Application, Notification and Vetting Fees

Part

FEES Fees Manual

Chapter

Application, Notification and Vetting Fees

Printed on: 08/05/2024

Rulebook at: 01/07/2013

FEES 3

Application, Notification and Vetting Fees

FEES 3.1

Introduction

01/01/2006

Application

FEES 3.1.1

This chapter applies to every person set out in column 1 of the Table of application, notification and vetting fees in FEES 3.2.7 R and FEES 3.2.7A R.

01/04/2013

FEES 3.1.2

This chapter does not apply to:

(1) an EEA firm that wishes to exercise an EEA right; or
(2) an EEA authorised payment institution; or
(3) an EEA authorised electronic money institution.

01/04/2013

Purpose

FEES 3.1.3

The purpose of this chapter is to set out the appropriate regulator fee paying requirements on the persons set out in FEES 1.1.2R (1).

01/04/2013

FEES 3.1.4

Most of the detail of what fees are payable by the persons referred to in FEES 3.1.3 G is set out in FEES 3 Annex 1 - FEES 3 Annex 10 R.

01/04/2013

FEES 3.1.5

(1) The rates set for authorisation fees represent an appropriate proportion of the costs of the appropriate regulator in processing the application or exercise of Treaty rights.
(2) [deleted]
(3) [deleted]

01/04/2013

FEES 3.1.6

Applications for Part 4A permission (and exercises of Treaty rights) are categorised by the appropriate regulator for the purpose of fee raising as complex, moderately complex and straightforward as identified in FEES 3 Annex 1. This differentiation is based on the permitted activities sought and does not reflect the appropriate regulator's risk assessment of the applicant (or Treaty firm).

01/04/2013

FEES 3.1.7

A potential applicant for Part 4A permission (or Treaty firm) has the opportunity to discuss its proposed application (or exercise of Treaty rights) with the appropriate regulator before submitting it formally. If an applicant for Part 4A permission (or Treaty firm) does so, the appropriate regulator will be able to use that dialogue to make an initial assessment of the fee categorisation and therefore indicate the authorisation fee that should be paid.

01/04/2013

FEES 3.2

Obligation to pay fees

01/01/2006

General

FEES 3.2.1

A person in column (1) of the table in FEES 3.2.7 R and, if applicable, FEES 3.2.7A R as the relevant fee payer for a particular activity must pay to the FCA (in its own capacity or, if the fee is payable to the PRA, in its capacity as collection agent for the PRA) a fee for each application or request for vetting, or request for support relating to compatibility of its systems with appropriate regulator systems, or admission approval made, or notification or notice of exercise of a Treaty right given, or other matter as is applicable to it, as set out or calculated in accordance with the provisions referred to in column (2) of the appropriate table:

(1) in full and without deduction; and
(2) on or before the date given in column (3) of that table.

01/04/2013

FEES 3.2.2

If an application for a Part 4A permission (or exercise of a Treaty right) falls within more than one category set out in FEES 3 Annex 1, only one fee is payable. That fee is the one for the category to which the highest fee tariff applies.

01/04/2013

Method of payment

FEES 3.2.3

(1) Unless (2) or (3) applies, the sum payable under FEES 3.2.1 R must be paid by bankers draft, cheque or other payable order.
(2) The FCA does not specify a method of payment for a person seeking to:

(a) become a recognised body or a designated professional body; or
(b) be added to the list of designated investment exchanges or accredited bodies.

(3) The sum payable under FEES 3.2.1 R by a firm applying for a variation of its Part 4A permission (FEES 3.2.7 R(p) and, if applicable, FEES 3.2.7A R (c)) must be paid by any of the methods described in (1) or by Maestro, Visa Debit or credit card (Visa/Mastercard only). Any payment by a permitted credit card must include an additional 2% of the sum paid.

01/07/2013

FEES 3.2.5

(1) The appropriate authorisation or registration fee is an integral part of an application for, or an application for a variation of, a Part 4A permission or authorisation, registration or variation under the Payment Services Regulations or the Electronic Money Regulations. Any application received by the appropriate regulator 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 55U(4), or section 55H or 55I (as the case may be), of the Act or regulation 5(3) or 12(3) of the Payment Services Regulations or regulation 5 or 12 of the Electronic Money Regulations. Where this is the case, the appropriate regulator 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 appropriate regulator will not consider an application, notification, request for vetting or admission approval until the relevant fee is fully paid. Persons seeking to become a designated professional body have 30 days after the designation order is made to pay the relevant fee.

