Transitional Provisions and Schedules

Part

FEES Fees Manual

Chapter

Transitional Provisions and Schedules

Printed on: 18/05/2024

Rulebook at: 11/12/2009

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

01/07/2009

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.

01/11/2008

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 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 234 (Industry funding)

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

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

06/12/2009

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 compliance) of the Payment Services Regulations

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

06/12/2009

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

Regulation 93 (Guidance) of the Payment Services Regulations

06/10/2009

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

06/10/2009

[to follow]

06/10/2009