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Fees Manual

FEES Contents

Fees Manual

FEES 1 Fees Manual

1.1 Application and Purpose

FEES 2 General Provisions

2.1 Introduction2.2 Late Payments and Recovery of Unpaid Fees2.3 Relieving Provisions2.4 VAT

FEES 3 Application, Notification and Vetting Fees

3.1 Introduction3.2 Obligation to pay fees3 Annex 1 Authorisation fees payable3 Annex 2 Application and notification fees payable in relation to collective

investment schemes, ELTIFs, money market funds and AIFs marketed inthe UK

3 Annex 3 Application fees payable in connection with Recognised InvestmentExchanges and Recognised Auction Platforms

3 Annex 4 Application and administration fees in relation to listing rules [deleted]3 Annex 5 Document vetting and approval fees in relation to listing and prospectus

rules [deleted]3 Annex 6 Fees payable by a BIPRU firm for a permission or guidance on its

availability in connection with the BCD and/or CAD3 Annex 6A Fees payable for a permission or guidance on its availability in

connection with the EU CRR3 Annex 6B Part 13 Annex 8 Fees payable for authorisation as an authorised payment institution or

registration as a small payment institution, including notification fees, inaccordance with the Payment Services Regulations

3 Annex 9 Special Project Fee for restructuring3 Annex 10 Fees payable for authorisation as an authorised electronic money

institution or registration as a small electronic money institution orvariation thereof, including notification fees, in accordance with theElectronic Money Regulations

3 Annex 10A Fees payable for registration as a CBTL firm under article 9 of the MCDOrder

3 Annex 10B Designated Credit Reference Agencies and Finance Platforms Fee3 Annex 10C PPI campaign fees3 Annex 10CR Designated Credit Reference Agencies Fee3 Annex 11 Guidance on fees due under FEES 3.2.7R and FEES 3.2.7AR3 Annex 12 UKLA transaction fees

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FEES Contents

FEES 4 Periodic fees

4.1 Introduction4.2 Obligation to pay periodic fees4.3 Periodic fee payable by firms (other than AIFM qualifiers, ICVCs and

UCITS qualifiers)4.4 Information on which fees are calculated4 Annex 1A FCA activity groups, tariff bases and valuation dates4 Annex 2A FCA Fee rates and EEA/Treaty firm modifications for the period from 29

June 2018 to 31 March 20194 Annex 2B PRA fee rates and EEA/Treaty firm modifications for the period from 1

March 2014 to 28 February 20154 Annex 2B Ring-Fencing Implementation Fee4 Annex 3A Fees relating to the direct reporting of transactions to the FCA under

SUP 17A for the period 1 April 2017 to 31 March 2018 [deleted]4 Annex 4 Periodic fees in relation to collective investment schemes, AIFs marketed

in the UK, small registered UK AIFMs and money market funds payablefor the period 1 April 2018 to 31 March 2019

4 Annex 5 Periodic fees for designated professional bodies payable in relation tothe period 1 April 2018 to 31 March 2019

4 Annex 6 Periodic fees for recognised investment exchanges, and recognisedauction platforms payable in relation to the period 1 April 2016 to 31March 2017

4 Annex 7 Periodic fees in relation to the Listing Rules for the period 1 April 2015to 31 March 2016 [deleted]

4 Annex 8 Periodic fees in relation to the Disclosure and Transparency Rules for theperiod 1 April 2015 to 31 March 2016 [deleted]

4 Annex 10 Periodic fees for MTF operators payable in relation to the period 1 April2018 to 31 March 2019

4 Annex 11 Periodic fees in respect of payment services, electronic money issuance,regulated covered bonds, CBTL business and data reporting services inrelation to the period 1 April 2018 to 31 March 2019

4 Annex 11A Definition of annual income for the purposes of calculating fees in feeblocks A.13, A.14, A.18, A.19 and B. Service Companies, RecognisedInvestment Exchanges and Regulated Benchmark Administrators

4 Annex 11B Definition of annual income for the purposes of calculating fees in feeblocks CC1 and CC2

4 Annex 12 Guidance on the calculation of tariffs set out in FEES 4 Annex 1AR Part3

4 Annex 13 Guidance on the calculation of tariffs set out in FEES 4 Annex 1AR Part3

4 Annex 14 UKLA periodic fees for the period from 1 April 2018 to 31 March 20194 Annex 15 Fees relating to the recognition of benchmark administrators and the

endorsement of benchmarks for the period 29 June 2018 to 31 March2019

FEES 5 Financial Ombudsman Service Funding

5.1 Application and Purpose5.2 Introduction5.3 The general levy5.4 Information requirement5.5B Case fees5.6 The supplementary levy5.7 Payment5.8 Joining the Financial Ombudsman Service

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FEES Contents

5.9 Leaving the Financial Ombudsman Service5 Annex 1R Annual General Levy Payable in Relation to the Compulsory Jurisdiction

for 2018/195 Annex 2R Annual Levy Payable in Relation to the Voluntary Jurisdiction 2018/195 Annex 3R Case Fees Payable for 2018/19

FEES 6 Financial Services Compensation Scheme Funding

6.1 Application6.2 Exemption6.3 The FSCS's power to impose levies6.4 Management expenses6.4A Management expenses in respect of relevant schemes6.5 Compensation costs6.5A The retail pool6.6 Incoming EEA firms6.7 Payment of levies6 Annex 1 Financial Services Compensation Scheme - Management Expenses Levy

Limit6 Annex 2 Financial Services Compensation Scheme - annual levy limits6 Annex 3A Financial Services Compensation Scheme - classes6 Annex 4 Guidance on the calculation of tariff bases6 Annex 5 Classes participating in the retail pool and applicable limits

FEES 7 CFEB levies

7.1 Application and Purpose7.2 The CFEB levy7 Annex 1 Money advice CFEB levy for the period from 1 April 2018 to 31 March

20197 Annex 2 Debt advice CFEB levy for the period from 1 April 2018 to 31 March

2019

FEES 7A SFGB levies

7A.1 Application and Purpose7A.2 The SFGB levy7A.3 The SFGB money advice levy and debt advice levy7A.4 The SFGB pensions guidance advice levy7A Annex 1 SFGB money advice levy for the period from 1 April 2018 to 31 March

20197A Annex 2 SFGB debt advice levy for the period from 1 April 2018 to 31 March

20197A Annex 3 SFGB pensions guidance levy for the period 1 April 2018 to 31 March

2019

FEES 8 Interim Fees

8.1 Consumer Credit permissions

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FEES Contents

FEES 9 Payment Systems Regulator funding

9.1 Application and purpose9.2 PSR fees9 Annex 1 PSR fees methodology

FEES 10 Pensions guidance levy

10.1 Application, purpose and background10.2 Pensions guidance levy10.3 Late payments and recovery of unpaid levies10.4 Relieving provisions10.5 Application of FEES 4 to the pensions guidance levy10 Annex 1 Pension guidance levy for the period 1 April 2018 to 31 March 2019

FEES 11 Pensions guidance providers’ levy

11.1 Application, purpose and background11.2 Pensions guidance providers’ levy11 Annex 1 R Pensions guidance providers’ levy for the period 1 April 2018 to 31

March 2019

FEES 12 FOS ADR levy

12.1 Application and Purpose12.2 FOS ADR levy12.3 Late payments and recovery of unpaid levies12.4 Relieving provisions

FEES 13 Illegal money lending levy

13.1 Application and purpose13.2 The IML levy13 Annex 1 Illegal money lending (IML) levy for 2018/19

FEES App 1 Unauthorised Mutuals Registration Fees Rules

App 1.1 IntroductionApp 1.2 Periodic FeesApp 1.3 Application FeesApp 1 Annex 1 Periodic fees payable for the period 1 April 2018 to 31 March 2019App 1 Annex 1A Application Fees payableApp 1 Annex 2 Further information on feesApp 1 Annex 3 EmergenciesApp 1 Annex 4 Glossary of definitions

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FEES Contents

FEES App 2 Office for professional body anti-money laundering supervisionfees

App 2.1 IntroductionApp 2.2 Application fees imposed under Regulation 27 of the OPBAS

RegulationsApp 2.3 Periodic fees imposed under Regulation 27 of the OPBAS RegulationsApp 2 Annex 1 Application fee imposed under Regulation 27 of the OPBAS RegulationsApp 2 Annex 2 Periodic fees imposed under Regulation 27 of the OPBAS Regulations

for the period 1 April 2019 to 31 March 2020App 2 Annex 3 Glossary of definitions

FEES App 3 Fees payable by persons registered under the Money LaunderingRegulations

App 3.1 Fees for persons registered under the Money Laundering Regulations

Transitional provisions and Schedules

TP 1 Transitional ProvisionsTP 2 Transitional provisions relating to changes to the FSCS levy

arrangements taking effect in 2007/8 and in 2008/9TP 3 Transitional provisions relating to changes to the FSCS levy

arrangements taking effect in 2010/11TP 4 Transitional provisions relating to information requirements following

changes to FEES 4 or 5TP 5 Transitional Provisions relating to the Special Project Fee for

RestructuringTP 7 Transitional provisions relating to changes to the FSCS levy

arrangements taking effect in 2013/14TP 8 Transitional provisions relating to FEES 3 Annex 9R and FEES 4.3.6R

taking effect in 2013/14TP 9 Transitional arrangements in relation to amendments introduced by the

Compensation Sourcebook (Investments by Large UnincorporatedAssociations and Certain Large Partnerships) Instrument 2013

TP 10 Transitional Provisions relating to FEES 4.2.7BR for firms carrying oncredit related regulated activities

TP 11 Transitional Provisions for the Benchmarks Order 2015TP 13 Transitional provisions relating to the calculation of tariff bases for

insurersTP 14 Transitional provisions relating to FEES 4 for benchmark administrators

and recognised investment exchangesTP 15 Transitional Provisions for the MiFID II OrderTP 16R Transitional Provisions for Market Data Processor System Connectivity

FeesTP 17R Transitional provisions relating to the Payment Services Regulations

2017 and Electronic Money Regulations 2011TP 17A Transitional provisions for fees relating to benchmark administratorsTP 18 Transitional provisions relating to changes to the FSCS levy

arrangements taking effect in 2018/19TP 19 Transitional provisions relating to statements provided by participant

firms before 1 April 2019 with respect to the FSCS 2019/20 financialyear

Sch 1 [to follow]

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FEES Contents

Sch 2 [to follow]Sch 3 [to follow]Sch 4 Powers exercisedSch 5 [to follow]Sch 6 Rules that can be waived

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Fees Manual

Chapter 1

Fees Manual

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FEES 1 : Fees Manual Section 1.1 : Application and Purpose

1

G1.1.1

G1.1.1A

G1.1.1B

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(1) FEES applies to all persons required to pay a fee or levy under aprovision of the Handbook. The purpose of this chapter is to set outto whom the rules and guidance in FEES apply.

(2) ■ FEES 2 (General Provisions) contains general provisions which mayapply to any type of fee payer.

(3) ■ FEES 3 (Application, Notification and Vetting Fees) covers one-offfees payable on a particular event for example:

(a) various application fees (including those in relation toauthorisation, variation of PART 4A permission, registration as aCBTL firm, authorisation of a data reporting services provider,listing and the Basel Capital Accord); and

(b) fees relating to designated credit reference agencies, designatedfinance platforms and certain notifications and document vettingrequests.

(4) ■ FEES 4 (Periodic fees) covers all periodic fees and transactionreporting fees.

(5) ■ FEES 5 (Financial Ombudsman Service Funding) relates to FOS leviesand case fees (in ■ FEES 5.5B).

(6) ■ FEES 6 (Financial Services Compensation Scheme Funding) relates tothe FSCS levy.

(7) ■ FEES 7 relates to the CFEB levy.

(8) ■ FEES 7A relates to the SFGB levy.

■ FEES App 1 Annex 1 applies to all persons required to pay a fee or any otheramount to the FCA under the Unauthorised Mutuals Registration Fees Rules,as made by the Fees (Unauthorised Mutual Societies Registration) Instrument2002 (FSA 2002/4) and amended from time to time.

■ FEES 9 (Payment System Regulator Funding) relates to PSR fees.


1G1.1.1C

G1.1.1D

G1.1.1E

G1.1.1F

G1.1.1G

R1.1.2


■ FEES 10 (Pensions guidance levy) relates to the pensions guidance levy.

■ FEES 11 (Pensions guidance providers’ levy) relates to the pensions guidanceproviders’ levy.

■ FEES 12 (FOS ADR Levy) relates to the FOS ADR levy.

■ FEES Appendix 2 (Office for professional body anti-money launderingsupervision fees) applies to the following persons required to pay fees to theFCA:

(1) a person applying to become a professional body listed in Schedule 1to the Money Laundering Regulations; and

(2) professional bodies listed in Schedule 1 to the Money LaunderingRegulations.

■ FEES Appendix 3 (Fees payable by persons registered under the MoneyLaundering Regulations) applies to MLR persons registered with the FCA thatare not authorised persons.

Application......................................................................................................This manual applies in the following way:

(1) ■ FEES 1, ■ 2 and ■ 3 apply to the fee payers listed in column 1 of theTable of application, notification and vetting fees in ■ FEES 3.2.7 R.

(a) [deleted]

(b) [deleted]

(c) [deleted]

(d) [deleted]

(e) [deleted]

(f) [deleted]

(g) [deleted]

(h) [deleted]

(i) [deleted]

(j) [deleted]

(k) [deleted]

(l) [deleted]

(m) [deleted]

(n) [deleted]

(o) [deleted]

(p) [deleted]

(q) [deleted]


1


(r) [deleted]

(s) [deleted]

(2) ■ FEES 1, ■ 2 and ■ 4 apply to:

(a) every firm (except an AIFM qualifier, ICVC or UCITS qualifier);

(b) every authorised fund manager of an authorised unit trust orauthorised contractual scheme;

(c) every ACD of an ICVC;

(d) every person who, under the constitution or foundingarrangements of a recognised scheme, is responsible for themanagement of the property held for or within the scheme;

(da) every AIFM of a UK ELTIF;

(e) every designated professional body;

(f) every recognised body;

(g) under the Listing Rules every issuer of shares, depositary receiptsand securitised derivatives;

(h) under the Listing Rules (LR) every sponsor;

(i) under the Disclosure Guidance and Transparency Rules (DTR)every issuer of shares, depositary receipts and securitisedderivatives;

(j) every fee-paying payment service provider;

(k) every fee-paying electronic money issuer;

(l) every issuer of a regulated covered bond;

(m) every AIFM applying to become a small registered UK AIFM andevery small registered UK AIFM;

(n) every AIFM notifying the FCA under regulation 57, 58 and 59 ofthe AIFMD UK regulation and every AIFM which has made such anotification;

(o) [deleted]

(p) a data reporting services provider (FEES 4 does not apply to anincoming data reporting services provider).


(a) every firm (except to the extent it is bidding in emissionsauctions), fee-paying payment service provider and fee-payingelectronic money issuer which is subject to the CompulsoryJurisdiction of the Financial Ombudsman Service; and

(b) every other person who is subject to the Compulsory Jurisdictionin relation to relevant complaints.


(a) every participant firm;

(b) the FSCS; and

(c) the Society.


1

R1.1.2A

R1.1.2B

R1.1.2C

G1.1.3

G1.1.3A


(5) ■ FEES 1, ■ 2, ■ 7 and ■ 7A (in relation to the SFGB money advice levyand SFGB debt advice levy only) apply to:

(a) every person having a Part 4A permission;

(b) an incoming EEA firm;

(c) an incoming Treaty firm;

(d) the Society;

(e) every fee-paying payment service provider except the Bank ofEngland, government departments and local authorities;

(f) every fee-paying electronic money issuer except the Bank ofEngland, government departments, local authorities, municipalbanks and the National Savings Bank.

(6) ■ FEES App 1 Annex 1 applies to every:

(a) registered society; or

(b) sponsoring body; or

(c) person who submits a proposal for the registration of aregistered society;

each as defined in ■ FEES Appendix 1.

(7) ■ FEES 7A (in relation to the SFGB pensions guidance levy only) appliesto firms referred to in ■ FEES 7A.1.2R.

■ FEES 1, ■ 2, ■ 7 and ■ 7A do not apply to an incoming EEA firm or anincoming Treaty firm that has not established a branch in the UnitedKingdom.

The application statement at ■ FEES 1.1.2R (3) does not apply to ■ FEES 5.5A,■ FEES 5 Annex 2R or ■ FEES 5 Annex 3R.

■ FEES 1 and ■ FEES 9 apply to:

(1) operators of regulated payment systems;

(2) operators of IFR card payments systems; and

(3) direct payment service providers.

■ FEES 1 and 11 apply to a designated guidance provider.

■ FEES 1 and 12 apply to FOS Ltd.

The application of ■ FEES 5.5A and ■ FEES 5 Annex 3R is set out in■ FEES 5.5A.1 R. The relevant provisions of ■ FEES 5 and ■ FEES 2 are applied toVJ participants by the standard terms (see ■ DISP 4).

[deleted]


1G1.1.4


Purpose......................................................................................................The purpose of this manual is to set out the fees applying to the persons setout in ■ FEES 1.

Fees Manual

Chapter 2

General Provisions


FEES 2 : General Provisions Section 2.1 : Introduction

2

R2.1.1

R2.1.1A

R2.1.2

G2.1.3

G2.1.4

G2.1.5


2.1 Introduction

Application......................................................................................................Except to the extent referred to in ■ FEES 2.1.1A R, this chapter applies toevery person who is required to pay a fee or share of a levy to the FCA , FOSLtd or FSCS, as the case may be, by a provision of the Handbook.

This chapter does not apply in relation to:

(1) ■ FEES 5.5A; or

(2) ■ FEES 5 Annex 2R; or

(3) ■ FEES 5 Annex 3R; or

(4) a PSR fee; or

(5) the pensions guidance levy; or

(6) the pensions guidance providers’ levy; or

(7) the FOS ADR levy.

■ FEES 2.2.1R does not apply in respect of any fee payable under ■ FEES 3(Application, notification and vetting fees).

The provisions for late payments in ■ FEES 2.2.1R do not apply to fees payableunder ■ FEES 3 as applications, notifications and requests for vetting aregenerally regarded as incomplete until the relevant fee is paid.

Purpose......................................................................................................The purpose of this chapter is to set out the general provisions applicable tothose who are required to pay fees or levies to theFCA or a share of the FSCSlevy.

(1) The following enable the FCA to charge fees to cover its costs andexpenses in carrying out its functions:

(a) paragraph 23 of Schedule 1ZA of the Act;

(b) regulation 92 of the Payment Services Regulations;


2

G2.1.5-A

G2.1.5A

G2.1

G2.1.5C


(c) regulation 59 of the Electronic Money Regulations;

(d) article 25(a) of the MCD Order;

(e) regulation 21 of the Small and Medium Sized Businesses (CreditInformation) Regulations.

(f) regulation 18 of the Small and Medium Sized Business (FinancePlatforms) Regulations;

(g) regulation 40 of the DRS Regulations; and

(h) paragraph 25 of the Schedule 1 to the MiFI Regulations.

(2) The corresponding provisions for the FSCS levy, FOS levies, and CFEBlevies are set out in ■ FEES 6.1, ■ FEES 5.2 and ■ FEES 7.1.4G respectively.

(3) Case fees payable to the FOS Ltd are set out in ■ FEES 5.5B.

(4) Fee-paying payment service providers, fee-paying electronic moneyissuers, CBTL firms, designated finance platforms and designatedcredit reference agencies are not required to pay the FSCS levy butare liable for FOS levies.

Regulation 92 of the Payment Services Regulations and regulation 59 of theElectronic Money Regulations each provide that the functions of the FCAunder the respective regulations are treated for the purposes of paragraph23 of Schedule 1ZA to the Act as functions conferred on the FCA under theAct. Paragraph 23(7) however, has not been included .This is the FCA'sobligation to ensure that the amount of penalties received or expected to bereceived are not to be taken into account in determining the amount of anyfee payable.

Article 25 of the MCD Order provides that the functions under the MCDOrder are to be treated for the purposes of paragraph 23 of Schedule 1ZA tothe Act as functions conferred on the FCA under the Act.

(1) The FCA also has a fee-raising power as a result of:

(a) regulation 21 of the Small and Medium Sized Business (CreditInformation) Regulations;

(b) regulation 18 of the Small and Medium Sized Business (FinancePlatforms) Regulations;

(c) regulation 40 of the DRS Regulations; and

(d) paragraph 25 of the Schedule 1 to the MiFI Regulations.

(2) The FCA’s functions under these regulations are treated as functionsconferred on the FCA under the Act for the purposes of its fee-raisingpower in paragraph 23 of Schedule 1ZA to the Act or as if they hadsimilar effect for these purposes.


2

G2.1.6

G2.1.7

G2.1.8

G2.1.9

G2.1.9A


The FCA’s fees payable will vary from one fee year to another, and willreflect the FCA’s funding requirement for that period and the other keycomponents, as described in ■ FEES 2.1.7G. Periodic fees, which will normallybe payable on an annual basis, will provide the majority of the fundingrequired to enable the FCA to undertake its statutory functions.

The key components of the FCA fee mechanism (excluding the FSCS levy, theFOS levy and case fees, and the CFEB levy which are dealt with in ■ FEES 5,■ FEES 6 and ■ FEES 7) are:

(1) a funding requirement derived from:

(a) the FCA’s financial management and reporting framework;

(b) the FCA’s budget; and

(c) adjustments for audited variances between budgeted and actualexpenditure in the previous accounting year, and reservesmovements (in accordance with the FCA’s reserves policy);

(2) mechanisms for applying penalties received during previous financialyears for the benefit of fee payers;

(3) fee-blocks, which are broad groupings of fee payers offering similarproducts and services and presenting broadly similar risks to the FCA’sregulatory objectives;

(4) a costing system to allocate an appropriate part of the fundingrequirement to each fee-block; and

(5) tariff bases, which, when combined with fee tariffs, allow thecalculation of fees.

The amount payable by each fee payer will depend upon the category (orcategories) of regulated activity or exemption, or other relevant activityapplicable to that person (fee-blocks). It will, in most cases, also depend onthe amount of the business that person conducts in each category (feetariffs).

By basing fee-blocks on categories of business, the FCA aims to minimisecross-sector subsidies. The membership of the fee-blocks is identified in theFEES provisions relating to the type of fees concerned.

PRA-authorised persons and persons seeking to become PRA-authorisedpersons should note that the FCA and the PRA have agreed for the FCA toact as the PRA's collection agent for PRA fees. Where applicable, both PRAand FCA fees should be paid as a single payment to the FCA, which willreceive the payment in its own capacity in respect of FCA fees and in its


2G2.1.10

G2.1.11


capacity as collection agent for the PRA in respect of the PRA fees.References to this arrangement will be referred to in FEES where applicable.

[deleted]

[deleted]

FEES 2 : General Provisions Section 2.2 : Late Payments and Recovery ofUnpaid Fees

2

R2.2.1

G2.2.2

G2.2.3

G2.2.4


2.2 Late Payments and Recovery ofUnpaid Fees

Late Payments......................................................................................................If a person does not pay the total amount of a periodic fee, FOS levy, orshare of the FSCS levy, or CFEB levy or SFGB levy, before the end of the dateon which it is due, under the relevant provision in ■ FEES 4, ■ 5, ■ 6, ■ 7 or■ 7A,that person must pay an additional amount as follows:

(1) if the fee was not paid in full before the end of the due date, anadministrative fee of £250; plus

(2) interest on any unpaid part of the fee at the rate of 5% per annumabove the Official Bank Rate from time to time in force, accruing on adaily basis from the date on which the amount concerned becamedue.

The FCA, (for FCA and PRA periodic fees, FOS and FSCS levies, CFEB leviesand SFGB levies), expects to issue invoices at least 30 days before the date onwhich the relevant amounts fall due. Accordingly it will generally be the casethat a person will have at least 30 days from the issue of the invoice beforean administrative fee becomes payable.

Recovery of Fees......................................................................................................(1) Paragraph 23(8) of Schedule 1ZA of the Act permits the FCA to

recover fees (including fees relating to payment services, the issuanceof electronic money, CBTL firms, data reporting services providers,designated credit reference agencies, designated finance platformsand, where relevant, FOS levies, CFEB levies and SFGB levies).

(2) Section 213(6) of the Act permits the FSCS to recover shares of theFSCS levy payable, as a debt owed to the FCA and FSCS respectively.

(3) The FCA and FSCS, as relevant, will consider taking action for recovery(including interest) through the civil courts.

In addition, the FCA may be entitled to take regulatory action in relation tothe non-payment of fees, FOS levies, CFEB levies and SFGB levies. The FCAmay also take regulatory action in relation to the non-payment of a share ofthe FSCS levy, after reference of the matter to the FCA by the FSCS. Whataction (if any) that is taken by the FCA will be decided upon in the light ofthe particular circumstances of the case.

http://www.legislation.gov.uk/ukpga/2000/8/section/213/2016-04-01#section-213-6

FEES 2 : General Provisions Section 2.3 : Relieving Provisions

2

R2.3.1

R2.3.2

G2.3.2A

R2.3.2B

R2.3.2C

G2.3.3


2.3 Relieving Provisions

Remission of Fees and levies......................................................................................................If it appears to the FCA or the FSCS (in relation to any FSCS levy only) that inthe exceptional circumstances of a particular case, the payment of any fee,FSCS levy, FOS levy, CFEB levy or SFGB levy would be inequitable, the FCA orthe FSCS as relevant, may (unless ■ FEES 2.3.2B R applies) reduce or remit all orpart of the fee or levy in question which would otherwise be payable.

If it appears to the FCA or the FSCS (in relation to any FSCS levy only) that inthe exceptional circumstances of a particular case to which ■ FEES 2.3.1R doesnot apply, the retention by the FCA the FSCS, or the CFEB, as relevant, of afee, FSCS levy, FOS levy, CFEB levy or SFGB levy which has been paid wouldbe inequitable, the FCA the FSCS or the CFEB, may (unless ■ FEES 2.3.2B Rapplies) refund all or part of that fee or levy.

A poor estimate or forecast by a fee or levy payer, when providinginformation relevant to an applicable tariff base, is unlikely, of itself, toamount to an exceptional circumstance for the purposes of ■ FEES 2.3.1 R or■ FEES 2.3.2 R. By contrast, a mistake of fact or law by a fee or levy payer maygive rise to such a claim.

The FCA or the FSCS may not consider a claim under ■ FEES 2.3.1 R and/or■ FEES 2.3.2 R to reduce, remit or refund any overpaid amounts paid by a feeor levy payer in respect of a particular period, due to a mistake of fact orlaw by the fee or levy payer, if the claim is made by the fee or levy payermore than 2 years after the beginning of the period to which theoverpayment relates.

For ■ FEES 7A, the FCA is entitled not to consider a claim under ■ FEES 2.3.1Ror ■ FEES 2.3.2R to refund any overpaid amounts due to a mistake of fact orlaw by the fee-paying firm if the claim is made more than two years afterthe beginning of the period to which the SFGB levy subject to the claimrelates.

[deleted]

FEES 2 : General Provisions Section 2.4 : VAT

2

R2.4.1


2.4 VAT

All fees payable or any stated hourly rate under ■ FEES 3 (Application,notification and vetting fees), ■ FEES 4 (Periodic fees), ■ FEES 7 (The CFEB levy)and ■ FEES 7A (The SFGB levy) are stated net of VAT. Where VAT is applicablethis must also be included.

Fees Manual

Chapter 3

Application, Notification andVetting Fees


FEES 3 : Application, Section 3.1 : IntroductionNotification and Vetting Fees

3

R3.1.1

R3.1.1A

G3.1.2

G3.1.3

G3.1.4

G3.1.5

G3.1.5A


3.1 Introduction

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

fee-paying payment service provider, a CBTL firm, a fee-paying electronicmoney issuer, a designated finance platform, a designated credit referenceagency and a data reporting services provider.

This chapter does not apply to:

(1) an EEA firm that wishes to exercise an EEA right unless it is:

(a) an incoming data reporting services provider connecting to themarket data processor system; or

(b) an EEA firm connecting to the market data processor system; or

(2) an EEA authorised payment institution; or

(3) an EEA authorised electronic money institution.

Purpose......................................................................................................The purpose of this chapter is to set out the FCA fee paying requirements onthe persons set out in ■ FEES 1.1.2R (1).

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 12R.

(1) The rates set for authorisation fees represent an appropriateproportion of the costs of the FCA in processing the application orexercise of Treaty rights.

(2) [deleted]

(3) [deleted]

The fees for funds reflect the estimated costs to the FCA of assessingapplications and notifications. The level of fees payable in respect of anapplication or a notification will vary depending upon the provision of theAct under which it is made. This fee is adjusted when the scheme concernedis an umbrella.


3

G3.1.5B

G3.1.6

G3.1.6A

G3.1.6B

G3.1.6C

G3.1.6D

G3.1.6E

G3.1.7


Application fees for recognised bodies are calculated from a tariff structureintended to reflect the estimated cost of processing an application of thattype and complexity.

Applications for Part 4A permission (and exercises of Treaty rights) otherthan in respect of credit-related regulated activities are categorised by theFCA for the purpose of fee raising as straightforward, moderately complexand complex as identified in ■ FEES 3 Annex 1. This differentiation is based onthe permitted activities sought and does not reflect the FCA's risk assessmentof the applicant (or Treaty firm).

Application fees for authorisation or registration under the Payment ServicesRegulations are set out in ■ FEES 3 Annex 8R . The fee depends on the type ofpayment services a firm wishes to provide and whether it will be a smallpayment institution or an authorised payment institution. The fee may alsodepend on the number of agents it has.

Application fees for authorisation or registration under the Electronic MoneyRegulations are set out in ■ FEES 3 Annex 10 R. The fee depends on whetherthe firm is an authorised electronic money institution or a small electronicmoney institution.

Application fees for registration under article 8(1) of the MCD Order are setout in ■ FEES 3 Annex 10AR. The fee depends on whether the firm holds anexisting Part 4A permission or an interim permission or has previouslyregistered as a CBTL firm and that registration has been revoked underarticle 13 of the MCD Order.

(1) Fees for designated credit reference agencies and designated financeplatforms are set out at ■ FEES 3 Annex 10B.

(2) These fees are charged under regulation 21 of the Small and MediumSized Business (Credit Information) Regulations and regulation 18 ofthe Small and Medium Sized Business (Finance Platforms) Regulations.

(1) Application fees for authorisation under regulation 7 of the DRSRegulations, and for operators of trading venues seeking verificationof their compliance with Title V of MiFID under regulation 8 of theDRS Regulations and for variation of an authorisation underregulation 12 of the DRS Regulations are set out in the table at■ FEES 3.2.7R.

(2) The fee depends on the number of data reporting services for whichthe firm is making an application.

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


3

G3.1.8

G3.1.8A


[Deleted]

Application fees for applications for and variations of Part 4A permission inrespect of credit-related regulated activities are also set out in■ FEES 3 Annex 1F. Applications for Part 4A permission in respect of credit-related regulated activities are categorised by the FCA for the purposes offee raising as straightforward, moderately complex and complex as identifiedin ■ FEES 3 Annex 1, unless the application is for a limited permission.

[Note: PRA-authorised persons may also pay regulatory transaction fees tothe PRA set out in Chapter 4 of the Fees Part of the PRA Rulebook.]

FEES 3 : Application, Section 3.2 : Obligation to pay feesNotification and Vetting Fees

3

R3.2.1

R3.2.1A

G3.2.2

R3.2.3


3.2 Obligation to pay fees

General......................................................................................................A person in column (1) of the table in ■ FEES 3.2.7 R as the relevant fee payerfor a particular activity must pay to the FCA (in its own capacity or, if the feeis payable to the PRA, in its capacity as collection agent for the PRA) a feefor each application or request for vetting, or request for support relating tocompatibility of its systems with FCA systems, or admission approval made, ornotification or notice of exercise of a Treaty right given, or other matter as isapplicable to it, as set out or calculated in accordance with the provisionsreferred 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.

A person must pay the fee in Categories A5 and A6 of ■ FEES 3 Annex 12R forthe first submission of a document to the FCA for approval or review inrelation to a significant transaction or super transaction. As an exception to■ FEES 3.2.1R, after that fee is paid, Categories A1 to A4 of ■ FEES 3 Annex 12Rspecify the fees a person must pay for any further documents submitted forapproval or review in relation to the same transaction.

If an application for a Part 4A permission (or exercise of a Treaty right) fallswithin more than one category set out in ■ FEES 3 Annex 1, other than whereone of the applications is an application under the benchmarks regulation,only one fee is payable. That fee is the one for the category to which thehighest fee tariff applies.Where applications are made under the benchmarksregulation, a separate fee will be payable for this application. The relevantfee is set out in ■ FEES 3.2.7R.

Method of payment......................................................................................................(1) Unless (2), (3) or (4) 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 seekingto:

(a) become a recognised body or a designated professional body; or

(b) be added to the list of designated investment exchanges oraccredited bodies.


3

R3.2.3A

G3.2.3B

G3.2.4

G3.2.5


(3) The sum payable under ■ FEES 3.2.1 R by a firm applying for a variationof its Part 4A permission which is not an application for newpermission solely in respect of one or more credit-related regulatedactivities (■ FEES 3.2.7 R(p)(1) or ■ FEES 3.2.7 R(p)(4) and, if applicable,■ FEES 3.2.7 R(c)) must be paid by any of the methods described in (1)or by Maestro, Visa Debit or credit card (Visa/Mastercard/AmericanExpress only).

(4) Unless ■ FEES 3.2.3A R applies, the sum payable under ■ FEES 3.2.1 R by afirm applying for a Part 4A permission in respect of credit-relatedregulated activities only or a variation of its Part 4A permission toadd solely one or more credit-related regulated activities must bepaid by Maestro, Visa Debit or credit card (Visa/Mastercard/AmericanExpress only).

(5) [deleted]

(1) If the fee payer (as specified in column (1) of ■ FEES 3.2.7 R) in relationto ■ FEES 3.2.3R (4) is:

(a) unable to make a payment by credit or debit card; or

(b) permitted to make a paper application rather than an onlineapplication for a Part 4A permission in respect of credit-relatedregulated activities only or a variation of its Part 4A permission toadd a credit-related regulated activity;

the sum payable under ■ FEES 3.2.1 R can be paid by bankers draft,cheque or other payable order.

If ■ FEES 3.2.3AR (1)(a) applies to a fee payer, that fee payer would beexpected to notify the FCA of these circumstances in advance of making itspayment (and, in any event, no less than 7 days before the date on whichthe application for a Part 4A permission or the variation of a Part 4Apermission is made) unless such notification is impossible in thecircumstances, eg, there is a sudden technological failure.

The FCA expects that a person seeking to become a recognised body or adesignated professional body or to be added to the list of designatedinvestment exchanges or accredited bodies will generally pay their respectivefees by electronic credit transfer.

(1) The appropriate authorisation or registration fee is anintegral part of an application for, or an application for avariation of, a Part 4A permission, authorisation, registrationor variation under the Payment Services Regulations or theElectronic Money Regulations, registration under article 8(1)of the MCD Order, authorisation under regulation 7 of theDRS Regulations or verification under regulation 8 of theDRS Regulations or notification or registration under theAIFMD UK regulation.

(b) Any application or notification received by theFCA without theaccompanying appropriate fee, in full and without deduction (see■ FEES 3.2.1 R), will not be treated as an application or notificationmade, incomplete or otherwise, in accordance with section55U(4), or 55H of the Act or regulation 5(3) or 12(3) of thePayment Services Regulations or regulation 5 or 12 of the


3

G3.2.6

R3.2.7


Electronic Money Regulations or regulation 11(1) and 60(a) of theAIFMD UK regulation, regulation 7(2) of the DRS Regulations orarticle 9 of the MCD Order.

(c) Where this is the case, the FCA will contact the applicant to pointout that the application cannot be progressed until theappropriate fee has been received. In the event that theappropriate fee, in full and without deduction, is notforthcoming, the application will be returned to the applicantand no application will have been made.

(2) With the exception of persons seeking to become a designatedprofessional body, all applications, notifications, requests for vettingor admission approval will be treated as incomplete until the relevantfee is fully paid and the FCA will not consider an application,notification, request for vetting or admission approval until therelevant fee is fully paid. Persons seeking to become a designatedprofessional body have 30 days after the designation order is made topay the relevant fee.

Fees paid under this chapter are not refundable.

Table of application, notification, vetting and other fees payable to theFCA

Part 1: Application, notification and vetting fees

(1) Fee payer (2) Fee payable (£) Due date

(a) Any applicant for (1) Unless (2), (3) or (4) On or before the ap-Part 4A permission (in- applies, in respect of a plication is madecluding an incoming particular application,firm applying for top- the highest of the tar-up permission) whose iffs set out in FEES 3 An-fee is not payable pur- nex 1 part 1 which applysuant to sub- para- to that application.graph (zza) of thistable When both (A) and (B)

apply, 50% of the tariffpayable under (1):

(A) the application onlyinvolves a simplechange of legal statusas set out in FEES 3 An-nex 1 part 6; and

(B) the application is:

(i) a straightforwardcase under paragraph2(d) or 3(g) of FEES 3 An-nex 1;

(ii) a moderately com-plex case under para-graph 2(e) or 3(h) ofFEES 3 Annex 1; or

(iii) a limited permis-sion case under para-graph 3(i) of FEES 3 An-nex 1.


3



(3) If the applicant ap-plies for registrationunder article 8(1) ofthe MCD Order at thesame time as applyingfor a Part 4A permis-sion, the fee payable isthe higher of:

(i) the fee otherwisepayable in (1) or (2);and

(ii) the fee payable inFEES 3 Annex 10AR.

(4) No fee is payable ifthe applicant satisfiesthe criteria set out inFEES 4 Annex 2BR(5)(a).

(aa) A person who As (a) above less any Within 30 days of themakes an application amount paid to the Of- date of the invoice.under section 24A of fice of Fair Trading inthe Consumer Credit relation to the relevantAct 1974 which meets application.the conditions of art-icle 31 (Applicationsfor a standard licencewhere no determina-tion made before 1 Ap-ril 2014) of the Finan-cial Services and Mar-kets Act 2000 (Regu-lated Activities)(Amendment) (No 2)Order 2013 (the “relev-ant application”)

(b) Any Treaty firm (1) Where no certific- On or before the no-that wishes to exercise ate has been issued un- tice of exercise is givena Treaty right to qual- der paragraph 3(4) ofify for authorisation Schedule 4 to the Actunder Schedule 4 to the fee payable is, in re-the Act (Treaty rights) spect of a particular ex-in respect of regulated ercise, set out in FEES 3activities for which it Annex 1, part 4does not have an EEA

(2) Where a certificateright, except for a firmin (i) has been issuedproviding cross borderno fee is payableservices only

(c) Any applicant for a 2,000 On or before the ap-certificate under article plication is made54 of the Regulated Ac-tivities Order

(d) Applicants for an FEES 3 Annex 2R, part 2 On or before the ap-authorisation order plication is madefor, or recognition un-der section 272 of theAct of, a collective in-vestment scheme

http://www.legislation.gov.uk/ukpga/1974/39/section/24A/2014-04-01

http://www.legislation.gov.uk/uksi/2013/1881






http://www.legislation.gov.uk/ukpga/2000/8/schedule/4/paragraph/3/2006-01-01#schedule-4-paragraph-3-4

http://www.legislation.gov.uk/ukpga/2000/8/schedule/4/2006-01-01

http://www.legislation.gov.uk/uksi/2001/544/article/54


http://www.legislation.gov.uk/ukpga/2000/8/section/272/2013-07-26


3



(da) Applicants for the FEES 3 Annex 2R, part 2A On or before the dateauthorisation of an AIF the application is madeas a UK ELTIF

(e) The management FEES 3 Annex 2R, part 3 On or before the datecompany of a scheme the application is mademaking a notificationunder section 264 ofthe Act

FEES 3 Annex 2 R, part 4 On or before the date(ea) the notification is

made(i) An AIFM (otherthan a UK AIFM or anEEA AIFM with abranch in the UK) noti-fying the FCA of its in-tention to market anAIF in the UK under re-gulation 57 of theAIFMD UK regulation

(ii) An AIFM notifyingthe FCA of its inten-tion to market an AIFin the UK under regula-tion 58 or 59 of theAIFMD UK regulation

£750 On or before the date(eb) An applicant for the application is maderegistration on the re-gister of small regis-tered UK AIFM whichthe FCA is required tomaintain under regula-tion 10 of the AIFMDUK regulation

(f) Any person seeking 10,000 30 days after the orderan order under section is granted326(1) of the Act to be-come a designated pro-fessional body.

(g) Any applicant for FEES 3 Annex 3, part 1 On or before the daterecognition as a UK re- the application is madecognised body:

(i) under section 287 ofthe Act; or

(ii) under regulation2(1) of the RAP re-gulations

(ga) [deleted]




3



(h) Any applicant for FEES 3 Annex 3, part 2 On or before the daterecognition as an ROIE the application is madeunder section 287 orsection 292 of the Act

(i) [deleted]

(j) [deleted]

(k) [deleted]

(l) [deleted]

(m) [deleted]

(n) Applicants to be ad- 50,000 On or before the dateded to the list of desig- the application is madenated investmentexchanges

(o) In relation to a BI- Where the firm has(1) Unless (2) applies,PRU firm, either: made an applicationFEES 3 Annex 6. directly to theFCA, on

(i) a firm applying to or before the date the(2) (a) Unless (b) ap-theFCA for permission application is made,plies a firm submittingto use one of the ad- otherwise within 30a second applicationvanced prudential cal- days after theFCA noti-for the permission orculation approaches fies the firm that itsguidance described inlisted in FEES 3 Annex 6 R EEA parent's Homecolumn (1) within 12(or guidance on its State regulator has re-months of the first ap-availability), including quested assistance.plication (where theany future proposedfee was paid in accord-amendments to thoseance with (1)) must payapproaches or (in the50% of the fee applic-case of any applicationable to it under FEES 3being made for suchAnnex 6, but only in re-permission to the FCAspect of that second ap-as EEA consolidated su-plicationpervisor under the

(transposing parts of (b) No fee is payablethe BCD and CAD, as by a firm in relation toapplicable under art- a successful applicationicle 95(2) of the EU for a permission basedCRR)) any firm making on a minded to grantsuch an application ; or decision in respect of

the same matter fol-(ii) in the case of an ap-lowing a complete ap-plication to a Homeplication for guidanceState regulator otherin accordance with pre-than the FCA for thescribed submission re-use of the Internal Rat-quirements.ings Based approach

and the Home State (c) No fee is payableregulator requesting where the Home Statethe FCA's assistance in regulator has re-accordance with the quested the assistanceCapital Requirements described in paragraphRegulations 2006 (o)(ii) of column 1 ex-



3



(transposing parts of cept in the cases speci-the BCD and CAD, as fied in FEES 3 Annex 6.applicable under art-icle 95(2) of the EUCRR), any firm towhich the FCA wouldhave to apply any de-cision to permit theuse of that approach.

(oa) Either: (1) Unless (2) applies, Where the firm hasFEES 3 Annex 6A. made an application

(i) a firm applying to directly to the FCA , onthe FCA (2) (a) Unless (b) ap- or before the date the

plies a firm submitting application is made,for permission to use a second application otherwise within 30one of the internal ap- for the permission or days after the FCA noti-proaches listed in FEES guidance described in fies the firm that its3 Annex 6A (or guidance column (1) within 12 EEA parent's consolid-on its availability), inmonths of the first ap- ating supervisor has re-cluding any future pro- plication (where the quested assistance.posed amendments to fee was paid in accord-those approaches or ance with (1)) must pay(in the case of any ap- 50% of the fee applic-plication being made able to it under FEES 3for such permission to Annex 6A, but only in re-the FCA spect of that second ap-

plication.as consolidating super-visor under the EU (b) No fee is payableCRR) any firm making by a firm in relation tosuch an application; or a successful application

for a permission based(ii) in the case of an ap-on a minded to grantplication to the consol-decision in respect ofidating supervisorthe same matter fol-other than the FCAlowing a complete ap-

for the use of the IRB plication for guidanceapproach and the con- in accordance with pre-solidating supervisor scribed submission re-requesting the FCA's quirements.assistance in accord- (c) No fee is payableance with the EU CRR, where the consolidat-any firm to which the ing supervisor has re-FCA quested the assistance

described in paragraphwould have to apply(oa)(ii) of column 1.any decision to permit

the use of thatapproach.

(p) A firm applying for (1) Unless (2), (2A), (3), On or before the datea variation of its Part (3A), (3B), (3C), (3D) or the application is made4A permission whose 3(E) applies, if the pro-fee is not payable pur- posed new business ofsuant to sub- para- the firm would fallgraph (zza) of this within one or more ac-table tivity groups specified

in Part 1 of FEES 4 Annex1AR not applicable be-fore the application,the fee is 50% of thehighest of the tariffsset out in FEES 3 Annex


3



1R which apply to thatapplication.

(2) Subject to (2A) be-low, if the firm's ap-plication includes anapplication for a Part4A permission to carryon a new credit-relatedregulated activity, thefee is 50% of the high-est of the tariffs setout in FEES 3 Annex 1R

that would be payableunder (1) above or, ifhigher, 50% of thehighest of the tariffsset out in FEES 3 Annex1R

that would be payablein relation to the newcredit-related regu-lated activity .

(2A) If an applicantwhich already has aPart 4A permission tocarry on a credit-re-lated regulated activityexclusively applies for aPart 4A permission tocarry on a new credit-related regulated activ-ity, that is specified inPart 3 of FEES 3 Annex1R

in the straightforwardcategory (or if it exclus-ively applies for a num-ber of such permis-sions), the fee is £250.

(3) If the firm is in theA.1 fee-block at thedate of the applicationand the variation in-volves adding any ofthe regulated activitiesof meeting of repay-ment claims or man-aging dormant accountfunds (including the in-vestment of suchfunds), the fee is 50%of the fee in FEES 3 An-nex 1 R that applies tothat application

(3A) If the applicanthad a limited permis-sion prior to the ap-plication to vary its


3



Part 4A permission,100% of the highest ofthe tariffs set out inFEES 3 Annex 1R

which apply to that ap-plication.

(3B) If the applicanthas a limited permis-sion and its applicationexclusively relates toanother limited permis-sion, the fee is 0

(3C) If the applicant ap-plies for registrationunder article 8(1) ofthe MCD Order at thesame time as it appliesfor a variation of itsPart 4A permission, thefee is the highest ofthe fees set out in FEES3 Annex 10AR and theamount otherwise pay-able in (1), (2), (2A),(3), (3A) or (3B), or (4).

(3D) No fee is payableif the applicant satisfiesthe criteria set out inFEES 4 Annex 2BR(5)(a).

(4) In all other cases,other than applicationsby credit unions, thefee payable is 250 forfirms which are not, orare not seeking to be-come, a PRA-au-thorised person, and125 for firms whichare, or are seeking tobecome, a PRA-au-thorised person, unlessthe variation involvesonly the reduction (andno other increases) inthe scope of a Part 4Apermission in whichcase no fee is payable.

(3E) The fee is 12,500 ifthe firm applying:

(i) is an MTF operatorand the proposed newbusiness of the firm isto be an OTF operator;or

(ii) is an OTF operatorand the proposed new


3



business of the firm isto be an MTF operator.

(pa) A person who As (a) or (p) above, less Within 30 days of themakes an application any amount paid to date of the invoice.under section 30(1) of the Office of Fair Trad-the Consumer Credit ing in relation to theAct 1974 which meets relevant variation ap-the conditions of art- plication.icle 33 (Variations at re-quest of licenseewhere no determina-tion made before 1 Ap-ril 2014) of the Finan-cial Services and Mar-kets Act 2000 (Regu-lated Activities)(Amendment) (No 2)Order 2013 (the “relev-ant variation ap-plication”)

(q) [deleted]

(r) [deleted]

(s) In the case of an in- Either (1) or (2) as set On or before any ap-surance business trans- out below: plication is made forfer scheme, a the appointment of a

(1) In the case of an in-transferor. person as an independ-surance business trans- ent expert.fer scheme involving

Note - for the purpose long term insuranceof this paragraph an in- business, 9,250; orsurance business trans-fer scheme consists of (2) in the case of an in-a single transferor and surance business trans-a single transferee. fer scheme not invol-Where however such a ving long term insur-scheme is part of a ance business, 5,000.single larger scheme,that larger scheme istreated as a single in-surance business trans-fer scheme. If an insur-ance business transferscheme includes morethan one transferor inaccordance with thisparagraph, the trans-ferors are liable to paythe fee under column(2) jointly.

(t) [deleted]

(u) [deleted]

(v) [deleted]

[deleted]

(x)[deleted]

(y) An applicant for au- The highest of the tar- On or before the datethorisation as an au- iffs set out in FEES 3 An- the application isthorised payment insti- nex 8 which apply to made.tution under regula that application.

http://www.legislation.gov.uk/ukpga/2000/8/2014-04-01




3



tion 5 of the PaymentWhere an applicationServices Regulationsonly involves a simplechange of legal statusas set out in FEES 3 An-nex 1 Part 6, the feepayable is 50% of thetariff that would other-wise be payable in FEES3 Annex 8R.

