Transitional Provisions and Schedules

Part

FEES Fees Manual

Chapter

Transitional Provisions and Schedules

Printed on: 08/05/2024

Rulebook at: 01/06/2012

Transitional Provisions and Schedules

FEES TP 1

Transitional Provisions

FEES TP 1.1

(1)

(2)
Material to which the transitional provision applies

(3)

(4)
Transitional Provision

(5)
Transitional Provision: dates in force

(6)
Handbook provision: coming into force

FEES 3.2.7 R(p)

A firm does not have to pay a fee if:

2 October 2006 to 5 April 2007

1 June 2006

(1)

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

(a)

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

(b)

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

(i)

personal pension scheme; or

(ii)

rights to or interests in a personal pension scheme, and

(2)

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

(a)

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

(b)

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

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

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

From 6 April 2007 to 30 April 2008

6 April 2007

FEES 4 Annex 1 R Part 3, Activity group A2

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

From 6 April 2007 - 30 April 2008

6 April 2007

FEES 4 Annex 1 R, Activity Group A.2

Any reference to the number of regulated sale and rent back agreements must be read as including any sale and rent back agreement entered into or administered before 1 July 2009, as relevant, which would be a regulated sale and rent back agreement if entered into or administered on or after 1 July 2009.

1 July 2009 to 30 June 2010

1 July 2009

[deleted]

FEES 6.3.1 R

The FSCS must not impose a specific costs levy or a compensation costs levy on a Northern Ireland credit union if that levy relates to a claim against a relevant person that was in default before credit unions day.

From 31 March 2012 indefinitely

For Northern Ireland credit unions 31 March 2012

FEES 7

The information on which the 2010/2011 CFEB levy is based is the information supplied under FEES 4.4 in respect of the 2010/2011 FSA fee year

2010/2011 FSA fee year

Refer to column (5)

01/04/2012

FEES TP 2

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

2.1

Treatment of balances as at 1 April 2008

2.1.1

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

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

2.1.2

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

2.1.3

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

(1)

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

(2)

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

(3)

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

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

2.1.4

(1)

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

(a)

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

(b)

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

(c)

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

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

(2)

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

2.1.5

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

2.1.6

(1)

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

(2)

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

(a)

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

(b)

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

(c)

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

2.1.7

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

2.1.8

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

2.1.9

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

2.1.10

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

2.1.11

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

2.1.12

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

(1)

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

(2)

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

2.1.13

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

2.1.14

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

2.1.15

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

2.1.16

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

2.1.17

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

2.1.18

(1)

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

(2)

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

2.1.19

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

2.1.20

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

2.2

Split of business between life and pensions intermediation and investment intermediation

2.2.1

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

2.2.2

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

2.2.3

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

2.2.4

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

2.2.4A

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

2.2.5

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

2.2.6

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

2.2.7

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

(a)

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

(b)

to FEES TP 2.2.4R.

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

2.3

Incorrect information

2.3.1

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

2.3.2

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

2.3.3

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

2.4

Allocation of recoveries

2.4.1

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

2.4.2

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

2.5

Interpretation

2.5.1

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

2.5.2

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

(1)

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

(2)

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

2.5.3

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

2.5.4

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

2.6

Past defaults

2.6.1

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

(1)

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

(2)

the firm was in default before that date; or

(3)

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

2.7

Transitional provisions for changes to relieving provisions

2.7.1

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

2.8

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

2.8.1

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

2.8.2

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

01/04/2009

FEES TP 3

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

3.1

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

3.1.1

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

3.2

Transitional requirements relating to firms in run off

3.2.1

This rule adjusts the calculation of the tariff base for sub-class B1 (General insurance providers) and sub-class C1 (Life and pensions providers) for the purposes of the FSCS's financial year beginning on 1 April 2010 and for subsequent periods. It applies if the firm is in run-off and has been in run-off since 1 November 2008.

3.2.2

The whole of the levy is calculated by reference to relevant net premium income instead of being split 75:25 between relevant net premium income and eligible gross technical liabilities or mathematical reserves.

3.2.3

A firm is in run-off for these purposes if it has ceased to effect new contracts of insurance, its permission for effecting contracts of insurance has been cancelled, its exclusive remaining business is administering its remaining insurance liabilities and, if it is required to supply one, it has supplied a run-off plan to the FSA under SUP App 2.8.1 R.

3.3

Treatment of pure protection fees in 2010/11

3.3.1

This rule adjusts the calculation of the tariff base for sub-class C2 (Life and pensions intermediation) for the purposes of the FSCS's financial year beginning on 1 April 2010.

3.3.2

If the only activities that a firm carries out in respect of the relevant period that fall into sub-class C2 are in relation to pure protection contracts the firm must exclude all income relating to those activities from the calculation of its tariff base for that sub-class.

