
FEES 5.5.2
See Notes
- 01/01/2006
FEES 5.5.2A
See Notes
- 06/04/2007
FEES 5.5.3
See Notes
- 01/01/2006
FEES 5.5.4
See Notes
FEES 5.5.5
See Notes
- 01/01/2006
Special case fees: complaints from small businesses
FEES 5.5.6
See Notes
Special case fees: firms which cease to be authorised and persons which cease to be licensees
FEES 5.5.7
See Notes
FEES 5.5.7A
See Notes
Special case fees: relevant complaints against persons who were subject to a former scheme
FEES 5.5.8
See Notes
FEES 5.5.9
See Notes
- 01/01/2006
Special case fees for 2001/02
FEES 5.5.10
See Notes
FEES 5.5.11
See Notes
- 01/01/2006
FEES 5.5.12
See Notes
FEES 5.5.13
See Notes
- 01/01/2006
FEES 5.5.14
See Notes
- 01/01/2006
Case fee exemption
FEES 5.5.15
See Notes
FEES 5.5.16
See Notes
- 06/07/2006
FEES 5.6
The supplementary levy
- 01/01/2006
FEES 5.6.1
See Notes
- 01/01/2006
FEES 5.6.2
See Notes
- 01/01/2006
FEES 5.6.3
See Notes
- 01/01/2006
FEES 5.6.4
See Notes
- 01/01/2006
FEES 5.6.5
See Notes
- 01/01/2006
FEES 5.6.6
See Notes
- 01/01/2006
FEES 5.6.7
See Notes
- 01/01/2006
FEES 5.7
Payment
- 01/01/2006
FEES 5.7.1
See Notes
FEES 5.7.2
See Notes
- 06/04/2007
- Past version of FEES 5.7.2 before 06/04/2007
FEES 5.7.3
See Notes
- 01/01/2006
FEES 5.7.4
See Notes
- 01/01/2006
FEES 5.8
Joining the Financial Ombudsman Service
- 01/01/2006
FEES 5.8.1
See Notes
FEES 5.9
Leaving the Financial Ombudsman Service
- 01/01/2006
FEES 5.9.1
See Notes
- 01/01/2006
FEES 5.9.1A
See Notes
FEES 5.9.2
See Notes
FEES 5.9.3
See Notes
- 06/04/2007
FEES 5 Annex 1
Annual Fees Payable in Relation to 2008/09
See Notes
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 | 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 | 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. | 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 |
4 | [not used] |
5 | The industry blocks in the table are based on the equivalent activity groups set out in Part 1 of FEES 4 Annex 1. |
6 | Where the tariff base in the table is defined in similar terms as that for the equivalent activity group in Part 2 of FEES 4 Annex 1, it must be calculated in the same way as that tariff base - taking into account only the firm's relevant business. |
Table: Standard case fees and special case fees
Compulsory jurisdiction - case fee table | ||
case fee | ||
standard case fee | 450 | (for the fourth chargeable case and any subsequent chargeable case in this financial year 2008/09) |
special case fee | 450 | (for the fourth chargeable case and any subsequent chargeable case in this financial year 2008/98) |
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 |
Table: Consumer credit jurisdiction - standard case fee
Consumer credit jurisdiction - case fee table | ||
case fee | ||
standard case fee | 450 | (for the fourth chargeable case and any subsequent chargeable case in this financial year 2008/09) |
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 | standard case fee and special case fee* | |
1V | deposit acceptors, mortgage lenders and administrators, including debit/credit/charge card issuers and electronic money institutions | number of relevant accounts | 0.0178 | 100 | 450 |
2V | VJ participants undertaking insurance activities subject only to prudential regulation | per 1,000 of relevant annual gross premium income | 0.165 | 100 | 450 |
3V | VJ participants undertaking insurance activities subject to prudential and conduct of business regulation | Per 1,000 of relevant adjusted annual gross premium income | 0.073 | 100 | 450 |
6V | intermediaries | n/a | n/a | 60 | 450 |
8V | National Savings & Investments | n/a | n/a | 10,000 | 450 |
9V | Post Office Limited | n/a | n/a | 10,000 | 450 |
10V | Persons not covered by 1V to 8V 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 | n/a | 60 | 450 |
*note on case fees As for the compulsory jurisdiction, VJ participants will only be charged for the fourth and subsequent chargeable case in this financial year 2008/09. |
FEES 6
Financial Services Compensation Scheme Funding
FEES 6.1
Application
- 01/01/2006
FEES 6.1.1
See Notes
FEES 6.1.2
See Notes
(1) Firms which are not participant firms (such as certain types of incoming EEA firms, service companies and ICVCs) are not required to contribute towards the funding of the compensation scheme.