(ya) An applicant for re- FEES 3 Annex 8R, para- On or before the dategistration as an ac- graph (2)(i). the application iscount information ser- made.

Where an applicationvice provider under re-only involves a simplegulation 17 of the Pay-change of legal statusment Servicesas set out in FEES 3 An-Regulations.nex 1 Part 6, the feepayable is 50% of thetariff that would other-wise be payable in FEES3 Annex 8R.

(z) An application by a The highest of the tar- On or before the datesmall payment institu- iffs set out in FEES 3 An- the application istion for authorisation nex 8R which apply to made.as an authorised pay- that application.ment institution be-cause regulation 16 ofthe Payment ServicesRegulations applies

(za) An applicant for re- FEES 3 Annex 8R, para- On or before the dategistration as a small graph (1). Where an ap- the application ispayment institution un- plication only involves made.der regulation 13 of a simple change ofthe Payment Services legal status as set outRegulations in FEES 3 Annex 1 R Part

6, the fee payable is50% of the tariff thatwould otherwise bepayable in FEES 3 Annex8R.

(zb) An authorised pay- (1) If prior to the vari- On or before the datement institution apply- ation the authorised the application ising to vary its authoris- payment institution is made.ation under regulation authorised to carry on5 of the Payment Ser- any one or more of thevices Regulations. payment services fal-

ling within paragraph(f), (g) or (h) of Part 1of Schedule 1 to thePayment Services Regu-lations and the au-thorised payment insti-tution is applying to ex-tend its authorisationto include any one ormore of the paymentservices in (a) to (e),the fee is 50% of thehighest of the tariffsset out in FEES 3 Annex


3



8R which apply to thatapplication.

(2) Where the au-thorised payment insti-tution already has au-thorisation to providepayment serviceswithin any one ormore of paragraphs (a)to (e) of Part 1 ofSchedule 1 to the Pay-ment Services Regula-tions and wishes toadd one or more otherservices in (a) to (f);

the fee payable is £250irrespective of the num-ber of agents it has.

(3) Where the au-thorised payment insti-tution already has au-thorisation to providepayment serviceswithin any one ormore of paragraphs (a)to (f) of Part 1 of Sched-ule 1 to the PaymentServices Regulationsand wishes to add oneor both of the servicesin (g) and (h) the feepayable is £750, irre-spective of the numberof agents it has.

(4) In cases where thevariation involves onlythe reduction (and noincreases) of the typesof payment services tobe carried on after thevariation, no fee ispayable.

(zc) A small payment in- (1)The fee is 50% of On or before the datestitution applying to the tariff set out in the application isvary its registration un- FEES 3 Annex 8R, para- made.der regulation 13 of graph (1).the Payment Services

(2) In cases where theRegulationsvariation involves onlythe reduction (and noincreases) of the typesof payment services tobe carried on after thevariation, no fee ispayable.

(zd) [deleted]


3



(ze) Any person to Special Project Fee for 30 days of the date ofwhich the Special Pro- restructuring in accord- the invoice.ject Fee for restructur- ance with FEES 3 Annex 9ing applies under FEES .3 Annex 9.

(zf) [deleted]

(zg) An applicant for The amount set out in On or before the dateauthorisation as an au- FEES 3 Annex 10 R. the application isthorised electronic Where an application made.money institution un- only involves a simpleder regulation 5 of the change of legal statusElectronic Money Re- as set out in FEES 3 An-gulations. nex 1 R Part 6, the fee

payable is 50% of thetariff that would other-wise be payable in FEES3 Annex 10 R.

(zh) An applicant for The amount set out in On or before the dateregistration as a small FEES 3 Annex 10 R. the application iselectronic money insti- Where an application made.tution under regula- only involves a simpletion 12 of the Elec- change of legal statustronic Money Re- as set out in FEES 3 An-gulations. nex 1 R Part 6, the fee

payable is 50% of thetariff that would other-wise be payable in FEES3 Annex 10 R.

(zi) An application by a The amount set out in On or before the datesmall electronic money FEES 3 Annex 10 R. the application isinstitution for authoris- made.ation as an authorisedelectronic money insti-tution because regula-tion 16 of the Elec-tronic Money Regula-tions applies.

(zj) An authorised elec- On or before the date(1) Subject to (2) be-tronic money institu- the application islow, the fee is 50% oftion applying to vary made.the tariff for an elec-its authorisation undertronic money institu-regulation 8 of thetion authorisation ap-Electronic Money Re-plication set out in FEESgulations.3 Annex 10R.

(2) Where the au-thorised electronicmoney institution ap-plies to vary its permis-sion so as to be able toprovide one or both ofthe payment services inparagraphs (g) and (h)of Part 1 of Schedule 1to the Payment Ser-vices Regulations thefee payable is £750.


3



(zk) A small electronic The amount set out in On or before the datemoney institution ap- FEES 3 Annex 10 R. the application isplying to vary its regis- made.tration under regula-tion 12 of the Elec-tronic Money Re-gulations.

(zl) An applicant for re- 2,500 On or before the datecognition as an accred- the application isited body. made.

(zm) An issuer applying (1) Unless (2) or (3) ap- On or before the datefor registration of a plies, 45,000. the application isregulated covered made.

(2) In the case of a pro-bond.posed covered bond orprogramme where theassets in the asset poolwill consist primarily ofUK residential mort-gages, 25,000.

(3) No fee is payable ifthe issuer satisfies thecriteria set out in FEES 4Annex 2BR(5)(b).


3



(zn) An issuer who pro- (1) Unless (2) applies On or before the dateposes to make a mat- 6,500. the notification undererial change to the con- RCB 3.5.4 D is made.

(2) No fee is payable iftractual terms of athe issuer satisfies theregulated coveredcriteria set out in FEES 4bond under RCB 3.5.4 D.Annex 2BR(5)(c).

(zo) In the case of per- An amount equal to: Within 30 days of thesons in respect of date of the invoice.

(1) a sum determinedwhich the FCA hasby the number ofgiven notice of its in-hours, or part of antention to take, or ap-hour, taken by the FCApoint a competent per-in relation to work con-son to take, any stepsducted in taking stepsunder CONREDunder CONRED 2.5.12R2.5.12R, either:recorded on the FCA's

(i) a Firm (as defined in systems, multiplied byCONRED 2.1.1R(1); or the rate in FEES 3 Annex

9 (11)R; or(ii) a person fallingwithin CONRED (2) any amount in-2.1.2R(1). voiced to the FCA by a

competent person in re-lation to any work car-ried out by that com-petent person in con-nection with its ap-pointment by the FCAunder CONRED 2.5.12R.

(zp) A person in re- Any amount invoiced Within 30 days of thespect of which the FCA to the FCA by a skilled date of the invoice.has given notice of its person in relation tointention to itself ap- any work carried outpoint a skilled person by that skilled personto provide it with a re- in connection with itsport pursuant to sec- appointment by thetion 166(3)(b) of the FCA pursuant to sec-Act and SUP 5.2. tion 166(3)(b) of the

Act.

(zq) A person in re- Any amount invoiced Within 30 days of thespect of which the FCA to the FCA by a skilled date of the invoice.has given notice of its person in relation tointention to itself ap- any work carried outpoint a skilled person by that skilled personto collect or update in- in connection with itsformation pursuant to appointment by thesection 166A(2)(b) of FCA pursuant to sec-the Act. tion 166A(2)(b) of the

Act.

(zr) [deleted]

(zs) Applicant for FCA (1) If the application is On or before the datepermission for an for permission for an the application isagreement to be en- agreement to be en- made.forced under section forced under section28A(3)(a) and/or 28A(3)(a) of the Actmoney paid or prop- and for permission forerty transferred under money paid or prop-and agreement to be erty transferred under


3



retained under an agreement to be re-28A(3)(b) of the Act tained under section

28A(3)(b) of the Act,the fee is £3,500 pertype of agreement spe-cified in the ap-plication.

(2) If the application isfor permission for anagreement to be en-forced under section28A(3)(a) of the Actonly, the fee is £3,500per type of agreementspecified in the ap-plication.

(3) If the application isfor permission formoney paid or prop-erty transferred underan agreement to be re-tained under section28A(3)(b) of the Actonly, the fee is £3,500per type of agreementspecified in the ap-plication.

Where there are a num-ber of agreements ofthe same type, onlyone fee is payable in re-spect of those agree-ments. A number ofagreements are of thesame type when thoseagreements areentered into on thesame terms andconditions.

(zt) An applicant for re- Unless (1), or (2) ap- On or before the ap-gistration in the Finan- plies, the fee as set out plication is made.cial Services Register in FEES 3 Annex 10A.under article 8(1) ofthe MCD Order. (1)If the applicant is ap-

plying for a Part 4Apermission at the sametime as it applies for re-gistration under article8(1) of the MCD Order,the fee payable in row(a), column (2) para-graph (3) of this Table.

(2) If the applicant isapplying for a variationof a Part 4A permissionat the same time as itapplies for registrationunder article 8(1) of


3



the MCD Order, the feepayable in row (p), col-umn 2 paragraph (3)(c)of this Table.

(zu) Any person to Designated Credit Ref- Within 30 days of thewhich the Designated erence Agencies and date of the invoice.Credit Reference Agen- Finance Platform Fee incies and Finance Plat- accordance with FEES 3form Fee applies under Annex 10B.FEES 3 Annex 10B.

(zv) Any firm that The amount set out in Within 30 days of themeets the test in FEES 3 FEES 3 Annex 10C(1) R(2). date of the invoice.Annex 10C(1)R(1) (PPIcampaign fees).

(zw) An applicant for Either (1), (2), or (3) ap- On the date the ap-authorisation under re- plies as set out below: plication is made.gulation 7 of the DRS

(1) If the applicant isRegulations, or the op-applying for permissionerator of a tradingto operate one data re-venue seeking verifica-porting service, 5,000.tion of their compli-

ance with Title V of Mi- (2) If the applicant isFID under regulation 8 applying for permissionof the DRS Regulations to operate more thanor an applicant for vari- one data reporting ser-ation of an authoris- vices, 50% of the feeation under regulation at (1) for each addi-12 of the DRS Re- tional service plus thegulations. fee at (1).

(3) If the applicant isapplying for variationof an authorisation,50% of the fee at (1)for each additionalservice.

(zx) (1) Unless (2) ap- 1) Unless (2) applies, On the date the ap-plies any person apply- 20,000. plication is madeing to connect to the

(2) Any incoming datamarket data processorreporting services pro-system to make trans-vider will pay 80% ofaction reports directlythe fee at (1).to the FCA under

MiFIR.

(2) If a person has pre-viously applied asstated in (zx)(1) aboveand has been con-nected then no furtherfee is payable for anyfurther such ap-plications.

(zy) (1) Subject to (2) (1) Unless (2) applies, On the date the ap-and (3) below, any per- 10,000. plication is made.son applying to con-

(2) Any incoming datanect to the marketreporting services pro-data processor systemvider authorised by an-to provide marketsother EEA State will


3



data (other than trans-pay 80% of the fee ataction reports) under(1).MiFID and MiFIR.

(2) If a person has pre-viously applied asstated in (zy)(1) aboveand has been con-nected then no furtherfee is payable for anyfurther such applica-tions in relation to re-porting the same data.

(3) If a person has pre-viously applied asstated in (zy)(1) aboveand makes a furtherapplication in relationto the provision of dif-ferent data then a sep-arate fee is payable forsuch application.

(zz) an applicant for re- 500 On or before the dategistration under regu- the application islation 14 of the Risk made.Transformation Re-gulations as a pro-tected cell company.

(zza) An application The highest of the ap- On the date the ap-for authorisation as a plicable tariffs set out plication is made.regulated benchmark in FEES 3 Annex 1R.administrator.

Where an applicant in-tends to administerbenchmarks falling intodifferent complexitygroupings, it will payone fee only, for thehighest category ap-plied for. If, once au-thorised, a regulatedbenchmark adminis-trator notifies the FCAof its intention to ad-minister other/addi-tional benchmarks nofurther application feeis payable (even if theother/additionalbenchmark falls into ahigher complexitycategory).

(zzb) An application 5,000 On the date the ap-for recognition of an plication is made.administrator in ac-cordance with article32 of the benchmarksregulation.


3



(zzc) An application for 1,500 On the date the ap-endorsement of a plication is made.benchmark or familyof benchmarks in ac-cordance with article33 of the benchmarksregulation.

Part 2: UKLA fees

(1) Fee payer (2) Fee payable (3) Due date

(a) FEES 3 Annex 12R Within 30 days of thedate of the invoice.

(i) An issuer which hasnot made public its an-nual financial reportbefore the latest timespecified in DTR 4.1.3 R.

(ii) An issuer which hasnot made public itshalf-yearly financial re-port before the latesttime specified in DTR4.2.2 R (2).

(b) An applicant for ap- FEES 3 Annex 12R On or before the dateproval as a sponsor. the application is

made.

(c) For the purposes of FEES 3 Annex 12R On or before the datethe listing rules: that relevant document

is first submitted to the(i) an issuer requesting FCA.approval of a docu-ment arising in rela-tion to a specific eventor transaction, which isnot a significant trans-action or a super trans-action; or

(ii) an issuer or personapplying for eligibilityfor listing of its se-curities.

(d) Under the pro- FEES 3 Annex 12R On or before the datespectus rules, an issuer that relevant documentor a person requesting is first submitted to theapproval or review of FCA.a document arising inrelation to a specificevent or transaction,which is not a signific-ant transaction or a su-per transaction.

(e) An issuer re- FEES 3 Annex 12R On or before the datequesting the approval that relevant documentor review of a docu- is first submitted to thement in connection FCA.with a supertransaction.

(f) An issuer requesting FEES 3 Annex 12R On or before the datethe approval or review that relevant document


3

R3.2.7A



of a document in con- is first submitted to thenection with a signific- FCA.ant transaction.

(g) A person who re- FEES 3 Annex 12R On or before the datequests the FCA’s ap- that relevant documentproval of a document is first submitted to thethat includes a mineral FCA.expert’s report andwho is a fee payer un-der one or more of thecategories (c), (d), (e),and (f) above must ad-ditionally pay a fee un-der this category.

(h) An applicant for ap- FEES 3 Annex 12R On or before the dateproval as a primary in- the application isformation provider. made.

[Note: Guidance on how a firm liable to pay a fee under both rows (s) and (ze)of this table for the same transaction should expect to be treated is set outin ■ FEES 3 Annex 11 G.]

FEES 3 : Application, Annex 1Notification and Vetting Fees

3

Authorisation fees payable

Part 1 - Authorisation fees payable

For FCA-authorised persons and persons seeking to become FCA-authorised persons, the amountpayable to the FCA is the amount payable under Part 1, (a) below.

For PRA-authorised persons and persons seeking to become PRA-authorised persons, the amountpayable to the FCA is the amount payable under Part 1(b).

[Note: PRA-authorised persons may also pay regulatory transaction fees for new authorisations to thePRA as set out in Chapter 4 of the Fees Part of the PRA's Rulebook.]

The Tables below set out the following:

(1) fees for applications by credit unions and community finance organisations;

(2) application fees in respect of the complexity groupings that relate to regulated activities that arenot credit-related regulated activities; and

(3) application fees in respect of the complexity groupings that relate to credit-related regulatedactivities.

Part 1(a) Authorisation Fees payable to the FCA by FCA-authorised persons

Application type Amount payable (£)

(1) Community finance organisations

(a) [deleted]

(aa) Community finance organisations - where ap- 200plication is for a Part 4A permission limited topermission to carry on credit-related regulatedactivity

(ab) Community finance organisations - where ap- 300plication is for a Part 4A permission as a home fin-ance provider or home finance administrator

(ac) Community finance organisations - where ap- (i) 100 if consumer credit annual income is be-plication is for limited permission tween £0 – £50,000; and

(ii) 200 if consumer credit annual income is morethan £50,000

(b) [deleted]

(c) [deleted]

(2) Complexity groupings not relating to credit-related regulated activities - see Part 2

(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

(3) Complexity groupings relating to credit-related regulated activity - see Part 3

Consumer credit annual income (£)

0 - 50,000 > 50,000

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3

Part 1(a) Authorisation Fees payable to the FCA by FCA-authorised persons

(g) Limited permission 100 unless the application is for lim- 500 unless the applica-ited permission as a not-for-profit tion is for limited per-debt advice body, in which case the mission as a not-for-amount payable is 0 profit debt advice

body, in which case theamount payable is 0


0 -50,000 > 50,000 - > 100,000 > 250,000 >100,000 - 250,000 - 1,000,000

1,000,000

(h) Straightforward 600 750 1,000 1,500 5,000

(i) Moderately complex 800 1,000 1,500 5,000 10,000

(j) Complex 1,000 1,250 2,000 7,000 15,000

Part 1(b) Authorisation Fees payable to the FCA by PRA-authorised persons

Application type Amount payable (£)

(1) Credit unions

(a) Credit unions - registration of a common 200bond

(aa) Credit unions where application is for a Part 1004A permission limited to permission to carry oncredit-related regulated activity

(b) Credit unions (other than where (aa) applies) 150

(c) [deleted]

(2) Complexity groupings not relating to credit-related regulated activities - see Part 2

(d) Straightforward 750 (unless otherwise specified in Part 2)

(e) Moderately complex 2,500 (unless otherwise specified in Part 2)

(f) Complex 12,500

(3) Complexity groupings relating to credit-related regulated activity - see Part 3


0 - 50,000 > 50,000

(g) Limited permission 50 unless the application is for lim- 250 unless the applica-ited permission as a not-for-profit tion is for limited per-debt advice body, in which case the mission as a not-for-amount payable is 0 profit debt advice body,

in which case theamount payable is 0


0 -50,000 > 50,000 - > 100,000 - > 250,000 - >100,000 250,000 1,000,000 1,000,000

(h) Straightforward 300 375 500 750 2,500

(i) Moderately complex 400 500 750 2,500 5,000

(j) Complex 500 625 1,000 3,500 7,500

Part 2 – Complexity groupings not relating to credit-regulated activities

Straightforward cases


Activity grouping Description

A.3 Friendly societies only

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A.4 Friendly societies only

A.10 A firm to the extent it is bidding in emissions auctions

A.13 Advisors, arrangers, dealers or brokers

A.14 Corporate finance advisers

A.18 Home finance providers, advisers and arrangers (excluding homefinance providers).

A.19 General insurance

A.21 Holding client money or assets or both.

B. Regulated benchmark administrators where the applicant in-tends to administer a non-significant benchmark

Moderately Complex Cases

Moderately complex cases


[deleted] [deleted]

A.2 Home finance providers and administrators.

A.3 UK ISPVs

[deleted] [deleted]

A.5 Managing agents at Lloyd's

A.7 Portfolio managers

A.9 Managers and depositaries of investment funds,and operators of collective investment schemesor pension schemes

A.10 Firms dealing as principal, except to the extentthe firm is bidding in emissions auctions

B. Service companies

B. Regulated benchmark administrators where theapplicant intends to administer:

- a significant benchmark; or

- a commodity benchmark or an interest ratebenchmark which has not been designated as acritical benchmark; or

- a regulated-data benchmark other than onewhich is a non-significant benchmark.

Complex Cases

Complex cases


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)

B MTF operators and OTF operators

B. Regulated benchmark administrators where the applicant intendsto administer a critical benchmark

Part 3 - Complexity Groupings relating to credit-related regulated activity



3



CC.2 Credit broking;

Providing credit information services;

Advising on regulated credit agreements for theacquisition of land

Moderately complex cases


CC.2 Debt administration

Debt collecting

Entering into a regulated consumer hire agree-ment as owner

Entering into a regulated credit agreement aslender (excluding in relation to high-cost short-term credit, bill of sale loan agreements andhome credit loan agreements)

Exercising, or having the right to exercise, theowner’s rights and duties under a regulated con-sumer hire agreement

Exercising, or having the right to exercise, thelender’s rights and duties under a regulatedcredit agreement (excluding in relation to high-cost short-term credit, bill of sale loan agree-ments and home credit loan agreements)

Operating an electronic system in relation tolending

Complex cases

Activity grouping Activity grouping

CC.2 Debt adjusting

Debt counselling

Entering into a regulated credit agreement aslender in relation to high-cost short-term credit,bill of sale loan agreements and home creditloan agreements

Exercising, or having the right to exercise, thelender’s rights and duties under a regulatedcredit agreement in relation to high-cost short-term credit, bill of sale loan agreements andhome credit loan agreements

Providing credit references

Part 4 - Authorisation Fees for Treaty Firms R

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

If the Treaty firm wishes to undertake the permitted activities in question by providing services in theUnited Kingdom, the fee is 25% of the fee which would be payable under FEES 3.2.7 R for an applic-ant for Part 4A permission.

Part 5 - Activity Groupings R

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



3

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, FEES3.2.7R (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 anexisting firm with no outstanding regulatory obligations cancelling its Part 4A permission or authoris-ation 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 thePayment Services Regulations or Electronic Money Regulations and the same branches (ifany), as the firm;

(b) assume all of the rights and obligations in connection with any of the regulated activit-ies, payment services and electronic money issuance carried on by the firm;

(c) continue the same compliance arrangements and compliant client asset and clientmoney procedures, as the firm, subject to any changes required only as a result of thechange of legal status;

(d) continue with a risk profile and arrangements for controlling and monitoring riskwhich will not be materially different from those of the firm; and

(e) have the individuals within the firm that are responsible for perform the same role forthe applicant.

Part 7 - Change of legal status - sponsors fees

An application involving only a simple change of legal status for the purposes of FEES 3.2.7R Part2(1)(b) is from an applicant:

(1) which is a new legal entity intending to carry on the business of an existing sponsor (as defined inthe listing rules) in respect of which the FCA does not currently require, and is not proposing to re-quire, 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 activitiesof the existing sponsor under the listing rules;

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

(c) have the individuals within the existing sponsor that are engaged in the provision ofsponsor 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 sponsorset out in LR 8.6.5 R.



3



3

Application and notification fees payable in relation to collectiveinvestment schemes, ELTIFs, money market funds and AIFs marketed inthe UK

Legislative Nature and purpose of fee Payable by Amount of fee Umbrella fac-provision (£) tor (note 1)

Part 1 [deleted]

[deleted] [deleted] [deleted] [deleted] [deleted]



Part 2 Application fees payable for firms to be subject to COLL

Regulation 12 On application for an order An applicant 2of the OEIC Re- declaring a scheme to be angulations ICVC, where the scheme is:

UCITS scheme 1,200This sectionapplies to Non-UCITS retail scheme 1,500funds where

Qualified investor scheme 2,400an applicationis also madeto be au-thorised underthe MoneyMarket FundsRegulation.

Section 242 of On application for an order An applicant 2the Act declaring a scheme to be an

AUT, where the scheme is:This sectionalso applies tofunds wherean applicationis also madeto be au-thorised underthe MoneyMarket FundsRegulation

UCITS scheme 1,200

Non-UCITS retail scheme 1,500

Qualified investor scheme 2,400




3


Section 261C On application for an order An applicant 2of the Act declaring a scheme to be an

ACS, whether it is establishedThis section as a co-ownership scheme oralso applies to a limited partnership scheme,funds where where the scheme is a:an application

UCITS scheme 1,200is also madeto be au- non-UCITS retail scheme 1,500thorised under

qualified investor scheme 2,400the MoneyMarket FundsRegulation

Section 272 of On application for an order An applicantthe Act declaring a scheme to be reco-

gnised where the scheme is:

an EEA AIF equivalent to a 1,500 2non-UCITS retail scheme

an EEA AIF equivalent to a 2,400 2qualified investor scheme

a non-EEA AIF equivalent to a 8,000 2non-UCITS retail scheme or aqualified investor scheme

Where funds of any kind set 300out in Part 2 exist prior to 21July 2018, a flat fee will bepayable on an application forauthorisation under theMoney Market Funds Re-gulation

Part 2A Application fees payable for firms applying for a UK AIF to be authorised under the ELTIFregulation

Article 5 of On application for an AIF to An applicant 2,400 2the ELTIF re- be authorised under the ELTIFgulation regulation

Part 2B Application fees payable for UK or non-EEA firms applying for authorisation under article 5of the Money Market Funds Regulation

Article 5 of UK AIF (apart from those au- 500the Money thorised as a non-UCITS retailMarket Funds scheme or a qualified investorRegulation scheme)

Non-EEA AIF which is mar- 750keted in the UK/EEA withouta passport

Non-EEA AIF which is mar- 500keted in the UK/EEA with apassport or is not marketedin the UK/EEA

Non-EEA AIF which is not 750managed by an EU AIFM butis marketed in the UK/EEAwith a passport

Part 3 (notifications)




3


Section 264 of On giving notice under sec- The operator 600 2the Act tion 264 of the Act

Part 4 (Alternative Investment Funds: fees payable for making a notification to the FCA to marketan AIF)

Regulation 57 On giving notice under regu- the AIFM 250 per AIF N/Aof the AIFMD lation 57 of the AIFMD UK re-UK regulation gulation



The fees in this Part are pay-able in addition to any otherauthorisation applicationfees.

Part 5 (Administration fee for money market funds that exist prior to 21 July 2018 which need toapply for authorisation by the FCA by 21 January 2019)

Article 4 of On application by an existing 21 July 2018 300 2the Money money market fund whichMarket Funds from 21 July 2018 seeks to beRegulation authorised under the Money

Market Funds Regulation

Notes:

1. For an umbrella the fee is multiplied by the factor shown in the final column of the table.






3



3

Application fees payable in connection with Recognised InvestmentExchanges and Recognised Auction Platforms

Description of applicant Amount payable Due date

Part 1 (UK recognised bodies)

Applicant for recognition as a UK RIE 100,000 Date the application ismade

Applicant for recognition as an RAP (payable in 35,000 Date the application isaddition to any other application fee due under madethis part)

[deleted]

[deleted]

Additional fees for a UK RIE applicant who proposes to:

- offer safeguarding and administration services 25,000 Date the application ismade

- use substantially new and untested informa- 25,000 Date the application istion technology systems in the performance of madeits relevant functions

Part 2 (ROIEs)

Applicant for recognition as a recognised over- 50,000 Date the application isseas investment exchange made

Additional fees for applicant who proposes to:

- offer safeguarding and administration services 25,000 Date the application ismade



3



3

Application and administration fees in relation to listing rules [deleted]



3



3

Document vetting and approval fees in relation to listing andprospectus rules [deleted]



3



3

Fees payable by a BIPRU firm for a permission or guidance on itsavailability in connection with the BCD and/or CAD

Part 1

In relation to a BIPRU firm, fees payable other than in relation to the counterparty credit risk internalmodel method.

(1) Paragraphs (2) and (3) deal with an application made to theFCA rather than a request for assist-ance under the Capital Requirements Regulations 2006 (transposing parts of the BCD and CAD, as ap-plicable under article 95(2) of the EU CRR).

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

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

(4)

[deleted]

(5) If the application or request for assistance under the Capital Requirements Regulations 2006(transposing parts of the BCD and CAD, as applicable under article 95(2) of the EU CRR) is in relationto the use of the advanced IRB approach and theFCA (in the case of (2) or (3)) or the relevantHomeState regulator (in the case of (4)) has already granted permission for the use of the foundation IRBapproach at the time of the application then Table 3 applies.

(6) All fees are shown in £.

Table 1

Application fee

Description of Advanced IRB Foundation IRBApplication group group ('000) ('000) AMA ('000)

Group 1 Five or more signi- 268 232 181ficant overseas en-tities as describedin more detail inthe definition ofGroup 1 in the in-troduction to Part1 of this Annex

Table 2



3

Description of group Application fee

Number oftraders as atthe 31 De-cember priorto the FCA's

Modified eli- fee year inApplication gible liabilities which the fee Advanced IRB Foundation IRBgroup (m) is payable ('000) ('000) AMA ('000)

Group 2 >40,000 >200 232 198 146

Group 3 >5,000 - 40,000 26 - 200 94 72 51

Group 4 0 - 5,000 0 - 25 42 30 24

(1) [Deleted]

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

Table 3 (Advanced IRB approach where the FCA or Home State regulator has already given permis-sion 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


FEES 3 : Application, Annex 6ANotification and Vetting Fees

3

Fees payable for a permission or guidance on its availability in connectionwith the EU CRR

Part 1

Fees payable in relation to internal approaches that require permission under Part Three of the EU CRRother than the internal model method for counterparty credit risk.

(1) Subject to (3), for applications made to the FCA to authorise a new internal approach:

(i) where the application relates to IFPRU investment firms

and to five or more significant overseas entities within the same group (Group 1) and the applica-tion is for a permission to use one of the internal approaches in Tables 1 or 2 or guidance on theavailability of such a permission, the fees in Table 1 are applicable; and

(ii) for all other IFPRU investment firms the fees in Table 2 are applicable.

(2) [deleted]

(3) If however the application or request for assistance is in relation to the use of the Advanced IRBapproach and the FCA (in the case of (1)) has already granted permission for the use of the Founda-tion IRB approach then Table 3 applies.

(4) References to the internal approaches in Tables 1, 2 and 3 are to be construed as follows:

(i) Foundation IRB means the internal approach for credit risk referred to in article 143(1) of the EUCRR;

(ii) Advanced IRB means the internal approach for credit risk referred to in article 151(4) and (9) ofthe EU CRR; and

(iii) AMA means the internal approach for operational risk referred to in article 312(2) of the EUCRR.

(5) All fees are shown in £.

Table 1

Application group Description of group Application fee

Advanced IRB Foundation IRB AMA (‘000)(‘000) (‘000)

Group 1 Five or more significant 268 232 181overseas entities as de-scribed in more detailin the definition ofGroup 1 in the introduc-tion to Part 1 of thisAnnex

Table 2

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3

Application Description of Group Application feegroup Modified eli- Number of Advanced IRB Foundation IRB AMA (‘000)

gible liabilities traders as at 31 (‘000) (‘000)(m) December

prior to theFCA'sfee yearin which thefee is payable

Group 2 >40,000 >200 232 198 146

Group 3 >5,000 - 40,000 26 - 200 94 72 51

Group 4 0-5,000 0 - 25 42 30 24

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

Table 3 (Advanced IRB approach where the FCA or consolidating supervisor has already given permis-sion to use Foundation IRB)

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.

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FEES 3 : Application, Annex 6BNotification and Vetting Fees

3

Part 1

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES 3 Annex 6B/1


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■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES 3 Annex 6B/2


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Fees payable for authorisation as an authorised payment institution orregistration as a small payment institution, including notification fees,in accordance with the Payment Services Regulations

Authorisation and registration fees payable

Application type for authorisation, registrationand notification under Part 2 of the Payment Ser-vices Regulations Amount payable

(1) small payment institution 500

(2) authorised payment institution - where the ap- 1,500plicant is applying for authorisation to providepayment services in paragraph(s) (f) (money remit-tance) and/or (g) (payment initiation services)and/or (h) (account information services) of Part 1of Schedule 1 to the Payment Services Re-gulations

(2)(i) registered account information service pro- 1,500vider - where the applicant is applying for regis-tration to provide payment services in paragraph(h) (account information services) of Part 1 ofSchedule 1 to the Payment Services Regulationsonly

(3) authorised payment institution - where the ap- 5,000plicant is applying for authorisation to providepayment services in any one or more ofparagraph(s):

(a) (enabling cash to be placed on payment ac-count and all operations required for operatinga payment account);

(b) (enabling cash withdrawals from a paymentsaccount and all operations required for operat-ing a payment account);

(c) (execution of direct debts, payment transac-tions executed through a payment card or sim-ilar device, credit transfers);

(d) (execution of payment transactions wherethe funds are covered by a credit line for the pay-ment service user);

(e) (issuing payments instruments or acquiringpayment transactions)

of Part 1 of Schedule 1 to the Payment ServicesRegulations.

(4) authorised payment institution - where, at 3 for each agent registered with the FCA at thethe time the application is made, the applicant time of application.intends to use agents

This fee is in addition to any fee due under para-graph (2) or (3) of this table.



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Application type for authorisation, registrationand notification under Part 2 of the Payment Ser-vices Regulations Amount payable

(5) authorised payment institution - where, dur- 3 for each change notified to the FCA during theing the course of the FCA financial year (12 FCA financial year.months ending 31 March), the firm notifies the

No fee is due under paragraph (5) if the totalFCA of any changes to the list of agents it has re-number of notifications to the FCA during thegistered since authorisationFCA financial year numbers 100 or less.

(6) A person (service provider) - where, during 300the course of the FCA financial year (12 months

If the FCA determines that the claim for exemp-ending 31 March) that person notifies the FCAtion is not valid and the business must apply forunder regulation 38 of the Payment Services Re-authorisation or registration, then the latest ex-gulations of its use of the limited networkemption charge paid by the business will be de-exclusionducted from the relevant application fee.

(7) A person (service provider) – where, during 200the course of the FCA financial year (12 months

If the FCA determines that the claim for exemp-ending 31 March), that person notifies the FCAtion is not valid and the business must apply forunder regulation 39 of the Payment Services Re-authorisation or registration, then the latest ex-gulations of its use of the electronic communica-emption charge paid by the business will be de-tions exclusionducted from the relevant application fee.

Note: See FEES TP 17 for transitional provisions relating to fees payable for authorisation as an au-thorised payment institution or registration as a small payment institution under the Payment Ser-vices Regulations 2017 (SI 2017/752).



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Special Project Fee for restructuring

(1) R The Special Project Fee for restructuring (the SPFR) is only payable by aperson 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 1AR;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 1AR).

(2) R The SPFR becomes payable by a person falling into (1)(a) or (b) if it en-gages in, or prepares to engage in, activity which involves it undertakingor 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;

(iii) reattribution;

(iv)a significant change to the firm’s business model; and

(v)a significant internal change programme.

(3) R No SPFR is payable under (2) if the transaction only involves the firm seek-ing to raise capital within the group to which it belongs.

(4) R Where the transaction in (2) involves raising capital outside the group towhich the firm belongs, any SPFR in relation to that transaction is onlypayable by the largest firm in that group. The largest firm is the one thatpays the highest periodic fee in the fee year in which the bill is raised.For the purpose of the calculation in (9), all time spent and fees and dis-bursements incurred in relation to the group are added together.

(5) R The definition of group is limited for the purposes of calculating the SPFRto parent undertakings and their subsidiary undertakings.

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

(a) an insolvency order is in effect as respects the person or the person is be-ing voluntarily wound up or steps are being taken for the making of aninsolvency order or voluntary winding up of, or with respect to, the per-son by someone entitled to take such steps; or

(b) the Bank of England or the Treasury have exercised a stabilisation powerin respect of the person under the Banking Act 2009.

(7) R In (6):

(a) references to an insolvency order or winding up include the equivalentprocess in any jurisdiction outside the United Kingdom; and

(b) references to an insolvency order include such an order made under theBanking Act 2009.





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(7A)R The FCA will levy its own SPFR separate to any levy issued by the PRA andthis may be in relation to the same event or circumstance.

(8) R No SPFR is payable tothe FCA:

(a) if the amount calculated in accordance with (9) in relation to the regu-latory work conducted by the FCA totals less than £50,000 in the case ofan FCA-authorised person or £25,000 in the case of a PRA-authorised per-son; or

(b) for time spent giving guidance to the person in relation to the same mat-ter if the FCA has charged that person for that guidance.

(9) R The SPFR for the FCA is calculated as follows:

(a) Determine the number of hours, or part of an hour, taken by the FCA inrelation to regulatory work conducted as a consequence of the activitiesreferred to in (2) or (6).

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

(c) Then add any fees and disbursements invoiced to the FCA by any personin respect of services performed by that person for theFCA in relation toassisting theFCA 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 ofhours or part hours as recorded on the FCA's systems in relation to theregulatory work referred to in (a).

(10) R The first column in the table at (11) sets out the relevant pay grades ofthose employed by the FCA and the second column sets out the hourlyrates chargeable in respect of those pay grades.

(11) R Table of FCA hourly rates:

FCA pay Hourly rate (£)grade

Admin- 45istrator

Associate 75

Technical 130Specialist

Manager 145

Any other 255person em-ployed bythe FCA

(11A) R [deleted]



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(12) G The obligation to pay the SPFR is ongoing. Accordingly, there is no limitation on thenumber of times that the FCA may invoice a person for the SPFR in relation to the sameevents or circumstances referred to in (2) or (6). If the FCA does so, there is a single floorunder (8)(a) and not a separate one for each instalment. Therefore, for example, if a per-son is subject to an administration order, the FCA may invoice the person on a periodicbasis for all the related regulatory work, but may only do so once the total fee (includ-ing disbursements) equals 50,000.

(13) G If the SPFR is payable, the full amount calculated under (9) is payable not just the excessover £50,000 or £25,000.

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



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

Authorisation, registration and variation fees payable

Application type for authorisation, registration, Amount payablevariation or notification under Part 2 of the Elec-tronic Money Regulations

(1) small electronic money institution 1,000

(2) authorised electronic money institution 5,000

(3) electronic money institution - where, at the 3 for each agent registered with the FCA at thetime the application is made, the applicant in- time of application.tends to use agents

This fee is in addition to any fees due under para-graph (1) or (2) of this table.

(4) electronic money institution - where, during 3 for each change notified to the FCA during thethe course of the FCA financial year (12 months FCA financial year.ending 31 March), the firm notifies the FCA of

No fee is due under paragraph (4) if the totalany changes to the list of agents it has registerednumber of notifications to the FCA during thesince its authorisationFCA financial year numbers 100 or less.



http://www.legislation.gov.uk/uksi/2011/99/part/2


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Fees payable for registration as a CBTL firm under article 9 of the MCDOrder

Application type for registration under article 9 Amount payableof the MCD Order

(1)An applicant who, at the time of application, £100holds a Part 4A permission or interim permissionand has not had a registration as a CBTL firm re-voked under article 13 of the MCD Order.

(2)An applicant who, at the time of application, £500

(a)does not hold a Part 4A permission or interimpermission; or

(b)has previously held a registration as a CBTLfirm which was revoked under article 13 of theMCD Order



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Designated Credit Reference Agencies and Finance Platforms Fee

(1) R The Designated Credit Reference Agencies and Finance Platform Fee (the“DCRFP”) is only payable by a designated credit reference agency or a designatedfinance platform.

(2) R The DCRFP becomes payable by a person falling into (1) if the FCA conducts regu-latory work connected to:

(a) breaches or potential breaches by that person of requirements underthe Small and Medium Sized Business (Credit Information) Regulationsor the Small and Medium Sized Business (Finance Platform) Re-gulations.

(b) whether the person has or may have committed an offence of mis-leading the FCA under regulation 34 of the Small and Medium SizedBusiness (Credit Information) Regulations or regulation 31 of the Smalland Medium Sized Business (Finance Platforms) Regulations.

(3) R A person falling into (1) is not required to pay the DCRFP if the amount calculatedin accordance with (4) for the FCA’s regulatory work described at (2)(a) and/or (b)is less than £10,000.

(4) R The DCRFP is calculated as follows:

(a) Determine the number of hours, or partial hours, taken by the FCA inperforming the regulatory work described at (2)(a) and/or (b).

(b) Use the table at FEES 3 Annex 9(11)R to determine the relevant paygrades of those employed by the FCA to perform the regulatory workdescribed at (2)(a) and/or (b).

(c) Next, multiply the applicable pay grade rate in the table at FEES 3 Annex9(11)R by the number of hours or part hours obtained under (a).

(d) Then add any fees and disbursements invoiced to the FCA by any per-son in respect of services performed by that person for the FCA in rela-tion to assisting it in performing the regulatory work referred to in 2(a)and/or (b).

(e) The resulting figure is the DCRFP.

The number of hours or partial hours referred to in (4)(a) are the number of hoursor partial hours as recorded on the FCA’s systems in relation to the regulatorywork referred to in (2)(a) and/or (b).

(5) G The hourly rates chargeable for the FCA pay grades are set out in the table at FEES3 Annex 9(11)R Special Project Fee for Restructuring.

(6) G (a) The obligation to pay the DCRFP is ongoing. There is therefore no limiton the number of times that the FCA may invoice a person falling into(1) for the DCRFP for the same regulatory work described at (2)(a) and/or (b).

(b) If the FCA issues more than one invoice, there is a single floor under (3)and not a separate one for each instalment.

(7) G If the DCRFP is payable, the full amount calculated under (4) is payable; not justthe excess over £10,000.

(8) G The FCA shall provide any person falling into (1) with written notice that it is per-forming regulatory work described at 2(a) and/or (b) which is likely to exceed£10,000 calculated in accordance with (4) as soon as is reasonably practicable.



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FEES 3 : Application, Annex 10CNotification and Vetting Fees

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PPI campaign fees

(1) R (1) A firm must pay a PPI campaign fee calculated in accordance with (2)if it has:

(a) reported over 100,000 complaints cumulatively under ques-tion 17(A) (payment protection insurance – advising, sellingand arranging) of the complaints return form in DISP 1 Annex1R; and

(b) reported those complaints from 1 August 2009 up to and in-cluding 1 August 2015.

(2) The PPI campaign fee is calculated by multiplying the number of com-plaints cumulatively reported to the FCA under question 17(A) of DISP1 Annex 1R for the firm from 1 August 2009 up to and including 1 Aug-ust 2015 by £3.64.

(2) R (1) A firm’s PPI campaign fee will be a proportion of the total amount ofcosts the FCA has estimated it will incur in running the consumer com-munications campaign highlighting the introduction of the two-yearPPI complaints deadline.

(2) (a) The FCA will invoice the PPI campaign fee in equal amountsover two years.

(b) The FCA will invoice the first part of the fee during themonth following FEES 3 Annex 10C coming into force and willinvoice the second part one calendar year later.

(3) The FCA will write to each firm that meets the test at FEES 3 Annex10C(1)R(1) before sending out its first invoice, setting out:

(a) the number of complaints reported to the FCA under ques-tion 17(A) of DISP 1 Annex 1R for that firm from 1 August2009 up to and including 1 August 2015; and

(b) the basis on which it has calculated the PPI campaign fee forthat firm.

(4) Any amounts raised that are in excess of the actual cost of the PPI con-sumer communications campaign will be refunded to fee payers underFEES 3 Annex 10C on a pro rata basis.

(3) R References in this annex to question 17A in the complaints return form at DISP 1Annex 1R are to that question as it existed on 1 August 2015, and to any corres-ponding question in previous versions of that form.

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES 3 Annex 10C/1

FEES 3 : Application, Annex 10CNotification and Vetting Fees

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■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES 3 Annex 10C/2

FEES 3 : Application, Annex 10CRNotification and Vetting Fees

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Designated Credit Reference Agencies Fee

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES 3 Annex 10CR/1

FEES 3 : Application, Annex 10CRNotification and Vetting Fees

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■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES 3 Annex 10CR/2


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

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) for the same transaction should expect to be treated.

(1) The transferor in insurance business transfer schemes is liable to pay the fee set out in FEES3.2.7 R (s). However, it may also be liable to pay the Special Project Fee for restructuring setout in FEES 3.2.7 R (ze), calculated in accordance with FEES 3 Annex 9. It is possible then for afirm to have to pay two types of fees in respect of the same insurance business transferscheme.

(2) Where the situation described in (1) arises, the FCA will consider whether to reduce or remita fee under FEES 2.3 (Relieving Provisions).



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UKLA transaction fees

Category Fee payable (£)

A1 0

A2 2,000

A3 5,000

A4 15,000

A5 20,000

A6 50,000

For the purposes of FEES 3 Annex 12R:

Category A1 includes:

(a)applying for eligibility for listing of securities under ■ LR 17; or

(b)applying for eligibility for listing of miscellaneous securities under ■ LR 20; or

(c)applying for eligibility for listing of equity shares where ■ LR 6.1.1R(1) or (2) applies; or

(ca)applying for eligibility for listing of equity shares where ■ LR 21.2.5R(1) or (2) applies; or

(cb) applying for eligibility for listing of certificates representing shares where ■ LR 21.6.13R(1) or(2) applies; or

(d)applying for approval as a primary information provider; or

(e)applying for the approval of a material change to the published investment policy of a closed-ended investment fund under ■ LR 15.4.8R; or

(f)submitting a summary document for review under ■ PR 1.2.3R(8); or

(g)applying for the approval of:

(i)a supplementary prospectus; or

(ii)supplementary listing particulars; or

(iii)a securities note; or

(iv)a summary;


(a) applying for the approval of:

(i)a prospectus in relation to non-equity transferable securities; or

(ii)a registration document in relation to non-equity transferable securities; or

(iii)listing particulars in relation to non-equity transferable securities;

(b)where an issuer has a market capitalisation of less than £500 million:



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(i)applying for the approval of a prospectus in relation to equity securities; or

(ii)applying for the approval of a registration document in relation to equity securities; or

(iii)applying for the approval of listing particulars in relation to equity securities; or

(iv)submitting a document equivalent to a prospectus for review under ■ PR 1.2.2R(2),■ PR 1.2.2R(3), ■ PR 1.2.3R(3) or ■ PR 1.2.3R(4);

(c)submitting a circular for approval; or

(d)where an issuer is a closed-ended investment fund:

(i)applying for the approval of a prospectus in relation to equity securities; or

(ii)applying for the approval of a registration document in relation to equity securities; or

(iii)applying for the approval of listing particulars in relation to equity securities; or

(iv)submitting a document equivalent to a prospectus for review under ■ PR 1.2.2R(2),■ PR 1.2.2R(3), ■ PR 1.2.3R(3) or ■ PR 1.2.3R(4); or

(e)where an issuer is an open-ended investment company, applying for the approval of listingparticulars;


(a)applying for eligibility for listing of equity shares under ■ LR 15; or

(b)applying for eligibility for listing of equity shares under ■ LR 16; or

(c)applying for approval as a sponsor following a change in legal status;


(a)applying for eligibility for listing of equity shares under ■ LR 6; or

(b)applying for eligibility for listing of shares under ■ LR 14; or

(c)applying for eligibility for listing of securities representing certain securities under ■ LR 18; or

(d)applying for eligibility for listing of securities under ■ LR 19; or

(da)applying for eligibility for listing of equity shares under ■ LR 21; or

(db)applying for eligibility for listing of certificates representing shares under ■ LR 21; or

(e)applying for the approval of:

(i)a prospectus in relation to equity securities; or

(ii)a registration document in relation to equity securities; or

(iii)listing particulars in relation to equity securities;

(f)submitting a document equivalent to a prospectus for review under ■ PR 1.2.2R(2), ■ PR 1.2.2R(3),■ PR 1.2.3R(3) or ■ PR 1.2.3R(4); or

(g)applying for the approval of a document that includes a mineral expert’s report; or

(h)applying for approval as a sponsor;



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Category A5 includes applying for the approval or review of a document in relation to a significanttransaction; and

Category A6 includes applying for the approval or review of a document in relation to a supertransaction.



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Fees Manual

Chapter 4

Periodic fees


FEES 4 : Periodic fees Section 4.1 : Introduction

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R4.1.1

R4.1.1A

G4.1.2

G4.1.3

G4.1.4


4.1 Introduction

Application......................................................................................................This chapter applies to every person set out in ■ FEES 1.1.2R (2).

A reference to firm in this chapter includes a reference to:

(1) a fee-paying payment service provider;

(2) a CBTL firm;

(3) a fee-paying electronic money issuer;

(4) a recognised investment exchange; and

(5) a data reporting services provider provider (other than an incomingdata reporting services provider).

Purpose......................................................................................................The purpose of this chapter is to set out the requirements on firms andothers to pay periodic fees and transaction reporting fees in certaincircumstances.

Background......................................................................................................Most of the detail of the periodic fees that are payable by firms is set out in■ FEES 4 Annexes 1A to 11BR. ■ FEES 4 Annex 12 G and ■ FEES 4 Annex 13Gprovide guidance on the calculation of certain tariffs. Most of the provisionsof the Annexes will vary from one fee year to another. Accordingly fresh■ FEES 4 Annexes will come into force, following consultation, for each feeyear.

(1) The periodic fees for collective investment schemes reflect theestimated costs to the FCA of considering proposals to changeregulated collective investment schemes, maintaining up to daterecords about them, and related policy work.

(2) [deleted]

(3) The periodic fees for fee-paying payment service providers, fee-paying electronic money issuers, CBTL firms, data reporting serviceproviders (other than incoming data reporting services providers andissuers of regulated covered bonds are set out in ■ FEES 4 Annex 11R.This annex sets out

FEES 4 : Periodic fees Section 4.1 : Introduction

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G4.1.5

G4.1.6

G4.1.7


the activity groups, tariff base, valuation dates and, where applicable,the flat fees due for these firms.

The Society of Lloyd's, which has permission, has its own fee block.

[deleted]

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

FEES 4 : Periodic fees Section 4.2 : Obligation to pay periodic fees

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R4.2.1

G4.2.2

G4.2.2A

G4.2.3

R4.2.4


4.2 Obligation to pay periodic fees

General......................................................................................................A person shown in column (1) of the table in ■ FEES 4.2.11 R as the relevantfee payer must pay each periodic fee applicable to it, calculated inaccordance with the provisions referred to in column (2) of the applicabletable, as adjusted by any relevant provision in this chapter:

(1) in full and without deduction (unless permitted or required by aprovision in FEES); and

(2) on or before the date given in column (3) of that table, unless■ FEES 4.2.10 R applies.