3.3.3

This rule does not apply to a firm if its annual eligible income for the relevant period in relation to pure protection contracts equals or exceeds £75,000.

01/04/2010

FEES TP 4

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

4.1

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

4.1.1

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

4.1.2

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

4.1.3

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

30/03/2009

FEES TP 5

Transitional Provisions relating to the Special Project Fee for Restructuring

5.1

Special Project Fee for Restructuring applicable to circumstances before 1 July 2010

5.1.1

This rule relates to the changes to FEES 3 Annex 9 (Special Project Fee for restructuring) made by the Fees (Special Project Fee For Restructuring) (Amendment) Instrument 2010. It deals with a trigger event that occurred or started before 1 July 2010 (an "old trigger event") but which was of a type that was only brought into the definition of trigger event by that instrument. A trigger event means a circumstance or event of a type set out in paragraphs (2) or (6) of that Annex (events or circumstances that trigger liability for the Special Project Fee for restructuring).

5.1.2

An old trigger event is still a trigger event and thus triggers liability for the fee. However any regulatory work conducted before 1 July 2010 as a consequence of an old trigger event is not taken into account for the purposes of the calculation of the fee (including the floor in paragraph (8)(a) of FEES 3 Annex 9). Likewise any fees and disbursements invoiced to the FSA in respect of services performed for the FSA in relation to assisting the FSA in performing such regulatory work are not included to the extent that the invoice relates to the period before 1 July 2010.

5.1.3

For example, say that a firm goes into administration before 1 July 2010. Say that the administration did not come within the list of events that triggered liability for the fee before 1 July 2010. The fee is still potentially payable. However the fee will not cover work carried out by the FSA before 1 July 2010. The same applies even if the administration started before 1 June 2009, when the fee first came into force.

01/07/2010

FEES TP 6

Transitional arrangements in relation to the introduction of the Electronic Money Regulations

6.1

Introduction

6.1.1

FEES TP 6 deals with transitional arrangements relating to the introduction of the Electronic Money Regulations in 2011.

6.2

Application fees

6.2.1

Under regulation 74 of the Electronic Money Regulations a person who before 30th April 2011 issued electronic money in accordance with a Part IV permission may notify the FSA that it wishes to be authorised as an authorised electronic money institution or to be registered as a small electronic money institution. This covers the category of firm called an ELMI. That category is abolished by the Electronic Money Regulations.

6.2.2

No fee under FEES 3 is payable for that notification.

6.2.3

Before it was amended by the Electronic Money Regulations, article 9C of the Regulated Activities Order allowed a small electronic money issuer to obtain a certificate from the FSA that allowed it to issue electronic money without being authorised. Regulation 76 of the Electronic Money Regulations applies to such an issuer. Such an issuer can apply under the Electronic Money Regulations to become an authorised electronic money institution or to be registered as a small electronic money institution. If it does, a fee is payable under FEES 3 in the same way as it is for any other new application.

6.3

Periodic fees

6.3.1

A person subject to the transitional arrangements in regulation 74 of the Electronic Money Regulations will be deemed to be an authorised electronic money institution during the transitional period applicable to it. It will also retain its Part IV permission in relation to electronic money.

6.3.2

A person subject to those transitional arrangements will be liable for the periodic fees payable by an authorised electronic money institution.

6.3.3

(1)

This rule deals with periodic fees payable under FEES 4.3 by a person subject to the transitional regime in regulation 74 of the Electronic Money Regulations.

(2)

The fees are calculated as if the person had been an authorised electronic money institution from the beginning of the FSA's financial year 2011/12.

(3)

The fees for the FSA's financial year 2011/12 are based on information supplied by the person before the periodic fee becomes payable.

(4)

If the person has notified the FSA that it wishes to be registered as a small electronic money institution and it is registered as a small electronic money institution under regulation 74 during a financial year of the FSA then, for the purpose of the periodic fees for that financial year, it is treated as remaining as an authorised electronic money institution. Therefore no periodic fee is payable for that financial year in its capacity as a small electronic money institution.

6.3.4

If the transitional period under the Electronic Money Regulations comes to an end during a financial year of the FSA without the person being included by the FSA in the register as an authorised electronic money institution or as a small electronic money institution, periodic fees due at the start of that financial year must be paid immediately after the end of that transitional period.

6.3.5

(1)

This rule deals with periodic fees payable under FEES 4.3 by a person subject to the transitional regime in regulation 76 of the Electronic Money Regulations.

(2)

Such an issuer is treated as a small electronic money institution. However the periodic fee is the same as the periodic fee for fee block G4 not fee block G11.

(3)

If the person has notified the FSA that it wishes to be registered as a small electronic money institution and it is so registered during a financial year of the FSA, then while the transitional period under regulation 76 is still current in any part of that financial year, for the purpose of the periodic fees for that financial year, it is treated as remaining as a small electronic money institution.