01/04/2013

FEES 3.2.6

Fees paid under this chapter are not refundable.

01/04/2013

FEES 3.2.7A

Table of application, notification and vetting fees payable to the PRA

(1) Fee payer

(2) Fee payable

Due date

(a)

Any applicant for Part 4A permission (including an incoming firm applying for top-up permission) which includes a PRA-regulated activity

(1)

Unless (2) applies, in respect of a particular application, the highest of the tariffs set out in FEES 3 Annex 1 R 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 R 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 R, part 4.

On or before the notice of exercise is given

(2)

Where a certificate in (1) has been issued no fee is payable.

(c)

A firm applying for a variation of its Part 4A permission or an FCA-authorised person applying to carry on a PRA-regulated activity

(1)

Unless (2) or (3) applies, if the proposed new business of the firm would fall within one or more activity groups specified in Part 1 of FEES 4 Annex 1A or Part 1 of FEES 4 Annex 1B not applicable before the application, the fee is 50% of the highest of the tariffs set out in FEES 3 Annex 1 R which apply to that application.

On or before the date the application is made

(2)

If the only change is that the A.12 activity group tariff applied to the firm's business before the variation and the A.13 activity group will apply after variation, no fee is payable.

(3)

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

(4)

In all other cases, other than applications by credit unions, the fee payable is 125, unless the variation involves only the reduction (and no other increases) in the scope of a Part 4A permission in which case no fee is payable.

(d)

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

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

30 days of the date of the invoice.

(e)

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 PRA 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, 9,250 is payable to the PRA; or

(2)

in the case of an insurance business transfer scheme not involving long term insurance business, 5,000 is payable to the PRA.

The amount payable to the PRA above is collected by the FCA as agent of the PRA.

(f)

Either:

(a))

Unless (2) applies, FEES 3 Annex 6 R.

Where the firm has made an application directly to the appropriate regulator, on or before the date the application is made, otherwise within 30 days after the appropriate regulator notifies the firm that its EEA parent's Home State regulator has requested assistance.

(i)

a firm applying to the appropriate regulator 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 appropriate regulator as EEA consolidated supervisor under the Capital Requirements Regulations 2006) 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 R, but only in respect of that second application.

(ii)

in the case of an application to a Home State regulator other than the appropriate regulator for the use of the Internal Ratings Based approach and the Home State regulator requesting the appropriate regulator's assistance in accordance with the Capital Requirements Regulations 2006, any firm to which the appropriate regulator 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 described in paragraph (o)(ii)of column 1 except in the cases specified in FEES 3 Annex 6 R.

(g)

An applicant for a ceding insurer's waiver.

20,000

On or before the date the application is made.

(h)

A person in respect of which the appropriate regulator has given notice of its intention to itself appoint a skilled person to provide it with a report pursuant to section 166(3)(b) of the Act and SUP 5.2.

Any amount invoiced to the appropriate regulator by a skilled person in relation to any work carried out by that skilled person in connection with its appointment by the appropriate regulator pursuant to section 166(3)(b) of the Act.

Within 30 days of the date of the invoice.

(i)

A person in respect of which the appropriate regulator has given notice of its intention to itself appoint a skilled person to collect or update information pursuant to section 166A(2)(b) of the Act.

(Within 30 days of the date of the invoice.

01/04/2013

FEES 3 Annex 1

Authorisation fees payable

01/01/2006

Part 1 - Authorisation fees payable
For PRA-authorised persons and persons seeking to become PRA-authorised persons, the amount payable to the PRA is 50% of the amount payable under Part 1 and the amount payable to the FCA is 50% of the amount payable under Part 1. The amount payable to the PRA above is collected by the FCA as agent of the PRA.

For FCA-authorised persons and persons seeking to become FCA-authorised persons, the amount payable to the FCA is the amount payable under Part 1, No amount is payable to the PRA.