A relevant fee payer will be required to pay a periodic fee for every yearduring 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 whichit is a regulated collective investment scheme) subject to any reductions orexemptions applicable under this chapter. If a person is the relevant feepayer 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 relevantfee payer for more than one regulated collective investment scheme) he willbe required to pay a fee in relation to each.

(2) [deleted]

A recognised body may also have obligations to pay fees to the FCA underother rules arising from legislation other than the Act. For example arecognised body may have an obligation to pay a fee as an approvedoperator of a relevant system under the Uncertificated Securities Regulations1995 (SI 1995/3272).

The FCA will issue invoices at least 30 days before the dates on whichpayments fall due under ■ FEES 4.2.1 R.

Method of payment......................................................................................................(1) A periodic fee must be paid using either direct debit, credit transfer

(BACS/CHAPS), cheque, Maestro, Visa Debit or by credit card (Visa/




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R4.2.4A

G4.2.5

R4.2.6

R4.2.7

G4.2.7A

R4.2.7B

G4.2.7C

R4.2.7D

R4.2.7E

R4.2.7F


Mastercard only).

(2) [deleted]

The FCA does not specify a method of payment for a recognised body or adesignated professional body.

The FCA expects a recognised body or a designated professional body willgenerally pay their respective fees by electronic credit transfer.

Modifications for persons becoming subject to periodic feesduring the course of a fee year......................................................................................................[deleted]

[deleted]

[deleted]

[deleted]

[deleted]

[deleted]

(1) (a) A firm (other than an AIFM qualifier, an ICVC, a UCITS qualifier,or an issuer of regulated covered bonds) which becomesauthorised or registered, or whose permission and/or activities isextended, during the course of the fee year must pay a fee basedon its projected valuation for the first twelve months of its newbusiness.

(b) This is the valuation provided by the firm in the course of itsapplication.

(2) The calculation for the first year of authorisation or registration for:

(a) an AIFM qualifier, an ICVC and a UCITS qualifier is in■ FEES 4 Annex 4R Part 1; and

(b) an issuer of regulated covered bonds is in■ FEES 4 Annex 11R Part 4.

Calculating the fee in the firm’s first year of authorisation......................................................................................................(1) Identify the tariff rate or rates which

will be relevant to the firm as a re-sult of its new or extended permis-sion; and then

(2) apply the formula (A+B+C) x D,where:


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R4.2.7G

R4.2.7H

R4.2.7I

G4.2.7J


A = the amount arrived at by apply-ing the tariff rates to the firm’s pro-jected valuation for its first year ofnew business, as provided by it inthe course of its application;

B = the A.0 minimum fee, unless al-ready paid;

C = any fee that becomes due inAP.0 following the calculation of A;and

D = the number of calendar months(inclusive) between the calendarmonth during which the firm re-ceived its new or extended permis-sion and the last calendar month ofthat fee year ÷ 12.

Calculating fees in the second fee-year where the firm receivedpermission between 1 January and 31 March in its first feeyear......................................................................................................When a firm receives permission between 1 January and 31 March, its fee forthe following fee year starting 1 April will be calculated from the projectedvaluation for the first twelve months of its new business that it provided inthe course of its application.

Calculating all other fees in the second and subsequent yearsof authorisation where a full year of tariff data is not available......................................................................................................If it can, a firm must provide data from a complete period (as specified in■ FEES 4 Annex 1AR Part 5 or ■ FEES 4 Annex 11R Part 4) that begins on or afterthe date that the firm obtained the relevant permissions to which the tariffbase relates.

If a firm does not have sufficient tariff data to enable the periodic feescalculation to be made in respect of that fee year, it must calculate anannualised figure based on actual data where possible. If the tariff base is acumulative measure like income, covering the full year, it must apply theformula (A÷B) x 12, where:

A = the total income from the date of authorisation up to the firm’s financialyear end or 31 December (whichever is sooner), calculated according to therelevant rules; and

B = the number of months in the period referred to in A.

For example, suppose the tariff data for a particular permission is based onincome for the financial year ending during the calendar year ending 31December before the relevant fee year starting the following April. A firm isauthorised in October and its financial year ends in June. By April, it will nothave been able to report on the basis of its financial year. The value of Awould therefore cover the period from October to December and the valueof B would be two i.e. November and December.


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R4.2.7K


If the firm was authorised in June and its financial year ended in October,then the value of A would cover June to October and the value of B wouldbe four i.e. July to October.

Where the measure is not cumulative (e.g. the number of traders for fee-block A10), the firm must use the figure relating to its annual reporting date(e.g. 31 December for A10) or, if that is not available, the projected figureused when it was authorised. Table A sets out the reporting requirements forthe key fee-blocks when actual data is not available:

Table A: calculating tariff data for second and subsequent years ofauthorisation when full trading figures are not available

Fee-block Tariff base Calculation where trad-ing data are notavailable

A1. Deposit acceptors Average MELS for Oc- Use data available at 31tober - December December or, if trading

has not commenced by31 December, use theprojection submitted aspart of the applicationprocess.

A2. Home finance pro- Number of relevant con- Apply the formulaviders and admin- tracts entered into or (A÷B) x 12 to arrive atistrators being administered in an annualised figure.

the twelve months upto 31 December

A3. Insurers - general Gross written premium GWP – apply the for-for fees purposes (GWP) mula (A÷B) x 12 to ar-for the financial year rive at an annualisedended in the calendar figure.year ending 31 De-

BEL – use data at valu-cember and best estim-ation date or, if trad-ate liabilities for feesing has not com-purposes (BEL) valuedmenced by then, useat the end of the finan-projections provided atcial yearauthorisation.

A4. Insurers - life Gross written premiumfor fees purposes(GWP) for the financialyear ended in thecalendar year ending31 December and bestestimate liabilities forfees purposes (BEL) val-ued at the end of thefinancial year

A5. Managing agents Active capacity in re- Not applicable.at Lloyd’s spect of the underwrit-

ing year at the begin-ning of the period towhich the fee relates

A6. The Society of Bespoke fee Not applicable.Lloyd’s


4


A7. Portfolio managers Funds under manage- Use data as at 31 De-ment valued at 31 cember or, if tradingDecember has not commenced by

31 December, use theprojection submitted aspart of the applicationprocess.

A9. Managers and de- Annual gross income Apply the formulapositaries of invest- for the financial year (A÷B) x 12 to arrive atment funds, and oper- ended in the calendar an annualised figure.ators of collective in- year ending 31vestment schemes or Decemberpension schemes

A10. Firms dealing as Number of traders as Use data as at 31 De-principal at 31 December cember or, if trading

has not commenced by31 December, use theprojection submitted aspart of the applicationprocess

A13. Advisors, ar- Annual income for the Apply the formularangers, dealers or financial year ended in (A÷B) x 12 to arrive atbrokers the calendar year end- the annualised figure

ing 31 DecemberA14. Corporate financeadvisers

A18. Home finance pro-viders, advisers andarrangers

A19. General insurancemediation

A21. Firms holding cli The highest amount of The highest amount of


4


ent money or assets, or client money and the client money and/orboth highest amount of cus- custody assets over the

tody assets held over period between thethe 12 months ending date of authorisation31 December and 31 December or, if

trading has notstarted, use the projec-tion submitted as partof the applicationprocess.

B. Market operators, Flat fee Not applicable.MTF operators and OTFoperators

B. Service companies Annual income for the Apply the formulafinancial year ended in (A÷B) x 12 to arrive atthe calendar year end- the annualised figure.ing 31 December

B. Regulated Annual income for the Apply the formulabenchmark admin- financial year ended in (A÷B) x 12 to arrive atistrators the calendar year end- the annualised figure.

ing 31 December

B. Recognised invest- Annual income for the Apply the formulament exchanges financial year ended in (A÷B) x 12 to arrive at

the calendar year end- the annualised figure.ing 31 December

B. Recognised auction Flat fee Not applicable.platforms

B. Recognised overseas Flat fee Not applicable.investment exchanges

CC1. Credit-related Annual income for the Apply the formularegulated activities financial year ended in (A÷B) x 12 to arrive atwith limited permission the calendar year end- an annualised figure.

ing 31 DecemberCC2. Credit relatedregulated activities

G.2 Payment services in- See A1 deposit acceptorsstitutions – depositacceptors

G.3. Large payment ser- Relevant income Apply the formulavices institutions (A÷B) x 12 to arrive at

an annualised figure.

G.4 Small payment in- Flat fee Not applicable.stitutions

G.5 Other payment in- Relevant income Apply the formulastitutions (A÷B) x 12 to arrive at

an annualised figure.

G.10 Large electronic Average outstanding e- Average over themoney institutions money over 12 months period from authoris-

ending 31 December ation to 31 December.

G.11 Small electronic Flat fee Not applicable.money institutions

G.15 Issuer of regu- Value as at 31 Not applicable.lated covered bonds December

G.20 Consumer buy-to- Flat fee Not applicable.let (CBTL) lender


4

R4.2.8

G4.2.9

R4.2.10

R4.2.11


G.21 CBTL adviser andarranger

In relation to an incoming EEA firm or an incoming Treaty firm themodification provisions of ■ FEES 4.2.7 R apply only in relation to the relevantregulated activities of the firm, which are passported activities or Treatyactivities and which are carried on in the United Kingdom, and which are notprovided on a cross border services basis. For payment services and electronicmoney issuance, the adjustment only applies to the business to which thecalculation made in ■ FEES 4.3.12A R relates.

Fee payers ceasing to hold relevant status or reducing thescope of their permission after start of relevant period......................................................................................................The FCA will not refund periodic fees if, after the start of the period towhich they relate:

(1) a fee payer ceases to have the status set out in column (1) of thetable in ■ FEES 4.2.11 R; or

(2) a firm reduces its permission or payment services activities so that itthen 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 toCancel or Vary Permission Before Start of Period)).

Extension of Time......................................................................................................A person need not pay a periodic fee on the date on which it is due underthe relevant provision in ■ FEES 4.2.1 R, if:

(1) that date falls during a period during which circumstances of the sortset out in ■ GEN 1.3.2 R (Emergencies) exist, and that person hasreasonable grounds to believe that those circumstances impair itsability to pay the fee, in which case he must pay it on or before thefifth business day after the end of that period; or

(2) unless ■ FEES 4.3.6R (3), ■ FEES 4.3.6R (4) or ■ FEES 4.3.6R (4A) (Time andmethod for payment) applies, that date would otherwise fall on orbefore the 30th day after the date on which the FCA (in its owncapacity or in its capacity as collection agent for the PRA) has sentwritten notification to that person of the fee payable on that date, inwhich case he must pay on or before the 30th day after the date onwhich the FCA sends the notification.

Table of periodic fees payable to the FCA


4


4 Events occur-ring during theperiod leading tomodified periodic

1 Fee payer 2 Fee payable 3 Due date fee

Any firm (except (1) Unless (2) ap- (1) Unless (2) or Firm receivesan AIFM quali- plies, as specified (3) apply, on or permission, orfier, ICVC or a UC- in FEES 4.3.1 R in before the relev- becomes au-ITS qualifier) relation to FEES 4 ant dates speci- thorised or regis-

Annex 2AR and fied in FEES 4.3.6 tered under theFEES 4 Annex 11 R. R. Payment Services

Regulations, art-(2) Where a firm (2) Unless (3) ap- icle 8 of theis paying a ring- plies, if an event MCD Order , thefencing imple- specified in col- DRS Regulationsmentation fee, umn 4 occurs or the Electronicas specified in during the Money Regula-FEES 4 Annex 2BR. course of a fee tions; or firm ex-

year, 30 days tends permissionafter the occur- or its paymentrence of that service activitiesevent, or if laterthe dates speci-fied in FEES 4.3.6R.

(3) Where thepermission is foroperating a mul-tilateral tradingfacility or operat-ing an organisedtrading facility,the date speci-fied in FEES 4 An-nex 10R (Periodicfees for MTF andOTF operators).

Persons who £1,128 (1) Unless (2) ap- Certificate issuedhold a certificate plies, on or be- to person byissued by the fore 1 August or, FCA under art-FCA under art- if later, within icle 54 of theicle 54 of the 30 days of the Regulated Ac-Regulated Ac- date of the tivities Ordertivities Order invoice(Advice given in

(2) If an event innewspapers etc.)column 4 occurs

Any manager of In relation to Authorisation or-during thean AUT; each unit trust der is made in re-course of a fee

the amount spe- lation to the rel-year, 30 dayscified in part 1 evant schemeafter the occur-of FEES 4 Annex 4 rence of that

eventAny authorised In relation tofund manager of each authorisedan authorised contractualcontractual scheme thescheme; amount speci-

fied in part 1 ofFEES 4 Annex 4




4




Any ACD of an In relation toICVC; and each ICVC, the

amount speci-fied in part 1 ofFEES 4 Annex 4

Persons who, un- In relation to The relevant Not applicableder the constitu- each recognised scheme becomestion or founding scheme the a recognisedarrangements of amount speci- schemea recognised fied in part 1 ofscheme, are re- FEES 4 Annex 4sponsible for themanagement ofthe propertyheld for orwithin thescheme;

AIFM of a UK In relation to (1) Unless (2) ap- The ELTIF is au-ELTIF each ELTIF the plies, on or be- thorised by the

amount speci- fore 1 August or, FCA under thefied in part 1 of if later, within ELTIF regulationFEES 4 Annex 4 30 days of the

date of theinvoice.

(2) If an event incolumn 4 occursduring thecourse of a feeyear, 30 daysafter the occur-rence of thatevent.

Designated pro- FEES 4 Annex 5 On or before the Not applicablefessional body relevant dates

specified in FEES4.3.6 R

UK recognised FEES 4 Annex 6, (1) On or before Recognition or-body part 1 for a UK the relevant der is made.

RIE ; and dates specifiedThe modifiedin FEES 4.3.6 R

FEES 4 Annex 6 R, periodic fee ispart 1A for a UK (2) If the event specified in FEESRIE that is also in column 4 oc- 4 Annex 6 R, Partan RAP curs during the 1and (in the case

course of a fee of an RAP) Partyear, 30 days 1A.after the occur-rence of thatevent

ROIE FEES 4 Annex 6, (1) On or before Recognition or-part 2 the relevant der is made.

dates specifiedThe modifiedin FEES 4.3.6 Rperiodic fee is


4




(2) If the event specified in FEESin column 4 oc- 4 Annex 6, Part 2.curs during thecourse of a feeyear, 30 daysafter the occur-rence of thatevent.

A listed issuer (in FEES 4 Annex 14R Within 30 days Listed issuer (inLR) of shares of the date of LR) becomes sub-and certificates the invoice ject to listingrepresenting rulescertain se-curities.

A sponsor FEES 4 Annex 14R Within 30 days Approval of aof the date of sponsorthe invoice

All non-listed FEES 4 Annex 14R Within 30 days Non-listed issuerissuers (in DTR) of the date of (in DTR) be-of shares and the invoice comes subject tocertificates rep- disclosure re-resenting certain quirements andsecurities. transparency

rules

Any primary in- FEES 4 Annex 14R Within 30 days A person is ap-formation of the date of proved as a prim-provider the invoice ary information

provider

All firms re- FEES 4 Annex 9 R Within 30 days Not applicableporting transac- of the date oftions in securit- the invoiceies derivatives tothe FCA in ac-cordance withSUP 17, and mar-ket operatorswho provide fa-cilities for trad-ing in securitiesderivatives.

Any issuer of a 1 R (1) Unless (2) ap- A person be-regulated co- plies, on or becomes registeredvered bond. fore the relevant as an issuer of a

dates specified regulated co-in FEES 4.3.6 R vered bond

(2) If an eventspecified in col-umn 4 occursduring thecourse of a feeyear, 30 daysafter the occur-rence of thatevent or, if later,


4




the dates speci-fied in FEES 4.3.6R

(i) An AIFM For each notifica- (1) Unless (2) ap- The FCA receives(other than a UK tion made by plies, on or be- a notification toAIFM or an EEA the AIFM of the fore 1 August, market in theAIFM with a kind specified in or, if later, UKbranch in the part 2 of FEES 4 within 30 daysUK) which has Annex 4, the of the date ofnotified the FCA amount speci- the invoiceof its intention fied in part 2 of

(2) If an event into market an AIF FEES 4 Annex 4column 4 occursin the UK underduring theregulation 57 ofcourse of a finan-the AIFMD UKcial year, 30 daysregulation andafter the occur-which has notrence of thatceased to mar-eventket that AIF in

the UK as at 1April of the cur-rent fee year.

(ii) An AIFMwhich has noti-fied the FCA ofits intention tomarket an AIF inthe UK under re-gulation 58 or59 of the AIFMDUK regulationand which hasnot ceased tomarket that AIFin the UK as at 1April of the cur-rent fee year.

A small regis- The basic fee The AIFM is re-tered UK AIFM contained in gistered by the

part 3 of FEES 4 FCA under regu-Annex 4 lation 10 of the

AIFMD UK re-gulation.

[deleted]

A third country The tariff speci- Payable in ac- Not applicablelegal repres- fied in FEES 4 An- cordance withentative nex 15R FEES 4.3.6R


4

R4.2.11A




A benchmark The tariff speci- Payable in ac- Not applicableendorser fied in FEES 4 An- cordance with

nex 15R FEES 4.3.6R

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

FEES 4 : Periodic fees Section 4.3 : Periodic fee payable by firms(other than AIFM qualifiers, ICVCs and UCITS

qualifiers)

4

R4.3.1

G4.3.2


4.3 Periodic fee payable by firms (otherthan AIFM qualifiers, ICVCs andUCITS qualifiers)

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

(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; plus

(1A) any periodic fee applicable to it calculated in accordance with■ FEES 4.3.3A R using information relating to its UK business obtainedin accordance with ■ FEES 4.4 (or by other means in the case of theBank of England); less

(2) any deductions from the periodic fee specified in Part 2 of■ FEES 4 Annex 2AR or Part 7 of ■ FEES 4 Annex 11R.

(1) The amount payable by each firm will depend upon the category (orcategories) of regulated activities or payment services it is engaged in(fee-blocks)and whether it is issuing electronic money, and on theamount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in ■ FEES 4 Annex 1AR (and guidance oncalculating certain of the tariffs is at ■ FEES 4 Annex 12 G and■ FEES 4 Annex 13G) while ■ FEES 4 Annex 2AR sets out the tariff rates forthe relevant fee year. In the case of firms that provide paymentservices and/or issue electronic money, the relevant fee blocks, tariffsand rates are set out in ■ FEES 4 Annex 11R.

(2) Incoming EEA firms, incoming Treaty firms, EEA authorised paymentinstitutions and EEA authorised electronic money institutionsreceive adiscount to reflect the reduced scope of the appropriate regulator'sresponsibilities in respect of them. The level of the discount variesfrom fee-block to fee-block, according to the division ofresponsibilities between the appropriate regulator and Home stateregulators for firms in each fee-block (see ■ FEES 4.3.11 G, ■ FEES 4.3.12 Rand ■ FEES 4.3.12A R).


qualifiers)

4

R4.3.3

R4.3.3A


Calculation of periodic fee (except in relation to the Society ofLloyd’s, fee-paying payment service providers, CBTL firms, fee-paying electronic money issuers and data reporting servicesproviders )......................................................................................................The periodic fee referred to in ■ FEES 4.3.1 R is (except in relation to theSociety, fee-paying payment service providers, CBTL firms, fee-payingelectronic money issuers and data reporting services providers) calculated asfollows:

(1) identify each of the tariffs set out in Part 1 of ■ FEES 4 Annex 2ARwhich apply to the business of the firm for the period specified inthat annex;

(2) for each of the applicable tariffs, calculate the sum payable inrelation to the business of the firm for that period;

(3) add together the amounts calculated under (2);

(4) work out whether an A.0, or , CC.0 minimum fee is payable underPart 2 of ■ FEES 4 Annex 2AR and if so how much (except that thatminimum fee is not payable again by a firm whose permission isextended if the fee was already payable before the extension);

(4A) work out whether an AP.0 FCA prudential fee is payable under Part 2of ■ FEES 4 Annex 2AR and if so how much;

(4B) [deleted]

(5) add together the amounts calculated under (3), (4) and (4A) ; and

(6) apply any applicable payment charge specified in ■ FEES 4.2.4 R,provided that:

(a) for payment by direct debit, successful collection of the amountdue is made at the first attempt by the FCA (in its own capacityand, if applicable, in its capacity as collection agent for the PRA);or

(b) for payment by credit transfer, the amount due is received by theFCA (in its own capacity and, if applicable, in its capacity ascollection agent for the PRA) on or before the due date.

[Note: Transitional provisions apply to ■ FEES 4.3.3R for firms inactivity groups A.3 and A.4 – see ■ FEES TP 13]

Calculation of periodic fee for fee-paying payment serviceproviders, CBTL firms, data reporting services providers (otherthan incoming data reporting services providers) and fee-paying electronic money issuers......................................................................................................The periodic fee referred to in ■ FEES 4.3.1 R in relation to fee-payingpayment service providers, CBTL firms , data reporting services providers(other than incoming data reporting services providers) and fee-payingelectronic money issuers is calculated in accordance with ■ FEES 4 Annex 11 R.


qualifiers)

4

G4.3.4

R4.3.5

R4.3.6


Modification for firms with new or extended permissions......................................................................................................(1) A firm which becomes authorised or registered during the course of a

fee year will be required to pay a proportion of the periodic feewhich reflects the proportion of the year for which it will have apermission or the right to provide particular payment services or theright to issue electronic money- see ■ FEES 4.2.5 G and ■ FEES 4.2.6 R.

(2) Similarly a firm which extends its permission or its right to provideparticular payment services so that its business then falls withinadditional fee blocks will be required to pay a further periodic feeunder this section for those additional fee blocks, but discounted toreflect the proportion of the year for which the firm has theextended permission or payment services activity - see ■ FEES 4.2.6 Rand ■ FEES 4.2.7 R.

(3) These provisions apply (with some changes) to incoming EEA firms,incoming Treaty firms, EEA authorised payment institutions and EEAauthorised electronic money institutions.

(4) These provisions do not apply to a firm's periodic fees in relation toits permission for operating a multilateral trading facility obtainedfrom the FCA during the course of a fee year.

Amount payable by the Society of Lloyd's......................................................................................................The periodic fee referred to in ■ FEES 4.3.1 R in relation to the Society isspecified against its name in ■ FEES 4 Annex 2AR .

Time of payment......................................................................................................(1) [deleted]

(1A) [deleted]

(1B) [deleted]

(1C) If a person meets either of the conditions in (1D) it must pay the FCAthe fee in (1E).

(1D) A person meets the conditions referred to in (1C) if:

(a) its periodic fee for the previous fee year was at least £50,000 andit is:

(i) an FCA-authorised person; or

(ii) a designated professional body; or

(iii) a recognised investment exchange; or

(iv) a regulated covered bond issuer; or

(b) it is a PRA-authorised person and its combined FCA and PRAperiodic fees for the previous fee year were at least £50,000.

(1E) The fee in (1C) is:

(a) an amount equal to 50% of the FCA periodic fee payable for theprevious fee year by:


qualifiers)

4


(i) 1 April; or

(ii) if later, within 30 days of the date of the invoice, in the feeyear to which the sum due under ■ FEES 4.2.1R relates; and

(b) the balance of the FCA periodic fee due for the current fee yearby:

(i) 1 September; or

(ii) if later, within 30 days of the date of the invoice, in the feeyear to which that sum relates.

[Note: If the firm is a PRA-authorised person that meets thecondition at ■ FEES 4.3.6R(1)(D)(b), the firm will also pay its PRAperiodic fees in two tranches as specified in the Fees Part of the PRARulebook . The FCA, acting as the PRA’s collection agent, will collectthese fees.]

(2) If the firm's, designated professional body's, recognised investmentexchange's, or regulated covered bond issuer's periodic fee for theprevious fee year was less than £50,000, it must pay the periodic feedue in full by 1 August or, if later, within 30 days of the date of theinvoice in the fee year to which that sum relates.

(3) If a firm has applied to cancel its Part 4A permission in the way setout in ■ SUP 6.4.5 D (Cancellation of permission), or its status as apayment institution under regulation 10 of the Payment ServicesRegulations (Cancellation of authorisation) or as regulation 10 isapplied by regulation 14 of the Payment Services Regulations(Supplementary provisions), or its status as an electronic money issuerunder regulation 10 of the Electronic Money Regulations(Cancellation of authorisation) or as regulation 10 is applied byregulation 15 of the Electronic Money Regulations (Supplementaryprovisions), or its registration as a CBTL firm under article 13(c) of theMCD Order or its authorisation as a data reporting services providerunder regulation 11 of the DRS Regulations, then (1) and (2) do notapply but it must pay the total amount due when the application ismade.

(4) If the FCA has exercised its own-initiative powers to cancel a firm'sPart 4A permission, then (1) and (2) do not apply but the firm mustpay the total amount due immediately before the cancellationbecomes effective.

(4A) If the FCA has cancelled a firm's authorisation or registration underregulation 10 of the Payment Services Regulations or regulation 10 ofthe Electronic Money Regulations or its registration under regulation10 as applied by regulation 14 of the Payment Services Regulations orits registration under regulation 10 as applied by regulation 15 of theElectronic Money Regulations, or its registration under article 13(except under article 13(c)) of the MCD Order , or its authorisation asa data reporting services provider under regulation 11 or 12 of theDRS Regulations, then (1) and (2) do not apply but the firm must paythe total amount due immediately before the cancellation becomeseffective.

(5) [deleted]

(5A) [deleted]


qualifiers)

4

R4.3.6A

R4.3.7

G4.3.8

G4.3.9

G4.3.10

G4.3.11


(6) Paragraphs (1) and (2) do not apply to any periodic fee in relation toa firm's permission for operating a multilateral trading facility oroperating an organised trading facility and such a fee is not takeninto account for the purposes of the split in (1). Instead any fee forthis permission is payable on the date specified in ■ FEES 4 Annex 10(Periodic fees for MTF and OTF operators).

Groups of firms......................................................................................................A firm which is a member of a group may pay all of the amounts due fromother firms in the same group under ■ FEES 4.2.1 R, if:

(1) it notifies the FCA (in its own capacity and, if applicable, in itscapacity as collection agent for the PRA) in writing of the name ofeach other firm within the group for which it will pay; and

(2) it pays the fees, in accordance with this chapter, as a single amount asif that were the amount required from the firm under ■ FEES 4.2.1 R.

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

If the payment made does not satisfy in full the periodic fees payable by allof the members of the group notified to the FCA under ■ FEES 4.3.7 R, theFCA (in its own capacity and, if applicable, in its capacity as collection agentfor the PRA) will apply the sum received among the firms which have beenidentified in the notification given under ■ FEES 4.3.7R (1) in proportion to theamounts due from them. Each firm will remain responsible for the paymentof the outstanding balance attributable to it.

If a firm pays its fees through an agent outside the scope of ■ FEES 4.3.7 R, thefirm is responsible for ensuring that the FCA (in its own capacity and, ifapplicable, in its capacity as collection agent for the PRA) is informed thatthe sum being paid is for that firm's periodic fees.

Incoming EEA firms, incoming Treaty firms, EEA authorisedpayment institutions and EEA authorised electronic moneyinstitutions......................................................................................................

The FCA recognises that its responsibilities in respect of an incomingEEA firm, an incoming Treaty firm, an EEA authorised paymentinstitution or an EEA authorised electronic money institution arereduced compared with a firm which is incorporated in the UnitedKingdom.

Accordingly the periodic fees which would otherwise be applicable toincoming EEA firms, incoming Treaty firms, EEA authorised paymentinstitutions and EEA authorised electronic money institutions arereduced.


qualifiers)

4

R4.3.12

R4.3.12A

R4.3.13


For an incoming EEA firm, (excluding MTF and OTF operators), or anincoming Treaty firm, the calculation required by ■ FEES 4.3.3 R is modified asfollows:

(1) the tariffs set out in Part 1 of ■ FEES 4 Annex 2AR are applied only tothe regulated activities of the firm which are carried on in the UnitedKingdom; and

(2) those tariffs are modified in accordance with Part 3 of■ FEES 4 Annex 2AR.

For:

(-1) (a) a full credit institution which is a fee-paying payment serviceprovider and an EEA firm; or

(b) a full credit institution which is a fee-paying electronic moneyissuer and an EEA firm; or

(c) an EEA authorised payment institution; or

(d) an EEA authorised electronic money institution;

the calculation required by ■ FEES 4.3.3A R is modified as follows:

(1) the tariffs set out in Part 5 of ■ FEES 4 Annex 11 are only applied to thepayment services or electronic money issuanceof the firm carried onfrom an establishment in the United Kingdom, including any paymentservices carried on through any of its agents established in the UnitedKingdom; and

(2) those tariffs are modified in accordance with Part 7 of■ FEES 4 Annex 11.

Firms Applying to Cancel or Vary Permission Before Start ofPeriod......................................................................................................

(1) If:

(a) a firm:

(i) makes an application to vary its permission (by reducing itsscope), or cancel it, in the way set out in ■ SUP 6.3.15D(3)(Variation of permission) and ■ SUP 6.4.5D (Cancellation ofpermission); or

(ii) applies to vary (by reducing its scope) or cancel itsauthorisation or registration (regulation 8 and 10(1) of thePayment Services Regulations including as applied byregulation 14 of the Payment Services Regulations); or

(iii) applies to cancel its authorisation or registration (regulation10 and 12 of the Electronic Money Regulations including asapplied by regulation 15 of the Electronic MoneyRegulations); or

(iv) applies for revocation of its registration under article 13(c) ofthe MCD Order; or


qualifiers)

4

R4.3.13A

G4.3.14


(v) applies to vary (by reducing its scope) or cancel itsauthorisation as a data reporting services provider underregulation 11 and 12 of the DRS Regulations; or

(aa) an issuer makes an application for de-listing; or

(ab) a sponsor notifies the FCA of its intention to be removed fromthe list of approved sponsors; and

(b) the firm, issuer or sponsor makes the application or notificationreferred to in (a), (aa) or (ab) respectively, before the start of thefee year to which the fee relates;

■ FEES 4.2.1 R applies to the firm as if the relevant variation orcancellation of the firm's permission or authorisation or registrationunder the Payment Services Regulations, MCD Order, DRS Regulationsor the Electronic Money Regulations, de-listing or removal from thelist of approved sponsors, took effect immediately before the start ofthe fee year to which the fee relates.

(2) But (1) does not apply if, due to the continuing nature of thebusiness, the variation, cancellation, de-listing or removal is not totake effect on or before 30 June of the fee year to which the feerelates.

The due dates for payment of periodic fees are modified by ■ FEES 4.3.6R(3),■ FEES 4.3.6R(4) and ■ FEES 4.3.6R(4A) respectively where:

(1) a firm has applied to cancel its:

(a) Part 4A permission; or

(b) its authorisation or registration under the Payment ServicesRegulations or the Electronic Money Regulations; or

(c) its registration as a CBTL firm under article 13(c) of the MCDOrder; or

(d) authorisation under regulation 11 of the DRS Regulations; or

(2) the FCA has exercised its:

(a) own-initiative powers to cancel a firm's Part 4A permission; or

(b) powers under regulation 10 (Cancellation of authorisation),including as applied by regulation 14 (Supplementary provisions)of the Payment Services Regulations to cancel a firm'sauthorisation or registration under the Payment ServicesRegulations; or

(c) powers under regulation 10 (Cancellation of authorisation),including as applied by regulation 15 (Supplementary provisions)of the Electronic Money Regulations or regulation 11 of the DRSRegulations; or

(d) powers under article 13 (Revocation of registration), excludingarticle 13(c), of the MCD Order.


qualifiers)

4

R4.3.15

R4.3.16

R4.3.17


Firms acquiring businesses from other firms......................................................................................................[deleted]

(1) [deleted]

(2) [deleted]

(3) [deleted]

(1) This rule applies if:

(a) a firm (A)

(i) (A) acquires all or a part of the business of another firm (B),whether by merger, acquisition of goodwill or otherwise;and

(B) would be required to pay a periodic fee in the fee yearin which the acquisition takes place; or

(ii) becomes authorised or registered as a result of another firm’s(B) simple change of legal status (as defined in■ FEES 3 Annex 1R Part 6); and

(b) had that acquisition or simple change of legal status (or anyassociated cancellation) not taken place, a periodic fee wouldhave been payable by B in that same fee year.

(2) If, before the date of acquisition or simple change of legal status, Bhad paid any periodic fee that would have become payable by it inthat fee year, ■ FEES 4.2.1R and ■ FEES 4.2.7ER to ■ FEES 4.2.7KR will notapply to A in relation to the business of B.

(3) (a) If, before the date of acquisition or simple change of legal status,B had not paid any periodic fee that would have become payableby it in that fee year, ■ FEES 4.2.1R and ■ FEES 4.2.7ER to■ FEES 4.2.7KR will apply to A in relation to the business of B.

(b) Periodic fees that would have become payable in that fee yearinclude those which may have been dis-applied under■ FEES 4.3.13R.

(4) Regardless of A’s valuation date:

(a) if the acquisition or simple change of legal status takes placebefore B’s valuation date, then A must report the tariff data for,and pay fees or levies on, the transferred business up to the dateof the transfer; and

(b) if the acquisition or simple change of legal status takes placeafter B’s valuation date and B has not paid the relevant fees orlevies, then the data should be reported and fees be paid by A asif the transfer had taken place immediately before the valuation(if B continues to be authorised, it should strip the transferredbusiness out of its report).

FEES 4 : Periodic fees Section 4.4 : Information on which fees arecalculated

4

R4.4.1

R4.4.2

R4.4.2A

R4.4.3

G4.4.4

R4.4.5


4.4 Information on which fees arecalculated

A firm (other than the Society or an MTF or OTF operator in relation to itsMTF or OTF business) must notify to the FCA (in its own capacity and, ifapplicable, in its capacity as collection agent for the PRA) the value (as at thevaluation date specified in Part 5 of ■ FEES 4 Annex 1AR) of each element ofbusiness on which the periodic fee payable by the firm is to be calculated.

A firm (other than the Society) must send to the FCA (in its own capacityand, if applicable, in its capacity as collection agent for the PRA) in writingthe information required under ■ FEES 4.4.1 R as soon as reasonablypracticable, and in any event within two months, after the date specified asthe valuation date in Part 5 of ■ FEES 4 Annex 1AR in relation to fees payableto the FCA (or ■ FEES 4.2.7B R where applicable) unless ■ FEES 4.4.2AR applies.

If a firm is a UK Solvency II firm, an incoming EEA firm or an incoming Treatyfirm in activity group A.3 or A.4 and the PRA or the FCA has either:

(1) not received the necessary tariff data on a timely basis in line withPart 3 and 5 of ■ FEES 4 Annex 1AR; or

(2) deemed the tariff data received to be incomplete or insufficientlyreliable, by reference to a specific firm or across all or part of theactivity group,

the FCA may use tariff data from the previous reporting period for theperiodic fees calculation.

To the extent that a firm has provided the information required by thissection as part of its compliance with another provision of the Handbook, itis deemed to have complied with the provisions of this section.

In most cases a firm will provide the information required by this section aspart of its compliance with the provisions of SUP. To the extent that the FCAdoes not obtain sufficient, or sufficiently detailed, information it may seekthis by using the general information gathering powers (see ■ SUP 2(Information gathering by the FCA or PRA on its own initiative)).

For an incoming EEA firm or an incoming Treaty firm, the informationrequired under ■ FEES 4.4 is limited to the regulated activities of the firm


4

R4.4.6

D4.4.7

D4.4.8

D4.4.9


which are carried on in the United Kingdom, except those provided on across border services basis.

The obligations of a firm to supply information as set out in ■ FEES 4.4.1 R and■ FEES 4.4.2 R do not apply in respect of any of its payment services business.

Information relating to payment services and the issuance ofelectronic money......................................................................................................A fee-paying payment service provider and a fee-paying electronic moneyissuer must notify to the FCA the value (as at the valuation date specified inPart 4 of ■ FEES 4 Annex 11) of each element of business on which the periodicfee (other than a flat fee) payable by the firm under ■ 1 R is to be calculated,including any payment services carried on by its agents from anestablishment in the United Kingdom.

A firm must send to the FCA in writing the information required under■ FEES 4.4.7 D as soon as reasonably practicable, and in any event within twomonths, after the date specified as the valuation date in Part 4 of■ FEES 4 Annex 11.

To the extent that a firm has provided the information required by■ FEES 4.4.7 D to the FCA as part of its compliance with another provision ofthe Handbook, it is deemed to have complied with the provisions of thatdirection.


4


FEES 4 : Periodic fees Annex 1A

4

FCA activity groups, tariff bases and valuation dates

Part 1

This table shows how the FCA links the regulated activities for which a firm has permission to activ-ity groups (fee-blocks). A firm can use the table to identify which fee-blocks it falls into based on itspermission.

Activity Fee payer falls in the activity group if:group

A.1 Deposit its permission includes accepting deposits or operating a dormant account fund BUTacceptors DOES NOT include either of the following:

effecting contracts of insurance;

carrying out contracts of insurance.

A.2 Home its permission includes a regulated activity within one or more of the following:finance

entering into a home finance transaction; orprovidersand admin- administering a home finance transaction; or agreeing to carry on a regulated activityistrators which is within either of the above.

A.3 Insurers its permission includes one or more of the following:- general

- effecting contracts of insurance;and UKISPVs - carrying out contracts of insurance;

in respect of specified investments that are:

- general insurance contracts; or

- long-term insurance contracts other than life policies

OR

it has permission to carry on insurance risk transformation.

A.4 Insurers its permission includes one or more of the following:- life

- effecting contracts of insurance;

- carrying out contracts of insurance;

in respect of specified investments including life policies;

- entering as provider into a funeral plan contract.

A.5 Man- its permission includes managing the underwriting capacity of a Lloyd's syndicate as aaging managing agent at Lloyd's.agents atLloyd's

A.6 The So- it is the Society of Lloyd'sciety ofLloyd's

Note for authorised professional firms:

Generally, for fee-blocks A.7 to A.19 below, only those regulated activities that are not limited tonon-mainstream regulated activities should be taken into account in determining which fee-block(s)fee-payers belong to for the purpose of charging periodic fees. However, in the case that all theregulated activity within a firm permission are limited to non-mainstream regulated activities, then



4

that firms will be allocated to fee-block A.13 alone. This does not prevent a fee being payable by anauthorised professional firm under FEES 3.2.7 R and/or FEES 3.2.7A R(c) where it applies to vary its Part4A permission such that it would normally be allocated to fee-block(s) other than A.13 if the vari-ation was granted.

A.7 Portfo- (1) its permission includes managing investments (a firm falling within this category islio a class (1) firm);managers

OR

(2) its permission includes

ONLY either one or both of:

safeguarding and administering of investments (without arranging); and

arranging safeguarding and administration of assets (a firm falling within this cat-egory is a class (2) firm);

OR

(3) the firm is a venture capital firm (a firm falling within this category is a class (3)firm if it is not a class (1) or (2) firm).

OR

(4) its permission includes managing an AIF or managing a UCITS (a class 4 firm)

Note:

Class (1) firms are subdivided into three classes:

- class (1)A, where the funds managed by the firm belong to one or more occupa-tional pension schemes;

- class (1)B, where:

(a) the firm is not a class (1)A firm; and

(b) the firm permission includes NEITHER of the following:

safeguarding and administering investments (without arranging);

arranging safeguarding and administration of assets; and (c) the firm EITHER:

has a requirement that prohibits the firm from holding or controlling client money, orboth; OR

if it does not have such a requirement, only holds or controls client money (or both),arising from an agreement under which commission is rebated to a client; and

- class (1)C, where the firm is not within class (1)A or class (1)B.

A.9 Man- (1) its permission:agers and

(a) includes one or more of the following:depositar-ies of in- managing an AIF;vestment

managing a UCITS;funds, andoperators acting as trustee or depositary of an AIF;of collect-

acting as trustee or depositary of a UCITS; establishing, operating or winding up a col-ive invest-lective investment scheme;ment

schemes or establishing, operating or winding up a personal pension scheme or a stakeholder pen-pension sion scheme (but only if the firm does not fall within activity group A1 or A4);schemes

AND

(b) PROVIDED the firm is NOT one of the following:

OR

a corporate finance advisory firm;



4

a firm in which the above activities are limited to carrying out corporate financebusiness;

a venture capital firm;

a firm which would be a venture capital firm but for the inclusion of managing an AIFon its permission; but only where the firm is managing an AIF exclusively in respect ofAIFs which only invest in venture capital investments.

OR

(2) if the fee-payer has none of the regulated activities above within its permission,but ALL the remaining regulated activities in its permission are limited to carrying outtrustee activities.

A.10 Firms its permission includes:dealing as

(a) dealing in investments as principal; and/orprincipal(b) bidding in emissions auctions;

BUT NOT if one or more of the following apply:

the firm is acting exclusively as a matched principal broker;

the above activity is limited either toestablishing, operating or winding up a collectiveinvestment scheme, establishing, operating or winding up a personal pension schemeor a stakeholder pension scheme, or to carrying out depositary activities;

the firm is a corporate finance advisory firm;

the above activity is otherwise limited to carrying out corporate finance business;

the firm is subject to a limitation to the effect that the firm, in carrying on this regu-lated activity, is limited to entering into transactions in a manner which, if the firmwas an unauthorised person, would come within article 16 of the Regulated ActivitiesOrder (Dealing in contractually based investments);

the above activity is limited to not acting as a market maker;

the firm is an oil market participant, energy market participant or a local (exceptwhere the firm is bidding in emissions auctions);

its permission includes either:

- effecting contracts of insurance; or

- carrying out contracts of insurance.

A.13 Ad-(1) it is an authorised professional firm and ALL the regulated activities in its permis-visors, ar-sion are limited to non-mainstream regulated activities (a firm falling within this cat-rangers,egory is a class (1) firm);dealers or

brokers OR

(2) its permission:

(a) includes one or more of the following:

(i)in relation to one or more designated investments:

dealing in investments as agent;

arranging (bringing about) deals in investments;

making arrangements with a view to transactions in investments;

dealing as principal in investments where the activity is carried on as a matched prin-cipal broker, oil market participant, energy market participant or local;

advising on investments (except P2P agreements)

(except pension transfers and pension opt-outs);

giving basic advice on a stakeholder product;




4

advising on pension transfers and pension opt-outs;

advising on syndicate participation at Lloyd's;

(ii)advising on P2P agreements;

(iii) in relation to a structured deposit:

dealing in investments as agent; or

arranging (bringing about deals) in investments;

or making arrangements with a view to transactions in investments; or

advising on investments (except P2P agreements); or

advising on investments (except pension transfers and pension opt-outs);

(b) BUT NONE of the following:

effecting contracts of insurance; or

carrying out contracts of insurance;

AND(c) PROVIDED the fee-payer is NOT any of the following:

a corporate finance advisory firm;

a firm for whom all of the applicable activities above are otherwise limited to carryingout corporate finance business;

a firm for whom all the applicable activities aboveare limited to carrying out venturecapital business;

a firm for whom all the applicable activities above are limited to acting as a residualCIS operator;

a firm for whom all the applicable activities above are limited to acting as trustee ordepositary of an AIF and/or acting as trustee or depositary of a UCITS;

a service company.

A firm falling within (2) and not (1) is a class 2 firm.

A.14 Cor- the firm is carrying on corporate finance business PROVIDED the fee-payer is NOT aporate fin- venture capital firm.anceadvisers

A.18 Homeits permission includes a regulated activity within one or more of the following:finance

providers, entering into a home finance transaction; oradvisers

arranging (bringing about) a home finance transaction ; orandarrangers making arrangements with a view to a home finance transaction; or

advising on a home finance transaction; or

agreeing to carry on a regulated activity which is within any of the above.

A.19 Gen-its permission includes one or more of the following in relation to a non-investment in-eral insur-surance contract:ance

mediation dealing in investments as agent; or

arranging (bringing about) deals in investments; or

making arrangements with a view to transactions in investments; or

assisting in the administration and performance of a contract of insurance; or

advising on investments; or


A.21 Firms (1) It is a firm carrying on a regulated activity defined in fee-block A.13;



4

holding cli-AND EITHER OR BOTH:ent money

or assets, (2A) It is a firm to which the client money rules applyor both

AND/OR

(2B) Its permissions includes safeguarding and administration of assets (withoutarranging)

UNLESS

CASS does not apply to that firm in accordance with CASS 1.2

B. Service it is a service company.companies

B. MTF and its permission includes operating a multilateral trading facilityor operating an or-OTF oper- ganised trading facility.atorso-perators

B. Regu- it has a Part 4A permission to carry on the regulated activity of administering alated benchmark.benchmarkadmin-istrators

B. Reco- it is a recognised investment exchange.gnised in-vestmentexchanges

B. Reco- it is a recognised auction platform.gnised auc-tionplatforms

B. Reco- it is a recognised overseas investment exchange.gnisedoverseasinvestmentexchanges

CC1. Credit-it carries on credit-related regulated activities; andrelated

regulatedit has a limited permission; andactivities

with lim-it is not a not-for-profit debt advice body; andited

permissionit is not a credit union or community finance organisation with annual income as de-fined in FEES 4 Annex 11B R of less than £250,000.

CC2. Credit-it carries on credit-related regulated activities; andrelated

regulatedit does not have a limited permission; andactivities

it is not a not-for-profit debt advice body; and

it is not a credit union or community finance organisation with annual income as de-fined in FEES 4 Annex 11B R of less than £250,000.

Part 2

This table sets out the activity groups (fee blocks) in relation to (i) the minimum feespayable to theFCA and (ii) the prudential fee payable to the FCA.



4

Activity Fee payer falls into the fee-block ifgroup

A.0 FCA (1) it is in at least one of the fee blocks under Part 1; andminimum

(2) it is not:fee(a) a UK ISPV; or

(b) a firm whose only permission is operating a dormant fund account; or

(c) a firm exclusively carrying on credit-related regulated activities.

AP.0 FCA (1) it is an FCA authorised personother than an FCA authorised person exclusively carry-prudential ing on credit-related regulated activities;andfee

(2) the periodic fee it pays to the FCA is not limited to the A.0 FCA minimum fee.

Part 3

This table indicates the tariff base for each fee-block set out in Part 1.

The tariff base in this Part is the means by which the FCA measures the amount of business con-ducted by a firm for the purposes of calculating the annual periodic fees payable to the FCA by thatfirm.

Activity Tariff basegroup

A.1 MODIFIED ELIGIBLE LIABILITIES

For banks and building societies:

Item B of Form ELS (Note (1)):

(1 + 2 + 3 + 4 + 0.6*5 + 6 - 8 - 9A - 9B - 10A - 10B - 10C - 11A - 11B - 0.6*12) + (1/3)*(F1 + F2 + F3 + F4 + 0.6*F5 + F6 - F8 - F9A - F9B - F10A - F10B - F10C - F11A - F11B -0.6*F12)

- 13M

Notes:

(1) All references in the above formula are to entries on Form ELS (that is, the EligibleLiabilities Return completed to provide information by banks and building societies tothe Bank of England as required by the Bank of England Act 1998).

(2) The figures reported on the Form ELS relate to business conducted out of offices inthe United Kingdom.

For credit unions:

Deposits with the credit union (share capital)

LESS

the credit union's bank deposits (investments + cash at bank)

Note:

Only United Kingdom business is relevant for calculating credit unions' MELs.

Note:

For a dormant account fund operator the tariff base is not relevant and the flat fee inFEES 4 Annex 2A R is payable.

A.2 NUMBER OF HOME FINANCE TRANSACTIONS ENTERED INTO AND ADMINISTERED

The number of newhome finance transactions entered into;

AND

The number of home finance transactions being administered:

(a) multiplied by 0.05 for firms with permission for administering a home finance trans-action but not permission for entering into a home finance transaction; or




4

(b) by 0.5 for all other firms.

Notes:

(1)[deleted]

(2) For the measure of the number of contracts being administered, each chargecounts as one contract, irrespective of the number of loans involved.

(3) Home finance transactionsadministered include those that the firm administers onbehalf of other firms.

A.3 GROSS WRITTEN PREMIUM FOR FEES PURPOSES AND BEST ESTIMATE LIABILITIES FORFEES PURPOSES

Gross written premium for fees purposes means:

(1) for UK Solvency II firms, a firm’s gross written premium as reported to the PRA, be-ing the total of items entered under row codes R0110, R0120 and R0130, as expressedin column code C0200 where this column is completed for those row codes of the an-nual quantitative reporting template S.05.01.01;

(2) for incoming EEA firms or incoming Treaty firms, a firm’s gross written premium asreported to their Home State regulator, being the total of items entered under row co-des R0110, R0120 and R0130, as expressed in column code C0200 where this column iscompleted for those row codes, of the annual quantitative reporting templateS.05.01.01 but only in relation to the regulated activities of the firm which are carriedon in the United Kingdom, (except those provided on a cross border services basis);and

(3) for non-directive firms, a firm’s gross premium written as reported to the PRA un-der item 11 of form 11, or where this is not reported because the firm is a Swiss gen-eral insurer, the entry at sheet 1, line 1, column 1, of form 20A, or where the firm is afriendly society, the income and expenditure account entry for gross premium writtenor contributions as income receivable, as appropriate under the Friendly Societies (Ac-counts and Related Provisions) Regulation 1994 (SI 1994/1983).

