FEES 4

Periodic fees

FEES 4.1

Introduction

Application

FEES 4.1.1

See Notes

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

Purpose

FEES 4.1.2

See Notes

handbook-guidance
The purpose of this chapter is to set out the requirements on firms and others to pay periodic fees and transaction reporting fees in certain circumstances.

Background

FEES 4.1.3

See Notes

handbook-guidance
Most of the detail of the periodic fees that are payable by firms is set out in FEES 4 Annexes 1-8. Most of the provisions of the Annexes will vary from one financial year to another. Accordingly fresh FEES 4 Annexes will come into force, following consultation, for each financial year.

FEES 4.1.4

See Notes

handbook-guidance
  1. (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. (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

handbook-guidance
The Society of Lloyd's, which has permission under section 315(2) of the Act (The Society: authorisation and permission), has its own fee block.

FEES 4.1.6

See Notes

handbook-guidance
The FSA will allocate penalties received for the benefit of relevant fee payers by way of a permitted deduction specified in FEES 4 Annex 2, or in the case of listed issuers, as notified to issuers annually, for the relevant year.

FEES 4.1.7

See Notes

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

FEES 4.2

Obligation to pay periodic fees

General

FEES 4.2.1

See Notes

handbook-rule

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. (1) in full and without deduction (unless permitted or required by a provision in FEES); and
  2. (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

handbook-guidance
  1. (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. (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

handbook-guidance
The FSA will issue invoices to firms and other fee payers and expects to do so at least 30 days before the dates on which payments fall due under FEES 4.2.1 R.

Method of payment

FEES 4.2.4

See Notes

handbook-rule
  1. (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. (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

handbook-guidance
The FSA expects a recognised body or a designated professional body will generally pay their respective fees by electronic credit transfer.

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

FEES 4.2.6

See Notes

handbook-rule
  1. (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:
    1. (a) firms (other than ICVCs and UCITS qualifiers) in accordance with FEES 4.2.7 R and FEES 4.2.8 R;
    2. (b) for all other fee payers in column (1) of the table in FEES 4.2.11 R, in accordance with the table below.
  1. (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

handbook-rule

A firm (other than and ICVC or UCITS qualifier) which becomes authorised, or whose permission is extended, during the course of the financial year must pay a fee which is calculated by:

  1. (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:
    1. (a) the A.13 activity group if, before the variation, the A.12 activity group applied to the firm's business; or
    2. (b) the A.12 activity group if, before the variation, the A.13 activity group applied to the firm's business;
  2. (2) calculating the amount for each of those tariffs which is the higher of:
    1. (a) the minimum fee specified for the tariff; and
    2. (b) the result of applying the tariff to the projected valuation, for its first year (as provided to the FSA in the course of the firm's application), of the business to which the tariff relates (or, where relevant, the number of approved persons immediately after the permission is given);
  3. (3) adding together the amounts calculated under (2); and
  4. (4) modifying the result as indicated by the table in FEES 4.2.6 R.

FEES 4.2.7A

See Notes

handbook-guidance
Projected valuations for a firm's first year will be collected for the 12 month period beginning with the date a firm becomes authorised, or the date permission is extended. That information will be used to calculate the periodic fee for the remainder of the financial year in which the firm was authorised or its permission was extended (adjusted in accordance with FEES 4.2.7 R) and to calculate the periodic fee for the following financial year.

FEES 4.2.8

See Notes

handbook-rule
In relation to an incoming EEA firm or an incoming Treaty firm the modification provisions of FEES 4.2.7 R apply only in relation to the relevant regulated activities of the firm, which are passported activities or Treaty activities and which are carried on in the United Kingdom.

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

FEES 4.2.9

See Notes

handbook-guidance

The FSA will not refund periodic fees if, after the start of the period to which they relate:

  1. (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. (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

handbook-rule

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. (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. (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

handbook-rule

Table of periodic fees

Note: Sponsors on the list of approved sponsors as at 1 April each year will be liable for the full year's annual fee unless FEES 4.3.13 R applies.

FEES 4.3

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

FEES 4.3.1

See Notes

handbook-rule

The periodic fee payable by a firm (except an ICVC or a UCITS qualifier) is:

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

FEES 4.3.2

See Notes

handbook-guidance
  1. (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. (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

handbook-rule

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

  1. (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. (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. (3) add together the amounts calculated under (2); and
  4. (4) apply any applicable payment charge or discount specified in FEES 4.2.4 R, provided that:
    1. (a) for payment by direct debit, successful collection of the amount due is made at the first attempt by the FSA; or
    2. (b) for payment by credit transfer, the amount due is received by the FSA on or before the due date.

Modification for firms with new or extended permissions

FEES 4.3.4

See Notes

handbook-guidance
  1. (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. (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. (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

handbook-rule
The periodic fee referred to in FEES 4.3.1 R in relation to the Society is specified against its name in FEES 4 Annex 2.