Application type (see Part 2)

Amount payable

(a)

Credit unions - registration of common bond

200

(b)

Version 1 credit unions - authorisation

300

(c)

Version 2 credit unions - authorisation

1,800

(d)

Straightforward

1,500 (unless otherwise specified in Part 2)

(e)

Moderately complex

5,000 (unless otherwise specified in Part 2)

(f)

Complex

25,000

Part 2 - Complexity Groupings Straightforward Cases

Straightforward cases

Activity grouping

Description

A.3

Friendly societies only

A.4

Friendly societies only

A.10

A firm to the extent it is bidding in emissions auctions

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

Moderately complex cases

Activity grouping

Description

[deleted]

A.2

Home finance providers and administrators.

A.3

UK ISPVs

[deleted]

A.5

Managing agents at Lloyd's

A.7

Fund managers

A.9

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

A.10

Firms dealing as principal, except to the extent the firm is bidding in emissions auctions

Service companies

Complex Cases R

Complex cases

Activity grouping

Description

A.1

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

A.3

Insurers - general (excluding friendly societies and UK ISPVs)

A.4

Insurers - life (excluding friendly societies)

MTF operators

Part 4 - Authorisation Fees for Treaty Firms R

If the Treaty firm wishes to undertake the permitted activities in question through its branch in the United Kingdom, the fee is 50% of the fee that would be payable under FEES 3.2.7 R and/or FEES 3.2.7A R for an applicant for Part 4A 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 and/or FEES 3.2.7A R for an applicant for Part 4A permission.

Part 5 - Activity Groupings R

The activity group definitions are set out in FEES 4 Annex 1A and FEES 4 Annex 1B.

Part 6 - Change of legal status

An application involving only a simple change of legal status for the purposes of FEES 3.2.7 R, FEES 3.2.7A R (a), FEES 3.2.7R (y), FEES 3.2.7R (za), FEES 3.2.7 R (zg) and FEES 3.2.7 R (zh) 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 4A permission or authorisation or registration under the Payment Services Regulations or the Electronic Money Regulations, and

(2)

which is to:

(a)

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

(b)

assume all of the rights and obligations in connection with any of the regulated activities, payment services and electronic money issuance 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.

Part 7 - Change of legal status - sponsors fees

An application involving only a simple change of legal status for the purposes of FEES 3.2.7 R(j) is from an applicant:

(1)

which is a new legal entity intending to carry on the business of an existing sponsor (as defined in the listing rules) in respect of which the FCA does not currently require, and is not proposing to require, remedial action relating to any aspect of its provision of sponsor services); and

(2)

which (subject to any changes required only as a result of the change in legal status) is to:

(a)

assume all of the rights and obligations in connection with any of the sponsor activities of the existing sponsor under the listing rules;

(b)

make no changes to the systems and controls of the existing sponsor which ensure that the existing sponsor can carry out its role as sponsor in accordance with LR 8 (Sponsors: Premium listing);

(c)

have the individuals within the existing sponsor that are engaged in the provision of sponsor services engaged in the same role for the applicant; and

(d)

otherwise continue to comply in all respects with the criteria for approval as a sponsor set out in LR 8.6.5 R.

01/04/2013

FEES 3 Annex 6

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

01/06/2008

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

(1)

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

(2)

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

(3)

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

(4)

Where a request for assistance regarding an Advanced or Foundation IRB application under the Capital Requirements Regulations 2006 has been made to the appropriate regulator as detailed in FEES 3.2.7 R (o) or FEES 3.2.7A R (f), the fees in Table 1 and Table 2 are applicable if any firm referred to in FEES 3.2.7 R (o)(ii) and FEES 3.2.7A R (f)(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 appropriate regulator (in the case of (2) or (3)) or the relevant Home State regulator (in the case of (4)) has already granted permission for the use of the foundation IRB approach at the time of the application then Table 3 applies.

Table 1

Application group

Description of group

Application fee

Advanced IRB ('000)

Foundation IRB ('000)

AMA ('000)

Group 1

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

268

232

181

Table 2

Application group

Description of group

Application fee

Modified eligible liabilities (m)

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

Advanced IRB ('000)

Foundation IRB ('000)

AMA ('000)

Group 2

>40,000

>200

232

198

146

Group 3

>5,000 - 40,000

26 - 200

Group 4

0 - 5,000

0 - 25

(1)

[Deleted]

(2)

For the purposes of Table 2, a firm's A.1 or A10 tariff data for the relevant period will be used to provide the value of modified eligible liabilities or number of traders.