(2) Although a member is a participant firm for the purposes of most provisions of COMP, a member is excluded from the definition of participant firm for the purposes of FEES 6 (see definition of participant firm in Glossary). This is because the fees levied in relation to the carrying on of insurance market activities by members will be imposed on Society rather than individually on each member (see FEES 6.3.24 R).
Purpose
FEES 6.1.3
See Notes
General structure
FEES 6.1.4
See Notes
FEES 6.1.5
See Notes
FEES 6.1.6
See Notes
FEES 6.1.7
See Notes
FEES 6.1.8
See Notes
The management expenses levy
FEES 6.1.9
See Notes
FEES 6.1.10
See Notes
FEES 6.1.11
See Notes
FEES 6.1.13
See Notes
The compensation costs levy
FEES 6.1.14
See Notes
FEES 6.1.15
See Notes
FEES 6.1.16
See Notes
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
See Notes
- 01/04/2008
Incoming EEA firms
FEES 6.1.17
See Notes
FEES 6.2
Exemption
- 01/01/2006
FEES 6.2.1
See Notes
FEES 6.2.2
See Notes
- 01/01/2006
FEES 6.2.3
See Notes
- 01/01/2006
FEES 6.2.4
See Notes
FEES 6.2.5
See Notes
FEES 6.2.6
See Notes
FEES 6.2.7
See Notes
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
See Notes
FEES 6.3
The FSCS's power to impose levies
- 01/01/2006
General limits on levies
FEES 6.3.1
See Notes
FEES 6.3.2
See Notes
FEES 6.3.3
See Notes
FEES 6.3.4
See Notes
Limits on compensation costs levies on sub-classes and classes
FEES 6.3.5
See Notes
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
See Notes
Management of funds
FEES 6.3.11
See Notes
The FSCS must hold any amount collected from a specific costs levy or compensation costs levy to the credit of the 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
See Notes
FEES 6.3.13
See Notes
FEES 6.3.14
See Notes
FEES 6.3.15
See Notes
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.
FEES 6.3.15A
See Notes
- 01/04/2008
FEES 6.3.16
See Notes
FEES 6.3.17
See Notes
FEES 6.3.18
See Notes
FEES 6.3.19
See Notes
FEES 6.3.20
See Notes
- (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
See Notes
FEES 6.3.21
See Notes
Adjustments to calculation of levy shares
FEES 6.3.22
See Notes
Remission of levy or additional administrative fee
FEES 6.3.23
See Notes
Levies on the Society of Lloyd's
FEES 6.3.24
See Notes
FEES 6.4
Management expenses
- 01/01/2006
Obligation on participant firm to pay
FEES 6.4.1
See Notes
Limit on management expenses
FEES 6.4.2
See Notes
Participant firm's share
FEES 6.4.3
See Notes
FEES 6.4.4
See Notes
Base costs levy
FEES 6.4.5
See Notes
Unless FEES 6.3.22 R applies, the FSCS must calculate a participant firm's share of a base costs levy by:
- (1) identifying the base costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme, but has not yet levied;
- (2) calculating the amount of the participant firm's regulatory costs as a proportion of the total regulatory costs relating to all participant firms for the relevant financial year; and
- (3) applying the proportion calculated in (2) to the figure in (1).
Specific costs levy
FEES 6.4.6
See Notes
FEES 6.4.7
See Notes
New participant firms
FEES 6.4.8
See Notes
FEES 6.4.10
See Notes
FEES 6.5
Compensation costs
- 01/01/2006
FEES 6.5.1
See Notes
- 01/01/2006
FEES 6.5.2
See Notes
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
See Notes
FEES 6.5.2B
See Notes
- 01/04/2008
FEES 6.5.2C
See Notes
- 01/04/2008
FEES 6.5.3
See Notes
FEES 6.5.4
See Notes
FEES 6.5.5
See Notes
FEES 6.5.6
See Notes
Sub-classes and tariff bases for compensation cost levies and specific costs levies
FEES 6.5.7
See Notes
FEES 6.5.8
See Notes
New participant firms
FEES 6.5.9
See Notes
Exclusion of new and exempt participant firms
FEES 6.5.12
See Notes
FEES 6.5.13
See Notes
FEES 6.5.14
See Notes
FEES 6.5.15
See Notes
FEES 6.5.16
See Notes
FEES 6.6
Incoming EEA firms
- 01/01/2006
FEES 6.6.1
See Notes