Time of payment

FEES 4.3.6

See Notes

handbook-rule
  1. (1) If the firm's, periodic fee for the previous financial year was at least £50,000, the firm must pay:
    1. (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
    2. (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. (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. (3) If a firm has applied to cancel its Part IV permission in the way set out in SUP 6.4.5 D (Cancellation of permission), then (1) and (2) do not apply but it must pay the total amount due when the application is made.
  4. (4) If the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission in the way set out in ENF 5 (Cancellation of Part IV permission on the FSA's own initiative), then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

Groups of firms

FEES 4.3.7

See Notes

handbook-rule

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. (1) it notifies the FSA in writing of the name of each other firm within the group for which it will pay; and
  2. (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

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

FEES 4.3.9

See Notes

handbook-guidance

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

handbook-guidance
If a firm pays its fees through an agent outside the scope of FEES 4.3.7 R, the firm is responsible for ensuring that the FSA is informed that the sum being paid is for that firm's periodic fees.

Incoming EEA firms and incoming Treaty firms

FEES 4.3.11

See Notes

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

FEES 4.3.12

See Notes

handbook-rule

For an incoming EEA firm or an incoming Treaty firm, the calculation required by FEES 4.3.3 R is modified as follows:

  1. (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. (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

handbook-rule
  1. (1) If:
    1. (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
    2. (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;
  2. 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.
  3. (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

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

Firms acquiring businesses from other firms

FEES 4.3.15

See Notes

handbook-rule
  1. (1) This rule applies if a firm (A) acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise, in relation to which a periodic fee would have been payable by B.
  2. (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. (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

handbook-rule
  1. (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. (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. (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

FEES 4.4.1

See Notes

handbook-rule
A firm (other than the Society) must notify to the FSA the value (as at the valuation date specified in Part 3 of FEES 4 Annex 1) of each element of business on which the periodic fee payable by the firm is to be calculated.

FEES 4.4.2

See Notes

handbook-rule
A firm (other than the Society) must send to the FSA in writing the information required under FEES 4.4.1 R as soon as reasonably practicable, and in any event within two months, after the date specified as the valuation date in Part 3 of FEES 4 Annex 1.

FEES 4.4.3

See Notes

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

FEES 4.4.4

See Notes

handbook-guidance
In most cases a firm will provide the information required by this section as part of its compliance with the provisions of SUP. To the extent that the FSA does not obtain sufficient, or sufficiently detailed, information it may seek this by using its general information gathering powers (see SUP 2 (Information gathering by the FSA on its own initiative)).

FEES 4.4.5

See Notes

handbook-rule
For an incoming EEA firm or an incoming Treaty firm, the information required under FEES 4.4 is limited to the regulated activities of the firm which are carried on in the United Kingdom.

FEES 4 Annex 1

Activity groups, tariff bases and valuation dates applicable

See Notes

handbook-rule

FEES 4 Annex 2

Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2007 to 31 March 2008

See Notes

handbook-rule
Part 1
This table shows the tariff rates applicable to each fee block Part 2
This table shows the permitted deductions that apply

FEES 4 Annex 3

Transaction reporting fees

Transaction reporting fees for the period from 1 April 2007 to 31 March 2008

See Notes

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

FEES 4 Annex 4

Periodic fees in relation to collective investment schemes payable for the period 1 April 2007 to 31 March 2008

See Notes

handbook-rule
Part 1 - Periodic fees payable Fees are charged according to the number of funds or sub-funds operated by a firm as at 31 March 2007. Where a new collective investment scheme becomes authorised during a year, fees are charged according to the number of funds or sub-funds operated by a firm as at the date of authorisation. Where more than one fund or sub-fund is operated the number of funds (not including the umbrella or parent fund) produces a 'fund factor' in accordance with the table above which is then applied to a basic fee to produce one total fee per operator. Fund factors are applied per operator rather than per scheme so that the fees relate to the number of funds rather than the number of schemes. This means that, for example, an authorised fund manager of three schemes pays the same as an operator or authorised fund manager of one scheme with three sub-funds (as only the sub-funds are counted).
Schemes set up under section 264 of the Act are charged according to the number of funds or sub-funds which a firm is operating and marketing into the UK as at 31 March immediately before the start of the period to which the fee applies. For example, for 2007/08 fees a reference to 31 March means 31 March 2007.

FEES 4 Annex 5

Periodic fees for designated professional bodies payable in relation to the period 1 April 2007 to 31 March 2008

See Notes

handbook-rule
Table. Fees payable by Designated Professional BodiesNotes
(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 2007 to 31 March 2008

See Notes

handbook-rule
Part 1 - Periodic fees for UK recognised bodies Part 2 - Periodic fees for overseas recognised bodies

FEES 4 Annex 7

Periodic fees in relation to the Listing Rules for the period 1 April 2007 to 31 March 2008

See Notes

handbook-rule
Table 1
Annual fees for issuers of securitised derivatives, depositary receipts and global depositary receipts
Table 2
Tiered annual fees for all other issuers

FEES 4 Annex 8

Periodic fees in relation to the disclosure rules and transparency rules for the period 1 April 2007 to 31 March 2008

See Notes

handbook-rule
Table 1
Annual fees for non-listed issuers of securitised derivatives, depositary receipts and global depositary receipts
Table 2