AND

Best estimate liabilities for fees purposes means:

(1) for UK Solvency II firms, a firm’s best estimate liabilities as reported to the PRA, be-ing the sum of items entered under row codes R0010, R0370, R0380, R0410 and R0420,column code C0180, of the annual quantitative reporting template S17.01.01; plus thesum of items entered under row codes R0010, R0030, column codes C0090, C0140 andC0190, of the annual quantitative reporting template S12.01.01;

(2) for incoming EEA firms or incoming Treaty firms, a firm’s best estimate liabilities asreported to their Home State regulator, being the sum of items entered under row co-des R0010, R0370, R0380, R0410 and R0420, column code C0180, of the annual quantit-ative reporting template S17.01.01; plus the sum of items entered under row codesR0010, R0030, column codes C0090, C0140 and C0190, of the annual quantitative re-porting template S12.01.01 but only in relation to the regulated activities of the firmwhich are carried on in the United Kingdom, except those provided on a cross borderservices basis; and

(3) for non-directive firms, a firm’s total gross technical provisions as reported to thePRA under item 19 of form 15, or where this is not reported because the firm is a ma-rine mutual, item 29 of form M2, or where the firm is a friendly society, the balancesheet entry C3 ‘claims outstanding’ where this entry is required under the Friendly Soci-eties (Accounts and Related Provisions) Regulations 1994 (SI 1994/1983); and otherwisezero.

‘Annual quantitative reporting template’ has the meaning given in Fees Chapter 1 Ap-plication and Definitions of the PRA Rulebook.

‘Corporate pension business’ has the meaning given in Fees Chapter 1 Application andDefinitions of the PRA Rulebook.

‘UK Solvency II firm’ has the meaning given in Insurance General Application 2 of thePRA Rulebook.



4

Notes:

(1) The recovery of the FCA’s annual funding requirement allocated to the A.3 fee-block will be weighted:

(a) 90% from gross written premium for fees purposes; and

(b) 10% from best estimate liabilities for fees purposes.

(2) This tariff base (A.3 fee-block) does not include gross written premium for fees pur-poses and best estimate liabilities for fees purposes on which a composite firm reportsdata relevant for fee-block A.4.

(3) Where any figure used in the calculation of this tariff base is a negative number, itshall instead be deemed to be zero.

(4) For UK ISPVs this tariff base is not relevant and a flat fee set out in FEES 4 Annex 2ARis payable.

A.4 GROSS WRITTEN PREMIUM FOR FEES PURPOSES AND BEST ESTIMATE LIABILITIES FORFEES PURPOSES (see FEES 4 Annex 12 G)

Gross written premium for fees purposes means:

(1) for UK Solvency II firms, a firm’s gross written premium as reported to the PRA, be-ing the item entered under row code R1410, column code C0300 of the annual quant-itative reporting template S05.01.01 minus corporate pension business as reported tothe PRA under the annual quantitative reporting template S14.01.01; and

(2) for incoming EEA firms or incoming Treaty firms, a firm’s gross written premium asreported to their Home State regulator, being the item entered under row codeR1410, column code C0300 of the annual quantitative reporting template S05.01.01minus corporate pension business as reported to the PRA under the annual quantitat-ive reporting template S14.01.01 but only in relation to the regulated activities of thefirm which are carried on in the United Kingdom, except those provided on a crossborder services basis.

AND

Best estimate liabilities for fees purposes means:

(1) for UK Solvency II firms, a firm’s best estimate liabilities as reported to the PRA, be-ing the sum of items entered under row codes R0010 and R0030, column codes C0150and C0210 minus the sum of items entered under row codes R0010 and R0030, columncodes C0090, C0140 and C0190 of the annual quantitative reporting templateS12.01.01; minus corporate pension business reported under the annual quantitativereporting template S14.01.01; and

(2) for incoming EEA firms or incoming Treaty firms, a firm’s best estimate liabilities asreported to their Home State regulator, being the sum of items entered under row co-des R0010 and R0030, column codes C0150 and C0210 minus the sum of items enteredunder row codes R0010 and R0030, column codes C0090, C0140 and C0190 of the an-nual quantitative reporting template S12.01.01; minus corporate pension business re-ported under the annual quantitative reporting template S14.01.01 but only in rela-tion to the regulated activities of the firm which are carried on in the United King-dom, except those provided on a cross border services basis.

‘Annual quantitative reporting template’ has the meaning given in Fees Chapter 1 Ap-plication and Definitions of the PRA Rulebook.

‘Corporate pension business’ has the meaning given in Fees Chapter 1 Application andDefinitions of the PRA Rulebook.

‘UK Solvency II firm’ has the meaning given in Insurance General Application 2 of thePRA Rulebook.

Notes:

(1) The recovery of the FCA’s annual funding requirement allocated to the A.4 fee-block will be weighted:



4

(a) 75% from gross written premium for fees purposes; and

(b) 25% from best estimate liabilities for fees purposes.

(2) For non-directive firms, including non-directive composite firms to the extent thatthey come within the A.4 fee block, the tariff base is not relevant to the level of feesdue and only the minimum fee as specified in Part 2(b) of FEES 4 Annex 2AR is payable.

(3) Where any figure used in the calculation of this tariff base is a negative number, itshall instead be deemed to be zero.

A.5 ACTIVE CAPACITY

The capacity of the syndicate(s) under management in the year in question. This in-cludes the capacity for syndicate(s) that are not writing new business, but have notbeen closed off in the year in question.

A.6 Not applicable.

A.7 FUNDS UNDER MANAGEMENT (FuM)

The total value, in pounds sterling, of all assets (see note (a) below) in portfolioswhich the firm manages, on a discretionary basis (see note (b) below), in accordancewith its terms of business, less:

a) funds covered by the exclusion contained in article 38 (Attorneys) of the RegulatedActivities Order;

(b) funds covered by the exclusion contained in article 66(3) (Trustees, nominees andpersonal representatives) of the Regulated Activities Order;

(c) funds covered by the exclusion contained in article 68(6) (Sale of goods or supplyof services) of the Regulated Activities Order;

(d) funds covered by the exclusion contained in article 69(5) (Groups and joint enter-prises) of the Regulated Activities Order; and

(e) the value of those parts of the managed portfolios in respect of which the respons-ibility for the discretionary management has been formally delegated to another firm(and which firm will include the value of the assets in question in its own FuM total);any such deduction should identify the firm to which management responsibility hasbeen delegated.

Notes on FuM

(a) Except for funds under management where the fund is an AIF, for the purposes ofcalculating the value of funds under management, assets means all assets that consistof or include any investment which is a designated investment or those assets in re-spect of which the arrangements for their management are such that the assets mayconsist of or include such investments, and either the assets have at any time since 29April 1988 done so or the arrangements have at any time (whether before or afterthat date) been held out as arrangements under which the assets would do so.

(aa) for funds under management, where the fund is an AIF, assets means all assets orproperty of any description of the fund.

(b) Assets managed by the firm on a discretionary basis exclude the firm's own assets.Assets managed on a non-discretionary basis, being assets that the firm has a contrac-tual duty to keep under continuous review but in respect of which prior specific con-sent of the client must be obtained for proposed transactions, are also excluded asthis activity is covered in those charged to fees in activity group A.13.

(c) In respect of collective investment schemes, assets means the total value of the as-sets of the scheme.

(d) For an OPS firm, the FuM should also be reduced by the value of the assets held asa result of a decision taken in accordance with article 4(6) of The Financial Servicesand Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order2001 (investments in collective investment scheme or bodies corporate which have astheir primary purpose the acquisition, directly, or indirectly, of relevant investments, asdefined in that article).






4

(e) Only assets that are managed from an establishment maintained by the firm in theUnited Kingdom are relevant.

(f) If the firm is managing an overlay portfolio of derivative instruments and the un-derlying assets are managed by itself or a firm within the same group that has not re-ported them separately to the FCA, or by a firm outside its group, then it should calcu-late the value of the derivatives and other assets as prescribed in the guidance inFSA038 in SUP 16 Annex 25.

If the underlying assets are managed by another firm within the same group who hasreported their value separately to the FCA, then to avoid double-counting within thegroup, the calculation must be restricted to the exposure of the overlay.

A.9 GROSS INCOME(1) For AIFMs (excluding internally managed AIFs), management com-panies, operators (including ACDs and authorised fund managersof unit trusts or au-thorised contractual schemes but excluding operators of a personal pension scheme ora stakeholder pension scheme)and residual CIS operators

gross income from the activity relating to fee-block A.9 is defined as:

the amount of the annual charge on investments in the fund received or receivable inthe latest accounting period (this is calculated as a % of funds invested, typically 1%p.a.);

PLUS(a)

the front-end or exit charge levied on sales or redemptions of collective investmentschemes (typically 4-5% of sales/redemptions) in that same accounting period; and

(b) any amount the firm would have levied as such a charge but for a business de-cision to waive, discount or rebate etc. that charge;

PLUS

any additional initial or management charges levied through a product wrapper suchas an ISA;

BUT EXCLUDING box management profits.

(2)For depositaries (including trustees of collective investment schemes and ICVC orACS depositaries):

The amount of the annual charge levied on investments in funds for which they act asdepositary (typically a % of the total funds for which they act as depositary).(3)

For operators of a personal pension scheme or a stakeholder pension schemegross in-come from the activity relating to fee block A.9 is defined as:

The amount of the charges levied on the personal pension scheme or stakeholder pen-sion scheme for which they act as operator:

including up-front charges, fund related charges, transaction related charges and peri-odic charges; but

excluding charges made to an investor in respect of third party suppliers; for example,charges for stock broking, borrowing, banking services and charges for arranging thirdparty legal services, surveys or environmental screening in connection with property.

Note:

Only the gross income corresponding to United Kingdom business is relevant.

(4) Internally managed AIFs must use a proxy for gross income for the activities relat-ing to fee block A.9. This is the total value of funds under management (as defined infee block A.7) multiplied by 0.01.

NUMBER OF TRADERSA.10

Any employee or agent, who:

ordinarily acts within the United Kingdom on behalf of an authorised person liable topay fees to the FCA in its fee-block A.10 (firms dealing as principal); and who,



4

as part of their duties in relation to those activities of the authorised person, commitsthe firm in market dealings or in transactions in securities or in other specified invest-ments in the course of regulated activities.

But not any employees or agents who work solely in the firm's MTF operation.

A firm may, as an option, report employees or agents as full-time equivalents (FTE),taking account of any part-time staff. In calculating the FTE, firms must take into ac-count the total hours employees or agents have contracted to work for the firm andnot the time employees or agents devote to the dealing in investments as principaland bidding in emissions auctions functions set out in fee-block A.10. Any figures us-ing the FTE calculation to be recorded to one decimal place, rounded down to the ne-arest decimal place.

A.13 ANNUAL INCOME

Annual income as defined in FEES 4 Annex 11A R

A.14 ANNUAL INCOME

Annual income as defined in FEES 4 Annex 11A R.

A.18 Annual income as defined in FEES 4 Annex 11A

A.19 Annual income as defined in FEES 4 Annex 11A

A.21 CLIENT MONEY/ASSETS HELD:

A value in pound sterling equal to:

Highest total amount of client money held by the firm during the 12 months ending31 December before the relevant fee year

PLUS

Highest total value of safe custody assets held by the firm during the 12 months end-ing 31 December before the relevant fee year

B. Regu- ANNUAL INCOMElated

Annual income as defined in FEES 4 Annex 11Abenchmarkadmin-istrators

B. MTF and SUPERVISORY CATEGORYOTF

The general supervisory category to which the MTF or OTF operator was assigned asoperatorsat the start of the relevant fee year.

B. Annual income as defined in FEES 4 Annex 11AR.Benchmarkadmin-istrators

B. Reco- Annual income as defined in FEES 4 Annex 11AR.gnised in-vestmentexchanges

B. Reco- Not applicable.gnised auc-tionplatforms

B. Reco- Not applicable.gnisedoverseasinvestmentexchanges

CC1. Credit- Annual income as defined in FEES 4 Annex 11B R.relatedregulated



4

activitieswith lim-itedpermission

CC2. Credit- Annual income as defined in FEES 4 Annex 11B R.relatedregulatedactivities

Part 4

This table indicates the tariff base for each fee block set out in Part 2.

The tariff base in this Part is the means by which the FCA measures the amount of business con-ducted by a firm for the purposes of calculating the annual periodic fees payable to the FCA by thatfirm.

Activity Tariff baseGroup

A.0 Not applicable because the minimum fee is a specified amount.

AP.0 The total periodic fees payable as a result of fee blocks A.2 and A.7 to A.19 in Part 1 ofFEES 4 Annex 2A R excluding any periodic fee for operating a dormant fund account.

Part 5

This table indicates the valuation date for each fee-block. A firm can calculate its tariff data in respectof fees payable to the FCA by applying the tariff bases set out in Part 3 with reference to the valuationdates shown in this table.

Activity Valuation dategroup

IN THIS TABLE, REFERENCES TO SPECIFIC DATES OR MONTHS ARE REFERENCES TO THE LATEST ONEOCCURRING BEFORE THE START OF THE PERIOD TO WHICH THE FEE APPLIES, UNLESS OTHERWISE SPE-CIFIED - E.G. FOR 2013/14 FEES (1 APRIL 2013 TO 31 MARCH 2014), A REFERENCE TO DECEMBER ME-ANS DECEMBER 2012.

Where a firm's tariff data is in a currency other than sterling, it should be converted into sterling atthe exchange rate prevailing on the relevant valuation date.

A.1 For banks:

Modified eligible liabilities (MELs), valued at:

for a firm which reports monthly, the average of the MELs for October, November andDecember;

for a firm which reports quarterly, the MELs for December. For credit unions:

For credit unions:

MELs, valued at December or as disclosed by the most recent annual return madeprior to that date.

For building societies:

MELs, valued at the average of the MELs for October, November and December.

A.2 Number of mortgages, home purchase plans, home reversion plans and regulated saleand rent back agreements entered into in the twelve months ending 31 December.

AND

Number of mortgages, home purchase plans, home reversion plans and regulated saleand rent back agreements being administered on 31 December.

A.3 The firm’s gross written premium for fees purposes and its best estimate liabilities forfees purposes for the firm’s financial year which ends in the calendar year to 31 De-cember prior to commencement of the fee year.



4

A.4 For UK Solvency II firms, including composite UK Solvency II firms to the extent thatthey are required to report data used for this tariff base, the firm’s gross written pre-mium for fees purposes and its best estimate liabilities for fees purposes, for the firm’sfinancial year which ends in the calendar year to 31 December prior to commence-ment of the fee year.

A.5 Active capacity (AC), in respect of the Underwriting Year (as reported to the Society ofLloyd's) which is current at the beginning of the period to which the fee relates.

[Note: this is the Underwriting Year which is already in progress at the start of the feeperiod - e.g. for 2013/14 fees, the fee period will begin on 1 April 2013, which is in the2013 Underwriting Year, so the AC for that Underwriting Year is the relevantmeasure.]

A.6 Not applicable.

A,7 Funds under management (FuM), valued at 31 December.

A.9 Annual gross income (GI) for the financial year ended in the calendar year ending 31December.

A.10 Number of traders as at 31 December.

A.13 Annual income for the financial year ended in the calendar year ending 31 December.

A.14 Annual income for the financial year ended in the calendar year ending 31 December.

A.18 Annual income (AI) for the financial year ended in the calendar year ending 31December.

A.19 Annual income (AI) for the financial year ended in the calendar year ending 31December.

A.21 In respect of client money, the highest amount of client money held over the 12months ending 31 December before the relevant fee year.

In respect of safe custody assets, the highest amount of safe custody assets held overthe 12 months ending 31 December before the relevant fee year.

B. Service Annual income for the financial year ended in the calendar year ending 31 December.companies

B. MTF and The start of the relevant fee year.OTFoperators

B. Annual income for the financial year ended in the calendar year ending 31 December.Benchmarkadmin-istrators

B. Reco- Annual income for the financial year ended in the calendar year ending 31 December.gnised in-vestmentexchanges

B. Reco- Not applicable.gnised auc-tionplatforms

B. Reco- Not applicable.gnisedoverseasinvestmentexchanges

CC1. Credit- Annual income for the financial year ended in the calendar year ending 31 December.relatedregulatedactivitieswith lim-



4

itedpermission

CC2. Credit- Annual income for the financial year ended in the calendar year ending 31 December.relatedregulatedactivities



4

FCA Fee rates and EEA/Treaty firm modifications for the period from 29June 2018 to 31 March 2019

Part 1

This table shows the tariff rates applicable to each of the fee blocks set out in Part 1 of FEES 4 Annex1A R.

(1) For each activity group specified in the table below, the fee is the total of the sums payablefor each of the tariff bands applicable to the firm's business, calculated by multiplying thevalue of the firm's tariff base by the rate applicable to each tranche of the tariff base, asindicated.

(2) A firm may apply the relevant tariff bases and rates to non-UK business, as well as to its UKbusiness, if:

(a) it has reasonable grounds for believing that the costs of identifying the firm's UK busi-ness separately from its non-UK business in the way described in Part 3 of FEES 4 Annex1A R are disproportionate to the difference in fees payable; and

(b) it notifies the FCA in writing at the same time as it provides the information con-cerned under FEES 4.4 (Information on which fees are calculated), or, if earlier, at thetime it pays the fees concerned.

(3) For a firm which has not complied with FEES 4.4.2R (Information on which fees are calculated)for this period:

(a) the fee is calculated using (where relevant) the valuation or valuations of business ap-plicable to the previous period, multiplied by the factor of 1.10; and

(b) an additional fee of £250 is payable, unless the firm is a PRA-authorised person inwhich case an additional fee of £125 is payable instead.

(c) [deleted]

Activity Fee payablegroup

A.1 Band width (£million of Modified Eligible Liabilit- Fee (£/£m or part £m of MELs)ies (MELs))

General Periodic fee

>10 - 140 14.683

>140 - 630 14.683

>630 - 1,580 14.683

>1,580 - 13,400 18.354

>13,400 24.227

The tariff rates in A.1 are not relevant for the permissions relating to operating a dorm-ant account fund. Instead a flat fee of £6,242 is payable in respect of these permissions.

A.2 Band width (No. of mortgages and/or home fin- Fee (£/mortgage)ance transactions)

>50 2.473

A.3 Gross written premium for fees purposes (GWP) Periodic fee

Band Width ( £million of GWP) Fee (£/m or part £m of GWP)



4

>0.5 337.16

PLUS

Best estimate liabilities for fees purposes (BEL) General Periodic fee

Band Width ( £million of BEL) Fee (£/£m or part £m of BEL)

>1 18.48

For UK ISPVs the tariff rates are not relevant and a flat fee of £485 is payable in re-spect of each FCA financial year (the 12 months ending 31 March).

A.4 Gross written premium for fees purposes (GWP) General Periodic fee

Band Width ( £million of GWP) Fee (£/£m or part £m of GWP)

>1 262.78

PLUS

Best estimate liabilities for fees purposes (BEL) General Periodic fee

Band Width ( £million of BEL) Fee (£/£m or part £m of BEL)

>1 8.25

A.5 Band Width ( £million of Active Capacity (AC)) Fee (£/£m or part £m of AC)

>50 7.13

A.6 Flat fee (£) 344,067

A.7 For class 1(C), (2) , (3) and (4)firms:

Band Width (£million of Funds under Manage- Fee (£/£m or part £m of FuM)ment (FuM))

>10 5.696

For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%. For class1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.

A.9 Band Width ( £million of Gross Income (GI)) Fee (£/£m or part £m of GI)

>1 815.25

A.10 Band Width (No. of traders) Fee (£/person)

>1 5,487.30

For firms carrying on auction regulation bidding, the fee in A.10 is calculated as aboveless 20% for each trader that carries on auction regulation bidding but not MiFID busi-ness bidding or dealing in investments as principal.

A.13 Band Width (£ thousands of annual income (AI)) Fee (£/£ thousand or part £ thou-sand of AI)

>100 2.597

A.14 Band Width (£ thousands of annual income (AI)) Fee (£/£ thousand or part £ thou-sand of AI)

>100 1.631

A.18 Band Width ( £ thousands of Annual Income Fee (£/£ thousand or part £ thou-(AI)) sand of AI)

>100 11.04

A.19 Band Width ( £ thousands of Annual Income Fee (£/£ thousand or part £ thou-(AI)) sand of AI)

>100 1.61

A.21 Client money

Band Width (£ client money) (CM) held Fee (£/£ millions or part £ million ofCM)



4

less than £1 million 115.30

an amount equal to or greater than £1 million 86.48but less than or equal to £1 billion

more than £1 billion 57.65

PLUS

Safe custody assets

Band Width (£ safe custody assets) (CA) held Fee (£/£ millions or part £ million ofCA)


an amount equal to or greater than £10 million 0.33and less than or equal to £100 billion


B. Service Band Width Fee (£)Companies

Annual income up to and including £100,000 1,110.00

PLUS:

Band width Fee (£/£thousand or part £ thousandof income)

Annual income over £100,000 2.57

B. Regu- Band width Fee (£)lated Annual income up to and including 100,000 1,128benchmark

PLUS:admin-istrators Band width Fee (£/£ thousand or part £ thou-

sand of income)

Annual income over 100,000 [tbc]

B. Reco- Band width Fee (£)gnised in- Annual income up to and including £10,000,000 103,000vestment

PLUS:exchanges

Band width Fee (£/£ thousand or part £ thou-sand of income)

Annual income over £10,000,000 4.91

B. Reco- 55,143.00gnised auc-tionplatforms

B. Reco- 63,061.00gnisedoverseas in-vestmentexchanges

B. MTF and As set out in FEES 4 Annex 10R (Periodic fees forOTF MTF and OTF operators).operators

CC1. Credit- Band Width (£ thousands of annual income (AI)) Fee (£)relatedregulatedactivities



4

with limitedpermission

0 - 10 104

>10 - 50 261

>50 - 100 416

>100 520

PLUS:

Fee (£/£ thousand or part £ thou-sand of AI)

>250 0.40

CC2. Credit- Band Width (£ thousands of annual income (AI)) Fee (£)relatedregulatedactivities

0 - 50 312

>50 - 100 520

>100 1,040

PLUS:

Fee (£/£ thousand or part £ thou-sand of AI)

>250 1.30

Part 2

The tables below show the tariff rates (minimum fees) applicable to each of the fee blocks set out inPart 2 of FEES 4 Annex 1A R.

Part 2(a) shows the tariff rates (minimum fees) payable to the FCA by FCA-authorised persons andPart 2(b) shows the tariff rates (minimum fees) payable to the FCA by PRA-authorised persons.

[Note: PRA-authorised persons will also pay minimum fees to the PRA as set out in Chapter 3 of theFees Part of the PRA Rulebook.]

Part 2(a) tariff rates (minimum fees) payable to the FCA by FCA-authorised persons

A.0 (1) £1,128 unless it is a community finance organisation with a tariff base of:

(a) up to and including 3 mortgages and/or home finance transactions, inwhich case a minimum fee of £173 is payable; or

(b) more than 3 but no more than 10 mortgages and/or home finance transac-tions, in which case a minimum fee of £585 is payable; or

(c) more than 10 but no more than 50 mortgages and/or home finance trans-actions, in which case a minimum fee of £1,084 is payable.

(2)

[deleted]

(3)

[deleted]

[deleted]

(4) [deleted]

AP.0 Periodic fees payable under fee blocks A.2, A.7 to A.19 and A. 21 in Part 1 multiplied byrate £0.1093

Part 2(b) tariff rates (minimum fees) payable to the FCA by PRA-authorised persons



4

A.0 (1) £563 unless:

(a) It is a credit union thatmeets the conditions in(2), in which case the min-imum fee payable is as setout in (2);

(b) it is a non-directivefriendly society that fallsinto the A.3 activitygroup but not the A.4 ac-tivity group and has, forthat activity, 0.5 million orless in gross written pre-mium for fees purposesand holds best estimate li-abilities for fees purposesof 1.0 million or less, inwhich case the minimumfee payable is £242; or

(c) it is a non-directivefriendly society that fallsinto the A.4 activitygroup but not the A.3 ac-tivity group and has, forthat activity, written 1.0million or less in grosswritten premium for feespurposes and holds bestestimate liabilities for feespurposes of 1.0 million orless, in which case theminimum fee payable is£242; or

(d) it is a non-directivefriendly society that fallsinto the A.3 and A.4 activ-ity groups and meets theconditions in (3)(a) and(3)(b), in which case theminimum fee payable is£242.

(2) The conditions referred to in (1)(a) are that the creditunion has a tariff base (Modified Eligible Liabilities)of:

(a) 0 to 0.5million, in whichcase a minimum fee of£90 is payable; or

(b) greater than 0.5millonbut less than 2.0million,in which case a minimumfee of £304 is payable.

(3) The conditions referred to in (1)(d) are that:

(a) the non-directive friendlysociety falls into the A.3activity group and has,for that activity, 0.5 mil-lion or less in gross writ-ten premium for fees pur-poses and holds best es-



4

timate liabilities for feespurposes of 1.0 million orless;

(b) the non-directive friendlysociety falls into the A.4activity group and has,for that activity, written1.0 million or less in grosswritten premium for feespurposes and holds bestestimate liabilities for feespurposes of 1.0 million orless.

The figures for gross written premium for fees pur-poses and best estimate liabilities for fees purposesare the same as used for Part 1 of this Annex.

Part 3

This table shows the modifications to fee tariffs that apply in respect of the FCA to incoming EEAfirms and incoming Treaty firms which have established branches in the UK.

Activity Percentage deducted from the tariff payable under Part 1 applicable to the firmGroup

A.1 10%

A.3 10%

A.4 10%

A.7 10%

A.9 10%

A.10 In relation to each trader that carries on auction regulation bidding but not MiFID busi-ness bidding or dealing in investments as principal, 100%.

In relation to all other traders, 10%.

A.13 10%

A.18 10%

A.19 50%

B. MTF Not applicableand OTFoperators

AP.0 100%

Note 1 The modifications to fee tariffs payable by an incoming EEA firm or an incoming Treatyfirm which has established a branch in the UK apply only in relation to the relevantregulated activities of the firm which are passported activities or Treaty activities andwhich are carried on in the UK.

Note 2 The FCA minimum fee described in Part 2 of FEES 4 Annex 2A R applies in full and the mo-difications in this Part do not apply to it.


FEES 4 : Periodic fees Annex 2B

4

PRA fee rates and EEA/Treaty firm modifications for the period from 1March 2014 to 28 February 2015



4



4

Ring-Fencing Implementation Fee

In the fee year starting 1 April 2018 and subsequent fee years:

(1) The FCA will charge a ring-fencing implementation fee to recover the annual cost to theFCA, as determined by the FCA, of implementing ring-fencing.

(2) All firms in a ring-fencing fees group are subject to ring-fencing implementation fees.The FCA may require that a single firm in a ring-fencing fees group pay all of the applic-able ring-fencing implementation fees.

(3) In each fee year the FCA will allocate to each ring-fencing fees group the proportion re-ferred to in (4) of the cost referred to in (1). An amount reflecting this proportion will bethe total fee payable by the firms within the ring-fencing fees group.

(4) The proportion was determined by the FCA for the 2018/19 fee year in accordance withthe following formula (all figures are rounded to the nearest whole number):

[(X + Y) ÷2] %

where

X= [core deposits (ring-fencing fees group) ÷ core deposits (all ring-fencing fees groups)]x 100

and

Y = [assets outside expected RFB subgroup (ring-fencing fees group) ÷ assets outside ex-pected RFB subgroups (all ring fencing fees groups)] x 100

(5) The following are not required to pay the fee set out below if a ring-fencing imple-mentation fee is payable by that person or another firm in the applicant’s ring-fencingfees group:

Fee payer Fee

(a) a firm that applies for a Part 4A per- an application fee under FEES 3.2.7R Partmission and/or a variation of a Part 4A 1(1)(a) or (p)permission as a result of ring-fencing

(b) an issuer that applies for registration an application fee under FEES 3.2.7R Partof a regulated covered bond as a result 1(1)(zm)of ring-fencing

(c) an issuer that proposes to make a mat- an application fee under FEES 3.2.7R Parterial change to the contractual terms of a 1(1)(zn)regulated covered bond under RCB 3.5.4Das a result of ring-fencing



4



4

Fees relating to the direct reporting of transactions to the FCA underSUP 17A for the period 1 April 2017 to 31 March 2018 [deleted]



4


FEES 4 : Periodic fees Annex 4

4

Periodic fees in relation to collective investment schemes, AIFsmarketed in the UK, small registered UK AIFMs and money marketfunds payable for the period 1 April 2018 to 31 March 2019

Part 1 - Periodic fees payable

Scheme type Basic Total funds/sub- Fund Fee (£)fee funds aggregate factor(£)

ICVC, 3861-2 1 386

AUT,3-6 2.5 965

ACS,7-15 5 1,930

UK ELTIFs,16-50 11 4,246

Money market funds with effect>50 22 8,492from 21 July 2018

Section 264 of the Act, schemesother than non-EEA AIFs reco-gnised under section 272 of theAct,

1,570Non-EEA AIFs recognised under 1-2 1 1,570section 272 of the Act

3-6 2.5 3,925

7-15 5 7,850

16-50 11 17,270

>50 22 34,540

Fees are charged according to the number of funds or sub-funds operated by a firm as at 31 Marchpreceding the relevant fee year. Where a new collective investment scheme becomes authorised duringa fee year, fees are charged according to the number of funds or sub-funds operated by a firm as at thedate of authorisation. Where more than one fund or sub-fund is operated, the number of funds (notincluding 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 peroperator rather than per scheme so that the fees relate to the number of funds rather than the numberof schemes. This means that, for example, an authorised fund manager of three schemes pays the sameas an operator or authorised fund manager of one scheme with three sub-funds (as only the sub-fundsare counted).

Schemes set up under section 264 of the Act are charged according to the number of funds or sub-fundswhich a firm is operating and marketing into the UK as at 31 March immediately before the start ofthe period to which the fee applies. For example, for 2010/11fees a reference to 31 March means 31March 2010.

Part 2 - Periodic fees for AIFs marketed in the UK, following a notification to the FCA under regulation57, 58 or 59 of the AIFMD UK regulation

Kind of notification Fee per AIF (£)

Notification under regulation 57 of the AIFMD 323UK regulation







4

Kind of notification Fee per AIF (£)



Part 3 - Periodic fees paid by small registered UK AIFMs

The annual fee for small registered UK AIFMs is £637



4

Periodic fees for designated professional bodies payable in relation tothe period 1 April 2018 to 31 March 2019

Table of fees payable by Designated Professional Bodies

Name of Designated Professional Body Amount payable (£)

The Law Society of England & Wales 90,070

The Law Society of Scotland 15,260

The Law Society of Northern Ireland 13,830

The Institute of Actuaries 10,120

The Institute of Chartered Accountants in England and 36,000Wales

The Institute of Chartered Accountants of Scotland 11,350

The Institute of Chartered Accountants in Ireland 14,840

The Association of Chartered Certified Accountants 18,800

The Council for Licensed Conveyancers 11,790

Royal Institution of Chartered Surveyors 15,270

Notes

(1) The Financial Services Register includes details of exempt professional firms carrying out insurancemediation activity.



4



4

Periodic fees for recognised investment exchanges, and recognisedauction platforms payable in relation to the period 1 April 2016 to 31March 2017

[deleted]



4



4

Periodic fees in relation to the Listing Rules for the period 1 April 2015to 31 March 2016 [deleted]



4



4

Periodic fees in relation to the Disclosure and Transparency Rules forthe period 1 April 2015 to 31 March 2016 [deleted]



4



4

Periodic fees for MTF operators payable in relation to the period 1April 2018 to 31 March 2019

General supervisory category of Fee payable (£) Due dateMTF or OTF operator (see Note

(i) 1 August 2018; orbelow)(ii) 30 days from the date of theinvoice in the case of a firmwhich receives permission to beoperating a multilateral tradingfacility or to be operating an or-ganised trading facility orwhose permission is extendedto include either activity in thecourse of the relevant financialyear.

MTF or OTF operator has a 292,501named individual fixed portfo-lio supervisor

All other MTF or OTF operators 27,584(i.e. those supervised by a teamof flexible portfolio supervisors)

[deleted]

an EEA firm 0

Note: subject to FEES 4.3.13 R, this table applies to all MTF or OTF operators with permission to oper-ate an MTF or OTF as at 1 April of the applicable fee year; irrespective of whether, and if so when,their permission to operate an MTF or OTF was subsequently cancelled during that fee year.



4



4

Periodic fees in respect of payment services, electronic money issuance,regulated covered bonds, CBTL business and data reporting services inrelation to the period 1 April 2018 to 31 March 2019

This Annex sets out the periodic fees in respect of payment services carried on by fee-paying paymentservice providers under the Payment Services Regulations and electronic money issuance by fee-payingelectronic money issuers under the Electronic Money Regulations and issuance of regulated coveredbonds by issuers and CBTL business carried on by CBTL firms under the MCD Order and data reportingservices providers (other than incoming data reporting services providers) under the DRS Regulations.

Part 1 - Method for calculating the fee for fee-paying payment service providers

(1) The periodic fee for fee-paying payment service providers is calculated by identifying therelevant activity group under Part 2 and thenadding the minimum fee to an additional feecalculated by multiplying the tariff base identified in Part 3 of FEES 4 Annex 11 by the appro-priate rates applying to each tranche of the tariff base as indicated in the table at Part 5.For small payment institutions and small electronic money institutions the tariff rates arenot relevant and a flat fee is payable.

(2) A fee-paying payment service provider may apply the relevant tariff bases and rates tonon-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 UKbusiness separately from its non-UK business in the way described in Part 3 of FEES4 Annex 11 is disproportionate to the difference in fees payable; and

(b) it notifies the FCA in writing at the same time as it provides the information con-cerned under FEES 4.4 (Information on which fees are calculated), or, if earlier, atthe time it pays the fees concerned.

(3) For a fee-paying payment service provider which is required to comply with FEES 4.4.9 D (In-formation on which fees are calculated) and has not done so for this period:

(a) the fee is calculated using (where relevant) the valuation or valuations of businessapplicable to the previous period, multiplied by the factor of 1.10; and

(b) an additional administrative fee of £250 is payable.

(c) [deleted]

Part 1A - Method for calculating the fee for fee-paying electronic money issuers

(1) The periodic fee for fee-paying electronic money issuers is calculated by identifying therelevant activity group under Part 2A and then multiplying the tariff base identified inPart 3 of 1 R by the appropriate rates applying to each tranche of the tariff base as indic-ated in the table at Part 5. For small electronic money institutions, the tariff rates arenot relevant and a flat fee is payable.

(2) A fee-paying electronic money issuer may apply the relevant tariff bases and rates tonon-UK business, as well as to its UK business, if:

(a) it has reasonable grounds for believing that the costs of identifying thefirm's UK business separately from its non-UK business in the way describedin Part 3 of 1 R is disproportionate to the difference in fees payable; and

(b) it notifies the FCA in writing at the same time as it provides the informationconcerned under FEES 4.4 (Information on which fees are calculated), or, ifearlier, at the time it pays the fees concerned.

(3) For a fee-paying electronic money issuer which is required to comply with FEES 4.4 (In-formation on which fees are calculated) and has not done so for this period:



4

(a) the fee is calculated using (where relevant) the valuation or valuations ofbusiness applicable to the previous period, multiplied by the factor of 1.10;and

(b) an additional administrative fee of £250 is payable.

(c) [deleted]

Part 1B - Method for calculating the periodic fee where the firm is both a fee-paying payment serviceprovider and a fee-paying electronic money issuer

Add the fee calculated under Part 1 to the fee calculated under Part 1A.

Part 1C - Method for calculating the fee for an issuer of a regulated covered bond

The issuance of regulated covered bonds by issuers is linked to activity group G.15 in this annex. Theperiodic fees for issuers of regulated covered bonds is calculated by multiplying the tariff base relev-ant to G.15 in Part 3 of 1 R by the appropriate rates applying to each tranche of the tariff base as in-dicated in the table at Part 5.

Part 2 - Activity groups relevant to fee-paying payment service providers

This table shows how the payment services performed by fee-paying payment service providers arelinked to activity groups (fee-blocks). A fee-paying payment service provider can use the table toidentify which fee-blocks it falls into based on its authorisation or registration.

Activity group Fee payer falls into this activity group if:

G.2 Certain deposit acceptors it is a fee-paying payment service provider not fal-ling within any of the other fee-blocks in thistable

G.3 Large payment institutions and registered ac- it is a fee-paying payment service provider that iscount information service providers an authorised payment institution, an EEA au-

thorised payment institution, a registered ac-count information service provider, an EEA regis-tered account information service provider, thePost Office Limited or a fee-paying electronicmoney issuer (except if it is a small electronicmoney institution)

G.4 Small payment institutions it is a fee-paying payment service provider that isa small payment institution or a small electronicmoney institution

G.5 - Other institutions it is the Bank of England or a government depart-ment or local authority that provides payment ser-vices other than when carrying out functions of apublic nature.

Part 2A - Activity groups relevant to fee-paying electronic money issuers

This table shows how the electronic money issuance by fee-paying electronic money issuers is linkedto activity groups ('fee-blocks'). A fee-paying electronic money issuer can use the table to identifywhich fee-blocks it falls into based on its authorisation, registration or permission, as applicable.

Activity group Fee payer falls into this activity group if:

G.10 Large electronic money in- it is a fee-paying electronic money issuer (except if it is a small elec-stitutions tronic money institution)



4

G.11 Small electronic money in- it is a small electronic money institutionstitutions

Part 2B – Activity groups relevant to CBTL firms

This table shows how CBTL business carried on by CBTL firms is linked to activity groups ('fee-blocks').A CBTL firm can use the table to identify which fee-blocks it falls into based on its registration

Activity Group Fee payer falls into this activity group if

G.20 CBTL lender It is a CBTL lender and does not have permissionto carry out any regulated activities

G.21 CBTL arranger and CBTL adviser it is a CBTL arranger or a CBTL adviser and doesnot have permission to carry out any regulated ac-tivities

Part 2C – Activity group relevant to data reporting services providers

Activity Group Fee payer falls into this group if:

G.25 DRSP it is a data reporting services provider (other thanan incoming data reporting services provider).

Part 3

This table indicates the tariff base for each fee-block. The tariff base is the means by which the FCAmeasures the amount of business conducted by fee-paying payment service providers, fee-payingelectronic money issuers, CBTL firms, data reporting services providers (other than incoming data re-porting services providers) firms registered under the Money Laundering Regulations and issuers ofregulated covered bonds.

Activity Group Tariff base

G.2 MODIFIED ELIGIBLE LIABILITIES

These are determined in the same manner as thetariff-base for relevant firms in the A.1 fee-blockset out in FEES 4 Annex 1 Part 2 R.

G.3 RELEVANT INCOME

This is the sum of the following elements of thefirm's UK business:

Interest income

Interest expenses

Gross commissions and fees received

Gross other operating income

calculated in the same manner as the relevant in-dicator referred to in paragraph 10(3)

of Schedule 3 to the Payment Services Re-gulations.

For the Post Office Limited only, Relevant Incomerelates only to its payment services business.

G.4 Not applicable.

G.5 As in G.3 and Relevant Income only relates topayment services business.

G.10 Average outstanding electronic money as de-fined under regulation 2(1) of the ElectronicMoney Regulations.



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This is the average total amount of financial liab-ilities related to electronic money in issue at theend of each calendar day over the precedingtwelve calendar months (which is the period end-ing on the date set out under Part 4), calculatedon the first calendar day of each calendar monthand applied for that calendar month (£million).

G.11 Not applicable.

G.15 Regulated covered bonds issued in the 12months ending on the valuation date and valuedas at the valuation date.

G.20 Not applicable

G.21 Not applicable

G.25 Not applicable

Part 4 - Valuation period

This table indicates the valuation date for each fee-block. A fee-paying payment service provider, afee-paying electronic money issuer and a regulated covered bond issuer can calculate tariff data byapplying the tariff bases set out in Part 3 with reference to the valuation dates shown in this table.

Activity group Valuation date

In this table, reference to specific dates or months are references to the latest one occurring beforethe start of the period to which the fee applies e.g. for 2010/11 fees (1 April 2010 to 31 March2011), a reference to December means December 2009.

Where the tariff data of a fee-paying payment service provider or a fee-paying electronic moneyissuer is in a currency other than sterling, it must be converted into sterling at the exchange rate pre-vailing on the relevant valuation date.

G.2 For banks and building societies as in FEES 4 An-nex 1 Part 3.

G.3 Relevant income for the financial year ended inthe calendar year ending 31 December.

G.4 Not relevant.

G.5 Relevant income for the twelve months ending31 December.

G.10 31 December.

G.11 Not relevant.

G.15 (1) The last day of the financial quarter duringwhich the issuer became registered as an issuerin the FCA financial year (the 12 months ending31 March).

(2) For subsequent FCA financial years, 31 De-cember unless (3) applies.

(3) If the issuer became registered as an issuer be-tween 1 January and 31 March inclusive, 31March in respect of the FCA financial year imme-diately following the FCA financial year duringwhich it became registered and 31 December inrespect of all further FCA financial years.

A reference to a financial quarter in this box me-ans any of the following periods: 1 April to 30June inclusive, 1 July to 30 September inclusive, 1October to 31 December inclusive or 1 January to31 March inclusive.



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Part 5 - Tariff rates

Activity group Fee payable in relation to 2018/19

G.2 Minimum fee (£) 515

£ million or part £m of Modified Fee (£/£m or part £m of MELS)Eligible Liabilities (MELS)

> 0.1 0.5390


£ thousands or part thousand of Fee (£/£thousand or part £thou-Relevant Income sand of Relevant Income)

> 100 0.3625

G.4 Flat fee (£) 515

G.5 As in G.3

G.10 Minimum fee (£) 1,692

£million or part m of average Fee (£/£m, or part £m of AOEM)outstanding electronic money(AOEM)

>5.0 80.00

G.11 Flat fee (£) 1,128

G.15 Minimum fee for the first regis- 79,184tered programme (£)

Minimum fee for all subsequent 75% of minimum fee for first re-registered programmes gistered programme

£million or part £m of regulated Fee (£/£m or part £m of regu-covered bonds issued in the 12 lated covered bonds issued inmonths ending on the valuation the 12 months ending on thedate. valuation date)

>0.00 11.80

For the purposes of calculating fees, any regulated covered bondsdenominated in a currency other than sterling must be convertedinto sterling at the applicable exchange rate set out below.

Where an exchange rate hedging agreement was entered into inconnection with the issuance of regulated covered bonds denom-inated in a currency other than sterling, the applicable exchangerate for those regulated cover bonds is the exchange rate stipu-lated in the exchange rate hedging agreement.

An exchange rate hedging agreement is any agreement enteredinto to hedge the market risk relating to fluctuations in exchangerates.

In all other cases, the applicable exchange rate is the daily spotrate available on the Bank of England's Statistical Interactive Data-base (the Bank of England exchange rate) applying on the valu-ation date. If the valuation date is not a business day, then the ap-plicable exchange rate is the Bank of England exchange rate ap-plying on the first business day following the valuation date.

G.20 Flat fee (£) 416

G.21 Flat fee (£) 208

G.25 Flat fee (£) for first data re- 25,750porting service plus 50% flatfee for each additional data re-porting service for which the



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data reporting services provider(other than an incoming datareporting services provider) hasauthorisation.

Part 7 - This table shows the modifications to fee tariffs that apply to EEA authorised payment institu-tions, EEA authorised electronic money institutions, and full credit institutions that are EEA firms.

Activity group Percentage deducted from the Minimum amount payabletariff payable under Part 5 ap-plicable to the firm

G.2 40%

G.3 40%

G.10 40%



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Definition of annual income for the purposes of calculating fees in feeblocks A.13, A.14, A.18, A.19 and B. Service Companies, RecognisedInvestment Exchanges and Regulated Benchmark Administrators

Annual income definition

General definition for all relevant fee-blocks (other than where the firms is an operator of a Reco-gnised Investment Exchange or a Benchmark Administrator)

"Annual income" for a particular fee block (the “relevant fee block”) is the gross inflow of eco-nomic benefits (i.e. cash, receivables and other assets) recognised in the firm's accounts during the re-porting year in respect of, or in relation to, the provision in the UK of the regulated activities speci-fied in FEES 4 Annex 1A R Part 1 as belonging to the relevant fee block .

The figure should be reported for the relevant fee block without netting off the operating costs orbusiness expenses, but including:

(a) all brokerages, commissions, fees, and other related income (for example, administration charges,overriders, profit shares etc) due to the firm in respect of, or in relation to, the provision in the UKof the regulated activities specified in FEES 4 Annex 1A R Part 1 as belonging to the relevant fee blockand which the firm has not rebated to clients or passed on to other authorised firms (for example,where there is a commission chain).

PLUS:

(b) any ongoing commission from previous business received by the firm during the reporting year.

PLUS:

(c) the “fair value” of any goods or services the firm provided to clients. This is the commissionequivalent or an estimate of the amount the firm would otherwise have received for any regulatedactivity under (a) above, but for which it has made a business decision to waive or discount itscharges.

Definition for Recognised Investment Exchanges

“Annual income” for a recognised investment exchange is the gross inflow of economic benefits (i.e.cash, receivables and other assets) recognised in the firm’s accounts during the reporting year in re-spect of, or in relation to activities that comprise a necessary part of an exchange’s business as an in-vestment exchange. This should include all revenues the firm derives from operating multilateraltrading facilities and organised trading facilities.

For the purposes of calculating annual income of the recognised investment exchange includeamounts received in relation to the operation of its markets; access to those markets; the submis-sion, management and execution of orders; quotes or transactions on those markets; the supply ofpre-and post- trade transparency information about those markets; fees for admission to trading orlisting; membership of connectivity charges; fees for order execution or management; trade re-porting; market data and any other relevant revenue streams.

Where the firm is a Regulated Benchmark Administrator

“Annual income” for a regulated benchmark administrator is the gross inflow of economic benefits(i.e. cash, receivables and other assets) recognised in the firm’s accounts during the reporting year inrespect of, or in relation to activities in the UK that comprise a necessary part of its business as aregulated benchmark administrator.

Where the sales and marketing of a benchmark are undertaken by a separate legal entity, the regu-lated benchmark administrator is responsible for identifying the relevant income and reporting it tous as its own income. To avoid double counting, the regulated benchmark administrator should re-



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port only the income from sales in the UK and exclude any amount paid to it from that income topay for its expenses as a regulated benchmark administrator.

Where the firm’s regulated activities are carried on by an appointed representative of the firm

The firm's annual income must include income received by an appointed representative carrying aregulated activity in a relevant fee block on behalf of the firm.

The appointed representative's annual income must be calculated in the same way as the firm's.However, to avoid double counting, the appointed representative's annual income must not includeany income also recognised in the firm’s accounts, including income recognised as a result of a com-mission sharing arrangement with the appointed representative.

Where the relevant fee-block is fee-block A.18

For the purposes of calculating annual income for fee-block A.18, also include the following:

(d) for any home finance mediation activity carried out by the firm for which it receives paymentfrom the lender or provider on a basis other than that in (a), the value of all new mortgage ad-vances and amounts provided under other home finance transactions resulting from that activitymultiplied by 0.004;

PLUS:

(e) if the firm is a home finance provider, the value of all new mortgage advances and amounts pro-vided under other home finance transactions which are regulated mortgage contracts, home pur-chase plans, home reversion plans or regulated sale and rent back mediation activity, multiplied by0.004m, excluding mortgage advances and home finance transactions which result from home fin-ance mediation activity carried on by another firm, where payment has been made by the home fin-ance provider to that other firm under (a);

PLUS:

(f) for firms whose permission includes administering regulated mortgage contracts, but not en-tering into a regulated mortgage contract and firms whose permission includes administering ahome finance transaction but not entering into a home finance transaction, and in either casewhose permission does not include advising on a home finance transaction, the relevant amountsare multiplied by 0.15.

Where the relevant fee-block is fee-block A.19

For the purposes of calculating annual income for fee-block A.19, also include the following:

(g) in relation to any activities in (a), for any insurance mediation activity carried out by the firm forwhich it receives payment from the insurer on a basis other than that in (a), the amount of pre-miums receivable on its contracts of insurance multiplied by 0.07;

PLUS:

(h) if the firm is an insurer in relation to the activities in (a), the amount of premiums receivable onits contracts of insurance multiplied by 0.07,excluding those contracts of insurance which:

- result from insurance mediation activity by another firm, where payment has been made by the in-surer to the firm under (a); or

- are not general insurance contracts or pure protection contracts.

AND

(i) for the purposes of calculating annual income for fee-block A.19:

- the provision in the UK of the regulated activities specified in FEES 4 Annex 1A Part 1 as belonging tothe relevant fee block includes the provision of activities that would have been insurance mediationactivity in relation to general insurance contracts or pure protection contracts if they had been car-ried on after 13 January 2005 or, in relation to connected travel insurance contracts, from 1 January2009; - a reference to a "firm " includes a reference to any person, including a connected travel in-



4


surance intermediary, who carried on activities which would be insurance mediation activity (in re-spect of general insurance contracts or pure protection contracts) if they had been carried on after13 January 2005 or, in relation to connected travel insurance contracts, from 1 January 2009.Guid-ance on the interpretation of this definition is presented in FEES 4 Annex 13 G.



