Part

FEES Fees Manual

Chapter

CFEB levies

Printed on: 18/05/2024

Rulebook at: 12/10/2010

FEES 7

CFEB levies

FEES 7.1

Application and Purpose

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Application

FEES 7.1.1

handbook-rule
This chapter applies to every person listed in FEES 1.1.2R (5).
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Purpose

FEES 7.1.2

handbook-guidance
The purpose of this chapter is to set out the requirements on the persons listed in FEES 7.1.1 R to pay annual CFEB levies in order to establish and fund the CFEB.
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FEES 7.1.3

handbook-guidance
Section 6A(1) of the Act (Enhancing public understanding of financial matters etc) requires the FSA to establish the CFEB in order to enhance:
(1) the understanding and knowledge of members of the public of financial matters (including the UK financial system); and
(2) the ability of members of the public to manage their own financial affairs.
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FEES 7.1.4

handbook-guidance
Paragraph 12(1) of Part 2 of Schedule 1A to the Act enables the FSA to make rules requiring any authorised persons or payment service providers or class of authorised persons or class of payment service providers to pay to the FSA specified amounts or amounts calculated in a specified way in order to meet a proportion of:
(1) the expenses incurred by the FSA in establishing the CFEB, whenever these were incurred; and
(2) the expenses incurred, or expected to be incurred, by the CFEB in connection with the discharge of the functions described in FEES 7.1.3 G.
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FEES 7.1.5

handbook-guidance
FEES 7 sets out the rules referred to in FEES 7.1.4 G.
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FEES 7.1.6

handbook-guidance
The FSA must have regard to other anticipated sources of funding of the costs described in FEES 7.1.4 G when setting the CFEB levy.
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FEES 7.1.7

handbook-guidance
The amounts to be paid under the CFEB levy may include a component to cover the FSA's expenses in collecting the payments.
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FEES 7.1.8

handbook-guidance
The FSA must pay to the CFEB the amounts that it receives under the CFEB levy apart from amounts in respect of its collection costs (which it may keep).
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FEES 7.1.9

handbook-guidance
Paragraph 7(1) of Part 1 of Schedule 1A to the Act requires the CFEB to adopt an annual budget which has been approved by the FSA.
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FEES 7.1.10

handbook-guidance
This chapter sets out the method by which the CFEB levy will be calculated. Details of the actual levy payable will vary from year to year, depending on the CFEB's annual budget. These details are set out in FEES 7 Annex 1. New details will be prepared and consulted on for each financial year.
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FEES 7.2

The CFEB levy

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Obligation to pay CFEB levy

FEES 7.2.1

handbook-rule
A firm must pay each CFEB levy applicable to it:
(1) in full and without deduction (unless permitted or required by a provision in FEES); and
(2) in accordance with the provisions of FEES 4.3.6 R.
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Calculation of CFEB levy

FEES 7.2.2

handbook-rule
The CFEB levy is calculated as follows:
(1) identify each of the activity groups set out in Part 1 of FEES 7 Annex 1 that apply to the business of the firm for the relevant period (for this purpose, the activity groups are defined in accordance with Part 1 of FEES 4 Annex 1);
(2) for each of those activity groups, calculate the amount payable in the way set out in FEES 7.2.3 R;
(3) add the amounts calculated under (2);
(4) work out whether a minimum fee is payable under Part 2 of FEES 7 Annex 1 and if so how much;
(5) add together the amounts calculated under (3) and (4);
(6) modify the result as indicated by the table in FEES 4.2.6 R and FEES 4.2.7 R (if applicable);
(7) apply any applicable payment charge specified in FEES 4.2.4 R to the amount in (6), provided that:
(a) for payment by direct debit, successful collection of the amount due is made at the first attempt by the FSA; or
(b) for payment by credit transfer, the amount due is received by the FSA on or before the due date;
(8) make the calculations using information obtained in accordance with FEES 4.4.
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FEES 7.2.3

handbook-rule
The amount payable by a firm with respect to a particular activity group is calculated as follows:
(1) calculate the size of the firm's tariff base for that activity group using the tariff base calculations in Part 2 of FEES 4 Annex 1 and the valuation date requirements in Part 3 of FEES 4 Annex 1;
(2) use the figure in (1) to calculate which of the bands set out in column 2 of the table in Part 1 of FEES 7 Annex 1 the firm falls into;
(3) add together the fixed sums, as set out in column 3 of the table in Part 1 of FEES 7 Annex 1, applicable to each band identified under (2);
(4) the amount in (3) is the amount payable by the firm with respect to that activity group.
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FEES 7.2.4

handbook-rule
For the purposes of FEES 7.2.3 R:
(1) a firm may apply the relevant tariff bases and rates to its 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;
(2) for a firm which has not complied with FEES 4.4.2 R (Information on which fees are calculated) for this period, the CFEB levy is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10.
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FEES 7.2.5

handbook-rule
The modifications in Part 3 of FEES 4 Annex 2 apply.
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Amount payable by the Society of Lloyds

FEES 7.2.6

handbook-rule
The CFEB levy in relation to the Society is specified against its activity group in Part 1 of FEES 7 Annex 1.
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FEES 4 rules incorporated into FEES 7 by cross-reference

FEES 7.2.7

handbook-guidance
The Handbook provisions relating to the CFEB levy are meant to follow closely the provisions relating to the payment of periodic fees under FEES 4.3.1 R In the interests of brevity, not all of these provisions are set out again in FEES 7. In some cases, certain FEES 4 rules are applied to the payment of the CFEB levy by individual rules in FEES 7. The rest are set out in the table in FEES 7.2.9 R.
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FEES 7.2.8

handbook-rule
The rules set out in the table in FEES 7.2.9 R and any other rules in FEES 4 included in FEES 7 by cross-reference apply to the CFEB levy in the same way as they apply to periodic fees payable under FEES 4.3.1 R.
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FEES 7.2.9

handbook-rule
Table of rules in FEES 4 that also apply to FEES 7
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FEES 7.2.10

handbook-guidance
References in a FEES 4 rule incorporated into FEES 7 by cross-reference to a periodic fee should be read as being to the CFEB levy. References in a FEES 4 rule incorporated into FEES 7 to fee-paying payment service providers, market operators, service companies, MTF operators, investment exchanges, clearing houses, designated professional bodies or Solvency 2 Implementation fees, Solvency 2 Implementation Flat fees, Solvency 2 Special Project fees and Solvency 2 Special Project Flat fees should be disregarded.
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FEES 7.2.11

handbook-guidance
In some cases, a FEES 4 rule incorporated into FEES 7 in the manner set out in FEES 7.2.7 G will refer to another rule in FEES 4 that has not been individually incorporated into FEES 7. Such a reference should be read as being to the corresponding provision in FEES 7. The main examples are set out in FEES 7.2.12 G.
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FEES 7.2.12

handbook-guidance
Table of FEES 4 rules that correspond to FEES 7 rules
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FEES 7 Annex 1

CFEB levies for the period from 1 April 2010 to 31 March 2011

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Part 1

handbook-rule
This table shows the CFEB levies applicable to each activity group (fee-block)
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