(4)

If the person has notified the FSA that it wishes to be authorised as an authorised electronic money institution and it is so authorised during a financial year of the FSA, then while the transitional period under regulation 76 is still current in any part of that financial year then, for the purpose of the periodic fees for that financial year:

(a)

it is treated in the same way as a newly authorised authorised electronic money institution; but

(b)

any periodic fee paid or payable for that financial year under (2) is taken into account so that no additional periodic fee is paid under (2).

6.3.6

The transitional arrangements in regulation 75 of the Electronic Money Regulations deal with a person other than a credit institution that issued electronic money in the United Kingdom under an EEA passport. It may continue until 30th October 2011 to carry on that activity.

6.3.7

(1)

This rule deals with periodic fees payable under FEES 4.3 by a person subject to the transitional regime in regulation 75 of the Electronic Money Regulations.

(2)

During the transitional period under the Electronic Money Regulations the person is treated as an EEA authorised electronic money institution. It is treated as having held this status from the beginning of the FSA's financial year 2011/12.

(3)

The fees for the financial year 2011/12 are based on information supplied by the person before the periodic fee becomes payable.

6.3.8

If the person becomes an EEA authorised electronic money institution during the transitional period under the Electronic Money Regulations it is treated as remaining as an EEA authorised electronic money institution during the FSA's financial year 2011/12. Therefore no additional periodic fee is payable.

6.3.9

If the transitional status of a person under the Electronic Money Regulations comes to an end before it gets its final status as an electronic money issuer under those regulations, any periodic fees that are due at the time its transitional status ends must be paid immediately thereafter.

6.4

FOS general levy

6.4.1

FEES TP 6.3 applies to the general levy described in FEES 5.3 in the same way as it does to periodic fees under FEES 4.3.

6.5

CFEB levy

6.5.1

FEES TP 6.3, except FEES TP 6.3.5, applies to the CFEB levy in the same way as it does to periodic fees under FEES 4.3.

01/06/2011

FEES Sch 1

[to follow]

06/10/2009

[to follow]

06/10/2009

FEES Sch 2

[to follow]

06/10/2009

[to follow]

06/10/2009

FEES Sch 3

[to follow]

06/10/2009

[to follow]

06/10/2009

FEES Sch 4

Powers exercised

06/10/2009

FEES Sch 4.1

The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules in FEES:

Section 72 (The competent authority)

Section 74 (The official list)

Section 99(1), (1B) and (2) (Fees)

Section 101 (Part 6 rules: general provisions)

Section 138 (General rule-making power)

Section 156 (General supplementary powers)

Section 213 (The compensation scheme) (including as referred to in section 216(5) (Continuity of long-term insurance policies) and section 217(7) (Insurers in financial difficulties)

Section 214 (General)

Section 223 (Management expenses)

Section 223C (Payments in error)

Section 224F (Rules about relevant schemes)

Section 234 (Industry funding)

Paragraph 17 (Fees) of Schedule 1 (The Financial Services Authority)

Paragraph 12 of Part 2 (Funding) of Schedule 1A (Further provision about the consumer financial education body)

Paragraphs 1 (General), 4 (Rules) and 7 (Fees) of Schedule 7 (The Authority as Competent Authority for Part VI)

12/10/2010

FEES Sch 4.2

The following additional powers have been exercised by the FSA to make the rules in FEES:

Regulation 82 (Reporting requirements) of the Payment Services Regulations

Regulation 92 (Costs of supervision) of the Payment Services Regulations

Section 123 (Role of FSCS) of the Banking Act 2009

Regulation 59 (Costs of supervision) of the Electronic Money Regulations

10/02/2011

FEES Sch 4.3

The following power in the Act has been exercised by the FSA to make the guidance in FEES:

Section 157 (Guidance)

06/10/2009

FEES Sch 4.4

The following additional powers have been exercised by the FSA to make guidance in FEES:

Regulation 93 (Guidance) of the Payment Services Regulations

Regulation 60 (Guidance) of the Electronic Money Regulations

10/02/2011

FEES Sch 4.5

The following powers and related provisions in the Act have been exercised by the FOS Ltd to make the rules in FEES:

Paragraphs 15 (Fees), 16C (Fees) and 18 (Terms of reference to the scheme) of Schedule 17 (The Ombudsman Scheme)

06/10/2009

FEES Sch 5

[to follow]

06/10/2009

[to follow]

06/10/2009

FEES Sch 6

Rules that can be waived

06/01/2011

As a result of regulation 10 of the Regulatory Reform (Financial Services and Markets Act 2000) Order 2007 (SI 2007/1973) the FSA has power to waive all its rules, other than rules made under section 247 (Trust scheme rules) or section 248 (Scheme particulars rules) of the Act. However, if the rules incorporate requirements laid down in European directives, it will not be possible for the FSA to grant a waiver that would be incompatible with the United Kingdom's responsibilities under those directives.

06/01/2011