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Definition of annual income for the purposes of calculating fees in feeblocks CC1 and CC2

(1) Annual income definition for credit related regulated activities

“Annual income” is the gross inflow of economic benefits (i.e. cash, receivables and other assets) re-cognised in the firm's accounts during the reporting year in respect of, or in relation to, the provi-sion in the UK of the regulated activities specified in FEES 4 Annex 1AR Part 1 as belonging to fee-blocks CC1 or CC2 as applicable.

The figure should be reported without netting off the operating costs or business expenses, butincluding:

(a) all interest received on loans, brokerages, commissions, fees, and other related income (for ex-ample, administration charges, overriders, profit shares etc) due to the firm in respect of, or in rela-tion to, the provision in the UK of the credit-related regulated activities specified in FEES 4 Annex 1ARPart 1 as belonging to fee-blocks CC1 and CC2 and which the firm has not rebated to clients orpassed on to other authorised firms (for example, where there is a commission chain).

(aa)In the case of consumer hire agreements, interest should be calculated as the total revenue overthe period of the lease minus depreciation of the asset over the same period. Where depreciation isnot recorded in the accounts and a firm uses its own internal conventions for calculating depreci-ation, it must be ready on request to demonstrate that its methodology uses straight-line depreci-ation or an alternative depreciation method in line with the UK Financial Reporting Standard (FRS102) or International Accounting Standards (IAS). In the absence of internal conventions for calculat-ing depreciation, the assumption should be made that the asset depreciates to zero over the period(or minimum period) of the lease, or (if no period is specified) over a reasonable period.

Plus:

(b) any ongoing commission from previous business received by the firm during the reporting year.

(ba)any vouchers, reward cards or other benefits staff have received from other firms as recompensefor making introductions as a credit broker.

Plus:

(c) the “fair value” of any goods or services the firm provided to clients. This is an estimate of theamount the firm would otherwise have received for any regulated activity under (a) above, but forwhich it has made a business decision to waive or discount its charges.

Plus:

(d) [deleted]

Or

(e) The figure must be reported using the proxy measure of annual income if the firm receives no an-nual income of the type in 1(a) to (c) and meets the criteria in (2).

(2) Proxy measure of annual income

(a) A firm that receives no annual income of the type in 1(a) to (c) must report its annual income us-ing the proxy measure in (b) if:



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(i) its main business is to sell goods or supply services, and is not to carry on a credit activity in 2(a)(ii)or 2(a)(iii);

and

(ii) it carries on:

(aa) credit broking in relation to credit agreements, except for credit broking in relation to buy-to-let mortgages; or

(bb) entering into a regulated credit agreement as lender;

or

(iii) it carries on:

(aa) credit broking in relation to consumer hire agreements; or

(bb) entering into a regulated consumer hire agreement as owner.

(b) The proxy measure for annual income is calculated:

(i) for activities in 2(a)(ii), by multiplying the gross loan amount under all agreements falling withinthe activity by the percentage value at (b)(iii);

(ii) for activities in 2(a)(iii), by multiplying the gross value of all goods under all agreements fallingwithin the activity by the percentage value at (b)(iii);

(iii) the percentage value is 5% plus the Bank of England base rate on the final day of the firm’s ac-counting reference date.

(iv) any proxy income should be calculated on the basis of the Bank of England base rate in force atthe time of submission.

(3) Where the firm’s regulated activities are being carried on by an appointed representative of thefirm

The firm's annual income must include income received by an appointed representative carrying aregulated activity in a relevant fee block on behalf of the firm.

The appointed representative's annual income must be calculated in the same way as the firm's.However, to avoid double counting, the appointed representative's annual income must not includeany income also recognised in the firm's accounts, including income recognised as a result of a com-mission sharing arrangement with the appointed representative.

Guidance on the interpretation of this definition is presented in Table 2 of FEES 4 Annex 13 G.



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Guidance on the calculation of tariffs set out in FEES 4 Annex 1AR Part3

The following table sets out guidance on how a firm should calculate tariffs for fee-block A.4.

Gross written premium for fees purposes (GWP) and Best estimate liabilities for fees purposes (BEL)- calculation of new regular premium business

(1) If any business is transferred to a firm (A) from another firm (B) under the procedure set out atPart VII of the Act and that business would have been included in B's tariff base in the absence ofsuch a transfer, this business should be included in either A's or B's tariff base, depending on thedate of transfer. FEES 4.3.17R explains in whose tariff base it should be included.

(2) Best estimate liabilities for fees purposes should take account of all of A's business, including allnew business transferred from B.


http://www.legislation.gov.uk/ukpga/2000/8/part/VII/2010-04-01


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Guidance on the calculation of tariffs set out in FEES 4 Annex 1AR Part3

Table 1

The following table sets out guidance on how a firm should calculate tariffs for fee blocks A.13,A.14, A.18, A.19 and B. Service Companies, Recognised Investment Exchanges and RegulatedBenchmark Administrators.

Calculating and apportioning annual income - FEES 4 Annex 11AR

Calculating annual income

Defining relevant income streams

(1) The firm should refer to the fee-block definitions in FEES 4 Annex1AR, Part 1 to decide which particular income streams should betaken into account when calculating its annual income for the pur-poses of fee-blocks A.13, A.14, A.18, A.19 and B. Service Compan-ies, Recognised Investment Exchanges and Benchmark Admin-istrators.

(2) For the avoidance of doubt, the only income streams reportablefor a relevant fee-block are those income streams which relate toa regulated activity listed in that fee-block. Income streams thatdo not relate to a regulated activity listed in the relevant fee-block should not be reported. Service companies, operators of re-cognised investment exchanges and regulated benchmark adminis-trators should report the income relating to each of these activit-ies, excluding income from any other activities in the B fee-blockon which they pay FCA fees. Operators of recognised investmentexchanges should include all income derived from operating multi-lateral trading facilities and organised trading facilities.

Under FEES 4 Annex 11AR, where the sales and marketing of abenchmark are undertaken by a separate legal entity within thesame group, the income generated as a result is also deemed torelate to the regulated activity carried on by the benchmark ad-ministrator and so should be reported to the FCA by thebenchmark administrator as its own income (for fees settingpurposes).

Firms should exclude from the calculation of their annual incomefor any particular fee-block all income directly derived from theperformance of regulated activities belonging to other fee-blocks.For example:

(a)interest from loans made in the course of providing or adminis-tering home finance (A.2) should be excluded from commissionearned from arranging home finance agreements (A18);

(b)premium interest from carrying out or effecting life insurancecontracts (A.3), income from managing the underwriting capacityof a Lloyd’s syndicate as a managing agent at Lloyds (A.5) shouldbe excluded from commissions for arranging general insurance(A.19);

(c)income from managing investments, collective investmentschemes or pensions schemes (A.7 or A.9) or income from operat-ing multi-lateral trading facilities (FEES 4 Annex 10R) should be ex-



4

cluded from income derived from investment intermediation(A.13) or operating a recognised investment exchange or adminis-tering a specified benchmark.

(3) Firms should only include revenue streams that relate to regulatedactivities which are carried on 'in the United Kingdom'. In manycases, it will be quite straightforward to identify where an activityis carried on. But when there is a cross-border element, for ex-ample because a client is outside the United Kingdom or becausesome other element of the activity happens outside the UnitedKingdom, the question may arise as to where the activity is car-ried on. PERG 2.4 generally and PERG 4.11 regarding activities relat-ing to regulated mortgage contracts, PERG 5.12 regarding activitiesrelating to insurance mediation activities and PERG 14.6 regardinghome reversion plans and home purchase plans describe the legis-lation that is relevant to this question and gives the FCA's viewson various scenarios.

Reporting period

(4) The “reporting year” is the firm's financial year end during thecalendar year prior to the FCA fee year. This fee year starts on 1April. This is specified in part 5 of FEES 4 Annex 1A.

(5) The income that should be included is the income that was reco-gnised in the accounts of the relevant reporting year. This meansthat some income due may not be reported until the followingyear because it has not yet been recognised in the accounts, whileother income may be carried forward from previous years.

Fair value

(6) Except in relation to fee-block A.18 and A.19 where one or moreof paragraphs (d) to (f) or (g) to (i) of FEES 4 Annex 11A apply, thefirm should report a “fair value” price for any services for which ithas made a business decision not to charge to clients.

We consider fair value to refer to the amount at which goods orservices could be exchanged in an arm’s length transaction be-tween informed and willing parties, other than in a forced or li-quidation sale.

For example, where a firm has forgone or discounted the commis-sion or fee would actually have charged but for the business de-cision to grant a discount in a particular case or on a temporarybasis, it should report the amount it would have otherwise havecharged for providing equivalent activities.

In the case of home finance mediation in fee-block A.18 and gen-eral insurance intermediation in fee-block A.19 where one ormore of paragraphs (e) to (f) or (g) to (i) of FEES 4 Annex 11A apply,instead of asking for firms to estimate fair value, certain ratios areprescribed in FEES 4 Annex 11BR where the client is not charged dir-ectly for the service provided.

Inclusions

(7) Annual income should include:

(a) all amounts due to the firm aris-ing out of the regulated activit-ies referred to in the relevantfee block for which the firmholds permission, includingregular charges and instalmentsdue to the firm during the re-porting year;



4

(b) any payment from a parent tofacilitate the discounting orforgoing of any amounts thatwould otherwise be charged infull to a client, to the extentthat the payment exceeds the“fair value” price reported in ac-cordance with paragraph (6)above;

(c) (i) amounts earned by a firm'sappointed representative whencarrying on a regulated activityfor the firm to which FEES 4 An-nex 11A applies; and

(ii) amounts earned by a personwho will become the firm's ap-pointed representative immedi-ately after authorisation;

(d) administrative charges and anyinterest from income related tothe regulated activities speci-fied in the relevant fee block.

(8) Additional inclusions in respect of fee-block A.18:

(a) a firm must include in para-graph (a) any survey and book-ing fees due to it in respect ofhome finance mediationactivity.

Prohibited deductions

(9) Deductions should not be made for:

(a) bad debts;

(b) customer benefits such as cashrewards, complimentary travelinsurance, air miles vouchersetc.;

(c) items such as general businessexpenses (e.g. employees’ salar-ies and overheads);

(d) fines or penalties levied againstthe firm;

(e) commission a firm pays anotherparty to arrange a transactionwith a client unless it receives afee in respect of the sametransaction;

(f) the difference (if positive) be-tween the fee payable by afirm to another party for arran-ging a transaction and theamount payable to the firm bythe end client in respect of thattransaction (here, the firm mustnet any excess payable by theend client to zero);

(g) payments made to clients byway of redress.



4

Exclusions

(10) The following should be excluded from the calculation of annualincome:

(a) To avoid double-counting,amounts which have beenpassed on to other firms maybe excluded from the calcula-tion of annual income, for ex-ample, where there is a commis-sion chain. Transfers of incometo other firms may be especiallycommon within groups where,to present a single interface toclients, all amounts due to thegroup may be collected by onefirm for subsequent redistribu-tion to other firms within thegroup. It is for groups them-selves to decide the most con-venient way to report such an-nual income - i.e. whether thefirm which receives the fullamount should declare that fullamount, or whether each firmin the group should report itsseparate distribution.

(b) Any payment from a parent tofacilitate the discounting orforgoing of any amount thatwould otherwise be charged infull to a client should be ex-cluded to the extent that thepayment does not exceed orequal the “fair value” price re-ported in accordance with para-graph (6) above.

(c) Rebates to customers and feesor commissions passed ontoother firms should be excluded.

(d) Authorised professional firmsshould exclude the income fromnon-mainstream regulated ac-tivities. They may estimate theproportion of their businessthat is derived from those activ-ities and split the income fromindividual invoices accordingly.

(e) For the avoidance of doubt, in-come relating to or in respectof an activity is not part of an-nual income for the purposes ofthe definition in FEES 4 Annex11A to the extent that the activ-ity benefits from the exclusionin article 69 of the Financial Ser-vices and Markets Act 2000(Regulated Activities Order)2001 (Groups and joint enter-prises). Firms should refer tothe guidance on the application




4

of this exclusion is contained inPERG 2.9.

Apportioning annual income

Where a firm cannot separate its income on the basis of activities, it may apportion the income onthe basis of the proportionate split of business that the firm otherwise undertakes. For instance:

(1) If a firm receives annual income from a platform-based business itmay report this in line with a wider breakdown of its activities.

(2) A firm providing corporate finance advice which does not main-tain records of the split between regulated activities and non-regulated activities for individual cases may calculate that regu-lated business accounts for a certain proportion of its businessoverall and apply that as a multiplier across its income.

(3) A firm may allocate ongoing commission from previous businesson the basis of the type of firm it receives the commission from.This avoids tracking back legacy business which may no longermatch the provider's current business model.

(4) An authorised professional firm may estimate the proportion ofits business that is derived from regulated activity and split its in-come for individual invoices accordingly.

(5) If a firm has invested income from regulated activities, then any in-terest received should be reported as income, in proportion to thevolume of regulated business it undertakes to avoid tracking backold payments.

(6) Firms' systems ought to be able to distinguish UK from non-UKbusiness to establish which conduct of business regime it was con-ducted under. If, however, they do not relate the figures back toincome streams for the specific regulated activities in a particularfee-block then the firm may make a proportionate split as de-scribed above, calculating its regulated UK income on the basis ofthe overall split between UK and overseas income.

(7) It is for individual firms to determine how they should calculatethe appropriate split of income. The FCA is not prescriptive aboutthe methodology. It requires only that:

(a) the approach should be propor-tionate - the FCA is looking forfirms to make their best effortsto estimate the split;

(b) the firm must be able on re-quest to provide a sound andclearly expressed rationale forits approach - for example, if allinvoices were analysed over aparticular period, the firmshould be able to justify theperiod as representative of itsbusiness across the year;

(c) the methodology should be ob-jective - for example, based onrandom sampling of invoices orrandom stratified sampling;

(d) the firm must on request beable to provide an audit trailwhich demonstrates that thechoice of methodology wasproperly considered at an ap-propriate level or in the appro-priate forums within the firm,



4

and the decision periodically re-viewed at the same level or inan equivalent forum.

Table 2

The following table sets out guidance on how a firm should calculate tariffs for fee blocks CC.1 andCC.2.

Calculating and apportioning annual income - FEES 4 Annex 11BR

Calculating annual income

Defining relevant income streams

(1) Firms should report the total income from the credit-related regu-lated activities for which they have permission.

(2) Firms should only include revenue streams that relate to regulatedactivities which are carried on 'in the United Kingdom'. In manycases, it will be quite straightforward to identify where an activityis carried on. But when there is a cross-border element, for ex-ample because a client is outside the United Kingdom or becausesome other element of the activity happens outside the UnitedKingdom, the question may arise as to where the activity is car-ried on. PERG 2.4 describes the legislation that is relevant to thisquestion.

Reporting period

(3) The “reporting year” is the firm's financial year end during thecalendar year prior to the FCA fee year. This fee year starts on 1April. This is specified in part 5 of FEES 4 Annex 1A.

(4) The income that should be included is the income that was reco-gnised in the accounts of the relevant reporting year. This meansthat some income due may not be reported until the followingyear because it has not yet been recognised in the accounts, whileother income may be carried forward from previous years.

Fair value

(5) The firm should report a “fair value” price for any services forwhich it has made a business decision not to charge to clients. Weconsider fair value to refer to the amount at which goods or ser-vices could be exchanged in an arm’s length transaction betweeninformed and willing parties, other than in a forced or liquidationsale.

Some examples where fair value may be relevant in the context ofconsumer credit are:

(a) “Imputed interest”: where a loan has been provided interest-free or at a discounted rate, the charge should be rounded up tothe prevailing rate normally chargeable to a client with a similarcredit rating;

(b) “Commission-equivalent” or “fee-equivalent”: where a firmhas foregone or discounted the commission or fee it would actu-ally have charged but for the business decision to grant a discountin a particular case or on a temporary basis, it should report theamount it would otherwise have charged for providing equivalentcredit-related regulated activity.

(6) Firms should not estimate a fair value where:

(a) there is a statutory prohibition on charging interest (such asbankruptcy debts); or

(b) they have reduced or suspended their normal charging struc-ture because the debtor is unable to meet contractual repayments



4

and an alternative repayment arrangement has been agreed withthe creditor; or

(c) they have made a “borrower-lender-supplier” agreement to al-low a customer to pay the cash price of goods or services in instal-ments - any penalties or interest charged where the customer is indefault should be declared as income.

(6A)[deleted]

(6B) Proxy measure of annual income FEES 4 Annex 11BR(2)

FEES 4 Annex 11BR(2) sets out the proxy measure of annual incomefor a firm defined in FEES 4 Annex 11BR(1)(e). An example of what afirm would report as a proxy measure of annual income is pro-vided below:

If a firm enters into a regulated credit agreement as lender:

(a) providing a gross loan amount of £1,000;

(b) to enable a customer to purchase goods from it priced at£1,000; and

(c) the Bank of England base rate on the final day of the firm’s ac-counting reference date is 0.5%;

the firm should report: (5% + 0.5%) x (£1000) = £55

(Historic Bank of England base rates (currently known as the Offi-cial Bank Rate) are available here: http://www.bankofengland.-co.uk/statistics/Documents/rates/baserate.pdf)

Inclusions

(7) Annual income should include:

(a) all amounts due to the firm aris-ing out of credit-related regu-lated activities for which thefirm holds permission, includingregular charges and instalmentsdue to the firm during the re-porting year;

(b) income received in relation tothe provision of current accountoverdrafts interest charges, ar-rangement fees and creditcards charges;

(c) any payment from a parent tofacilitate the discounting orforgoing of any amounts thatwould otherwise be charged infull to a client, to the extentthat the payment exceeds the“fair value” price reported in ac-cordance with paragraph (5)above;

(d) (i) amounts earned by the firm'sappointed representativeswhen carrying on a regulatedactivity for the firm to whichFEES 4 Annex 11B R applies; and


http://www.bankofengland.co.uk/statistics/Documents/rates/baserate.pdf

http://www.bankofengland.co.uk/statistics/Documents/rates/baserate.pdf


4

(ii) amounts earned by a personwho will become the firm's ap-pointed representative immedi-ately after authorisation; and

(e) administrative charges and anyinterest from income related toits credit-related regulatedactivity.

Prohibited deductions

(8) Deductions should not be made for:

(a) bad debts;

(b) customer benefits such as cashrewards, complimentary travelinsurance, air miles vouchersetc;

(c) items such as general businessexpenses (eg, employees’ salar-ies and overheads);

(d) fines or penalties levied againstthe firm;

(e) commission a firm pays to an-other party to arrange a transac-tion with a client unless it re-ceives a fee in respect of thesame transaction;

(f) the difference (if positive) be-tween the fee payable by afirm to another party for arran-ging a transaction and theamount payable to the firm bythe end client in respect of thattransaction (here, the firm mustnet any excess payable by theend client to zero);

(g) payments to clients made byway of redress; and

(h) commission or fees clawed backby a third party firm in sub-sequent years, for example be-cause a client introduced by acredit broker to a lender repaysa loan early or defaults.

Exclusions

(9) The following should be excluded from the calculation of annualincome:

(a) Any income arising from busi-ness which is not a credit-re-lated regulated activity.

(b) (i) Repayments of principal lentby the firm in the course of itcarrying on a credit-relatedregulated activity and (ii) sumsreceived by the firm in ex-change for the rights to prin-cipal owed to the firm wherethe principal was lent by the



4

firm in the course of carryingon a credit-related regulated ac-tivity and where the rights arenot sold at a premium to thevalue of the principal outstand-ing, should not be included. Bythe same token, the money afirm has received for the pur-pose of lending on to con-sumers as principal (e.g. moneyraised through wholesale bor-rowing, grant-aid, intra-grouptransfers, etc) should not betreated as income.

(c) On the same principle, the in-come on debt purchase is thedifference between the pricepaid for the purchased bookand the amount collected.

(d) To avoid double-counting,amounts which have beenpassed on to other firms carry-ing on credit-related regulatedactivity may be excluded fromthe calculation of annual in-come, for example where thereis a commission chain. Transfersof income to other firms maybe particularly common withingroups where, to present asingle interface to clients, allamounts due to the group maybe collected by one firm for sub-sequent redistribution to otherfirms within the group. It is forgroups themselves to decidethe most convenient way to re-port such annual income, iewhether the firm which receivesthe full amount should declarethat full amount or whethereach firm in the group shouldreport its separate distribution.

(e) Any payment from a parent tofacilitate the discounting orforgoing of any amount thatwould otherwise be charged infull to a client should be ex-cluded to the extent that thepayment does not exceed orequal the “fair value” price re-ported in accordance with para-graph (6) above.

(f) Rebates to customers and feesor commissions passed ontoother firms should be excluded.

(g) The costs of wholesale fundingshould be excluded from the cal-culation - ie interest payments



4

on money borrowed in order tolend on to customers.

(h) If the total income a firm re-ports to us in one year includesan estimate for potential in-come which had been reco-gnised in the accounts but notin practice received, and whichhas subsequently been writtenoff as a bad debt, the amountmay be deducted from the fol-lowing year’s reported income.

(i) Any debit backs deducted froman intermediary by a lenderwhere a customer settles theloan early or defaults.

(j) Authorised professional firmsshould exclude the income fromnon-mainstream regulated ac-tivities. They may estimate theproportion of their businessthat is derived from those activ-ities and split the income fromindividual invoices accordingly.

(k) For the avoidance of doubt, in-come relating to operating cur-rent accounts and debit cardtransactions should be excludedexcept where the income re-lates to the provision of over-drafts (see paragraph (6)(c)above).

(l) For the avoidance of doubt, in-come relating to or in respectof an activity is not part of an-nual income to the extent thatthe activity benefits from the ex-clusion in article 69 of the Finan-cial Services and Markets Act2000 (Regulated Activities Or-der) 2001 (Groups and joint en-terprises). Firms should refer tothe guidance on the applicationof this exclusion is contained inPERG 2.9.

(m) Where a consumer hire agree-ment is open ended, its termshould be taken as the periodover which depreciation is calcu-lated to zero. If the agreementis in practice terminated beforedepreciation reaches zero, theresidual value may not be sub-tracted from the revenue.Where an agreement ends be-fore depreciation reaches zero,but is subsequently renewed,the residual value of the assetshould determine its cost at thebeginning of the new agree




4

ment and depreciation recalcu-lated accordingly. For example,if the cost of the asset at thestart of the original agreementwas £500 and depreciation was80%, then its residual value car-ried forward to the new agree-ment would be £100. If the as-set was assumed to depreciateto zero during the originalagreement, then there is no re-sidual value to carry forwardand the income for the secondagreement would be the totalrevenue from the lease.

Apportioning annual income

Where a firm cannot separate its income on the basis of credit-related regulated activities, it may ap-portion the income on the basis of the proportionate split of business that the firm otherwise under-takes. Examples are outlined below.

(1) If a firm receives annual income from a platform-based business itmay report this in line with a wider breakdown of its activities.

(2) A firm may allocate ongoing commission from previous businesson the basis of the type of firm it receives the commission from.This avoids tracking back legacy business which may no longermatch the provider's current business model.

(3) If a firm has invested income from credit-related regulated activit-ies, then any interest received should be reported as income, inproportion to the volume of business relating to credit-relatedregulated activities it undertakes to avoid tracking back oldpayments.

(4) Firms' systems ought to be able to distinguish UK from non-UKbusiness to establish which conduct of business regime it was con-ducted under. However, if, a firm has a mix of business and its sys-tems do not relate the figures back to the income streams fromcredit-related regulated activities, then it may make a proportion-ate split as described above, calculating its regulated UK incomeon the basis of the overall split between UK and non-UKincome.

(5) An authorised professional firm may estimate the proportion ofits business that is derived from regulated activity and split its in-come for individual invoices accordingly.

(6) It is for individual firms to determine how they should calculatethe appropriate split of income. The FCA is not prescriptive aboutthe methodology. It requires only that:

(a) the approach should be propor-tionate - the FCA is looking forfirms to make their best effortsto estimate the split;

(b) the firm must be able on re-quest to provide a sound andclearly expressed rationale forits approach - for example, if allinvoices were analysed over aparticular period, the firmshould be able to justify theperiod as representative of itsbusiness across the year;



4

(c) the methodology should be ob-jective - for example, based onrandom sampling of invoices orrandom stratified sampling; and

(d) the firm must on request beable to provide an audit trailwhich demonstrates that thechoice of methodology wasproperly considered at an ap-propriate level or in the appro-priate forums within the firm,and the decision periodically re-viewed at the same level or inan equivalent forum.



4

UKLA periodic fees for the period from 1 April 2018 to 31 March 2019

Part 1 Base fee

Activity group or invoice Description Base fee payable (£)code (Note 1)

E.1 Discontinued

E.2 Premium listed A listed issuer of equity shares and certific- 5,355issuer ates representing shares with a premium

listing (see Note 2)

E.3 Standard listed A listed issuer of shares and certificates rep- 20,285issuer resenting certain securities with a standard

listing and not with a premium listing (seeNote 2)

E.4 Discontinued

E.5 Discontinued

E.6 Non-listed issuer (in A non-listed issuer (in DTR) 0DTR)

E.7 Primary information A primary information provider 16,920provider

ES.01 Sponsor A sponsor (see Note 3) 28,190

Notes

Note 1 The ‘E’ activity groups are codes that appear on FCA invoices for peri-odic fees.

Note 2 A listed issuer of shares and certificates representing certain securitiesneed not pay periodic fees if the following conditions apply:

(1) the listed issuer, or a related entity, has already paid a periodic feein respect of the period concerned; or

(2)the listed issuer is subject to listing rules as a result of a reversetakeover; or

(3)the listed issuer is a newly formed entity, created as a result of a re-structuring.

Note 3 In the case of approval of a sponsor following a change of legal sta-tus in accordance with FEES 3 Annex 1R Part 7, the balance of the feesotherwise due from the original sponsor is due from the sponsor thatis a result of the change of legal status.

Part 2 Variable fee additional to base fee

Activity Group Market capitalisation as at the last busi- Fee payable in £per £mil-ness day of the November prior to the fee- lion or £part millionyear in which the fee is payable in£million



4

E.2 Premium listed 0 - 100 0issuer (as described > 100 - 250 27.457725in Part 1)

> 250 – 1,000 10.594000

> 1,000 – 5,000 6.521042

> 5,000 – 25,000 0.159068

> 25,000 0.051391



4

Fees relating to the recognition of benchmark administrators and theendorsement of benchmarks for the period 29 June 2018 to 31 March2019

Activity group Fee payable

A third country legal representative 12,500

A benchmark endorser 7,500



4


Fees Manual

Chapter 5

Financial Ombudsman ServiceFunding


FEES 5 : Financial Ombudsman Section 5.1 : Application and PurposeService Funding

5R5.1.1

G5.1.1-A

R5.1.1A

R5.1.1B

G5.1.2

G5.1.2A

G5.1.3

G5.1.3A

R5.1.4



Application......................................................................................................Rules and guidance made by the FCA in this chapter apply to every firmwhich is subject to the Compulsory Jurisdiction.

Whilst no rule made by the FCA in this chapter applies to VJ participants,some of the guidance may do. The application of rules made by the FOS Ltdin this chapter is set out in ■ FEES 5.5B and described in ■ FEES 5.1.2 AG.

A reference to firm in this chapter includes a reference to a fee-payingpayment service provider, fee-paying electronic money issuer, a CBTL firm, adesignated finance platform and a designated credit reference agency.

■ FEES 5.1.1A R does not apply to ■ FEES 5.5B or ■ FEES 5 Annex 2R or■ Annex 3R unless otherwise stated in rules made by the FOS Ltd.

The rules set out in the table under ■ FEES 5.1.2 AG are made by the FOS Ltd.All other ■ FEES 5 rules are made by the FCA.

Table of ■ FEES 5 rules made by the FOS Ltd

FEES 5 rules made by the FOS Ltd Description

FEES 5.5B Rules relating to case fees

FEES 5 Annex 2R Annual Levy Payable in Relation tothe Voluntary Jurisdiction

FEES 5 Annex 3R Case Fees Payable

[deleted]

[deleted]

Exemption......................................................................................................A firm which is exempt under ■ DISP 1.1.12 R is also exempt from ■ FEES 5.1,■ 5.2, ■ 5.3, ■ 5.4 and ■ 5.6.

FEES 5 : Financial Ombudsman Section 5.1 : Application and PurposeService Funding

5

R5.1.4A

R5.1.5

R5.1.6

G5.1.6A

G5.1.7

G5.1.8


A firm will only be exempt from ■ FEES 5.7 for any given financial year if itmet the conditions in■ DISP 1.1.12 R on 31 March of the immediatelypreceding financial year.

A firm which ceases to be exempt under ■ FEES 5.1.4 R is to be treated, for thepurposes of its contribution to the general levy, as a firm to which ■ FEES 5.8applies.

[deleted]

Firms which cease to be authorised and therefore subject to the CompulsoryJurisdiction part way through the year will not receive a refund of theirgeneral levy except in exceptional circumstances.

Purpose......................................................................................................The purpose of this chapter is to set out the requirements on firms to payannual fees (through a general levy invoiced and collected by the FCA onbehalf of FOS Ltd) and case fees (invoiced and collected directly by FOS Ltd)in order to fund the operation of the Financial Ombudsman Service.ThisChapter also provides for unauthorised persons to pay case fees to FOS Ltd inrespect of any relevant complaints which it handles.

FEES 5 : Financial Ombudsman Section 5.2 : IntroductionService Funding

5 G5.2.1

G5.2.2

G5.2.2A

G5.2.2B

G5.2.3

G5.2.3A

G5.2.4

G5.2.5

G5.2.6


5.2 Introduction

Paragraph 9 of Schedule 17 to the Act (The Ombudsman Scheme) requiresFOS Ltd to adopt an annual budget which has been approved by the FCA.The annual budget must distinguish between the costs of operating theCompulsory Jurisdiction and the Voluntary Jurisdiction.

Section 234 of the Act (Industry Funding) enables the FCA to require thepayment to it or to FOS Ltd, by firms or any class of firm, of specifiedamounts (or amounts calculated in a specified way) to cover the costs of:

(1) the establishment of the Financial Ombudsman Service; and

(2) its operation in relation to the Compulsory Jurisdiction.

[deleted]

[deleted]

Paragraph 15 of Schedule 17 to the Act enables FOS Ltd to require firmssubject to the Compulsory Jurisdiction and any other respondents to acomplaint to pay specified fees to it in respect of complaints closed by theFinancial Ombudsman Service.

The Ombudsman Transitional Order provides for unauthorised persons to becharged fees in respect of any relevant complaints against them which theFinancial Ombudsman Service handles.

Paragraph 18 of Schedule 17 to the Act enables FOS Ltd to require VJparticipants to pay to it such amounts at such times as it specifies in thestandard terms.

The relevant provisions of the rules in ■ FEES 5 and ■ FEES 2 will be applied toVJ participants through the standard terms made by FOS Ltd underparagraph 18 of Schedule 17 to the Act (see ■ DISP 4).

http://www.legislation.gov.uk/ukpga/2000/8/schedule/17/paragraph/9/2006-01-01





FEES 5 : Financial Ombudsman Section 5.2 : IntroductionService Funding

5

G5.2.7


This chapter sets out the framework for the funding arrangements of theFinancial Ombudsman Service, including, where relevant, the method bywhich fees will be calculated. Details of the actual fees payable will varyfrom year to year, depending on the annual budget of the FinancialOmbudsman Service. These details will be set out in annexes to this chapter.New annexes will be prepared and consulted on for each financial year.

FEES 5 : Financial Ombudsman Section 5.3 : The general levyService Funding

5 G5.3.1

G5.3.2

G5.3.3

G5.3.4

G5.3.5

R5.3.6

G5.3.7

R5.3.8


5.3 The general levy

Each financial year, the FCA and FOS Ltd will consult on the amount of theannual budget of the Financial Ombudsman Service which is to be raised bythe general levy.

For the purposes of the general levy, a firm will fall into one or more of theindustry blocks set out in ■ FEES 5 Annex 1 depending on the business activitieswhich it conducts.

The FCA will determine, following consultation, the amount to be raisedfrom each industry block. This will be based on the budgeted costs andnumbers of Financial Ombudsman Service staff required to deal with thevolume of complaints which the Financial Ombudsman Service expects toreceive about the firms in each industry block. Modified arrangements havebeen made for certain types of small firms (see ■ FEES 5.5.3 R to ■ FEES 5.5.5 G).

■ FEES 5 Annex 1 sets out the fee tariffs for each industry block.

The FCA will specify a minimum levy for firms in each industry block.

A firm must pay to the FCA a general levy towards the costs of operating theCompulsory Jurisdiction of the Financial Ombudsman Service.

Under the standard terms, VJ participants will be required to pay to FOS Ltdan amount calculated on a similar basis towards the costs of operating theVoluntary Jurisdiction of the Financial Ombudsman Service, see■ FEES 5 Annex 2R. FOS Ltd will be responsible for invoicing and collecting thisamount.

A firm's general levy under the Compulsory Jurisdiction is calculated asfollows:

(1) identify each of the tariff bases set out in ■ FEES 5 Annex 1 which applyto the firm for the relevant year;

(2) for each of those tariff bases, calculate the sum payable in relation tothe relevant business of the firm for that year (except industry blocks2 and 4, in which case calculate the sum payable for that year);

(3) add together the amounts calculated under (2).

FEES 5 : Financial Ombudsman Section 5.3 : The general levyService Funding

5

G5.3.8A

R5.3.9

R5.3.10


A VJ participant which becomes subject to the Financial Ombudsman Servicepart way through a financial year must pay a proportion of the annual levyrequired by ■ FEES 5.3 and ■ FEES 5 Annex 2R, to be calculated as follows:

(1) a VJ participant joining during the first quarter of the financial yearwill pay 100% of the annual levy;

(2) a VJ participant joining during the second quarter of the financialyear will pay 75% of the annual levy;

(3) a VJ participant joining during the third quarter of the financial yearwill pay 50% of the annual levy; and

(4) a VJ participant joining during the fourth quarter of the financialyear will pay 25% of the annual levy.

For the purpose of ■ FEES 5.3.6 R and ■ FEES 5.3.8 R, a member of the Society ofLloyd's or a managing agent at Lloyd's will not in that capacity be treated asa firm. But the Society of Lloyd's will pay a general levy in respect of Lloyd'sinsurance business conducted with eligible complainants.

For the purpose of ■ FEES 5.3, references to relevant business for a firm whichfalls in industry block 16 or 17 and which so elects under ■ FEES 5 Annex 1, arereferences to the firm's total amount of annual income reported inaccordance with Part 2 of ■ FEES 4.

FEES 5 : Financial Ombudsman Section 5.4 : Information requirementService Funding

5 R5.4.1


5.4 Information requirement

(1) A firm must provide the FCA by the end of February each year (or, ifthe firm has become subject to the Financial Ombudsman Service partway through the financial year, by the date requested by the FCA)with a statement of:

(a) the total amount of relevant business (measured in accordancewith the appropriate tariff base(s)) which it conducted; or

(b) in the case of firms in industry blocks 2 and 4, the gross writtenpremium for fees purposes as defined in ■ FEES 4 Annex 1AR (unless■ FEES 5.4.1R(1A) applies),

as at or in the year to 31 December of the previous year asappropriate, in relation to the tariff base for each of the relevantindustry blocks set out in ■ FEES 5 Annex 1.

(1A) A firm in industry blocks 2 and 4, has notified the FCA of the amountof gross written premium for fees purposes, as defined in■ FEES 4 Annex 1AR, that relates to relevant business. The notificationmust be made by the 30 May each year.

(2) Paragraph (1) does not apply if the firm pays a general levy on a flatfee basis only or if it is the Bank of England.

(3) If a firm cannot provide a statement of the total amount of relevantbusiness as required by ■ FEES 5.4.1 R, it must provide the best estimateof the amount of relevant business that it conducted.

(4) For the purpose of ■ FEES 5.4.1 R, references to relevant business for afirm which falls in industry block 16 or 17 and which so elects under■ FEES 5 Annex 1, are references to the firm's total amount of annualincome reported in accordance with Part 3 of ■ FEES 4 Annex 1A.

(5) If a firm does not submit a complete statement by the date on whichit is due in accordance with this rule and any prescribed submissionprocedures:

(a) the firm must pay an administrative fee of 250 (but not if it isalready subject to an administrative fee under ■ FEES 4 Annex 2A,Part 1, Part 1 or ■ FEES 6.5.16 R for the same financial year); and

(b) the general levy will be calculated using (where relevant) thevaluation or valuations of business applicable to the previousperiod, multiplied by the factor of 1.10 (or, if a firm has becomesubject to the Financial Ombudsman Service part way throughthe financial year, on the basis of the information provided to theFCA for the purposes of ■ FEES 4.4.2 R) or on any other reasonable

FEES 5 : Financial Ombudsman Section 5.4 : Information requirementService Funding

5

R5.4.1-A

D5.4.1A

G5.4.2

G5.4.3

G5.4.4


basis, making such adjustments as seem appropriate insubsequent levies once the true figures are known.

(1) In the case of firms in industry blocks 2 and 4 the requirements under■ FEES 5.4.1R apply in relation to the tariff bases(s) and tariff data in■ FEES 5 Annex 1R.

If a firm is a UK Solvency II firm, an incoming EEA firm or anincoming Treaty firm in industry blocks 2 and 4 in ■ FEES 5 Annex 1R,the FCA may use tariff data from the previous reporting period forthe periodic fees calculation if the PRA or the FCA has either:

(a) not received the necessary tariff data in a timely basis in line withPart 3 and 5 of ■ FEES 4 Annex 1AR; or

(b) deemed the tariff data received to be incomplete or insufficientlyreliable, by reference to a specific firm or across all or part of theindustry block.

The information requirement set out under ■ FEES 5.4.1 R is applied under thisdirection to a fee-paying payment service provider and a fee-payingelectronic money issuer.

Failure to submit a statement in accordance with the rules in this chaptermay also lead to the imposition of a financial penalty and other disciplinarysanctions (see ■ DEPP 6.6.1 G to ■ DEPP 6.6.5 G).

■ SUP 16.3 (General provisions on reporting) contains further rules on themethod of submission of reports under ■ FEES 5.4.1 R.

A firm should not provide a statement of relevant business if it deals onlywith eligible complainants who are not consumers. Relevant business isdefined in the Glossary as business done with consumers only. So■ FEES 5.4.1 R does not apply in relation to business done with other types ofeligible complainant described in ■ DISP 2.7.3R (2), ■ DISP 2.7.6R (12)(a) and■ DISP 2.7.6R (12)(a); the funding of FOS Ltd in relation to that business is byspecial case fee only (see ■ FEES 5.5.6 R).

FEES 5 : Financial Ombudsman Section 5.5B : Case feesService Funding

5R5.5B.1

G5.5B.2

R5.5B.3

G5.5B.4

R5.5B.5

G5.5B.6

R5.5B.7


5.5B Case fees

Application......................................................................................................■ FEES 5.5B applies to respondents.

VJ participants are included as a result of ■ DISP 4.2.6 R.

Any firm falling into either industry block 13 or industry block 15 in■ FEES 5 Annex 1 R is not required to pay any case fee in respect of chargeablecases relating to those industry blocks.

The firms in industry blocks 13 and 15 are cash plan health providers andsmall friendly societies. The case fee exemption takes into account that theamount in issue is likely to be small relative to the case fee. Instead, the fullunit cost of handling complaints against these firms will be recoveredthrough the setting of the relevant general levy.

A credit union which is subject to the minimum levy in an industry block isnot required to pay any case fee in respect of chargeable cases relating tothat industry block.

Arrangements similar to those for firms in industry blocks 13 and 15 havebeen made for small credit unions under ■ FEES 5.5B.5 R.

(1) Any of the following persons which is exempt under ■ DISP 1.1.12R isalso exempt from ■ FEES 5.5B:

(a) a firm;

(b) a payment service provider;

(c) an electronic money issuer;

(d) a designated credit reference agency; and

(e) a designated finance platform.

(2) However, a person will only be exempt from ■ FEES 5.5B in anyfinancial year if it met the conditions in ■ DISP 1.1.12R on 31 March ofthe immediately preceding financial year.


5

R5.5B.8

R5.5B.9

G5.5B.10

G5.5B.11

R5.5B.12

G5.5B.13

R5.5B.14

G5.5B.15

R5.5B.16

R5.5B.17


Purpose......................................................................................................The purpose of ■ FEES 5.5B is to set out the requirements on respondents topay fees in relation to cases referred to the Financial Ombudsman Service.

These fees are towards funding the Financial Ombudsman Service, and areinvoiced and collected directly by the FOS Ltd.

In each of the Financial Ombudsman Service's jurisdictions, the annualbudget reflects the total expected to be raised by levies plus the totalexpected to be raised by case fees for the relevant financial year.

The amount of the case fees will be subject to consultation each year.

Standard case fee......................................................................................................A respondent must pay to the FOS Ltd the standard case fee specified in■ FEES 5 Annex 3R Part 1 in respect of each chargeable case relating to thatrespondent which is closed by the Financial Ombudsman Service, unless therespondent is identified as part of a charging group as defined in■ FEES 5 Annex 3R Part 3.

The exclusion of respondents that are identified as part of a charging groupas defined in ■ FEES 5 Annex 3R Part 3 applies only from 1 April 2013. Thoserespondents continue to be liable for the standard case fee under■ FEES 5.5B.12 R in respect of chargeable cases closed by the FinancialOmbudsman Service before 1 April 2013.

But a respondent will only be liable for, and the FOS Ltd will only invoice for,the standard case fee in respect of the 26th and subsequent chargeable casesin any financial year.

Until 31 March 2004 a standard case fee was payable for every chargeablecase. From 1 April 2004 to 31 March 2005 the standard case was payable forthe third and subsequent chargeable cases. From 1 April 2005 to 31 March2013 the standard case fee was payable for the fourth and subsequentchargeable cases. ■ FEES 5.5B.12 R does not apply retrospectively to financialyears before 1 April 2013.

A respondent must pay to the FOS Ltd any standard case fee which it is liableto pay under ■ FEES 5.5B and which is invoiced by the FOS Ltd within 30calendar days of the date when the invoice is issued by the FOS Ltd.

Supplementary Case fee......................................................................................................A respondent must pay to the FOS Ltd the supplementary case fee specifiedin ■ FEES 5 Annex 3R Part 2 in respect of each chargeable case (PPI) relating tothat respondent which is referred to the Financial Ombudsman Service, aswell as any standard case fee under ■ FEES 5.5B.12 R, unless the respondent isidentified as part of a charging group as defined in ■ FEES 5 Annex 3R Part 3.


5

G5.5B.18

R5.5B.19

R5.5B.20

R5.5B.21

R5.5B.22

R5.5B.23

R5.5B.24

R5.5B.25


The exclusion of respondents that are identified as part of a charging groupas defined in ■ FEES 5 Annex 3R Part 3 applies only from 1 April 2013. Thoserespondents continue to be liable for the supplementary case fee under■ FEES 5.5B.17 R in respect of chargeable cases (PPI) referred to the FinancialOmbudsman Service before 1 April 2013.

Notwithstanding the above, a respondent will only be liable for, and the FOSLtd will only invoice for the supplementary case fee in respect of the 26thand subsequent cases relating to that respondent that fall within■ FEES 5.5B.17 R in any financial year.

Special case fee......................................................................................................If the respondent is identified as part of a charging group as defined in■ FEES 5 Annex 3R Part 3, the charging group must pay the special case feecalculated under ■ FEES 5 Annex 3R Part 4 (from 1 April 2013) instead of therespondent paying the standard case fee or the supplementary case fee.

The FOS Ltd:

(1) will invoice the special case fee as described in ■ FEES 5 Annex 3R Part 4;and

(2) may invoice the relevant charging group through any of theindividual respondents in the relevant charging group.

A charging group must pay to the FOS Ltd any special case fee (including anyyear-end adjustment) as described in ■ FEES 5 Annex 3R Part 4 within 30calendar days of the date when the invoice is issued by the FOS Ltd.

In respect of the special case fee, individual respondents are jointly andindividually liable for the obligations of the charging group of which theyare identified as forming part in ■ FEES 5 Annex 3R Part 3.

Leaving the Financial Ombudsman Service......................................................................................................Where a respondent ceases to be a firm, payment service provider, electronicmoney issuer, CBTL firm, a designated credit reference agency, a designatedfinance platform or VJ participant (as the case may be) part way through afinancial year it will remain liable to pay case fees under ■ FEES 5.5B inrespect of cases within the jurisdiction of the Financial Ombudsman Service.

Late payment and remission of case fees......................................................................................................If a respondent does not pay a case fee payable under ■ FEES 5.5B in full tothe FOS Ltd before the end of the date on which it is due, that respondentmust pay to the FOS Ltd in addition:

(1) an administrative fee of £250; plus


5

G5.5B.26

R5.5B.27

R5.5B.28

R5.5B.29


(2) interest on any unpaid amount at the rate of 5% per annum abovethe Official Bank Rate from time to time, accruing on a daily basisfrom the date on which the amount concerned became due.

The FOS Ltd may take steps to recover any money owed to it (includinginterest).

If it appears to the FOS Ltd that in the exceptional circumstances of aparticular case the payment of any case fee under ■ FEES 5.5B would beinequitable, the FOS Ltd may (unless ■ FEES 5.5B.29 R applies) reduce or remitall or part of the case fee in question which would otherwise be payable.

If it appears to the FOS Ltd that in the exceptional circumstances of aparticular case to which ■ FEES 5.5B.27 R does not apply the retention by theFOS Ltd of any case fee which has been paid would be inequitable, the FOSLtd may (unless ■ FEES 5.5B.29 R applies) refund all or part of that case fee.

The FOS Ltd may not consider a claim under ■ FEES 5.5B.27 R and/or■ FEES 5.5B.28 G in respect of any amount overpaid due to a mistake of fact orlaw by the payer, if the claim is made by the payer more than 2 years afterthe beginning of the financial year to which the payment relates.

FEES 5 : Financial Ombudsman Section 5.6 : The supplementary levyService Funding

5 G5.6.1

G5.6.2

G5.6.3

G5.6.4

R5.6.5

R5.6.6

G5.6.7


5.6 The supplementary levy

[deleted]

[deleted]

[deleted]

[deleted]

[deleted]

[deleted]

[deleted]

FEES 5 : Financial Ombudsman Section 5.7 : PaymentService Funding

5R5.7.1

R5.7.2

R5.7.2A

R5.7.3

R5.7.4


5.7 Payment

A firm must pay annually to the FCA the general levy on or before the laterof 1 April and 30 calendar days after the date when the invoice is issued bythe FCA.

[deleted]

[deleted]

[deleted]

A firm liable to pay fees under ■ FEES 5.7.1 R must do so using one of themethods set out in ■ FEES 4.2.4 R save that no additional amount or discountis applicable.

FEES 5 : Financial Ombudsman Section 5.8 : Joining the FinancialService Funding Ombudsman Service

5R5.8.1

R5.8.2


5.8 Joining the Financial OmbudsmanService

A firm which becomes subject to the Financial Ombudsman Service part waythrough a financial year must pay a rateable proportion of the general levyas specified in the formula set out in ■ FEES 4.2.7ER.

(1) This rule deals with the calculation of:

(a) a firm's general levy in the 12 months ending on the 31 March inwhich it obtains permission, or was authorised under thePayment Services Regulations or the Electronic MoneyRegulations or had its permission and/or payment servicesactivities extended (relevant permissions) and the following 12months ending on the 31 March; and

(b) the tariff base for the industry blocks that relate to each of therelevant permissions.

(2) Unless this rule says otherwise, the tariff base is calculated using theprojected valuation for its first year of the business to which the tariffrelates.

(3) The rest of this rule only applies to a firm that becomes authorised, orextends its permission and/or payment services activities, on or after 1April 2009.

(a) If the tariff base is calculated using data from a period thatbegins on or after the date that the firm obtains the relevantpermission to which that tariff base relates, the firm must usethat data.

(b) If a firm satisfies the following conditions it must calculate itstariff base under (c) for the FCA financial year following the FCAfinancial year it obtained a relevant permission:

(i) the firm receives a relevant permission between 1 April and31 December inclusive; and

(ii) the firm's tariff base for that relevant permission is, but forthis rule, calculated by reference to the firm's financial yearended in the calendar year ending on the 31 Decemberbefore the start of the FCA financial year or the twelvemonths ending 31 December before the start of the FCAfinancial year.

(c) If a firm satisfies the conditions in (b) it must calculate its tariffbase as follows:


5

G5.8.3


(i) it must use actual data in relation to the business to whichthe tariff relates rather than projected valuations;

(ii) the tariff is calculated by reference to the period beginningon the date it acquired the relevant permission relating tothe tariff and ending on the 31 December before the start ofthe FCA financial year; and

(iii) the figures are annualised by increasing them by the sameproportion as the period of 12 months bears to the periodstarting from when the firm received any relevantpermissions to 31 December.

(d) Where a firm is required to use the method in (c) it must notifythe FCA of its intention to do so by the date specified in ■ FEES 5.4(Information requirement).

(e) Where a firm is required to use actual data under this rule■ FEES 4 Annex 1R Part 3 is modified in relation to the calculationof that firms valuation date in its second financial year.