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

Application group

Advanced IRB Application fee ()

Group 1

67,000

Group 2

58,000

Group 3

23,500

Group 4

10,500

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

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

01/04/2013

FEES 3 Annex 9

Special Project Fee for restructuring

01/06/2009

(1) R

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

(a)

if it is in any of the A fee-blocks (as defined in Part 1 of FEES 4 Annex 1A in respect of the FCA and Part 1 of FEES 4 Annex 1B in respect of the PRA); or

(b)

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

(c)

if it is a recognised investment exchange; or

(d)

[deleted]

(e)

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

(2) R

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

(a)

raising additional capital; or

(b)

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

(i) mergers or acquisitions;

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

(iii) reattribution.

(3) R

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

(4) R

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

(5) R

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

(6) R

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

(a)

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

(b)

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

(7) R

In (6):

(a)

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

(b)

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

(7A)R

The FCA and the PRA will levy separate SPFRs. The use of the term "appropriate regulator" in FEES 3 Annex 9R refers to the regulator levying the SPFR.

(8) R

No SPFR is payable to an appropriate regulator:

(a)

if the amount calculated in accordance with (9) in relation to the regulatory work conducted by the appropriate regulator totals less than 50,000; or

(b)

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

(9) R

The SPFR for the appropriate regulator is calculated as follows:

(a)

Determine the number of hours, or part of an hour, taken by the appropriate regulator, or, if applicable, both the FCA and PRA in relation to regulatory work conducted as a consequence of the activities referred to in (2) or (6).

(b)

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

(c)

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

(d)

The resulting figure is the fee.

(e)

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

(10) R

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

(11) R

Table of FCA hourly rates:

FCA pay grade

Hourly rate ()

Administrator

Associate

Technical Specialist

100

Manager

110

Any other person employed by the FCA

160

(11)AR

Table of PRA hourly rates:

PRA pay grade

Hourly rate (£)

Administrator

Associate

Technical Specialist

100

Manager

110

Any other person employed by the PRA

160

(12) G

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

(13) G

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

(14) G

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

01/04/2013

FEES 3 Annex 10

Fees payable for authorisation as an authorised electronic money institution or registration as a small electronic money institution or variation thereof, including notification fees, in accordance with the Electronic Money Regulations

01/06/2012

Authorisation, registration and variation fees payable

Application type for authorisation, registration, variation or notification under Part 2 of the Electronic Money Regulations

Amount payable

(1)

small electronic money institution

1,000

(2)

authorised electronic money institution

5,000

(3)

electronic money institution - where, at the time the application is made, the applicant intends to use agents

3 for each agent registered with the FCA at the time of application.
This fee is in addition to any fees due under paragraph (1) or (2) of this table.

(4)

electronic money institution - where, during the course of the FCA financial year (12 months ending 31 March), the firm notifies the FCA of any changes to the list of agents it has registered since its authorisation

3 for each change notified to the FCA during the FCA financial year.
No fee is due under paragraph (4) if the total number of notifications to the FCA during the FCA financial year numbers 100 or less.

01/04/2013

FEES 3 Annex 11

Guidance on fees due under FEES 3.2.7R and FEES 3.2.7AR

01/04/2013

The following table sets out guidance on how a firm liable to pay a fee under both FEES 3.2.7 R (s) and FEES 3.2.7 R (ze) in respect of fees payable to the FCA and FEES 3.2.7AR(e) and FEES 3.2.7AR(d) in respect of fees payable to the PRA for the same transaction should expect to be treated.

Firms liable under both FEES 3.2.7R(s) and FEES 3.2.7R(ze) in respect of fees payable to the FCA and FEES 3.2.7AR (e) and FEES 3.2.7AR(d) in respect of fees payable to the PRA

(1)

The transferor in insurance business transfer schemes is liable to pay the fee set out in FEES 3.2.7 R (s) and/or FEES 3.2.7AR(e). However, it may also be liable to pay the Special Project Fee for restructuring set out in FEES 3.2.7 R (ze) and/or FEES 3.2.7AR(d), calculated in accordance with FEES 3 Annex 9. It is possible then for a firm to have to pay two types of fees in respect of the same insurance business transfer scheme.

(2)

Where the situation described in (1) arises, the appropriate regulator will consider whether to reduce or remit a fee under FEES 2.3 (Relieving Provisions).

01/04/2013