Application of FEES 5.8.2R......................................................................................................The table below sets out the period within which a firm's tariff base iscalculated (the data period) for second year levies calculated under■ FEES 5.8.2R. The example is based on a firm that acquires permission on 1November 2014and has a financial year ending 31 March. Where valuationdates fall before the firm receives permission it should use projectedvaluations in calculating its levies.

References in this table to dates or months are references to the latest oneoccurring before the start of the FCA's financial year unless otherwise stated.

Type of permis- Tariff base Valuation date Data period un-sion acquired on but for FEES der FEES 5.8.2R1 November 5.8.2R

Insurers - general Relevant annual 31 March 2014- 1 November togross premium in- so projected valu- 31 Decembercome and gross ations will be 2014.technical li- usedabilities

Portfolio man- Relevant funds Valued at 31 Valued at 31agers (including under December Decemberthose holding cli- managementent money/ assetsand not holdingclient money/assets)

Advisers, ar- Annual income 31 December. 1 November torangers, dealers as defined in FEES 31 Decemberor brokers hold- 4 Annex 11A but annualisedThis is becauseing and control- in accordancethe firm's tariffling client money with FEES 5.8.2Rbase is calcu-and/or assets (3)(c)(iii)lated by refer-

ence to thefirm's financialyear end in thecalendar year be-fore the start ofthe FCA fee year.ThereforeFEES


5


5.8.2R (3)(c)applies.

[Note: Transitional provisions apply to ■ FEES 5.8.1R, ■ FEES 5.8.2R and■ FEES 5.8.3G – see ■ FEES TP 13]

FEES 5 : Financial Ombudsman Section 5.9 : Leaving the FinancialService Funding Ombudsman Service

5R5.9.1

R5.9.1A

G5.9.2

G5.9.3


5.9 Leaving the Financial OmbudsmanService

[deleted]

[deleted]

[deleted]

[deleted]

FEES 5 : Financial Ombudsman Section 5.9 : Leaving the FinancialService Funding Ombudsman Service

5


FEES 5 : Financial Ombudsman Annex 1RService Funding

5

Annual General Levy Payable in Relation to the Compulsory Jurisdictionfor 2018/19

Introduction: annual budget

1. The annual budget for 2018/19 approved by the FCA is £289.8m.

2. The total amount expected to be raised through the general levy in 2018/19 will be £24.5m.

Compulsory jurisdiction - general levy

Industry block Tariff base General levy payable by firm

1-Deposit acceptors, home fin- Number of accounts relevant to £0.04466 per relevant account,ance providers, home finance the activities in DISP 2.6.1 R as at subject to a minimum levy ofadministrators (excluding firms 31 December £100in block 14) and dormant ac-

In the case of dormant accountcount fund operatorsfund operators, the tariff baseis the number of eligible activ-ated accounts (8).

2-Insurers - general (excluding Gross written premium for fees £0.069 per £1,000 of GWP orfirms in blocks 13 & 15) purposes (GWP) as defined in RGWP, subject to a minimum

FEES 4 Annex 1AR; or levy of £100

Relevant gross written pre-mium (RGWP) notified to theFCA under FEES 5.4.1R(1A)

3-The Society (of Lloyd's) Not applicable £25,989 to be allocated by theSociety

4-Insurers - life (excluding firms Gross written premium for fees £0.0085 per £1,000 of GWP orin block 15) purposes (GWP) as defined in RGWP, subject to a minimum

FEES 4 Annex 1AR; or levy of £130

Relevant gross written pre-mium (RGWP) notified to theFCA under FEES 5.4.1R(1A)

5. Portfolio managers (includ- Flat fee Levy of £230ing those holding clientmoney/assets and not holdingclient money/assets)

6. Managers and depositaries Flat fee Levy of £60of investment funds, and oper-ators of collective investmentschemes or pension schemes

7-Dealers as principal Flat fee Levy of £75

8-Advisors, arrangers, dealers Annual income as defined in £0.136 per £1,000 of annual in-or brokers holding and control- FEES 4 Annex 11A relating to come subject to a minimum feeling client money and/or assets firm’s relevant business. of £45

9-Advisors, arrangers, dealers Annual income as defined in £0.033 per £1,000 of annual in-or brokers not holding and con- FEES 4 Annex 11A relating to come subject to a minimum feetrolling client money and/or firm's relevant business. of £45assets

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES 5 Annex 1R/1


5


10-Corporate finance advisers Flat fee Levy of £55

11-fee-paying payment service For authorised payment institu- £0.0003 per £1,000 of relevantproviders (but excluding firms tions, registered account in- income subject to a minimumin any other Industry block ex- formation service providers, levy of £75cept Industry block 18) electronic money issuers (ex-

cept for small electronic moneyinstitutions), the Post OfficeLimited, the Bank of England,government departments andlocal authorities, and EEA au-thorised payment institutionsrelevant income as described inFEES 4 Annex 11 Part 3

For small payment institutions Levy of £35and small electronic money in-stitutions a flat fee

13-Cash plan health providers Flat fee Levy of £65

14-Credit unions Flat fee Levy of £55

15-Friendly societies whose tax- Flat fee Levy of £65exempt business represents95% or more of their total rel-evant business

16-Home finance providers, ad- Flat fee Levy of £90visers and arrangers (excludingfirms in blocks 13, 14 & 15)

17 - General insurance (exclud- Annual income (as defined in £0.4477 per £1,000 of annualing firms in blocks 13, 14 & 15) MIPRU 4.3) relating to firm's rel- income (as defined in MIPRU

evant business 4.3) relating to firm's relevantbusiness subject to a minimumlevy of £100

18 - fee-paying electronic For all fee-paying electronic £0.0007 per £1,000 of averagemoney issuers money issuers except for small outstanding electronic money

electronic money institutions, subject to a minimum levy ofaverage outstanding electronic £40money, as described in FEES 4Annex 11 Part 3.

For small electronic money insti- Levy of £50tutions, a flat fee

19 - Credit-related regulated ac- For not-for-profit debt advice Levy of £0tivities with limited permission bodies, a flat fee

For all other firms with limited Levy of £35permission, a flat fee

20 - Credit-related regulated ac- Annual income as defined in Levy of £35tivities FEES 4 Annex 11BR

Plus £0.01 per £1,000 of annualincome on income above£250,000

21 - CBTL firms that do not Flat fee Levy of £35have permission to carry outany regulated activities

22 - designated credit refer- Flat fee Levy of £75ence agencies (but excludingfirms in any other industryblock)

■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES 5 Annex 1R/2


5


23 – designated finance plat- Flat fee Levy of £75forms (but excluding firms inany other industry block)

Notes

4 [not used]

5 The industry blocks in the table are based on the equivalent activity groups set out in Part 1 ofFEES 4 Annex 1A and Part 2 and Part 2A of FEES 4 Annex 11.

6 Where the tariff base in the table is defined in similar terms as that for the equivalent activitygroup in Part 3 of FEES 4 Annex 1A or Part 3 of FEES 4 Annex 11, it must be calculated in the sameway as that tariff base - taking into account only the firm's relevant business (except for firmsin industry blocks 2 and 4).

7 [deleted]

8 Eligible activated accounts are the number of repayment claims met by the dormant accountfund operator as at the 31 December.



5



5

Annual Levy Payable in Relation to the Voluntary Jurisdiction 2018/19

Voluntary jurisdiction - annual levy for VJ participants

Industry block and business activity Tariff basis Tariff rate Minimumlevy

1V Deposit acceptors, mortgage number of accounts relevant to £0.0278 £100lenders and mortgage adminis- the activities in DISP 2.5.1 Rtrators and debit/credit/chargecard issuers and merchantacquirers

2V VJ participants undertaking gen- per £1,000 of gross written ££ 0.103 ££100eral insurance activities premium

3V VJ participants undertaking life per £1,000 of gross written ££0.025 ££100insurance activities premium

6V Intermediaries n/a n/a £75

7V Freight-forwarding companies n/a n/a £75

8V National Savings & Investments n/a n/a £10,000

9V Post Office Limited n/a n/a £2,000

10V Persons not covered by 1V to 9V n/a n/a £75undertaking activities which are:

(a) regulated activities; or

(b) payment services;

or would be if they were carriedon from an establishment in theUnited Kingdom

12V Persons undertaking the activity average outstanding electronic £0.10 per £75which is the issuance of elec- money as described in FEES 4 An- £1,000tronic money or would be if car- nex 11 Part 3ried on from an establishment inthe United Kingdom

13V Persons not covered by 1V to 9V n/a n/a £75undertaking activities which areCBTL activities or would be ifthey were carried on from an es-tablishment in the UnitedKingdom

14V Persons not covered by 1V to 9V n/a n/a £75providing credit information, un-der the Small and Medium SizedBusiness (Credit Information) Re-gulations or providing specifiedinformation under the Small andMedium Business (Finance Plat-forms) Regulations or would beif it was carried on from an estab-lishment in the United Kingdom

Notes



5

Voluntary jurisdiction - annual levy for VJ participants

(1) For the purposes of FEES 5 Annex 2R and for VJ participants undertaking general insurance activit-ies (industry block 2V) ‘gross written premium’ means:

(a) if subject to reporting requirements under the Solvency II Directive, the total of items entered un-der row codes R0110, R0120 and R0130, as expressed in column code C0200 where this column iscompleted for those row codes, of the annual quantitative reporting template S.05.01.01 but only inrelation to the relevant business of the VJ participant (in accordance with DISP 4.2.6(5)R and FEES5.3.8R); and

(b) if not subject to reporting requirements under the Solvency II Directive, the gross premiums writ-ten but only in relation to the relevant business of the VJ participant (in accordance with DISP4.2.6(5)R and FEES 5.3.8R).

(2) For the purposes of FEES 5 Annex 2R and for VJ participants undertaking life insurance activities (in-dustry block 3V) ‘gross written premium’ means:

(a) if subject to reporting requirements under the Solvency II Directive, the item entered under rowcode R1410, column code C0300 of the annual quantitative reporting template S05.01.01 minus cor-porate pension business under the annual quantitative reporting template S14.01.01 but only in rela-tion to the relevant business of the VJ participant (in accordance with DISP 4.2.6(5)R and FEES 5.3.8R);and

(b) if not subject to reporting requirements under the Solvency II Directive, the minimum levy wouldapply.

(3) ‘Annual quantitative reporting template’ has the meaning given in Fees Chapter 1 Applicationand Definitions of the PRA Rulebook.

(4) ‘Corporate pension business’ has the meaning given in Fees Chapter 1 Application and Defini-tions of the PRA Rulebook.



5

Case Fees Payable for 2018/19

Part 1 - Standard case fees

Standard case fee

In the: [£550]

Compulsory jurisdiction and Voluntary jur- unless it is a not-for-isdiction profit debt advice

body with limited per-mission in which casethe amount payable is£0

Notes

1 The definition of standard case fee is in FEES 5.5B (Case fees). The definition of charge-able case is in the Glossary to the Handbook.

2 The standard case fee will be invoiced by the FOS Ltd on or after the date the case isclosed.

3 A respondent will only be invoiced a case fee for the 26thand subsequent chargeablecase in each financial year.

4 The definition of not-for-profit debt advice body is in the Glossary to the Handbook.

5 The definition of limited permission is in the Glossary to the Handbook.

Part 2 - Supplementary case fees

Supplementary casefee

In the: For the 26th and subsequent £0chargeable cases (PPI)

Compulsory jurisdictionand Voluntary jur-isdiction

Notes

1 The definition of supplementary case fee is in FEES 5.5B (Case fees). The definition ofchargeable case (PPI) is in the Glossary to the Handbook.

2 The supplementary case fee when payable will be invoiced by the FOS Ltd on or afterthe date the case is referred to the Financial Ombudsman Service.

3 The supplementary case fee when payable will be invoiced for the 26th and sub-sequent chargeable cases (PPI) against any respondent referred to the Financial Om-budsman Service in each financial year.

Part 3 - Charging groups

The charging groups, and their constituent group respondents, are listed below. They are based onthe position at 31 December immediately preceding the financial year. For the purposes of calculat-ing, charging, paying and collecting the special case fee, they are not affected by any subsequentchange of ownership.

1 Barclays Group, comprising the following firms:

3i BIFM Investments Limited

Oak Pension Asset Management Limited



5

Barclays Asset Management Limited

Barclays Bank Plc

Barclays Bank Trust Company Limited

Barclays Capital Securities Limited

Barclays Insurance (Dublin) Designated Activity Company

Barclays Insurance (Dublin) Limited

Barclays Insurance Services Company Limited

Barclays Mercantile Business Finance Limited

Barclays Private Clients International Limited

Barclays Sharedealing

Barclays Stockbrokers Limited

Barclays Trust Company Limited

Clydesdale Financial Services Limited

Firstplus Financial Group Plc

Gerrard Financial Planning Ltd

Gerrard Investment Management Limited

Solution Personal Finance Limited

Standard Life Bank Plc

Woolwich Plan Managers Limited

2 HSBC Group, comprising the following firms:

CL Residential Limited

HFC Bank Limited

HSBC Alternative Investments Limited

HSBC Bank Malta plc

HSBC Bank plc

HSBC France

HSBC Global Asset Management FCP (France)

HSBC Global Asset Management (France)

HSBC Global Asset Management (UK) Limited

HSBC Hervet

HSBC International Financial Advisers (UK) Limited

HSBC Investment Funds

HSBC Life (Europe) Limited

HSBC Life (UK) Limited

HSBC Private Bank (Luxembourg) S.A.

HSBC Private Bank (UK) Limited

HSBC Securities (USA) Inc

HSBC SPECIALIST INVESTMENT FUNDS

HSBC Trinkaus & Burkhardt AG

HSBC Trust Company (UK) Ltd

HSBC UK Bank plc

John Lewis Financial Services Limited

Marks & Spencer Financial Services plc



5

Marks & Spencer Savings and Investments Ltd

Marks & Spencer Unit Trust Management Limited

The Hongkong and Shanghai Banking Corporation Limited

3 Lloyds Banking Group, comprising the following firms:

Aberdeen Investment Solutions Limited

AMC Bank Ltd

Bank of Scotland (Ireland) Limited

Bank of Scotland Plc

Black Horse Limited

Cheltenham & Gloucester plc

Clerical Medical Financial Services Limited

Clerical Medical Investment Fund Managers Ltd

Clerical Medical Investment Group Limited

Clerical Medical Managed Funds Limited

CLERICAL MEDICAL OPEN ENDED INVESTMENT COMPANY

Halifax Assurance (Ireland) Limited

Halifax Assurance Ireland Ltd

Halifax Financial Brokers Limited

Halifax General Insurance Services Limited

Halifax Insurance (Ireland) Limited

Halifax Insurance Ireland Ltd

Halifax Investment Services Ltd

Halifax Life Limited

Halifax Share Dealing Limited

HBOS Investment Fund Managers Limited

Insight Investment Global Investment Funds

Invista Real Estate Investment Management Ltd

IWeb (UK) Limited

LDC (Managers) Limited

Legacy Renewal Company Limited

Lex Autolease Ltd

Lex Vehicle Leasing Ltd

Lloyds Development Capital (Holdings) Limited

Lloyds Bank Plc

Lloyds TSB Financial Advisers Limited

Lloyds Bank General Insurance Limited

Lloyds Bank Insurance Services Limited

Lloyds TSB Investments Limited

Lloyds Bank Private Banking Limited

Pensions Management (SWF) Limited

Scottish Widows Administration Services Limited

Scottish Widows Annuities Limited

Scottish Widows Bank Plc



5

Scottish Widows Fund Management Limited

Scottish Widows Limited

Scottish Widows plc



5

Scottish Widows Unit Funds Limited

Scottish Widows Unit Trust Managers Limited

St Andrew's Insurance plc

St Andrew's Life Assurance Plc

SW Funding plc

The Elms Financial Services Ltd

The Mortgage Business Plc

Uberior Fund Manager Ltd

MBNA Limited

4 RBS/NatWest Group, comprising the following firms:

Aberdeen Infrastructure Asset Managers Limited

Adam & Company Investment Management Ltd

Adam & Company Plc

Coutts & Company

Coutts Finance Company

Lombard Finance Ltd

Lombard North Central Plc

National Westminster Bank Plc

National Westminster Home Loans Limited

RBOS (UK) Limited

RBS Asset Management (ACD) Ltd

RBS Asset Management Ltd

RBS Collective Investment Funds Limited

RBS Equities (UK) Limited

RBS Investment Executive Limited

The Royal Bank of Scotland Group Independent Financial Services Limited

The Royal Bank of Scotland N.V.

The Royal Bank of Scotland Plc

Topaz Finance Limited

Ulster Bank Ireland Designated Activity Company

Ulster Bank Ireland Limited

Ulster Bank Ltd

5 Aviva Group, comprising the following firms:

Aviva (Peak No. 1) UK Limited

Aviva Annuity UK Limited

Aviva Equity Release UK Limited

Aviva Health UK Limited

Aviva Insurance Limited

Aviva Insurance Services UK Limited

Aviva Insurance UK Limited

Aviva International Insurance Limited

Aviva Investors Global Services Limited

Aviva Investors London Limited



5

Aviva Investors Pensions Limited

Aviva Investors UK Fund Services Limited

Aviva Investors UK Funds Limited

Aviva Life & Pensions UK Limited

Aviva Life Services UK Limited

Aviva Pension Trustees UK Limited

Aviva Wrap UK Limited

CGU Bonus Limited

CGU Underwriting Limited

Commercial Union Life Assurance Company Limited

Gresham Insurance Company Limited

Hamilton Life Assurance Company Limited

Hamilton Insurance Company Limited

Norwich Union Life (RBS) Limited

Orn Capital LLP

Scottish Boiler and General Insurance Company Ltd

The Ocean Marine Insurance Company Limited

World Auxiliary Insurance Corporation Limited

Friends Annuities Limited

Friends Life and Pensions Limited

Friends Life FPLMA Limited

Friends Life Investment Solutions Limited

Friends Life Limited

Friends Life Marketing Limited

Friends Life Services Limited

Friends Provident International Limited

Optimum Investment Management Limited

Sesame Limited

6 Direct Line Group, comprising the following firms:

Churchill Insurance Company Limited

UK Insurance Limited

UK Insurance Business Solutions Limited

7 Nationwide Building Society Group comprising the following firms:

Cheshire Building Society

Derbyshire Building Society

Derbyshire Home Loans Ltd

Dunfermline Building Society (in building society special administration)

E-Mex Home Funding Limited

Nationwide Building Society



5

Nationwide Independent Financial Services Limited

Portman Building Society

The Mortgage Works (UK) Plc

UCB Home Loans Corporation Ltd

8 Santander Group, comprising the following firms:

Abbey National Treasury Services Plc

Abbey Stockbrokers Limited

Cater Allen Limited

Santander Cards UK Limited

Santander Consumer (UK) Plc

Santander UK Plc

Santander ISA Managers Limited

Hyundai Capital UK Limited

Part 4 - Special case fees

The special case fee shall be calculated and paid as follows:

1 Proportions:

(1) In the calculations that follow in (2), (3) and (4):

new chargeable cases (PPI) for group respondents -

A = twice the number of new chargeable cases (PPI) that were referred to theFinancial Ombudsman Service in respect of group respondents from 1 July to 31December (both dates inclusive) in the immediately preceding financial year.

new chargeable cases (PPI) for all firms -

B = twice the number of new chargeable cases (PPI) that were referred to theFinancial Ombudsman Service in respect of all firms (whether or not they arepart of a charging group) from 1 July to 31 December (both dates inclusive) inthe immediately preceding financial year.

open chargeable cases (PPI) for group respondents -

C = the number of chargeable cases (PPI) referred to the Financial OmbudsmanService in respect of group respondents before 1 January in the immediately pre-ceding financial year which had not been closed before 1 January in the immedi-ately preceding financial year.

open chargeable cases (PPI) for all firms -

D = the number of chargeable cases (PPI) referred to the Financial OmbudsmanService in respect of all firms (whether or not they are part of a charging group)before 1 January in the immediately preceding financial year which had notbeen closed before 1 January in the immediately preceding financial year.

new chargeable cases (general) for group respondents -

E = twice the number of new chargeable cases (general) that were referred tothe Financial Ombudsman Service in respect of group respondents from 1 July to31 December (both dates inclusive) in the immediately preceding financial year.

new chargeable cases (general) for all firms -



5

F = twice the number of chargeable cases (general) referred to the Financial Om-budsman Service in respect of all firms (whether or not they are part of a char-ging group) from 1 July to 31 December (both dates inclusive) in the immedi-ately preceding financial year.

open chargeable cases (general) for group respondents -

G = the number of chargeable cases (general) that were referred to the Finan-cial Ombudsman Service in respect of group respondents before 1 January in theimmediately preceding financial year which had not been closed before 1 Janu-ary in the immediately preceding financial year.

open chargeable cases (general) for all firms -

H = the number of chargeable cases (general) referred to the Financial Ombuds-man Service in respect of all firms (whether or not they are part of a charginggroup) before 1 January in the immediately preceding financial year which hadnot been closed before 1 January in the immediately preceding financial year.

(2) ‘Proportion X’ for each charging group is a percentage calculated as follows -

A / B x 100

(3) ‘Proportion Y’ for each charging group is a percentage calculated as follows -

{A + C} / {B + D} x 100

(4) ‘Proportion Z’ for each charging group is a percentage calculated as follows -

{E + G} / {F + H} x 100

2 The special case fee is intended to broadly reflect the budgeted workload capa-city of the Financial Ombudsman Service and comprises elements in respect of:

(1) new chargeable cases (PPI);

(2) closed chargeable cases (PPI); and

(3) closed chargeable cases (general);

with a free-case allowance of:

(4) 125 new chargeable cases (PPI); and

(5)125 closed chargeable cases (general).

3 The special case fee for each charging group is a total amount calculated asfollows:

(1) in respect of new chargeable cases (PPI) -{£0 x [220,000] x the ‘proportionX’} – {£0 x 125}

(2) in respect of closed chargeable cases (PPI) -£550 x [250,000] x the ‘proportionY’

(3) in respect of closed chargeable cases (general)-{£550 x [160,000] x the ‘pro-portion Z’} – {£550 x 125}

4 The FOS Ltd will invoice each charging group for the special case fee (calculatedas above) in four equal instalments, payable in advance on the following datesduring the financial year:

(1) 1 April (or, if later, when FOS Ltd has sent the invoice);

(2) 1 July;

(3) 1 October; and

(4) 1 January.

5 Year-end adjustment:

(1) If the actual number of new chargeable cases (PPI) referred to the Financial



5

Ombudsman Service in respect of group respondents during the financial year ismore than 10,000 and is more than [115%] of {[220,000] x the 'proportion X'}:

(a) the FOS Ltd will invoice the relevant charging group; and

(b) the relevant charging group will pay to FOS Ltd;an additional £35,000 foreach block of 100 (or part thereof) new chargeable cases (PPI) in excess of the[115%].

(2) If the actual number of chargeable cases (general) closed by the FinancialOmbudsman Service in respect of group respondents during the financial year ismore than [115%] of {[160,000] x the ‘proportion Z’}:

(a)the FOS Ltd will invoice the relevant charging group; and

(b) the relevant charging group will pay to FOS Ltd;an additional £55,000 foreach block of 100 (or part thereof) closed chargeable cases (general) over the[115%].

(3) If the actual number of chargeable cases (general) closed by the FinancialOmbudsman Service in respect of group respondents during the financial year isless than [85%] of {[160,000] x the ‘proportion Z’}, the FOS Ltd will promptly re-pay to the relevant charging group £55,000 for each block of 100 (or partthereof) closed chargeable cases (general) under the [85%].



5


Fees Manual

Chapter 6

Financial ServicesCompensation Scheme

Funding


FEES 6 : Financial Services Section 6.1 : ApplicationCompensation Scheme Funding

6

R6.1.1

G6.1.2

G6.1.3

G6.1.4

G6.1.4A


6.1 Application

This chapter applies to:

(1) every participant firm;

(2) the FSCS; and

(3) the Society.

(1) Firms which are not participant firms (such as certain types ofincoming EEA firms, service companies and ICVCs) are not required tocontribute towards the funding of the compensation scheme.

(2) The fees levied in relation to the carrying on of insurance marketactivities by members will be imposed on the Society rather thanindividually on each member (see ■ FEES 6.3.24 R).

Purpose......................................................................................................The purpose of this chapter is to set out the requirements on participantfirms to pay levies imposed by the FSCS to provide funding for its functionsunder COMP. The PRA Rulebook deals with funding for the FSCS’s functionsfor depositor protection and policyholder protection.

General structure......................................................................................................Section 213(3)(b) of the Act requires the appropriate regulator to make rulesto enable the FSCS to impose levies on authorised persons, and onrecognised investment exchanges that are operating a multilateral tradingfacility or operating an organised trading facility, in order to meet itsexpenses. These expenses include in particular expenses incurred, or expectedto be incurred, in paying compensation, borrowing or insuring risks.

Section 224F of the Act enables the appropriate regulator to make rules toenable the FSCS to impose levies on authorised persons (or any class ofauthorised persons) in order to meet its management expenses incurred if,under Part 15A of the Act, it is required by HM Treasury to act in relation torelevant schemes. But those rules must provide that the FSCS can impose alevy only if the FSCS has tried its best to obtain reimbursement of thoseexpenses from the manager of the relevant scheme.

http://www.legislation.gov.uk/ukpga/2000/8/section/213/2006-01-01#section-213-3-b

http://www.legislation.gov.uk/ukpga/2000/8/section/224F/2010-10-12

http://www.legislation.gov.uk/ukpga/2000/8/part/15A/2010-10-12


6

G6.1.5

G6.1.6

G6.1.6A

G6.1.7A

G6.1.8

G6.1.9


The FSCS may impose three types of levy: a management expenses levy(consisting of a base costs levy and a specific costs levy), a compensation costslevy and a MERS levy. The FSCS has discretion as to the amount and timing ofthe levies imposed.

In calculating a compensation costs levy, the FSCS may include up to thegreater of one third of the compensation costs expected in the 36-monthperiod following the 1 April of the financial year of the compensationscheme in relation to which the levy is imposed, or the compensation costsexpected in the 12 months following that date.

The total amount of all management expenses levies attributable to afinancial year and levied by the FSCS under this chapter or under the PRARulebook will be restricted to the amount set out on an annual basis in■ FEES 6 Annex 1 R.

In order to allocate a share of the amount of specific costs and compensationcosts to be funded by an individual participant firm, the fundingarrangements are split into ten classes: the investment provision class; thelife distribution and pensions intermediation class; the home financeintermediation class; the investment intermediation class; the generalinsurance distribution class; the deposit acceptor's contribution class; theinsurers - life contribution class; the insurers - general contribution class; thehome finance providers and administrators' contribution class and the debtmanagement claims class. The permissions held by a participant firmdetermine into which class, or classes, it falls.

The provisions on the allocation of levies to classes meet a requirement ofsection 213(5) of the Act that the FCA, in making rules to enable the FSCS toimpose levies, must take account of the desirability of ensuring that theamount of the levies imposed on a particular class of authorised personreflects, so far as practicable, the amount of claims made, or likely to bemade, in respect of that class of person.

The management expenses levy......................................................................................................Section 223 of the Act (Management expenses) prevents the FSCS fromrecovering, through a levy, any management expenses attributable to aparticular period in excess of the limit set in COMP as applicable to thatperiod. 'Management expenses' are defined in section 223(3) to meanexpenses incurred or expected to be incurred by the FSCS in connection withits functions under the Act, except:

(1) expenses incurred in paying compensation;

(2) expenses incurred as a result of the FSCS making the arrangements tosecure continuity of insurance to make payments to or in respect ofpolicyholders or to safeguard policyholders, under PRA rules madeunder sections 216(3) or (4), 217(1) or 217(6) of the Act;

(3) expenses incurred under section 214B or section 214D of the Act as aresult of the FSCS being required by HM Treasury to make payments



http://www.legislation.gov.uk/ukpga/2000/8/section/214D/2010-08-06


6

G6.1.10

G6.1.11A

G6.1.12

G6.1.13


in connection with the exercise of the stabilisation power under Part1 of the Banking Act 2009; and

(4) expenses incurred under Part XVA of the Act as a result of the FSCSbeing required by HM Treasury to act in relation to a relevantscheme.

A management expenses levy may consist of two elements. The first is a basecosts levy, for 50% of the base costs of running the compensation scheme ina financial year, that is, costs which are not dependent upon the level ofactivity of the compensation scheme and which therefore are notattributable to any specific class. The PRA allocates the other 50% of thebase costs under its rules. Included in base costs are items such as the salaryof the members of the board of the FSCS, the costs of the premises whichthe FSCS occupies, and its audit fees. It would also likely include the cost ofany insurance cover secured by FSCS against the risk of it paying claims outin circumstances where the levy limit of the particular class to which theclaim would otherwise be attributable has exceeded its levy limit for theyear, as the insurance cover is likely to benefit all classes which may havecosts allocated to them if the levy limit of another class is breached. Theamount that each participant firm pays towards a base costs levy iscalculated by reference to the regulatory costs paid by the firm. Allparticipant firms are liable to contribute towards a base costs levy.

The second element of a management expenses levy is a specific costs levyfor the "specific costs" of running the compensation scheme in a financialyear. These costs are attributable to a class, and include the salary costs ofcertain staff of the FSCS and claims handling and legal and otherprofessional fees. It also may include the cost of any insurance cover thatFSCS secures against the risk of FSCS paying out claims above a given level inany particular class (but below the levy limit for that class for the year).When the FSCS imposes a specific costs levy, the levy is allocated to the classwhich gives rise to those costs up to the relevant levy limits. Specific costsattributable to certain classes, which exceed the class levy limits, may beallocated to the retail pool. The FSCS may include in a specific costs levy thespecific costs that the FSCS expects to incur (including in respect of defaultsnot yet declared at the date of the levy) during the financial year of thecompensation scheme to which the levy relates. The amount that eachparticipant firm pays towards the specific costs levy is calculated by referenceto the amount of business conducted by the firm in each of the classes towhich the FSCS has allocated specific costs. Each class has a separate "tariffbase" for this purpose, set out in ■ FEES 6 Annex 3AR. Participant firms may beexempt from contributing to the specific costs levy.

[deleted]

The limit on the management expenses attributable to the forthcomingfinancial year of the compensation scheme will be consulted on in Januaryeach year.

http://www.legislation.gov.uk/ukpga/2009/1/part/1/2010-08-06



6

G6.1.14

G6.1.15

G6.1.16

G6.1.16A


The compensation costs levy......................................................................................................In imposing a compensation costs levy in each financial year of thecompensation scheme the FSCS will take into account the compensation costswhich the compensation scheme has incurred and has not yet raised throughlevies, any recoveries it has had made using the rights that have beenassigned to it or to which it is subrogated and a further amount calculatedtaking into account:

(1) [deleted]

(2) [deleted]

(3) the compensation costs it expects to incur in the financial year of thecompensation scheme in relation to which the levy is imposed; or, ifgreater

(4) one third of the compensation costs it expects to incur in the 36months following 1 April of the financial year of the compensationscheme in relation to which the levy is imposed (see ■ FEES 6.3.1R(Imposing management expenses and compensation costs levies)).

Compensation costs are principally the costs incurred in payingcompensation. Costs incurred:

(1) [deleted]

(2) [deleted]

(3) [deleted]

(4) as a result of the FSCS being required by HM Treasury to makepayments in connection with the exercise of the stabilisation powerunder Part 1 of the Banking Act 2009; or

(5) in paying interest, principal and other costs from borrowing to allowthe FSCS to pay claims attributable to a particular class;

are also treated as compensation costs. Compensation costs are attributed tothe class which gives rise to the costs up to relevant levy limits. Certainclasses may be funded, for compensation costs levies beyond the class levylimit, by the retail pool.

Participant firms that are members of more than one class......................................................................................................If a participant firm is a member of more than one class, the totalcompensation costs levy and specific costs levy for that firm in a particularyear will be the aggregate of the individual levies calculated for the firm inrespect of each of the classes for that year. Each class has a levy limit which isthe maximum amount of compensation costs and specific costs which may beallocated to a particular class in a financial year for the purposes of a levy.

The retail pool......................................................................................................The FCA has made rules providing that compensation costs and specific costsattributable to the intermediation classes, the investment provision class and



6

G6.1.17


the debt management claims class, which exceed the class levy limits, may beallocated to the retail pool. Levies allocated to the retail pool are thenallocated amongst the other such classes, together with certain classes(known as FCA provider contribution classes) (see ■ FEES 6 Annex 5R). The FCAprovider contribution classes may contribute to compensation costs levies orspecific costs levies funded by the retail pool, but not themselves receive anysuch funding. The FCA provider contribution classes have a different tariffstructure to the other classes, based on regulatory costs or the PRA Rulebook(see ■ FEES 6 Annex 3AR).

Incoming EEA firms......................................................................................................Incoming EEA firms which obtain cover or 'top up' under the provisions of■ COMP 14 are firms whose Home State scheme provides no or limitedcompensation cover in the event that they are determined to be in default.Under ■ FEES 6.6, the FSCS is required to consider whether incoming EEAfirm's should receive a discount on the amount that they would otherwisepay as their share of the levy, to take account of the availability of theirHome State cover. The amount of any discount is recoverable from the othermembers of the incoming EEA firm's class.

FEES 6 : Financial Services Section 6.2 : ExemptionCompensation Scheme Funding

6

R6.2.1A

R6.2.2

G6.2.3

R6.2.4

G6.2.5

R6.2.6

G6.2.7


6.2 Exemption

(1) Except as set out in (3), a participant firm which does not conductbusiness in respect of which the FSCS may pay compensation and hasno reasonable likelihood of doing so is exempt from a specific costslevy, or a compensation costs levy, or both, provided that:

(a) it has notified the FSCS in writing that those conditions apply;and

(b) the conditions in fact continue to apply.

(2) The exemption takes effect from the date on which the notice wasreceived by the FSCS, subject to ■ FEES 6.2.6 R.

(3) The exemption in (1) does not apply in respect of a specific costs levyor compensation costs levy arising from the firm's membership of anFCA provider contribution class.

■ FEES 6.2.1AR does not apply to a participant firm that may be subject to aclaim under ■ COMP 3.2.4 R.

A participant firm to which ■ COMP 3.2.4R applies must report annual eligibleincome in accordance with ■ FEES 6.5.13 R. Such a participant firm may takeadvantage of the option to report its annual income attributable to businessin respect of which the FSCS may pay compensation.

A participant firm which is exempt under ■ FEES 6.2.1AR must notify the FSCSin writing as soon as reasonably practicable if the conditions in ■ FEES 6.2.1ARno longer apply.

A participant firm to which the conditions in ■ FEES 6.2.1AR no longer applywill then become subject to ■ FEES 6.3.

If a participant firm ceases to conduct business that could give rise to aprotected claim by an eligible claimant and notifies the FSCS of this under■ FEES 6.2.1AR, it will be treated as a participant firm to which ■ FEES 6.7.6 Rapplies until the end of the financial year of the compensation scheme inwhich the notice was given.

The financial year of the compensation scheme is the twelve months endingon 31 March. The effect of ■ FEES 6.2.6 R and ■ FEES 6.2.1AR is that if a firm

FEES 6 : Financial Services Section 6.2 : ExemptionCompensation Scheme Funding

6

R6.2.8


fails to notify FSCS of an exemption under ■ FEES 6.2.1AR by 31 March it willbe treated as non-exempt for the whole of the next financial year.

For the purposes of ■ FEES 6.2.1AR a participant firm will only be exempt froma specific costs levy or compensation costs levy for any given financial year ifit met the conditions in ■ FEES 6.2.1AR on 31 March of the immediatelypreceding financial year.

FEES 6 : Financial Services Section 6.3 : The FSCS's power to imposeCompensation Scheme Funding levies

6R6.3.1

G6.3.2

G6.3.2A


6.3 The FSCS's power to impose levies

Imposing management expenses and compensation costslevies......................................................................................................The FSCS may at any time impose a management expenses levy or acompensation costs levy, provided that the FSCS has reasonable grounds forbelieving that the funds available to it to meet relevant expenses are, or willbe, insufficient, taking into account expenditure already incurred, actual andexpected recoveries and:

(1) in the case of a management expenses levy, the level of the FSCS'sexpected expenditure in respect of those expenses in the financialyear of the compensation scheme in relation to which the levy isimposed; and

(2) [deleted]

(3) in the case of a compensation costs levy:

(a) the FSCS's expenditure in respect of compensation costs expectedin the 12 months of the financial year of the compensationscheme in relation to which the levy is imposed; or, if greater

(b) one third of the FSCS's expenditure in respect of compensationcosts expected in the 36 months following the 1 April in thefinancial year of the compensation scheme in relation to whichthe levy is imposed.

The calculation of levies will also take into account previous levies, wherefunds raised in anticipation of meeting liabilities prove either more or lessthan the amount actually required.

The FSCS will usually levy once in each financial year (the annual levy).However, if the compensation costs or specific costs incurred, or expected tobe incurred, exceed the amounts held, or reasonably expected to be held, tomeet those costs, the FSCS may, at any time during the financial year, do oneor more of the following:

(1) impose an interim levy ; or

(2) utilise other sources of funding such as commercial borrowing orother borrowing including from the National Loans Fund; or

(3) utilise money collected from firms as set out in, and subject to,■ FEES 6.3.17 R (Management of funds).


6

G6.3.3

G6.3.4

R6.3.4A

R6.3.5

R6.3.6

R6.3.7

R6.3.8

R6.3.9

R6.3.10


The FSCS will generally impose a levy rather than borrow or utilise funds asdescribed in (3), unless the latter options appear to it to be preferable in thespecific circumstances prevailing at the relevant time; for example, to addressshort-term liquidity issues, or in order to deal with a significant failurewithout having to wait for a levy to be imposed or collected.

The FSCS has committed itself in Memorandum of Understanding with theFCA to publish its policy in respect of levying.

The discretion over levying in ■ FEES 6 also gives the FSCS, if it thinks thisappropriate, the ability to use third parties as its agents in raising andcollecting the levies.

Imposing a MERS levy......................................................................................................The FSCS may at any time impose a MERS levy provided that the FSCS hasreasonable grounds for believing that the funds available to it to meetrelevant expenses are or will be insufficient, taking into account relevantexpenses incurred or expected to be incurred in the financial year of thecompensation scheme in relation to which the levy is imposed.

Limits on compensation costs and specific costs levies onclasses......................................................................................................The maximum aggregate amount of compensation costs and specific costsfor which the FSCS can levy each class (not including the FCA providercontribution classes) in any one financial year of the compensation scheme islimited to the amounts set out in the table in ■ FEES 6 Annex 2 R.

[Note: the levy limits for the FCA provider contribution classes are set out in■ FEES 6 Annex 5R]

[deleted]

[deleted]

[deleted]

[deleted]

Levy for compensation costs paid in error......................................................................................................The FSCS may include in a compensation costs levy the costs of compensationpaid by the FSCS in error, provided that the payment was not made in badfaith.


6

R6.3.11

R6.3.12

R6.3.13

R6.3.14

R6.3.15

G6.3.15A

G6.3.16

R6.3.17

G6.3.18

R6.3.19


Management of funds......................................................................................................The FSCS must hold any amount collected from a specific costs levy orcompensation costs levy to the credit of the classes in accordance with theallocation established under ■ FEES 6.4.6AR and ■ FEES 6.5.2-AR.

Any funds received by the FSCS by way of levy or otherwise for the purposesof the compensation scheme are to be managed as the FSCS considersappropriate, and in doing this the FSCS must act prudently.

Interest earned by the FSCS in the management of funds held to the creditof a class must be credited to that class, and must be set off against themanagement expenses or compensation costs allocated to that class.

The FSCS must keep accounts which include:

(1) the funds held to the credit of each class; and

(2) the liabilities of that class.

[deleted]

[deleted]

[deleted]

(1) The FSCS may use any money held to the credit of one class(thecreditor class) to pay compensation costs or specific costs attributableor allocated by way of levy to another class (the debtor class) if theFSCS has reasonable grounds to believe that this would be moreeconomical than borrowing funds from a third party or raising a levy.

(2) Where the FSCS acts in accordance with (1), it must ensure that:

(a) the creditor class is reimbursed by the debtor class as soon aspossible;

(b) the debtor class pays interest at a rate equivalent to the Bank ofEngland's repo rate from time to time in force; and

(c) the amount lent by the creditor class to the debtor class is takeninto account by the FSCS when considering whether to impose acompensation costs levy on the creditor class under ■ FEES 6.3.1 R.

■ FEES 6.3.17 R deals with how FSCS may use money available to it and doesnot affect the rules on levy allocation in ■ FEES 6.4, ■ 6.5 and ■ 6.5A.

Unless ■ FEES 6.3.20 R applies, any recoveries made by the FSCS in relation toprotected claims must be credited to the classes to which the relatedcompensation costs was attributable.


6

R6.3.20

G6.3.20A

R6.3.21

R6.3.22

R6.3.22A


(1) Where the FSCS makes recoveries in relation to protected claimswhere a related compensation costs levy would have been allocatedto a class (class A) had the levy limit for class A not been reached andhas been allocated to another class or classes in the retail pool, therecoveries must be applied:

(a) first, to the classes to which the costs levied were allocated inaccordance with ■ FEES 6.5A in the same proportion as thoseclasses contributed, up to the total amount of that allocation plusinterest at a rate equivalent to the Bank of England's OfficialBank Rate from time to time in force; and

(b) thereafter, to class A.

(2) This rule applies even though the recovery is made in a subsequentfinancial year.

(3) [deleted]

Recoveries under ■ FEES 6.3.20 R are net of the costs of recovery.

If the FSCS has more funds (whether from levies, recoveries or otherwise) tothe credit of a class than the FSCS believes will be required to meet levies onthat class for the next 12 months, it may refund the surplus to members orformer members of the class on any reasonable basis.

Adjustments to calculation of levy shares......................................................................................................The FSCS may adjust the calculation of a participant firm's share of any levyto take proper account of:

(1) any excess, not already taken into account, between previous levies ofthat type imposed in relation to previous periods and the relevantcosts actually incurred in that period; or

(2) participant firms that are exempt from the levy under ■ FEES 6.2; or

(3) amounts that the FSCS has not been able to recover from participantfirms as a result of ■ FEES 6.3.5 R ; or

(4) amounts that the FSCS has not been able to recover from participantfirms after having taken reasonable steps; or

(5) ■ FEES 2.3 (Relieving Provisions), ■ FEES 6.4.8 R (New participant firms),■ FEES 6.5.9 R (New participant firms), ■ FEES 6.3.23 R (Remission of levyor additional administrative fee) or ■ FEES 6.6 (Incoming EEA firms); or

(6) anything else that the FSCS believes on reasonable grounds should betaken into account.

The FSCS may not adjust the calculation of a participant firm's share of anylevy under ■ FEES 6.3.22 R on the grounds that it would be inequitable forthat firm to pay that share or part of it or on the grounds that it would beinequitable for the FSCS to retain that share or part of it.


6

G6.3.22B

R6.3.22C

R6.3.23

R6.3.24

D6.3.25


The reason for ■ FEES 6.3.22A R is that any such claim should be dealt withunder ■ FEES 2.3 (Relieving Provisions).

Firms acquiring businesses from other firms......................................................................................................(1) This rule applies to the calculation of the levies of a firm (A) if:

(a) either:

(i) A acquires all or a part of the business of another firm (B),whether by merger, acquisition of goodwill or otherwise; or

(ii) A became authorised as a result of B's simple change of legalstatus (as defined in ■ FEES 3 Annex 1R Part 6);

(b) B is no longer liable to pay a levy; and

(c) that acquisition or change takes place after the date to which, oras of which, A's most recent statement of business under■ FEES 6.5.13 R is drawn up so far as concerns the classes coveredby B's business.

(2) A must pay an additional amount equal to the levy that would havebeen payable by B in relation to the relevant business and relevantclasses if the acquisition or change in status had not taken place andB had remained liable to pay levies. The amount is based on the mostrecent information supplied by B under ■ FEES 6.5.13 R. A is included inthe classes applicable to the relevant business.

(3) This rule only applies with respect to those financial years of thecompensation scheme for which A's levies are calculated on the basisof a statement of business under ■ FEES 6.5.13 R drawn up to a date, oras of a date, before the acquisition or change in legal status tookplace.

Remission of levy or additional administrative fee......................................................................................................If a participant firm's share of a levy or an additional administrative feeunder ■ FEES 6.7.4 R would be so small that, in the opinion of the FSCS, thecosts of collection would be disproportionate to the amount payable, theFSCS may treat the participant firm as if its share of the levy or additionaladministrative fee amounted to zero.

Levies on the Society of Lloyd’s......................................................................................................The FSCS may impose a levy on the Society to be calculated as the aggregateof the levies that would be imposed on each member if this chapter appliedto members, as follows:

(1) a share of the base costs levy for each financial year; and

(2) a share of a specific costs levy or a compensation costs levy allocatedto the insurers – life contribution class or insurers – generalcontribution class in the retail pool in accordance with this chapter.

The following core provisions of the Act apply to the carrying on ofinsurance market activities by members:


6

G6.3.26


(1) Part 9A (Rules and guidance) for the purpose of applying the rules in■ FEES 6 and relevant interpretative provisions;

(2) Part XV (Financial Services Compensation Scheme).

[Note: section 316 of the Act]

The insurance market direction in ■ FEES 6.3.25D is intended to advance theFCA’s consumer protection objective in section 1C of the Act by assisting theFSCS to impose a levy on the Society, calculated as the aggregate of thelevies that would be imposed on members, in accordance with ■ FEES 6.3.24R.As a result of section 317(2) of the Act, references to an authorised person inPart XV of the Act include a member.

FEES 6 : Financial Services Section 6.4 : Management expensesCompensation Scheme Funding

6R6.4.1

R6.4.2

R6.4.3

R6.4.4

R6.4.5


6.4 Management expenses

Obligation on participant firm to pay......................................................................................................A participant firm must pay to the FSCS a share of each managementexpenses levy.

Limit on management expenses......................................................................................................The total of all management expenses levies (taken together with themanagement expenses levies under the PRA Rulebook) attributable to aparticular period of the compensation scheme may not exceed the limitapplicable to that period set out in ■ FEES 6 Annex 1 R.

Participant firm's share......................................................................................................A participant firm's share of a management expenses levy consists of one ormore of: (1) a share of a base costs levy and (2) a share of a specific costslevy.

The FSCS must ensure that each participant firm's share of a managementexpenses levy separately identifies the firm's share of the base costs levy andspecific costs levy .

Base costs levy......................................................................................................Subject to ■ FEES 6.3.22 R, the FSCS must calculate a participant firm's share ofa base costs levy by:

(1) for recognised investment exchanges, providing for £1,000 per RIE foreach financial year of the compensation scheme (other than in thefinancial year in which the recognised investment exchange becomesa participant firm, when its share is nil);

(2) for other participant firms:

(a) identifying the base costs which the FSCS has incurred, or expectsto incur, in the relevant financial year of the compensationscheme, but has not yet levied and allocating 50% of those basecosts (less any contribution to be made by recognised investmentexchanges under (1)) as the sum to be levied on participants in allthe activity groups listed in ■ FEES 4 Annex 1AR;

(b) calculating the amount of the participant firm’s regulatory costsas a proportion of the total regulatory costs relating to all


6

G6.4.5A

G6.4.5B

R6.4.6A

R6.4.7A

R6.4.8


participant firms (other than recognised investment exchanges)for the relevant financial year; and

(c) applying the proportion calculated in (b) to the sum in (a).

[deleted]

The FCA and the PRA each allocate 50% of the base costs in a given financialyear of the compensation scheme in accordance with their respective rules.

Specific costs levy......................................................................................................The FSCS must allocate any specific costs levy:

(1) first, amongst the relevant classes in proportion to the amount ofrelevant costs arising from the different activities for which firms inthose classes have permission up to the levy limit of each relevantclass. The FCA provider contribution classes are not relevant classesfor this purpose; and

(2) thereafter, where the levy limit has been reached (whether as a resultof compensation costs or specific costs or both) for a class whoseattributable costs may be allocated to the retail pool (see■ FEES 6 Annex 5R), to the retail pool, in accordance with and subject to■ FEES 6.5A.

The FSCS must calculate a participant firm's share of a specific costs levy(subject to ■ FEES 6.3.22 R (Adjustments to calculation of levy shares) by:

(1) identifying each of the relevant classes to which the participant firmbelongs, using the statement of business most recently suppliedunder ■ FEES 6.5.13 R;

(2) identifying the management expenses other than base costs whichthe FSCS has incurred, or expects to incur, in the relevant financialyear of the compensation scheme, allocated to the classes identifiedin (1), but not yet levied;

(3) calculating, in relation to each relevant class, the participant firm'stariff base (see ■ FEES 6 Annex 3AR) as a proportion of the total tariffbase of all participant firms in the class;

(4) applying the proportion calculated in (3) to the figure in (2); and

(5) if more than one class is relevant, adding together the figure in (4)for each class.

New participant firms......................................................................................................A firm or a recognised investment exchange which becomes a participantfirm part way through a financial year of the compensation scheme will notbe liable to pay a share of a specific costs levy made in that year.


6

G6.4.9

G6.4.10

R6.4.10A


[deleted]

Since a firm that becomes a participant firm in the course of a financial yearof the compensation scheme will already be obtaining a discount in relationto the base costs levy through the modified fee provisions of ■ FEES 4.2.7ER,no rule is necessary in ■ FEES 6 for discounts on the base costs levy.

Specific costs levy for newly authorised firms......................................................................................................(1) This rule deals with the calculation of:

(a) a participant firm's specific costs levy in the financial year of thecompensation scheme following the financial year of thecompensation scheme in which it became a participant firm; or

(b) a participant firm's specific costs levy in the financial year of thecompensation scheme in which it had its permission extended,and the following financial year of the compensation scheme;and

(c) the tariff base for the classes that relate to the relevantpermissions or extensions, as the case may be.

(2) Unless this rule says otherwise the tariff base is calculated, wherenecessary, using the projected valuation of the business to which thetariff relates.

(3) The rest of this rule only applies to a firm that becomes a participantfirm, or extends its permission, on or after 1 April 2009.

(a) If a participant firm's tariff base is calculated using data from aperiod that begins on or after it became a participant firm or onor after the date that the participant firm receives its extensionof permission, as the case may be, the participant firm must usethat data.

(b) If a participant firm satisfies the following conditions it mustcalculate its tariff base under (c) for the FSCS financial yearfollowing the financial year of the compensation scheme in whichit became a participant firm:

(i) it became a participant firm or receives its extension ofpermission, as the case may be, between 1 April and 31December inclusive; and

(ii) its tariff base, but for this rule, is calculated by reference tothe financial year ended in the calendar year ending 31December or the twelve months ending 31 December beforethe financial year of the compensation scheme.

(c) If a participant firm satisfies the conditions in (b) it must calculateits tariff base as follows:

(i) it must use actual data in relation to the business to whichthe tariff relates rather than projected valuations;

(ii) the tariff is calculated by reference to the period beginningon the date it became a participant firm or had its permissionextended, and ending on the 31 December before the startof the financial year of the compensation scheme; and


6G6.4.10B

R6.4.11

R6.4.12


(iii) the figures are annualised by increasing them by the sameproportion as the period of 12 months bears to the periodstarting from when the participant firm became a participantfirm or had its permission extended to the 31 December, asthe case may be.

(d) Where a participant firm is required to use the method in (c) itmust notify the FSCS of its intention to do so by the datespecified in ■ FEES 6.5.13 R(Reporting Requirements).

(e) Where a participant firm is required to use actual data under thisrule, ■ FEES 6 Annex 3AR is disapplied, to the extent it isincompatible, in relation to the calculation of that participantfirm's valuation date in its second financial year.

Application of FEES 6.4.10AR......................................................................................................The table below sets out the period within which a participant firm's tariffbase is calculated ("the data period") for second year levies calculated under■ FEES 6.4.10AR. The example is based on a participant firm that extends itspermission on 1 November 2009 and has a financial year ending 31 March.

References in this table to dates or months are references to the latest oneoccurring before the start of the financial year of the compensation schemeunless otherwise stated.

Type of permis- Valuation datesion acquired on but for FEES Data period un-1 November Tariff base 6.4.10AR der FEES 6.4.10AR

Dealing in invest- Annual eligible Financial year en- 1 November toments as agent income ded 31 March 31 Decemberin relation to 2009 - so pro- 2009General Insur- jected valuationsance Inter- will be used.mediation

[deleted]

[deleted]

FEES 6 : Financial Services Section 6.4A : Management expenses inCompensation Scheme Funding respect of relevant schemes

6R6.4A.1

R6.4A.2

R6.4A.3


6.4A Management expenses in respectof relevant schemes

Obligation on participant firm to pay......................................................................................................A participant firm (but not a recognised investment exchange) must pay tothe FSCS a share of each MERS levy.

Restriction on management expenses in respect of relevantschemes......................................................................................................The FSCS can impose a MERS levy only if the FSCS has tried its best and hasfailed to obtain reimbursement of those expenses from the manager of therelevant compensation scheme.

Management expenses in respect of relevant schemes levy......................................................................................................The FSCS must calculate a participant firm's share of a MERS levy on areasonable basis.

FEES 6 : Financial Services Section 6.5 : Compensation costsCompensation Scheme Funding

6

R6.5.1

R6.5.2-A

G6.5.2A

G6.5.2B

G6.5.2C

R6.5.3

R6.5.4


6.5 Compensation costs

[deleted]

Allocation......................................................................................................The FSCS must allocate any compensation costs levy:

(1) first, to the relevant classes in proportion to the amount ofcompensation costs arising from, or expected to arise from, claims inrespect of the different activities for which firms in those classes havepermission up to the levy limit of each relevant class. The FCAprovider contribution classes are not relevant classes for this purpose;and

(2) thereafter, where the levy limit has been reached (whether as a resultof compensation costs or specific costs or both) for a class whoseattributable costs may be allocated to the retail pool (see■ FEES 6 Annex 5R), to the retail pool, in accordance with, and subjectto, ■ FEES 6.5A.

The use made by FSCS of borrowing facilities to provide liquidity until thenext levy does not affect the attribution of compensation costs, nor theallocation of compensation cost levies; the allocation of a compensation costslevy occurs at the time that the FSCS imposes a levy.

[deleted]

[deleted]

If a participant firm which is in default has carried on a regulated activityother than in accordance with a permission, the FSCS must treat anycompensation costs or specific costs arising out of that activity as if therelevant permission were held by the participant firm.

If the relevant person in default is an appointed representative, the FSCSmust treat any compensation costs or specific costs arising out of a regulatedactivity for which his principal has not accepted responsibility to as if theprincipal had accepted responsibility.


6

R6.5.5

R6.5.6A

G6.5.8

R6.5.9

R6.5.9A

G6.5.9B

R6.5.10

R6.5.11


(1) A participant firm must pay to the FSCS a share of each compensationcosts levy allocated to the classes of which it is a member unlesseither the firm is exempt under ■ FEES 6.2 (Exemption) or the FSCS haschosen to exercise its discretion under ■ FEES 6.3.23 R in respect of thatfirm.

(2) [deleted]

The FSCS must calculate each participant firm's share of a compensation costslevy (subject to ■ FEES 6.3.22 R (Adjustments to calculation of levy shares)) by:

(1) identifying each of the relevant classes to which each participant firmbelongs, using the statement of business most recently suppliedunder ■ FEES 6.5.13 R (1);

(2) identifying the compensation costs falling within ■ FEES 6.3.1Rallocated, in accordance with ■ FEES 6.5.2-AR, to the classes identifiedin (1);

(3) calculating, in relation to each relevant class, the participant firm'stariff base (see ■ FEES 6 Annex 3AR) as a proportion of the total tariffbase of all participant firms in the class;

(4) applying the proportion calculated in (3) to the figure in (2); and

(5) if more than one class is relevant, adding together the figure in (4)for each class.

Classes and tariff bases for compensation cost levies andspecific costs levies......................................................................................................Guidance on parts of ■ FEES 6 Annex 3AR can be found in ■ FEES 6 Annex 4 G.

New participant firms......................................................................................................A firm or a recognised investment exchange which becomes a participantfirm part way through a financial year of the compensation scheme will notbe liable to pay a share of a compensation costs levy made in that year.

Compensation costs levy for newly authorised firms......................................................................................................■ FEES 6.4.10AR applies to the calculation of a participant firm's compensationcosts levy and its tariff base as it applies to the calculation of its specific costslevy.

The example table in ■ FEES 6.4.10B G can be applied to the calculation of thetariff bases under ■ FEES 6.5.9AR.

Membership of several classes......................................................................................................[deleted]

[deleted]


6

G6.5.12

R6.5.13

G6.5.13A

R6.5.14

R6.5.16

R6.5.17


A participant firm may belong to more than one class.

Reporting requirements......................................................................................................(1) Unless exempt under ■ FEES 6.2.1A R, a participant firm must provide

the FSCS by the end of February each year (or, if it has become aparticipant firm part way through the financial year, by the daterequested by the FCA) with a statement of:

(a) classes to which it belongs; and

(b) the total amount of business (measured in accordance with theappropriate tariff base or tariff bases) which it conducted, inrespect of the most recent valuation period (as specified by■ FEES 6 Annex 3AR (Financial Services Compensation Scheme -classes)) ending before the relevant year in relation to each ofthose classes except the FCA provider contribution classes.

(2) In this rule the relevant year means the year in which the month ofFebruary referred to in (1) falls.

(3) [deleted]

(4) The Society must provide the statement in (1) in relation to theinsurers – general contribution class and the insurers – lifecontribution class.

For example, when the tariff base for a particular class is based on a firm'sannual eligible income the valuation period for that class is the firm's lastfinancial year ending in the year to 31 December preceding the financialyear of the compensation scheme for which the calculation is being made.

If the information in ■ FEES 6.5.13 R has been provided to the FCA underother rule obligations, a participant firm will be deemed to have compliedwith ■ FEES 6.5.13 R.

If a participant firm does not submit a complete statement by the date onwhich it is due in accordance with ■ FEES 6.5.13 R and any prescribedsubmission procedures:

(1) the firm must pay an administrative fee of £250 (but not if it isalready subject to an administrative fee under ■ FEES 4 Annex 2A R, Part1 or ■ FEES 5.4.1 R for the same financial year); and

(2) the compensation costs levy and any specific costs levy will becalculated using (where relevant) the valuation or valuations ofbusiness applicable to the previous period, multiplied by the factor of1.10 (or, if it has become a participant firm part way through afinancial year, on the basis of the information provided to the FCA forthe purposes of ■ FEES 4.4.2 R) or on any other reasonable basis,making such adjustments as seem appropriate in subsequent leviesonce the true figures are known.

[deleted]

FEES 6 : Financial Services Section 6.5A : The retail poolCompensation Scheme Funding

6R6.5A.1

R6.5A.2


6.5A The retail pool

Allocation of compensation costs levies and specific costslevies through the retail pool......................................................................................................The FSCS must allocate a compensation costs levy or specific costs levy, whichhas been allocated to the retail pool (under ■ FEES 6.5.2-AR(2) or■ FEES 6.4.6AR(2)):

(1) to classes whose retail pool levy limit has not been reached as at thedate of the levy;

(2) in proportion to the relative sizes of the retail pool levy limits of theclasses in (1) and up to those levy limits; and

(3) in accordance with the table in ■ FEES 6 Annex 5R.

[Note: The retail pool levy limits for classes other than FCA providercontribution classes are the normal levy limits for that class. See the table in■ FEES 6 Annex 5R for the retail pool levy limits for all relevant classes.]

Effect of levies under the PRA’s rules on insurers and deposit-takers in the retail pool......................................................................................................

(1) An allocation in ■ FEES 6.5A.1 R to an FCA provider contribution classother than the home finance providers and administrators'contribution class may not be of an amount that, if it were added toany levies:

(a) that correspond to the FCA’s compensation costs levies or specificcosts levies; and

(b) which have previously in the same financial year been imposedon the PRA funding class which corresponds to that FCA providercontribution class (as set out in ■ FEES 6.5A.7R),

the combined figure would be greater than any levy limit of thecorresponding PRA funding class.

(2) Where:

(a) an FCA provider contribution class has already contributed tospecific costs or compensation costs (through the retail pool) in afinancial year; and

(b) if the amount of that previous contribution by the class in (a)were added to a levy that corresponds to the FCA’s compensationcosts levy or specific costs levy and which is being imposed on thePRA funding class which corresponds to the class in (a) (and any

FEES 6 : Financial Services Section 6.5A : The retail poolCompensation Scheme Funding

6

G6.5A.3

R6.5A.4

R6.5A.5

R6.5A.6

R6.5A.7


previous such levies in the same financial year), the combinedfigure would be greater than any levy limit of the correspondingPRA funding class;

the FSCS must, so far as reasonably possible, obtain repayment of theprevious contribution by the class in (a) from the retail pool(including the FCA provider contribution classes except the class in(a)) to the extent that ensures that the combined figure in (b) wouldno longer be greater than any levy limit of the corresponding PRAfunding class, and credit the repayment to the class in (a).

(3) The FSCS may obtain the repayment in (2) by:

(a) a levy;

(b) commercial or other borrowing; or

(c) utilising funds as set out in, and subject to, ■ FEES 6.3.17 R.

[Note 1: the home finance providers and administrators' contribution classdoes not have a corresponding PRA funding class.]

[Note 2: the levy limits for the corresponding PRA funding classes arecontained in the PRA Rulebook.]

In considering which of the options in ■ FEES 6.5A.2R(3) to adopt, the FSCS willgenerally impose a levy, rather than borrow or utilise funds as described in■ FEES 6.5A.2R(3)(c), unless the latter options appear to be preferable in thespecific circumstances prevailing at the relevant time.

How levy limits affect allocation to classes in the retail pool......................................................................................................The calculation of the relative sizes of the retail pool levy limit (for thepurpose of ■ FEES 6.5A.1 R) is based on the original retail pool levy limits forthe classes (as set out in ■ FEES 6 Annex 5) and not the remaining capacity ineach class.

When the FSCS allocates excess compensation costs levies or specific costslevies under ■ FEES 6.5A.1 R or any levy imposed under ■ FEES 6.5A.2 R (3)(a), aclass to which part of the excess is allocated (a "receiving class") may, as aresult of that allocation, itself reach its limit. In that case, the FSCS mustapply ■ FEES 6.5A.1 R or ■ FEES 6.5A.2 R so that any resulting excess levy beyondthe limit of the receiving class is allocated amongst the remaining classeswhose limits have not been reached, to the exclusion of the receiving class.This process is repeated until the compensation costs levy or specific costslevy has been met in full or the limits of all classes have been exhausted.

[deleted]

[deleted]

FEES 6 : Financial Services Section 6.6 : Incoming EEA firmsCompensation Scheme Funding

6

R6.6.1


6.6 Incoming EEA firms

If an incoming EEA firm, which is an , an MCD mortgage credit intermediaryor a MiFID investment firm, is a participant firm, the FSCS must give the firmsuch discount (if any) as is appropriate on the share of any levy it wouldotherwise be required to pay, taking account of the nature of the levy andthe extent of the compensation coverage provided by the firm's Home Statescheme.

FEES 6 : Financial Services Section 6.7 : Payment of leviesCompensation Scheme Funding

6R6.7.-1

R6.7.1

G6.7.2

R6.7.3

R6.7.3A

R6.7.4

R6.7.5


6.7 Payment of levies

Payments on account by certain firms......................................................................................................Where a participant firm must pay its periodic fees for a fee year inaccordance with ■ FEES 4.3.6R(1C) to ■ (1E), it must pay its share of any annuallevy imposed by the FSCS for the financial year of the compensation schemeas follows:

(1) by 1 April an amount equal to 50%, or such lower percentage as theFSCS may determine, of the participant firm’s share of the annual levypayable for the previous financial year of the compensation scheme;and

(2) by 1 September the balance of the annual levy due from theparticipant firm for the current financial year of the compensationscheme.

Payments of levy by other firms......................................................................................................A participant firm that is not within ■ FEES 6.7.-1R, must pay its share of anylevy made by the FSCS in one payment.

.[deleted]

A participant firm's share of a levy to which ■ FEES 6.7.1R applies is due on,and payable within 30 days of, the date when the invoice is issued.

Payments of interim levies......................................................................................................A participant firm’s share of any interim levy is due on, and payable within30 days of, the date when the invoice is issued.

.[deleted]

Method of payment......................................................................................................A participant firm liable to pay its share of the levy under ■ FEES 6.7.-1R,■ 6.7.1R and ■ 6.7.3R must do so using one of the methods set out in■ FEES 4.2.4 R save that no additional amount or discount is applicable.


6

R6.7.6


Firms ceasing to be a participant firm......................................................................................................If a firm ceases to be a participant firm or carry out activities within one ormore classes part way through a financial year of the compensation scheme:

(1) it will remain liable for any unpaid levies which the FSCS has alreadymade on the firm; and

(2) the FSCS may make one or more levies upon it (which may be beforeor after the firm has ceased to be a participant firm or carry outactivities within one or more classes, but must be before it ceases tobe an authorised person) for the costs which it would have beenliable to pay had the FSCS made a levy on all participant firms orfirms carrying out activities within that class in the financial year itceased to be a participant firm or carry out activities within that class.

(3) [deleted]

(4) [deleted]

(5) [deleted]


6


FEES 6 : Financial Services Annex 1Compensation Scheme Funding

6

Financial Services Compensation Scheme - Management Expenses LevyLimit

This table belongs to FEES 6.4.2 R

Period Limit on total of all management expenses levies attributable to that period(£)

1 December 2001 to 1 £4,209,000April 2002

1 April 2002 to 31 £13,228,000March 2003

1 April 2003 to 31 £13,319,000March 2004

1 April 2004 to 31 £17,590,000March 2005

1 April 2005 to 31 £27,030,000March 2006

1 April 2006 to 31 £37,060,000March 2007

1 April 2007 to 31 £37,520,000March 2008

1 April 2008 to 31 £1,000,000,000 provided that £600,000,000 may be recovered in respect ofMarch 2009 specific costs relating to the declaration by the FSA on 27 September 2008

that Bradford & Bingley plc is in default only.

1 April 2009 to 31 £1,000,000,000March 2010

1 April 2010 to 31 £1,000,000,000March 2011

1 April 2011 to 31 £1,000,000,000March 2012

1 April 2012 to 31 £1,000,000,000March 2013

1 April 2013 to 31 £94,400,000March 2014

1 April 2014 to 31 £80,000,000March 2015

1 April 2015 to 31 £74,429,000March 2016

1 April 2016 to 31 £72,694,000March 2017

1 April 2017 to 31 £74,540,000March 2018

1 April 2018 to 31 £77,661,000March 2019



6



6

Financial Services Compensation Scheme - annual levy limits

This table belongs to ■ FEES 6.3.5 R

Class Levy Limit (£ million)

B2: General insurance distribution 300

C2: Life distribution and pensions intermediation 100

D1: Investment provision 200

D2: Investment intermediation 150

E2: Home finance intermediation 40

K: Debt management claims 20



6


FEES 6 : Financial Services Annex 3ACompensation Scheme Funding

6

Financial Services Compensation Scheme - classes

This table belongs to ■ FEES 6.4.7A R and ■ FEES 6.5.6A R

[deleted]

General Insurance

Class B1 [deleted]

Class B2 General Insurance Distribution

Firms with permission Any of the following in respect of general insurance contracts:for: dealing in investments as agent;



assisting in the administration and performance of a contract of insurance;

advising on investments;


Tariff base Class B2: annual eligible income where annual eligible income means annualincome adjusted in accordance with this box. Annual income is calculated asthe sum of (a) and (b):

(a) the net amount retained by the firm of all brokerages, fees, commis-sions and other related income (for example, administration charges, over-riders and profit shares) due to the firm in respect of or in relation to classB2 activities, including any income received from an insurer; and

(b) if the firm is an insurer, in relation to class B2 activities, the amount ofpremiums receivable on its contracts of insurance multiplied by 0.07, exclud-ing those contracts of insurance which result from class B2 activities carriedout by another firm, where a payment has been made by the insurer tothat other firm and that payment is of a type that falls under (a).

Notes relating to the calculation of the tariff base for class B2:

(1) Exclude annual income for pure protection contracts. Only include gen-eral insurance contracts

(2) The calculation is adjusted in accordance with the definition of annualeligible income.

(3) Net amount retained means all the commission, fees, etc. in respect ofclass B2 activities that the firm has not rebated to customers or passed onto other firms (for example, where there is a commission chain). Items suchas general business expenses (for example, employees' salaries and over-heads) must not be deducted.

(4) Class B2 activities mean activities that fall within class B2. They also in-clude activities that now fall within class B2 but that were not regulated ac-tivities when they were carried out.



6

General Insurance

(5) A reference to a firm also includes a reference to any person who car-ried out activities that would now fall into class B2 but which were not atthe time regulated activities.

Life and Pensions

Class C1 [deleted]

Class C2 Life Distribution and Pensions Intermediation

Firms with permission Any of the following:for: dealing in investments as agent;



assisting in the administration and performance of a contract of insurance;


advising on pension transfers and pension opt-outs;

basic advice;

agreeing to carry on a regulated activity which is within any of the above;

in relation to any of the following:

long-term insurance contracts (including pure protection contracts);

rights under a stakeholder pension scheme or a personal pension scheme.

Tariff base Class C2: annual eligible income where annual eligible income means annualincome adjusted in accordance with this box. Annual income is calculated asthe sum of (a) and (b):

(a) the net amount retained by the firm of all brokerages, fees, commis-sions and other related income (for example, administration charges, over-riders and profit shares) due to the firm in respect of or in relation to classC2 activities including any income received from an insurer; and

(b) if the firm is a life and pensions firm, in relation to class C2 activities,the amount of premiums or commission receivable on its life and pensionscontracts multiplied by 0.07, excluding those life and pensions contractswhich result from class C2 activities carried out by another firm, where apayment has been made by the life and pensions firm to that other firmand that payment is of a type that falls under (a).

Notes relating to the calculation of the tariff base for class C2:

(1) Life and pensions contracts mean long-term insurance contracts (includ-ing pure protection contracts) and rights under a stakeholder pensionscheme or a personal pension scheme.

(2) Life and pensions firm means an insurer. It also means a firm that pro-vides stakeholder pension schemes or personal pension schemes if those ac-tivities fall into class D1.


(4) Net amount retained means all the commission, fees, etc. in respect ofclass C2 activities that the firm has not rebated to customers or passed onto other firms (for example, where there is a commission chain). Items suchas general business expenses (for example, employees' salaries and over-heads) must not be deducted.



6

Life and Pensions

(5) Class C2 activities mean activities that fall within class C2. They also in-clude activities that now fall within class C2 but that were not regulated ac-tivities when they were carried out.

(6) A reference to a firm also includes a reference to any person who car-ried out activities that would now fall into class C2 but which were not atthe time regulated activities.

Investment

Class D1 Investment provision

Firms with permission Any of the following:for: managing investments;

managing an AIF;

managing a UCITS;

acting as trustee or depositary of an AIF;

acting as trustee or depositary of a UCITS;

establishing, operating or winding up a collective investment scheme;

establishing, operating or winding up a stakeholder pension scheme;

establishing, operating or winding up a personal pension scheme;


Class D2 Investment Intermediation

Firms with permission intermediation of structured deposits (except for managing investments infor: relation to structured deposits); and/or

Any of the following activities in relation to designated investment business:

dealing in investments as principal;

dealing in investments as agent;

MiFID business bidding;




basic advice;

safeguarding and administering investments;

arranging safeguarding and administering of assets;

operating a multilateral trading facility;

operating an organised trading facility;

agreeing to carry on a regulated activity which is within any of the above;

BUT excluding activit-ies that relate to long-term insurance con-tracts or rights under astakeholder pensionscheme or a personalpension scheme.

Recognised investment recognised investment exchanges that are operating a multilateral tradingexchanges facility or operating an organised trading facility



6

Tariff base Class D1: annual eligible income where annual eligible income means an-nual income adjusted in accordance with this box. Annual income is equalto the net amount retained by the firm of all income due to the firm in re-spect of or in relation to activities falling within class D1.

Class D2 except in respect of direct sales of structured deposits: annual eli-gible income where annual eligible income means annual income adjustedin accordance with this box. Annual income is equal to the net amount re-tained by the firm of all income due to the firm in respect of or in relationto activities falling within class D2.

Notes on annual eligible income for classes D1 and D2 (except in respect ofdirect sales of structured deposits):

(1) For the purposes of calculating annual income, net amount retained me-ans all the commission, fees, etc. in respect of activities falling within classD1 or D2, as the case may be, that the firm has not rebated to customers orpassed on to other firms (for example, where there is a commission chain). It-ems such as general business expenses (for example employees' salaries andoverheads) must not be deducted.


(3) Box management profits are excluded from the calculation of annualincome.

Class D2 in respect of direct sales of structured deposits: the tariff base forClass A (DGS members) set out in the Depositor Protection part of the PRARulebook, but only to the extent that it:

(a) relates to structured deposits accepted in the firm’s last financial year en-ded in the year to 31 December preceding the date for submission of the in-formation under FEES 6.5.13R attributable to that class; and

(b) multiplied by 0.07.

Home Finance

Class E2 Home Finance Intermediation

Firms with permission Any of the following activities:for: arranging (bringing about) a home finance transaction;

making arrangements with a view to a home finance transaction;

advising on home finance transaction;

the activities of a home finance provider which would be arranging but forarticle 28A of the Regulated Activities Order (Arranging contracts or plansto which the arranger is party);


Tariff base Class E2: annual eligible income where the annual income is calculated in ac-cordance with fee-block A18 in part 2 of FEES 4 Annex 1A R.

Class F Deposit acceptor's contribution

Firms with permission accepting deposits and/or operating a dormant account fund. BUT does notfor: include any fee payer who either effects or carries out contracts of

insurance.

Tariff base The tariff base for Class A (DGS members) in the Depositor Protection partof the PRA Rulebook.

Class G Insurers - life contribution

Firms with permission effecting contracts of insurance; and/orfor: carrying out contracts of insurance;

that are long term insurance contracts (including pure protection contracts);

entering as provider into a funeral plan contract.



6

Home Finance

-

Also includes: the Society

Tariff base For the Society, the aggregate of the tariff base for Insurance Class C1 inthe Policyholder Protection part of the PRA Rulebook that would apply toeach member if:

(a) that tariff base applied to each member in respect of their insurancebusiness in relation to long-term insurance contracts (including pure protec-tion contracts); and

(b) all references to “firm” or “participant firm” in the Policyholder Protec-tion part of the PRA Rulebook were read as referring to the member.

For all other participant firms, the tariff base for Insurance Class C1 in thePolicyholder Protection part of the PRA Rulebook.

Class H Insurers - general contribution

Firms with permission effecting contracts of insurance; and/orfor: carrying out contracts of insurance;

that are general insurance contracts.

Also includes: the Society

Tariff base For the Society, the aggregate of the tariff base for Insurance Class B1 inthe Policyholder Protection part of the PRA Rulebook that would apply toeach member if:

(a) that tariff base applied to each member in respect of their insurancebusiness in relation to general insurance contracts; and

(b) all references to “firm” or “participant firm” in the Policyholder Protec-tion part of the PRA Rulebook were read as referring to the member.

For all other participant firms, the tariff base for Insurance Class B1 in thePolicyholder Protection part of the PRA Rulebook.

Class I Home finance provision

Firms with permission Any of the activities below:for: entering into a home finance transaction;

administering a home finance transaction;


Tariff base The number of home finance transactions, calculated in accordance withthe tariff base for fee-block A2 in part 2 of FEES 4 Annex 1AR.

Class K Debt management claims

Firms with permission Any of the following except if held under a limited permission:for: debt adjusting and/or debt counselling, in each case in relation to pro-

tected debt management business except where these activities are carriedon by a not-for-profit debt advice body;

entering into a regulated credit agreement as lender;

exercising, or having the right to exercise, the lender’s rights and duties un-der a regulated credit agreement.

Tariff base For debt adjusting and debt counselling: annual debts under managementbeing the annual total value of the participant firm’s relevant debts undermanagement.

For all other participant firms in this class: annual lending being the annualtotal amount provided under all regulated credit agreements in respect ofwhich the participant firm is the lender or exercises, or has the right to exer-cise, the lender’s rights and duties under such agreements.



6

Notes for all classes

(1) Any reference in this annex to a specified investment includes a reference to rights to or interestsin investments in that specified investment.

(2) In calculating annual eligible income a firm must apportion income between different classes andbetween income that falls within the definition of annual eligible income and income that does notin a reasonable and consistent way and on the basis of clear policies.

(3) The question of whether a person is an eligible claimant or not or whether business is compensat-able business or not must be judged at whichever of the following dates the firm chooses:

(a) (for a person who has become a new client during the period by reference to which the firm'stariff base is being calculated) the date on which the person becomes a client;

(b) (for a person who has ceased to be a client during that period) the date on which the personceases to be a client; or

(c) (in any other case) the date to which the most recent information supplied by the firm under FEES6.5.13 R is prepared.



6

Guidance on the calculation of tariff bases

This table belongs to ■ FEES 6.5.8 G

Calculation of annual eligible income for firms in class D1 who carry out discretion-ary fund management and are in FCA fee block A7

-1.1 G The tariff base for class D1 is calculated by taking gross income falling into class D1and then deducting commission, fees and similar amounts rebated to customers orpassed on to other firms (for example, where there is a commission chain). Itemssuch as general business expenses (for example employees' salaries and overheads)should not be deducted. The calculation may be further adjusted so as to includeonly income that is attributable to business in respect of which the FSCS may paycompensation, unless the firm chooses to include all its annual income.

1.1 G Gross income for the activity of managing investments is the sum of the following:

(1) the amount of the annual charge on all assets in portfolios which the firmmanages on a discretionary basis received or receivable in the latest account-ing period (this is calculated as a percentage of funds invested, typically 1%p.a.); plus

(2) the front-end or exit charge levied on sales or redemptions of assets in portfo-lios which the firm manages on a discretionary basis (typically 4-5% of sales/re-demptions) in that same accounting period; plus

(3) the amount of performance management fees from the management of assetsin portfolios which the firm manages on a discretionary basis received or re-ceivable in that same accounting period; plus

(4) any other income directly attributable to the management of assets in portfo-lios which the firm manages on a discretionary basis in that same accountingperiod, including commission and interest received.

1.2 G Annual eligible income should exclude

income received or receivable from assets managed on a non-discretionary ba-sis, being assets that the firm has a contractual duty to keep under continuousreview but in respect of which prior specific consent of the client must be ob-tained for proposed transactions, as this activity is covered in class D2 (the in-vestment intermediation class).

1.3 G A firm should make appropriate arrangements to ensure that income is not doublecounted in relation to the activities it undertakes (for example, where it operatesand manages a personal pension scheme or collective investment scheme).

Calculation of annual eligible income for firms in sub-class D1 and who carry out ac-tivities within FCA fee block A9

2.1 G The calculation of income in respect of activities falling into class D1 and FCA feeblock A9 should be based on the tariff base provisions for that fee block (in Part 3of FEES 4 Annex 1A R). It may be adjusted so as to include only income that is not at-tributable to business in respect of which the FSCS may pay compensation, unlessthe firm chooses to include all its annual income.

2.2 G Although the calculation should be based on the one for fee block A9, the calcula-tion is not the same. FCA fee block A9 is based on gross income. Class D1 is based onnet income retained.

Calculation of annual eligible income for a firm in class B2 or class C2



6

Calculation of annual eligible income for firms in class D1 who carry out discretion-ary fund management and are in FCA fee block A7

3.1 G The amount of annual eligible income should include the amount of any trail or re-newable commission due to the firm. Trail commission is received as a small percent-age of the value of a policy on an ongoing basis. Renewable commission is receivedfrom a very small percentage of the value of a policy from ongoing premiums oftenreceived once the initial commission period is over.

Difficulties in calculating annual eligible income

4.1 G The purpose of Note 2 in the section of notes at the end of FEES 6 Annex 3AR (Finan-cial Services Compensation Scheme - classes) is to deal with the practical difficultiesof allocating income correctly between different classes and in deciding whether in-come falls outside FEES 6 Annex 3AR altogether. Note 2 requires a firm to carry out thenecessary apportionment on a reasonable and consistent basis.

4.2 G The following provides some guidance as to how firms may approach the allocationof annual eligible income.

4.3 G Where a firm cannot separate its income on the basis of activities, such as a fundmanager which acts on a discretionary and non-discretionary basis for the same cli-ent and who only sends out a single invoice, the firm may apportion the income inanother way. For instance, a firm may calculate that the business it undertook for aclient was split 90% on a discretionary basis and 10% on a non-discretionary basiscalculated by reference to funds under management. The firm may split the incomeaccordingly.

4.4 G A firm may allocate trail or renewable commission on the basis of the type of firm itreceives it from. For instance, if it comes from a life provider the firm may consider itas life and pensions mediation income. If it comes from a fund manager the firmmay treat it as investment mediation income.

4.5 G If a firm receives annual eligible income from a platform based business it may re-port annual eligible income in line with the proportionate split of business that thefirm otherwise undertakes. For instance, if a firm receives 70% of its other commis-sion from life and pensions mediation business and 30% from investment mediationbusiness, then it may divide what it receives in relation to the platform business onthe same basis.

4.5A G Firms should have regard to the ability of the FSCS to pay compensation to membersof pension schemes and to participants in collective investment schemes (see COMP12A (Special cases)) when calculating their annual eligible income.

4.6 G Unless a firm chooses to include all relevant annual income, annual eligible incomeexcludes business that is not compensatable under the compensation scheme. Thiscan create difficulties because, for example, a person may move between being andnot being an eligible claimant over time. The purpose of Note 3 in the section ofnotes at the end of FEES 6 Annex 3AR is to deal with that difficulty by fixing a date fordeciding this.



6

Classes participating in the retail pool and applicable limits

This table belongs to ■ FEES 6.5A.1 R.

Attributable costs for Retail pool compensa-this class in excess of tion costs levy or spe-levy limit allocated to Retail pool levy limit (£ cific costs levy allocated

Class the retail pool? million) to this class?

FCA provider contribution classes

[Note: The FCA provider contribution classes contribute to a compensation costs levy or specific costslevy allocated to the retail pool, unless the compensation costs or specific costs are attributable tothe investment provision class.

Deposit acceptors con- No 110 Yes (except for costs at-tribution tributable to the invest-

ment provision class)Insurance - life con- 70tribution

Insurance - general con- 35tribution

Home finance providers 45and administrators' con-tribution

Classes that both contribute to and are funded by the retail pool

Note:

A compensation costs levy or specific costs levy, in respect of costs attributable to these classes in ex-cess of their levy limits, must be allocated to the retail pool. A compensation costs levy or specificcosts levy allocated to the retail pool is then allocated to all other classes contributing to the retailpool (up to each class's retail pool contribution limit), except as specified below for the investmentprovision class.]

Investment provision Yes, under FEES 6.5.2- Class levy limits YesAR(2) (but costs attrib-Life distribution andutable to the invest-pensions inter-ment provision classmediationcannot be allocated to

Home finance inter- the FCA provider con-mediation tribution classes)

Investment inter-mediation

General insurance dis-tribution

Debt managementclaims



6


Fees Manual

Chapter 7

CFEB levies


FEES 7 : CFEB levies Section 7.1 : Application and Purpose

7

R7.1.1

G7.1.2

G7.1.3

G7.1.4

G7.1.5

G7.1.6

G7.1.7



Application......................................................................................................This chapter applies to every person listed in ■ FEES 1.1.2R (5).

Purpose......................................................................................................The purpose of this chapter is to set out the requirements on the personslisted in ■ FEES 7.1.1 R to pay annual CFEB levies in order to establish and fundthe CFEB.

Section 6A(1) of the Act (Enhancing public understanding of financialmatters etc) (as it had effect before the passing of the Financial Services Act2012) required the FSA to establish the CFEB in order to enhance:

(1) the understanding and knowledge of members of the public offinancial matters (including the UK financial system); and

(2) the ability of members of the public to manage their own financialaffairs.

Paragraph 12(1) of Part 2 of Schedule 1A to the Act enables the FCA to makerules requiring certain authorised persons or payment service providers orelectronic money issuers to pay to the FCA specified amounts or amountscalculated in a specified way in order to meet a proportion of:

(1) the expenses incurred by the FCA in establishing the CFEB, wheneverthese were incurred; and

(2) the expenses incurred, or expected to be incurred, by the CFEB inconnection with the discharge of the functions described in■ FEES 7.1.3 G.

■ FEES 7 sets out the rules referred to in ■ FEES 7.1.4 G.

The FCA must have regard to other anticipated sources of funding of thecosts described in ■ FEES 7.1.4 G when setting the CFEB levy.

The amounts to be paid under the CFEB levy may include a component tocover the FCA's expenses in collecting the payments.

http://www.legislation.gov.uk/ukpga/2000/8/section/6A/2010-06-01#section-6A-1



http://www.legislation.gov.uk/ukpga/2000/8/schedule/1A/paragraph/12/2010-06-01#schedule-1A-paragraph-12-1

FEES 7 : CFEB levies Section 7.1 : Application and Purpose

7

G7.1.8

G7.1.9

G7.1.10

G7.1.11


The FCA must pay to the CFEB the amounts that it receives under the CFEBlevy apart from amounts in respect of its collection costs (which it may keep).

Paragraph 7(1) of Part 1 of Schedule 1A to the Act requires the CFEB toadopt an annual budget which has been approved by the FCA.

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 onthe CFEB's annual budget. These details are set out in ■ FEES 7 Annex 1. Newdetails will be prepared and consulted on for each financial year.

Exemption......................................................................................................A firm is not liable to pay a CFEB levy in relation to payment services orelectronic money issuance if it is the Bank of England, a governmentdepartment, a local authority, a municipal bank or the National SavingsBank.

http://www.legislation.gov.uk/ukpga/2000/8/schedule/1A/paragraph/7/2010-06-01#schedule-1A-paragraph-7-1

FEES 7 : CFEB levies Section 7.2 : The CFEB levy

7

R7.2.1

R7.2.1A

R7.2.2


7.2 The CFEB levy

Obligation to pay CFEB levy......................................................................................................A firm must pay each CFEB levy applicable to it:


(2) in accordance with the provisions of ■ FEES 4.3.6 R as modified by■ FEES 7.2.1A R.

(1) For the purposes of ■ FEES 7.2.1R (2), ■ FEES 4.3.6R(1C)-(1E), as applied by■ FEES 7.2.8 R, is modified so that if a firm's periodic fees for theprevious financial year was at least £50,000, the firm must pay:

(a) an amount equal to 50% of the CFEB levy payable for theprevious year, by 1 April in the financial year to which the sumdue under ■ FEES 7.2.1 R relates; and

(b) the balance of the CFEB levy due for the current financial year by1 September in the financial year to which that sum relates.

(2) For the purposes of ■ FEES 7.2.1R (2), ■ FEES 4.3.6R (2), as applied by■ FEES 7.2.8 R, is modified so that if the firm's periodic fee for theprevious financial year was less than 50,000, the firm must pay itsCFEB levy in full by 1 July in the financial year to which that sumrelates.

Calculation of CFEB levy......................................................................................................The CFEB levy is calculated as follows:

(1) identify each of the activity groups set out in Part 1 of■ FEES 7 Annex 1R and Part 1 of ■ FEES 7 Annex 2R that apply to thebusiness of the firm for the relevant period (for this purpose, theactivity groups under ■ FEES 7 Annex 1R are defined in accordance withPart 1 of ■ FEES 4 Annex 1AR and the activity groups under■ FEES 7 Annex 2R are defined in accordance with Part 1 of thatAnnex);

(2) for each of those activity groups, calculate the amount payable in theway 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);


7

R7.2.3

R7.2.4


(6) modify the result as indicated by ■ FEES 4.2.7ER, ■ FEES 4.2.7FR,■ FEES 4.2.7GR, ■ FEES 4.2.7HR, ■ FEES 4.2.7IR, ■ FEES 4.2.7JG and■ FEES 4.2.7KR (if applicable);

(7) apply any applicable payment charge specified in ■ FEES 4.2.4 R to theamount in (6), provided that:

(a) for payment by direct debit, successful collection of the amountdue is made at the first attempt by the FCA; or

(b) for payment by credit transfer, the amount due is received by theFCA on or before the due date;

(8) make the calculations using information obtained in accordance with■ FEES 4.4.in the case of ■ FEES 7 Annex 1R and Part 3 of■ FEES 7 Annex 2R in the case of Part 2 of that Annex.

The amount payable by a firm with respect to a particular activity group iscalculated as follows:

(1) calculate the size of the firm's tariff base for that activity group using:

(a) the tariff base calculations in Part 3 of ■ FEES 4 Annex 1AR, Part 3of ■ FEES 4 Annex 11R and Part 2 of ■ FEES 7 Annex 2R; and

(b) the valuation date requirements in Part 5 of ■ FEES 4 Annex 1AR,Part 3 of ■ FEES 4 Annex 11R and Part 3 of ■ FEES 7 Annex 2R;

(2) use the figure in (1) to calculate which of the bands set out in thetable in Part 1 of ■ FEES 7 Annex 1R and Part 4 of ■ FEES 7 Annex 2R thefirm falls into;

(3) add together the fixed sums, as set out in the table in Part 1 of■ FEES 7 Annex 1R and Part 4 of ■ FEES 7 Annex 2R, applicable to eachband identified under (2);

(4) the amount in (3) is the amount payable by the firm with respect tothat activity group.

For the purposes of ■ FEES 7.2.3 R:

(1) a firm may apply the relevant tariff bases and rates to its non-UKbusiness, as well as to its UK business, if:

(a) it has reasonable grounds for believing that the costs ofidentifying the firm's UK business separately from its non-UKbusiness in the way described in Part 3 of ■ FEES 4 Annex 1A andPart 1 of ■ FEES 4 Annex 11 are disproportionate to the differencein fees payable; and

(b) it notifies the FCA in writing at the same time as it provides theinformation concerned under ■ FEES 4.4 (Information on whichfees are calculated), or, if earlier, at the time it pays the feesconcerned;

(2) for a firm which has not complied with ■ FEES 4.4.2 R (Information onwhich fees are calculated) or■ FEES 4.4.8 D (Information relating topayment services and the issuance of electronic money) for thisperiod, the CFEB levy is calculated using (where relevant) the


7

R7.2.5

R7.2.6

G7.2.7

R7.2.8

R7.2.9


valuation or valuations of business applicable to the previous period,multiplied by the factor of 1.10.

The modifications in Part 3 of ■ FEES 4 Annex 2A and Part 7 of ■ FEES 4 Annex 11apply.

Amount payable by the Society of Lloyds......................................................................................................The CFEB levy in relation to the Society is specified against its activity groupin Part 1 of ■ FEES 7 Annex 1.

FEES 4 rules incorporated into FEES 7 by cross-reference......................................................................................................The Handbook provisions relating to the CFEB levy are meant to followclosely 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 outagain in ■ FEES 7. In some cases, certain ■ FEES 4 rules are applied to thepayment of the CFEB levy by individual rules in ■ FEES 7. The rest are set outin the table in ■ FEES 7.2.9 R.

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

Table of rules in ■ FEES 4that also apply to ■ FEES 7 to the extent that in■ FEES 4 they apply to fees payable to the FCA

FEES 4 rules incorporated into FEES 7 Description

FEES 4.2.4 R Method of payment

FEES 4.2.7ER Modifications for persons becomingsubject to periodic fees during thecourse of a fee year

FEES 4.2.7FR Calculating the fee in the firm’s firstyear of authorisation

FEES 4.2.7GR Calculating fees in the second fee-year where the firm received permis-sion between 1 January and 31March in its first fee year

FEES 4.2.7HR to FEES 4.2.7KR Calculating all other fees in the se-cond and subsequent years of au-thorisation where a full year of tariffdata is not available

FEES 4.2.8 R How FEES 4.2.7 R applies in relation toan incoming EEA firm or an incom-ing Treaty firm

FEES 4.2.10 R Extension of time

FEES 4.2.11 R (first entry only) Due date and changes in permissionfor periodic fees

FEES 4.3.7 R Groups of firms

FEES 4.3.13 R Firms applying to cancel or vary per-mission before start of period


7

D7.2.9A

G7.2.10

G7.2.11

G7.2.12


FEES 4 rules incorporated into FEES 7 Description

FEES 4.3.17R Firms acquiring businesses fromother firms

FEES 4.4.1 R to FEES 4.4.6 R Information on which fees arecalculated

■ FEES 4.4.7 D to ■ FEES 4.4.9 D (Information relating to payment services andthe issuance of electronic money) also apply to ■ FEES 7.

References in a ■ FEES 4 rule incorporated into ■ FEES 7 by cross-reference to aperiodic fee should be read as being to the CFEB levy. References in a■ FEES 4 rule incorporated into ■ FEES 7 to market operators, servicecompanies, MTF operators, investment exchanges, or designated professionalbodies should be disregarded.

In some cases, a ■ FEES 4 rule incorporated into ■ FEES 7 in the manner set outin ■ FEES 7.2.7 G will refer to another rule in ■ FEES 4 that has not beenindividually incorporated into ■ FEES 7. Such a reference should be read asbeing to the corresponding provision in ■ FEES 7. The main examples are setout in ■ FEES 7.2.12 G.

Table of FEES 4 rules that correspond to FEES 7 rules

FEES 4 rules Corresponding FEES 7 rules

FEES 4.2.1 R FEES 7.2.1 R



FEES 4.3.3A R FEES 7.2.2 R

FEES 4.3.12 R FEES 7.2.5 R

FEES 4.3.12A R FEES 7.2.5 R

Part 1 of FEES 4 Annex 2A Part 1 of FEES 7 Annex 1

Part 2 of FEES 4 Annex 11 Part 1 of FEES 7 Annex 1

Part 5 of FEES 4 Annex 11 Part 1 of FEES 7 Annex 1


7


FEES 7 : CFEB levies Annex 1

7

Money advice CFEB levy for the period from 1 April 2018 to 31 March2019

Part 1This table shows the money advice CFEB levy applicable to each activity group (fee-block)

Activity group The money advice CFEB levy payable

A.1 Band Width (£ mil- Fee (£/£m or partlion of Modified m of MELs)Eligible Liabilities(MELs))

>10 1.547

A.2 Band Width (no. Fee (£/mortgage)of mortgages and/or home financetransactions)

>50 0.593

A.3 Gross written premium for fees pur-poses (GWP)

Band Width (£ million of GWP) Fee (£/£m or part £m of GWP)

>0.5 31.28

PLUS

Best estimate liabilities for fees pur-poses (BEL)

Band Width (£ million of BEL) Fee (£/£m of part £m of BEL)

>1 1.72

A.4 Gross written premium for fees pur-poses (GWP)

Band Width (£ million of GWP) Fee (£/£m or part £m of GWP)

>1 20.481

PLUS

Best estimate liabilities for fees pur-poses (BEL)



7

Band Width (£ million of BEL) Fee (£/£m or part £m of BEL)

>1 0.6423

A.5 Band Width (£ million of Active Capa- Fee ((£/£m or part £m of AC)city (AC))

>50 0.00

A.6 Flat levy 0.00

A.7 For class 1(c),(2), (3) and (4) firms:

Band Width (£ million of Funds under Fee (£/£m of part £m of FuM)Management (FuM))

>10 0.162

For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%.

For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.

Class 1(A), (B) and (C) firms are defined in FEES 4 Annex 1A.

A.9 Band Width (£ million of Gross Income Fee (£/£m of part £m of GI)(GI))

>1 92.48

A.10 Band Width (no. of traders) Fee (£/trader)

>1 148.43

A.13 For class (2) firms

Band Width (£ thousands of annual in- Fee (£/£ thousand or part £ thousandcome (AI)) of AI)

>100 0.0715

For a professional firm in A.13 the fee is calculated as above less 10%.

A.14 Band Width (£ thousands of annual in- Fee (£/£ thousand or part £ thousandcome (AI)) of AI)

> 100 0.031

A.18 Band Width (£ thousands of Annual In- Fee ((£/£ thousand or part £ thousandcome (AI)) of AI)

>100 0.211



7

A.19 Band Width (£ thousands of Annual In- Fee (£/£ thousand or part £ thousandcome (AI)) of AI)

>100 0.038

A.21 Band Width (£ client money) (CM) held Fee (£/£ millions or part £ million ofCM)


an amount equal to or greater than £1 1.66million but less than or equal to £1billion


PLUS

Safe custody assets

Band Width (£ safe custody assets) (CA) Fee (£/£ millions or part £ million ofheld CA)


an amount equal to or greater than 0.006£10 million and less than or equal to£100 billion



£ thousands or part £ thousand of Rel- Fee (£/£thousand or part £ thousand ofevant Income Relevant Income)

>100 0.0293



£ million or part £m of average out- Fee (£/£m or part £m of AOEM)standing electronic money (AOEM)

> 5.0 7.30


CC.1 Minimum fee 10

£ thousand of annual income (AI) Fee (£/£ thousand or part thousand ofAI)

>250 0.102

CC.2 Minimum fee (£) 10

£ thousands of annual income (AI) Fee (£/£ thousand or part £ thousandof AI

>250 0.102

Notes

(1) The definitions of fee-blocks G5 and G10 under Part 2 and Part 2A of FEES 4 Annex 11R are modi-fied, for the purposes of FEES 7, so that they exclude the Bank of England, government departments,local authorities, municipal banks and the National Savings Bank.

(2) The definitions of those fee-blocks are further amended to exclude EEA firms and those whichhold a Part 4A permission.



7

Part 2

(1) This Part sets out the minimum money advice CFEB levyapplicable to the firms specified in (3) below.

(2) The minimum money advice CFEB levy payable by anyfirm referred to in (3) is £10.

(3) A firm is referred to in this paragraph if it falls within thefollowing activity groups: A.1; A.2; A.3 (excluding UKISPVs); A.4; A.5; A.7; A.9; A.10; A.12; A.13; A.14; A.18;A.19; G.3 and G.10.



7

Debt advice CFEB levy for the period from 1 April 2018 to 31 March2019

Part 1This table shows how the FCA links the regulated activities for which a firm has permission to activitygroups (fee-blocks). A firm can use the table to identify which fee-blocks it falls into based on itspermission for the purposes of the debt advice CFEB levy applicable to each activity group (fee-block).

Activity group Debt advice CFEB levy payer falls in the activitygroup if:

A.2 Home finance providers and administrators It falls under activity group A.2 as defined in Part1 of FEES 4 Annex 1AR.

CC.3 Consumer credit lending Its permission is in relation to the following regu-lated activities:

-entering into a regulated credit agreement aslender (article 60B(1) of the Regulated ActivitiesOrder);

-exercising, or having the right to exercise, thelender’s rights and duties under a regulatedcredit agreement (article 60B(2) of the RegulatedActivities Order);

which is carried on by way of business and re-lates to the following specified investments:

(a) a regulated credit agreement (excludinghigh-cost short-term credit, a home credit loanagreement and a bill of sale loan agreement);

(b) high-cost short-term credit;

(c) a home credit loan agreement;

(d) a bill of sale loan agreement.

Part 2

This table indicates the tariff base for each fee-block set out in Part 1. The tariff base in this Part is themeans by which the FCA measures the amount of business conducted by a firm for the purposes ofcalculating the debt advice CFEB levy payable to the FCA by that firm.

Activity group Tariff base

A.2 Home finance providers and administrators The sterling value of any residential loans to indi-viduals being the sum of gross unsecuritised andsecuritised balances (applying the definitions ofUnsecuritised balances and Securitised balancesset out in Section A: Balance Sheet of SUP 16 An-nex 19BG.)

CC.3 Consumer credit lending Value of lending in column A of data itemCCR003 reported by firms under SUP 16 Annex38AR, being the sum of data elements entered inrows:

- 1 Debt purchasing;



7

- 2 Hire purchase/conditional sale agreements;

- 3 Home credit loan agreements;

- 4 Bill of sale loan agreements;

- 5 Pawnbroking;

- 6 High-cost short-term credit;

- 11 Overdrafts;

- 12 Other running-account credit; and

- 8 Other lending

Notes

(1) The tariff base for authorised professional firms that do not submit data item CCR003 under SUP16 Annex 38AR is the same as set out above and should be reported to the FCA as required by FEES4.4.1R and FEES 4.4.2R. The valuation date is in accordance with the CC.3 valuation date in Part 3.

(2) The tariff base for an incoming EEA firm or an incoming Treaty firm is the same as set out abovebut limited to the regulated activities of the firm which are carried out in the United Kingdom, ex-cept those provided on a cross border services basis, and should be reported to the FCA as requiredby FEES 4.4.1R and FEES 4.4.2R. The valuation date is in accordance with the CC.3 valuation date in Part3.

Part 3

This table indicates the valuation date for each fee-block. A firm can calculate its tariff data in respectof the debt advice CFEB levy payable to the FCA by that firm.


A.2 Home finance providers and administrators The 31 December before the start of the periodto which the fee applies or, if earlier, the date ofthe valuation as disclosed by the annual returnmade in the calendar year prior to the 31December.

CC.3 Consumer credit lending Value of lending under Part 2 valued at the firm’saccounting reference date in the calendar yearending 31 December occurring before the start ofthe period to which the debt advice CFEB levyapplies.

Part 4

This table shows the tariff rates applicable to each of the fee-blocks set out in Part 1.

Activity group Debt advice CFEB levy payable

A.2 Home finance providers and Band width (£million of secured Fee (£/£m or part £m of securedadministrators debt) debt)

>0 21.13

CC.3 Consumer credit lending Band width (£million of value Fee (£/£m or part £m of valueof lending) of lending)

>0 (Note 1) 109.96

Note

(1) Credit unions and community finance organisations do not pay any debt advice CFEB levy on thefirst £2,000,000 of value of lending.


Fees Manual

Chapter 7A

SFGB levies

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES 7A/1

FEES 7A : SFGB levies Section 7A.1 : Application and Purpose

7A

R7A.1.1

R7A.1.2

G7A.1.3

G7A.1.4

■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES 7A/2

7A.1 Application and Purpose

Application......................................................................................................This chapter applies to the persons listed in:

(1) ■ FEES 1.1.2R(5) in relation to the SFGB money advice levy and SFGBdebt advice levy; and

(2) ■ FEES 7A.1.2R in relation to the SFGB pensions guidance levy.

The SFGB pensions guidance levy applies to a firm that:

(1) (a) has a Part 4A Permission; or

(b) is an incoming EEA firm with a branch in the United Kingdom; or

(c) is an incoming Treaty firm with a branch in the United Kingdom;and

(2) falls within one or more of the following activity groups listed in Part1 of ■ FEES 4 Annex 1AR:

(a) A.1 Deposit acceptors;

(b) A.4 Insurers – life;

(c) A.7 Portfolio managers except Class (1)A firms;

(d) A.9 Managers and depositaries of investment funds, andoperators of collective investment schemes or pension schemes;and

(e) A.13 Advisors, arrangers, dealers or brokers.

Purpose......................................................................................................The purpose of this chapter is to set out the requirements on the personslisted in ■ FEES 7A.1.1R to fund the Secretary of State costs relating to theSFGB, and the related FCA collection costs.

Background......................................................................................................Under section 137SA(1) (Rules to recover expenses relating to the singlefinancial guidance body) of the Act, the Secretary of State may, from time totime, notify the FCA of the expenses incurred, or expected to be incurred, inconnection with the operation of the SFGB or under section 12 of the

FEES 7A : SFGB levies Section 7A.1 : Application and Purpose

7A

G7A.1.5

G7A.1.6

G7A.1.7

G7A.1.8

R7A.1.9


Financial Guidance and Claims Act 2018. Expenses arise under section 12when the Secretary of State:

(1) pays grants or makes loans, or gives any other form of financialassistance, to meet expenditure in connection with the establishmentof the SFGB; and

(2) pays grants or makes loans, or gives any other form of financialassistance, to the SFGB for the purpose of enabling the SFGB to carryout its functions.

When the Secretary of State has notified the FCA under section 137SA(1) ,under subsections (2) and (3) the FCA must make rules requiring authorisedpersons, electronic money issuers or payment service providers (or anyspecified class of the same) to pay specified sums, or sums calculated in aspecified way to the FCA with a view to recovering:

(1) the amount notified by the Secretary of State; and

(2) expenses incurred by the FCA in connection with its functions undersection 137SA of the Act.

This chapter contains the rules referred to in ■ FEES 7A.1.4G(2).

Under section 137SA(8) of the Act, the FCA must pay to the Secretary ofState the amounts that it receives pursuant to the rules in this chapter, apartfrom amounts covering its collection costs (which the FCA may keep).

The total amount raised by the SFGB levy may vary from year to yeardepending on the amount notified to the FCA by the Secretary of State.

Exemption......................................................................................................A firm is not liable to pay a SFGB levy in relation to payment services orelectronic money issuance if it is the Bank of England, a governmentdepartment, a local authority, a municipal bank or the National SavingsBank.

FEES 7A : SFGB levies Section 7A.2 : The SFGB levy

7A

R7A.2.1


7A.2 The SFGB levy

The SFGB levy is made up of:

(1) the SFGB money advice levy, as set out in ■ FEES 7A.3;

(2) the SFGB debt advice levy, as set out in ■ FEES 7A.3; and

(3) the SFGB pensions guidance levy, as set out in ■ FEES 7A.4.

FEES 7A : SFGB levies Section 7A.3 : The SFGB money advice levyand debt advice levy

7A

R7A.3.1

R7A.3.2

R7A.3.3


7A.3 The SFGB money advice levy anddebt advice levy

Obligation to pay money advice levy or debt advice levy......................................................................................................A firm must pay the SFGB money advice levy or SFGB debt advice levyapplicable to it:


(2) in accordance with the provisions of ■ FEES 4.3.6R as modified by■ FEES 7A.3.2R.

(1) For the purposes of ■ FEES 7A.3.1R(2), ■ FEES 4.3.6R(1C) to (1E) ismodified so that if a firm’s periodic fee for the previous financial yearwere at least £50,000, the firm must pay:

(a) an amount equal to 50% of the SFGB money advice or SFGB debtadvice levy payable for the previous year, by 1 April in thefinancial year to which the sum due under ■ FEES 7A.3.1R relates;and

(b) the balance of the SFGB money advice levy or SFGB debt advicelevy due for the current financial year by 1 September in thefinancial year to which that sum relates.

(2) For the purposes of ■ FEES 7A.3.1R(2), ■ FEES 4.3.6R(2) is modified so thatif the firm’s periodic fee for the previous financial year was less than£50,000, the firm must pay its SFGB money advice levy or SFGB debtadvice levy in full by 1 July in the financial year to which that sumrelates.

Calculation of the money advice levy and debt advice levy......................................................................................................The SFGB money advice levy and SFGB debt advice levy are each calculated asfollows:

(1) identify each of the activity groups set out in Part 1 of■ FEES 7A Annex 1R and Part 1 of ■ FEES 7A Annex 2R that apply to thebusiness of the firm for the relevant period (for this purpose, theactivity groups under ■ FEES 7A Annex 1R are defined in accordancewith Part 1 of ■ FEES 4 Annex 1AR and the activity groups under■ FEES 7A Annex 2R are defined in accordance with Part 1 of thatAnnex);


7A

R7A.3.4

R7A.3.5


(2) calculate, for each of those activity groups identified in (1), theamount payable in the way set out in ■ FEES 7A.3.4R;

(3) add each of the amounts calculated under (2);

(4) work out whether a minimum fee is payable under Part 2 of■ FEES 7A Annex 1R and if so how much;


(6) modify the result as indicated by (if applicable) ■ FEES 4.2.7ER,■ FEES 4.2.7FR, ■ FEES 4.2.7GR, ■ FEES 4.2.7HR, ■ FEES 4.2.7IR, ■ FEES 4.2.7JGand ■ FEES 4.2.7KR;

(7) apply any applicable payment charge specified in ■ FEES 4.2.4R to theamount in (6), provided that:


(b) for payment by credit transfer, the amount due is received by theFCA on or before the due date; and

(8) make the calculations using information obtained in accordance with■ FEES 4.4 in the case of ■ FEES 7A Annex 1R and Part 3 of■ FEES 7A Annex 2R in the case of Part 2 of that Annex.


(1) calculate the size of the firm’s tariff base for that activity group using:

(a) the tariff base calculations in Part 3 of ■ FEES 4 Annex 1AR, Part 3of ■ FEES 4 Annex 11 and Part 2 of ■ FEES 7A Annex 2R; and

(b) the valuation date requirements in Part 5 of ■ FEES 4 Annex 1AR,Part 3 of ■ FEES 4 Annex 11R and Part 3 of ■ FEES 7A Annex 2;

(2) use the figure in (1) to calculate which of the bands set out in thetable in Part 1 of ■ FEES 7A Annex 1R and Part 4 of ■ FEES 7A Annex 2Rthe firm falls into;

(3) add together the fixed sums, as set out in the table in Part 1 of■ FEES 7A Annex 1R and Part 4 of ■ FEES 7A Annex 2R, applicable to eachband identified under (2);

(4) the amount in (3) is the amount payable by the firm with respect tothat activity group.

For the purposes of ■ FEES 7A.3.4R:

(1) a firm may apply the relevant tariff bases and rates to its non-UKbusiness, as well as to its UK business, if:

(a) it has reasonable grounds for believing that the costs ofidentifying the firm’s UK business separately from its non-UKbusiness in the way described in Part 3 of ■ FEES 4 Annex 1AR and


7A

R7A.3.6

R7A.3.7

G7A.3.8

R7A.3.9

R7A.3.10


Part 1 of ■ FEES 4 Annex 11R are disproportionate to the differencein fees payable; and

(b) it notifies the FCA in writing at the same time as it provides theinformation concerned under ■ FEES 4.4 (Information on whichfees are calculated), or, if earlier, at the time it pays the feesconcerned;

(2) for a firm which has not complied with ■ FEES 4.4.2R (information onwhich fees are calculated) or ■ FEES 4.4.8D (Information relating topayment services and the issuance of electronic money) for thisperiod, the SFGB money advice levy and SFGB debt advice levy iscalculated using (where relevant) the valuation or valuations ofbusiness applicable to the previous period, multiplied by the factor of1.10.

The modifications in Part 3 of ■ FEES 4 Annex 2AR and Part 7 of■ FEES 4 Annex 11R apply.

Amount payable by the Society of Lloyds......................................................................................................The SFGB money advice levy in relation to the Society is specified against itsactivity group in Part 1 of ■ FEES 7A Annex 1R.

FEES 4 rules incorporated into FEES 7A by cross-reference......................................................................................................The FCA Handbook provisions relating to the SFGB money advice levy andSFGB debt advice levy are meant to follow closely the provisions relating tothe payment of periodic fees under ■ FEES 4.3.1R. For brevity, not all of theseprovisions are set out again in ■ FEES 7A. In some cases, certain ■ FEES 4 rulesare applied to the payment of the SFGB money advice levy and SFGB debtadvice levy by individual rules in ■ FEES 7A. The rest are set out in the table in■ FEES 7A.3.10R.

The rules set out in the table in ■ FEES 7A.3.10R and any other rules in ■ FEES 4included in ■ FEES 7A by cross-reference apply to the SFGB money advice levyand SFGB debt advice levy in the same way as they apply to periodic feespayable under ■ FEES 4.3.1R.

Table of rules in FEES 4 that also apply to FEES 7A to the extent that in FEES4 they apply to fees payable to the FCA

FEES 4 rules incorp-orated into FEES

7A Description

FEES 4.2.4R Method of payment

FEES 4.2.7ER Modifications for persons becoming subject to peri-odic fees during the course of a fee year

FEES 4.2.7FR Calculating the fee in the firm’s first year of au-thorisation

FEES 4.2.7GR Calculating fees in the second fee-year where the firmreceived permission between 1 January and 31 Marchin its first fee year


7A

D7A.3.11

R7A.3.12

G7A.3.13

G7A.3.14


FEES 4 rules incorp-orated into FEES

7A Description

FEES 4.2.7HR to FEES Calculating all other fees in the second and sub-4.2.7KR sequent years of authorisation where a full year of tar-

iff data is not available

FEES 4.2.8R How FEES 4.2.7R applies in relation to an incomingEEA firm or an incoming Treaty firm

FEES 4.2.10R Extension of time

FEES 4.2.11R (first Due date and changes in permission for periodic feesentry only)

FEES 4.3.7R Groups of firms

FEES 4.3.13R Firms applying to cancel or vary permission beforestart of period

FEES 4.3.17R Firms acquiring businesses from other firms

FEES 4.4.1R to FEES Information on which fees are calculated4.4.6R

■ FEES 4.4.7D to ■ FEES 4.4.9D (Information relating to payment services andthe issuance of electronic money) also apply to ■ FEES 7A.

References in a ■ FEES 4 rule incorporated into ■ FEES 7A by cross-reference toa periodic fee should be read as being to the SFGB money advice levy andSFGB debt advice levy. References in a ■ FEES 4 rule incorporated into■ FEES 7A to market operators, service companies, MTF operators, investmentexchanges, or designated professional bodies should be disregarded.

In some cases, a ■ FEES 4 rule incorporated into ■ FEES 7A in the manner setout in ■ FEES 7A.3.8G will refer to another rule in ■ FEES 4 that has not beenindividually incorporated into ■ FEES 7A. Such a reference should be read asbeing to the corresponding provision in ■ FEES 7A. The main examples are setout in ■ FEES 7A.3.14G.

Table of FEES 4 rules that correspond to FEES 7A rules

FEES 4 rules Corresponding FEES 7A rules

FEES 4.2.1R FEES 7A.3.1R



FEES 4.3.3AR FEES 7A.3.3R


FEES 4.3.12AR FEES 7A.3.6R

Part 1 of FEES 4 An- Part 1 of FEES 7A Annex 1Rnex 2AR

Part 2 of FEES 4 An- Part 1 of FEES 7A Annex 1Rnex 11R

Part 5 of FEES 4 An- Part 1 of FEES 7A Annex 1Rnex 11R

FEES 7A : SFGB levies Section 7A.4 : The SFGB pensions guidanceadvice levy

7A

R7A.4.1

R7A.4.2

R7A.4.3


7A.4 The SFGB pensions guidanceadvice levy

Obligation to pay SFGB pensions guidance levy......................................................................................................A firm must pay the SFGB pensions guidance levy applicable to it:


(2) in accordance with the rules in this section.

Calculation of SFGB pensions guidance levy......................................................................................................The SFGB pensions guidance levy applicable to a particular firm is calculatedas follows:

(1) identify each of the activity groups in ■ FEES 7A.1.2R(2) that apply tothe business of the firm for the relevant period;

(2) calculate the amount payable under ■ FEES 7A.4.3R for each of thoseactivity groups;

(3) modify the result in accordance with, if applicable, ■ FEES 7A.4.4R; and

(4) apply any payment charge in ■ FEES 4.2.4R.

The amount payable for a particular activity group is calculated as follows:

calculate the size of the firm’s tariff base for the activity groupusing:

(i) the tariff base calculations in Part 3 of ■ FEES 4 Annex 1AR; and

(ii) the valuation date requirements in Part 5 of■ FEES 4 Annex 1AR;

exclude best estimate liabilities for fees purposes in thecalculation for fee-block A4;

use the figure in (1) to calculate the levy applicable for each band in■ FEES 7A Annex 3R;

add together the sums for each applicable band under (2);

the amount in (3) is the amount payable by the firm for that activitygroup.


7A

R7A.4.4

R7A.4.5

R7A.4.6

R7A.4.7

G7A.4.8

R7A.4.9

R7A.4.10

R7A.4.11


For the first fee year during which ■ FEES 7A.4.2R applies to a firm’spermission to carry on a regulated activity, the SFGB pensions guidance levyapplicable to that permission must be modified using the formula in■ FEES 4.2.6R.

For ■ FEES 7A.4.3R, a firm may apply the relevant tariff bases and rates to itsnon-UK business, as well as to its UK business, if:

(1) it has reasonable grounds for believing that the cost of identifyingthe firm’s UK business separately from its non-UK business isdisproportionate to the difference in the SFGB pensions guidance levypayable by it; and

(2) it notifies the FCA in writing:

(a) at the same time as it provides the information concerned under■ FEES 4.4 (Information on which fees are calculated); or

(b) if earlier, at the time it pays the SFGB pensions guidance levyapplicable to it.

The SFGB pensions guidance levy is calculated using the same informationthat is used to calculate a firm’s periodic fee under ■ FEES 4.

Where a firm which has not complied with ■ FEES 4.4.2R (information onwhich fees are calculated) in relation to a particular fee year the SFGBpensions guidance levy for that firm for that fee year is calculated using(where relevant) the valuation(s) of business used to calculate the SFGBpensions guidance levy for that firm for the previous fee year, multiplied bythe factor of 1.10.

Application of FEES 4 to the SFGB pensions guidance levy......................................................................................................(1) The FCA Handbook provisions relating to the SFGB pensions guidance

levy are meant to follow closely the provisions relating to thepayment of periodic fees payable by an authorised person under■ FEES 4.

(2) As such, the table in ■ FEES 7A.4.11R lists rules in ■ FEES 4 that alsoapply, in a modified form, to the SFGB pensions guidance levy.

The rules in the table in ■ FEES 7A.4.11R and any other rules in FEES includedin ■ FEES 7A.4 by cross-reference apply to the SFGB pensions guidance levy inthe same way as they apply to periodic fees payable under ■ FEES 4.

A reference to a periodic fee in a ■ FEES 4 rule incorporated into ■ FEES 7A.4must be read, for the purposes of applying that rule to the SFGB pensionsguidance levy, as a reference to the SFGB pensions guidance levy.

Table of rules in FEES 4 that also apply in FEES 7A.4.


7A


FEES 4 in-corporated

into FEES 10 Description Modifications

FEES 4.2.4R Method of payment None

FEES 4.2.7ER Modifications for persons Nonebecoming subject to peri-odic fees during the courseof a fee year

FEES 4.2.7FR Calculating the fee in the Nonefirm’s first year of au-thorisation

FEES 4.2.7GR Calculating fees in the se- Nonecond fee year where thefirm received permission be-tween 1 January and 31March in its first fee year

FEES 4.2.7HR Calculating all other fees in Noneto FEES the second and subsequent4.2.7KR years of authorisation

where a full year of tariffdata is not available

FEES 4.2.8R How FEES 4.2.7R applies to Nonean incoming EEA firm or anincoming Treaty firm

FEES 4.2.9R Fee payers ceasing to hold Reference to column (1) of therelevant status or reducing table in FEES 4.2.11R is a refer-the scope of their permis- ence to FEES 7A.1.3Gsion after start of relevantperiod

FEES 4.3.7R Groups of firms Reference to FEES 4.2.1R is a ref-erence to FEES 7A.4.1R

FEES 4.3.13R Firms applying to cancel or Reference to FEES 4.2.1R is a ref-vary permission before start erence to FEES 7A.4.1Rof period

FEES 4.3.17R Firms applying to cancel or Reference to FEES 4.2.7ER tovary permission before start FEES 4.2.7KR is a reference toof period FEES 7A.4.4R

Reference to FEES 4.2.1R is areference to FEES 7A.4.1R

FEES 4.4.1R to Information on which fees NoneFEES 4.4.6R are calculated


7A


FEES 7A : SFGB levies Annex 1

7A

SFGB money advice levy for the period from 1 April 2018 to 31 March2019

Part 1This table shows the SFGB money advice levy applicable to each activity group (fee-block).

Activity group SFGB money advice levy payable

A.1 Band Width (£ Fee (£/£m or part £m of MELs)million of Modi-fied Eligible Li-abilities (MELs))

>10 0.0565

A.2 Band Width (no. Fee (£/mortgage)of mortgagesand/or homefinancetransactions)

>50 0.0217

A.3 Gross writtenpremium forfees purposes(GWP

Band Width (£ Fee (£/£m or part £m of GWP)million of GWP)

>0.5 1.142

PLUS

Best estimate li-abilities for feespurposes (BEL)

Band Width (£ Fee (£/£m of part £m of BEL)million of BEL)

>1 0.0626

A.4 Gross writtenpremium forfees purposes(GWP)

Band Width (£ Fee (£/£m or part £m of GWP)million of GWP)

>1 0.748

PLUS

Best estimate li-abilities for feespurposes (BEL)

Band Width (£ Fee (£/£m or part £m of BEL)million of BEL)

>1 0.0235

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES 7A Annex 1/1


7A


A.5 Band Width (£ Fee (£/£m or part £m of AC)million of ActiveCapacity (AC))

>50 0.0000

A.6 Flat levy 0.0000

A.7 For class 1(c),(2),(3) and (4) firms

Band Width (£ Fee (£/£m of part £m of FuM)million of Fundsunder Man-agement (FuM))

>10 0.0059

For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%.

For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.

Class 1(A), (B) and (C) firms are defined in FEES 4 Annex 1AR.

A.9 Band Width (£ Fee (£/£m of part £m of GI)million of GrossIncome (GI))

>1 3.376

A.10 Band Width (no. Fee (£/trader)of traders)

>1 5.418

A.13 For class (2) firms

Band Width (£ Fee (£/£ thousand or part £ thousand of AI)thousands of an-nual income(AI))

>100 0.0027

For a professional firm in A.13 the fee is calculated as above less 10%.

A.14 Band Width (£ Fee (£/£ thousand or part £ thousand of AI)thousands of an-nual income(AI))

>100 0.0012

A.18 Band Width (£ Fee ((£/£ thousand or part £ thousand of AI)thousands ofAnnual Income(AI))

>100 0.0077

A.19 Band Width (£ Fee (£/£ thousand or part £ thousand of AI)thousands ofAnnual Income(AI))

>100 0.0014

A.21 Band Width (£ Fee (£/£ millions or part £m of CM)client money)(CM) held

less than £1 0.08million

■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES 7A Annex 1/2


7A


an amount 0.06equal to orgreater than £1million but lessthan or equal to£1 billion

more than £1 0.04billion

PLUS

Safe custodyassets

Band Width (£ Fee (£/£ millions or part £m of CA)safe custody as-sets) (CA) held

less than £10 0.00029million

an amount 0.00022equal to orgreater than£10 million andless than orequal to £100billion

more than £100 0.00015billion

G.3 Minimum fee 0(£)

£ thousands or Fee (£/£thousand or part £ thousand of Relevant Income)part £ thousandof RelevantIncome

>100 0.0012

G.4 Flat fee (£) 0

G.10 Minimum fee 0(£)

£ million or part Fee (£/£m or part £m of AOEM)£m of averageoutstandingelectronicmoney (AOEM)

>5.0 0.3000


CC.1 Minimum fee 0(£)

£ thousand of Fee (£/£ thousand or part £ thousand of AI)annual income(AI

>250 0.0046

CC.2 Minimum fee 0(£)



7A


£ thousands of Fee (£/£ thousand or part £ thousand of AIannual income(AI)

>250 0.0046

Notes

(1) The definitions of fee-blocks G5 and G10 under Part 2 and Part 2A of FEES 4 Annex 11R are modi-fied, for the purposes of FEES 7A so that they exclude the Bank of England, government departments,local authorities, municipal banks and the National Savings Bank.

(2) The definitions of those fee-blocks are further amended to exclude EEA firms and those whichhold a Part 4A permission.



7A

SFGB debt advice levy for the period from 1 April 2018 to 31 March2019

Part 1This table shows how the FCA links the regulated activities for which a firm has permission to activitygroups (fee-blocks). A firm can use the table to identify which fee-blocks it falls into based on itspermission for the purposes of the SFGB debt advice levy applicable to each activity group (fee-block).

Activity group SFGB debt advice levy payer falls in the activity group if:

A.2 Home finance pro- It falls under activity group A.2 as defined in Part 1 of FEES 4 Annex 1AR.viders and admin-istrators

CC.3 Consumer credit Its permission is in relation to the following regulated activities:lending

-entering into a regulated credit agreement as lender (article 60B(1) of theRegulated Activities Order);

-exercising, or having the right to exercise, the lender’s rights and duties un-der a regulated credit agreement (article 60B(2) of the Regulated ActivitiesOrder);

which is carried on by way of business and relates to the following speci-fied investments:

(a) a regulated credit agreement (excluding high-cost short-term credit, ahome credit loan agreement and a bill of sale loan agreement);

(b) high-cost short-term credit;

(c) a home credit loan agreement;

(d) a bill of sale loan agreement.

Part 2

Activity group Tariff base

A.2 Home fin- The sterling value of any residential loans to individuals being the sum of gross un-ance providers securitised and securitised balances (applying the definitions of Unsecuritised bal-and admin- ances and Securitised balances set out in Section A: Balance Sheet of SUP 16 Annexistrators 19BG.)

CC.3 Consumer Value of lending in column A of data item CCR003 reported by firms under SUPcredit lending 16 Annex 38AR, being the sum of data elements entered in rows:

- 1 Debt purchasing;

- 2 Hire purchase/conditional sale agreements;

- 3 Home credit loan agreements;

- 4 Bill of sale loan agreements;

- 5 Pawnbroking;

- 6 High-cost short-term credit;

- 11 Overdrafts;

- 12 Other running-account credit; and

- 8 Other lending.



7A

Notes

(1) The tariff base for authorised professional firms that do not submit data item CCR003 under SUP16 Annex 38AR is the same as set out above and should be reported to the FCA as required by FEES4.4.1R and FEES 4.4.2R. The valuation date is in accordance with the CC.3 valuation date in Part 3.

(2) The tariff base for an incoming EEA firm or an incoming Treaty firm is the same as set out abovebut limited to the regulated activities of the firm which are carried out in the United Kingdom, ex-cept those provided on a cross border services basis, and should be reported to the FCA as requiredby FEES 4.4.1R and FEES 4.4.2R. The valuation date is in accordance with the CC.3 valuation date inPart 3.

Part 3

This table indicates the valuation date for each fee-block. A firm can calculate its tariff data in respectof the SFGB debt advice levy payable to the FCA by that firm.


A.2 Home finance pro- The 31 December before the start of the period to which the fee appliesviders and administrators or, if earlier, the date of the valuation as disclosed by the annual return

made in the calendar year prior to the 31 December.

CC.3 Consumer credit Value of lending under Part 2 valued at the firm’s accounting referencelending date in the calendar year ending 31 December occurring before the start

of the period to which the SFGB debt advice levy applies.

Part 4

This table shows the tariff rates applicable to each of the fee-blocks set out in Part 1

Activity group SFGB debt advice levy payable

A.2 Home finance Band width (£mil- Fee (£/£m or part £m of secured debt)providers and ad- lion of secured

0.766ministrators debt)

>0

CC.3 Consumer Band width (£mil- Fee (£/£m or part £m of value of lending)credit lending lion of value of

3.985lending)

>0 (Note 1)

Note

(1) Credit unions and community finance organisations do not pay any SFGB debt advice levy on thefirst £2,000,000 of value of lending.



7A

SFGB pensions guidance levy for the period 1 April 2018 to 31 March2019

Activity group SFGB pensions guidance levy payable

A.1 Band width (£ million of modified Fee (£/£m or part £m of MELS)eligible liabilities (MELs)) >10

0.0456

A.4 A.4 Fee (£/£m or part £m of GWP)

1.1920

A.7 For class 1(B), 1 (C), (2) and (3) Fee (£/£m or part £m of FuM)firms:

0.0175Band width (£ million of funds un-der management (FuM))

>10

A.9 Band width (£ million of gross in- Fee (£/£m or part £m of GI)come (GI))

6.9225>1

A.13 Band width (£ thousands of an- Fee (£/£ thousand or part of £ thousand ofnual income (AI)) AI)

>100 0.0025



7A


Fees Manual

Chapter 8

Interim Fees


FEES 8 : Interim Fees Section 8.1 : Consumer Credit permissions

8

R8.1.1


8.1 Consumer Credit permissions

(1) A person who notifies the FCA of a desire to obtain interimpermission in accordance with article 56 (Interim permission) of theFinancial Services and Markets Act 2000 (Regulated Activities)(Amendment) (No 2) Order 2013 must pay to the FCA, in full andwithout deduction, a fee of :

(a) where the person is a sole trader:

(i) if the notification is made on or before 30 November 2013,£105; or

(ii) £150;

(b) in any other case:

(i) if the notification is made on or before 30 November 2013,£245; or

(ii) £350.

(2) Paragraph (1) does not apply if, immediately before 1 April 2014, theperson held a standard licence under the Consumer Credit Act 1974which covered only the carrying on of:

(a) non-commercial debt counselling; or

(b) non-commercial debt counselling and non-commercial debtadjusting; or

(c) non-commercial debt counselling and non-commercial creditinformation services (including non-commercial credit repair); or

(d) non-commercial debt counselling, non-commercial debt adjustingand non-commercial credit information services (including non-commercial credit repair);

and which did not cover any other description or type of business.

(3) Paragraph (1) does not apply if the person is a credit union.

(4) Unless (5) or (6) applies, the fee required by (1) must be paid throughthe online system used to notify the FCA of the person's desire toobtain interim permission and must be paid by debit card (Maestro/Visa only) or credit card (Visa/Mastercard only).

(5) If the person is a local authority, the fee required by (1) must be paidby debit card (Maestro/Visa only), credit card (Visa/Mastercard only),bankers draft, cheque, or other payable order.





8

R8.1.2

R8.1.3

R8.1.4


(6) If it appears to the FCA that, in the exceptional circumstances of aparticular case, payment via the online system referred to in (3)would be inequitable, the FCA may allow payment of the feerequired by (1) by bankers draft, cheque or other payable order.

(7) The fee required by (1) must be paid when the person notifies theFCA of a desire to obtain interim permission.

(8) This rule applies from 2 September 2013 until (and including) 14 April2014.

The Fees manual does not apply in respect of the fee provided for in■ FEES 8.1.1R (1), except for the rules and guidance in ■ FEES 2.3 and ■ FEES 8.1.

Local authority interim permission......................................................................................................(1) A local authority which notifies the FCA of a desire to obtain interim

permission in accordance with article 56 (Interim permission) of theFinancial Services and Markets Act 2000 (Regulated Activities)(Amendment) (No 2) Order 2013 must pay to the FCA, in full andwithout deduction, a fee of £350.

(2) The fee required by (1) must be paid by debit card (Maestro/Visaonly), credit card (Visa/Mastercard only), bankers draft, cheque, orother payable order.

(3) The fee required by (1) must be paid when the local authority notifiesthe FCA of a desire to obtain interim permission.

(4) This rule applies from (and including) 27 June 2014 until (andincluding) 30 September 2014.

The Fees manual does not apply in respect of the fee provided in■ FEES 8.1.3R (1), except for ■ FEES 8.1.3 R and ■ FEES 8.1.4 R.




8


Fees Manual

Chapter 9

Payment Systems Regulatorfunding


FEES 9 : Payment Systems Section 9.1 : Application and purposeRegulator funding

9

R9.1.1

G9.1.2

G9.1.3

G9.1.4


9.1 Application and purpose

Application......................................................................................................This chapter applies to:

(1) operators of regulated payment systems;

(2) operators of IFR card payment systems; and

(3) direct payment service providers.

Purpose......................................................................................................This chapter sets out the fee payable by PSR fee payers will be calculated, toestablish and fund the PSR.

Introduction......................................................................................................Section 40(1) of FSBRA (The Payment Systems Regulator) requires the FCA toestablish the PSR.

(1) Paragraph 9 of Schedule 4 of FSBRA and the 2015 InterchangeRegulations applying FSBRA in a modified form and the PaymentServices Regulations applying FSBRA in a modified form allow theFCA to make rules requiring participants in regulated paymentsystems and IFR card payment systems to pay the FCA specifiedamounts or amounts calculated in a specified way to:

(a) meet the relevant costs referred to in (2) below; and

(b) enable the PSR to maintain adequate reserves.

(1A) [deleted]

(2) The relevant costs in (1)(a) means:

(a) the expenses incurred, or expected to be incurred, by the PSR inconnection with the discharge of its functions;

(b) the expenses incurred by the FCA in establishing the PSR;

(c) any other expenses incurred by the FCA in connection with thedischarge of its functions under Part 5 of FSBRA; and

(d) any expenses incurred, or expected to be incurred, by the FCA inconnection with the discharge of the PSR's functions by an officer

FEES 9 : Payment Systems Section 9.1 : Application and purposeRegulator funding

9

G9.1.5

G9.1.6

G9.1.7

G9.1.8


or member of staff of the FCA under arrangements made underparagraph 5 of Schedule 4 of FSBRA.

(3) The amounts in (1) may include the expenses of the FCA in collectingPSR fees.

■ FEES 9 sets out the rules referred to in ■ FEES 9.1.4 G

The FCA must pay to the PSR the amounts that it receives as PSR fees, apartfrom the following amounts (which it may keep):

(1) expenses under ■ FEES 9.1.4G (2)(b) to ■ (d); and

(2) collection costs, referred to in ■ FEES 9.1.4G (3).

Publication of fees information......................................................................................................(1) Paragraph 4(1) of Schedule 4 of FSBRA requires the PSR to adopt an

annual budget which has been approved by the FCA.

(2) Paragraph 6(1) of Schedule 4 of FSBRA requires the PSR to prepare anannual plan which has been approved by the FCA.

(1) PSR fees will vary from year to year, depending on the PSR’s AFR andthe transaction volumes and transaction values in the relevant timeperiod.

(2) The PSR will publish each year the PSR’s AFR along with the totaltransaction volumes and transaction values for the relevant timeperiod to enable PSR fee payers to apply the methodology in■ FEES 9 Annex 1R if they wish.

(3) [deleted]

FEES 9 : Payment Systems Section 9.2 : PSR feesRegulator funding

9

R9.2.1

R9.2.1A

R9.2.1B


9.2 PSR fees

Obligation to pay PSR fees......................................................................................................A PSR fee payer must pay to the FCA the PSR fees applicable to it andcalculated by the FCA in accordance with ■ FEES 9 Annex 1 R:


(2) in accordance with this chapter, subject to:

(a) ■ FEES 9.2.1AR;

(b) ■ FEES 9.2.1CR; and

(c) ■ FEES 9.2.1DR.

(1) A PSR fee payer is not required to pay any PSR fee in accordance with■ FEES 9.2.1R where, in the opinion of the FCA and PSR, the costs ofcollection would be disproportionate to the amount payable.

(2) If (1) applies in any given fee year, the transaction volumes andtransaction values attributable to that PSR fee payer are not to beincluded in the sum of all PSR fee payers’ relevant transactions set outin columns 4 and 5 of the table in ■ FEES 9 Annex 1R for that fee year.

(3) [deleted]

(1) If a payment service provider (A) acquires all or part of the businessof another payment service provider which includes transactionvolumes (B), whether by merger, acquisition or transfer, during thecourse of a fee year, the liability for paying the PSR fee in thefollowing fee year in relation to B shall rest with A.


9

R9.2.1C

R9.2.1D

R9.2.1E

R9.2.1F

G9.2.1G

R9.2.2

R9.2.2A

R9.2.2B

R9.2.3

R9.2.3A

R9.2.3B


(2) ■ FEES 9.2.1BR(1) also applies when the business acquired, transferredor merged is not a legal entity but is an unincorporated business, or isin the form of assets and/or contracts.

An operator acting as a PSR fee payer must pay the entire PSR fee for therelevant card payment system or IFR card payment system for that fee year.

Where ■ FEES 9.2.1CR applies, no other acquirers or card issuers are requiredto pay any PSR fee for that card payment system or IFR card payment systemin accordance with ■ FEES 9.2.1R.

[deleted]

[deleted]

[deleted]

Time of payment......................................................................................................PSR fee payers falling within the scope of ■ FEES 4.3.6R(1C) – (1E) must pay tothe FCA:

(1) an amount equal to 50% of the PSR fee payable for the previous feeyear, by 1 April in the current fee year or, if later, within 30 days ofthe date of the invoice; and

(2) the balance of the PSR fee due by 1 September in the current feeyear or, if later, within 30 days of the date of the invoice.

[deleted]

[deleted]

If ■ FEES 9.2.2R does not apply, the PSR fee payer must pay its PSR fee in fullto the FCA:

(1) by 1 August in the current fee year; or

(2) if later, within 30 days of the date of the invoice.

[deleted]

[deleted]


9

G9.2.4

R9.2.4A

R9.2.4B

R9.2.4C

R9.2.4D

G9.2.4E

G9.2.4F


Method of payment......................................................................................................A PSR fee payer should pay its fees to the FCA by direct debit, electroniccredit transfer, cheque, Maestro, Visa Debit or by credit card (Visa/MasterCard only).

[deleted]

[deleted]

[deleted]

Provision of information......................................................................................................(1) The operator of a regulated payment system or IFR card payment

system must provide to the FCA and PSR, for each of its directpayment service providers (and for itself, where it is an operatoracting as an acquirer or card issuer):

(a) a copy of the data setting out the transaction volumes andtransaction values required by the FCA to calculate the PSR feesas set out in ■ FEES 9 Annex 1R; and

(b) the following information (which is either in the operator’spossession or to which it has reasonable access) to enable and/orassist the FCA to issue invoices to PSR fee payers and/or collectPSR fees:

(i) telephone and/or e-mail contact information (includingnamed point of contact);

(ii) billing address;

(iii) FCA firm reference number (where applicable);

(iv) company name, registered address and company number;and

(v) any other information which in the opinion of the operatorwould assist the FCA in issuing invoices to the relevant PSRfee payers within the operator’s regulated payment system orIFR card payment system.

(2) The operator of a regulated payment system or IFR card paymentsystem must:

(a) provide the information in (1) to the PSR and FCA as soon aspracticable, but no later than 1 March each year; and

(b) provide such other data to the FCA and PSR on request to enablethe individual PSR fees to be verified.

(3) [deleted]

[deleted]

[deleted]


9

G9.2.4G

G9.2.5

R9.2.6

R9.2.6A

R9.2.7


The FCA will use the data provided by the relevant operators in ■ FEES 9.2.4DRto calculate the PSR fees. Before being submitted to the FCA, if requested bya PSR fee payer, the operator should confirm with the relevant PSR fee payerthe accuracy of the data it proposes to submit. In the event of a disputeraised by a PSR fee payer over the accuracy of the data provided to the FCA,the FCA will continue to use the data as originally provided. Any laterdispute should be directed to the relevant operator of the regulatedpayment system or IFR card payment system responsible for the provision ofthe data to the FCA.

Ceasing to be designated as a regulated payment system,ceasing to be a direct payment system provider of a regulatedpayment system or IFR card payment system, and ceasing tobe subject to the IFR......................................................................................................The FCA will not relieve or refund a PSR fee if after the start of that feeyear:

(1) a payment system ceases to be a regulated payment system; or

(2) an IFR card payment system ceases to be subject to the IFR; or

(3) a person ceases to be a direct payment service provider of a regulatedpayment system or an IFR card payment system.

If a payment system ceases to be a regulated payment system, or an IFR cardpayment system ceases to be subject to the IFR, all direct payment serviceproviders of that system, and the operator of that IFR card payment system,must pay any outstanding PSR fees before the system ceases to hold thatstatus.

If a person ceases to be:

(1) a direct payment service provider of a regulated payment system orof an IFR card payment system, it must pay any outstanding PSR feesin respect of that system, before it ceases to be a direct paymentsystem provider of the system; or

(2) the operator of a IFR card payment system, it must pay anyoutstanding PSR fees in respect of that system before it ceases to bethe operator of that IFR card payment system.

Late payments......................................................................................................If a PSR fee payer does not pay the total amount of its PSR fees before theend of the date on which it is due, it must pay to the FCA:


(2) interest on any unpaid part of the fee at an annual rate of 5% abovethe Official Bank Rate from time to time in force, accruing daily fromthe date on which the amount concerned became due.


9

G9.2.7A

G9.2.8

G9.2.9

G9.2.10

R9.2.11


(1) The FCA may recover a PSR fee as a debt owed to it under paragraph23 (8) of Schedule 1ZA of the Act.

(2) The FCA will consider taking action for the recovery (includinginterest) through the civil courts.

(3) In addition, the FCA or PSR may be entitled to take regulatory actionin relation to the non-payment of PSR fees. What action, if any, thatis taken by the FCA or PSR will be decided upon given the particularcircumstances of the case.

Reduction, remission and repayment of fees......................................................................................................The FCA may reduce or remit all or part of a PSR fee, if it appears to theFCA, having consulted the PSR, that in the exceptional circumstances of aparticular case paying all or part of it would be inequitable.

The FCA may refund all or part of a PSR fee if it appears to the FCA, havingconsulted the PSR, that in the exceptional circumstances of a particular casethe FCA or the PSR retaining all or part of it would be inequitable.

The FCA will not consider a claim to refund a PSR fee due to a mistake offact or law by the PSR fee payer if the claim is made more than two yearsafter the beginning of the fee year to which the fee relates.

VAT......................................................................................................PSR fees payable are stated net of VAT. Where VAT is applicable this mustalso be included.

FEES 9 : Payment Systems Annex 1Regulator funding

9

PSR fees methodology

The table below shows the methodology used by the FCA to determine the PSR fee applicable to PSRfee payers for each fee year.



9

Regulatedpaymentsystem or CalculationIFR card Relevant methodo-payment time logy forsystem Relevant period PSR fee

transactions Volume block (“Vo”) Value block (“Va”) payable(column (column

1) (column 2) 3) (column 4) (column 5) (column 6)

Bacs All transac- The full Fees alloc-tions pro- calendar ated to acessed year (1 PSR feethrough January payerthe BACS to 31 De-

=regulated cember)payment before its fees un-system. the start der the vol-Transac- of the rel- ume blocktions in- evant fee (Vo) + itsclude both year. fees underthe initi- the valueFor ex-ation of block (Va)amplethe trans-

thisfer of thewould befunds, and1 Januarythe receiptto 31 De-of trans-cemberferred2017 forfunds.the 2018/

C&C All transac- 2019 feetions pro- year.cessedthroughthe C&Cregulatedpaymentsystem.This in-cludes ‘inclearing’and ‘outclearing’transac-tions in pa-per clear-ing, andthe pay-ment andthe receiptof thetransfersof funds inimageclearing.



9




CHAPS All MT103and MT202transac-tions pro-cessedthroughthe CHAPSregulatedpaymentsystem.Transac-tions in-clude boththe initi-ation ofthe trans-fer of thefunds, andthe receiptof trans-ferredfunds.

FPS All transac-tions pro-cessedthroughthe FPSregulatedpaymentsystem.Transac-tions in-clude boththe initi-ation ofthe trans-fer offunds, andthe receiptof trans-ferredfunds.



9




LINK All transac-tionsissued andacquiredunder theLINKregulatedpaymentsystem, in-cludingGBP cashwith-drawals,foreigncurrencydispenses,balanceenquiries,PIN man-agement,charity do-nations,non-cashtransac-tions andmobilepaymenttransac-tions butexcluding‘on us’transac-tions. Bothissuing andacquiringtransac-tions aretaken intoaccount.



9




Mastercard All transac-tions by ac-quirersoperatingin theUnitedKingdomand trans-actions bycard issuersoperatingin theUnitedKingdomunder theMastercardregulatedpaymentsystem, in-cludingpoint ofsale trans-actions,merchantsales vol-umes, andcash pur-chasetransac-tions oncards, butexcludingcash-onlywith-drawals.All Mas-tercardbrandedtransac-tions areincludedirrespectiveof the pro-cessingentity(Mas-tercarditself, athird partyprocessingentity or‘on us’transac-tions).Both issu-ing and ac-quiringtransac-tions aretaken intoaccount.



9




NICC All transac-tions in-cluding ‘inclearing’and ‘outclearing’transac-tions forGBP, USDand EURprocessedthroughthe NICCregulatedpaymentsystem.



9




Visa All transac-tions by ac-quirersoperatingin theUnitedKingdomand trans-actions bycard issuersoperatingin theUnitedKingdomunder theVisa regu-lated pay-ment sys-tem, in-cludingpoint ofsale trans-actions,merchantsales vol-umes, andcash pur-chasetransac-tions oncards, butexcludingcash-onlywith-drawals.All Visabrandedtransac-tions areincludedirrespectiveof the pro-cessingentity (Visaitself, athird partyprocessingentity or‘on us’transac-tions).Both issu-ing and ac-quiringtransac-tions aretaken intoaccount.



9




AmEx All IFRtransac-Dinerstions by ac-Clubquirers

JCB operatingin theUPIUnitedKingdomand IFRtransac-tions bycard issuersoperatingin theUnitedKingdom(or by theoperatorof that IFRcard pay-ment sys-tem actingas such anacquirer orcard issuer)under thatIFR cardpaymentsystem, in-cludingpoint ofsale trans-actions,merchantsales vol-umes, andcash pur-chasetransac-tions oncards, butexcludingcash-onlywith-drawals.All trans-actions un-der thebrand ofthat IFRcard pay-ment sys-tem are in-cluded ir



9




respectiveof the pro-cessingentity (theoperatoror the IFRcard pay-ment sys-tem itself,a thirdparty pro-cessing en-tity or ‘onus’ trans-actions).Both issu-ing and ac-quiringtransac-tions aretaken intoaccountfor eachIFR cardpaymentsystem.

Notes:

* The PSR will publish this figure annually. The figure represents the sum of all PSR fee payers’ relev-ant transaction volumes across all systems in the relevant time period.

** The PSR will publish this figure annually. This figure represents the sum of all PSR fee payers’ rel-evant transaction values across all systems in the relevant time period.



9


Fees Manual

Chapter 10

Pensions guidance levy


FEES 10 : Pensions guidance levy Section 10.1 : Application, purpose andbackground

10

R10.1.1

G10.1.2

G10.1.3


10.1 Application, purpose andbackground

Application......................................................................................................This chapter applies to a firm that:

(1) (a) has a Part 4A Permission; or

(b) is an incoming EEA firm with a branch in the United Kingdom; or

(c) is an incoming Treaty firm with a branch in the United Kingdom;and

(2) is in one of the following activity groups listed in Part 1 of■ FEES 4 Annex 1A:

(a) A.1 Deposit acceptors;

(b) A.4 Insurers — life;

(c) A.7 Portfolio managers excluding Class (1)A firms;

(d) A.9 Managers and depositaries of investment funds, andoperators of collective investment schemes or pension schemes;and

(e) A.13 Advisors, arrangers, dealers or brokers.

Where rules from other FEES chapters are incorporated into this chapter,those rules are the rules in effect on 1 April 2015.

Purpose......................................................................................................This chapter sets out rules governing the amounts payable by firms to theFCA to fund the Secretary of State for Work and Pensions’ pensions guidancecosts and the related FCA collection costs.

Background......................................................................................................The Secretary of State’s pensions guidance costs are defined in subsection 10of section 333R (Funding of the Secretary of State’s pensions guidance costs)of the Act as the expenses incurred, or expected to be incurred, by theSecretary of State:

(1) in giving pensions guidance or arranging for it to be given bydesignated guidance providers;

(2) in meeting the expenses of designated guidance providers incurred inconnection with the giving of the guidance (whether by means of the

FEES 10 : Pensions guidance levy Section 10.1 : Application, purpose andbackground

10

G10.1.4

G10.1.5

G10.1.6

G10.1.7

G10.1.8


power conferred by section 333D (Financial assistance to bodiesinvolved in giving pensions guidance) of the Act or otherwise);

(3) in providing services to designated guidance providers to supportthem in giving the guidance;

(4) in increasing awareness of the availability of the guidance;

(5) in undertaking or commissioning research relating to the availabilityof the guidance; and

(6) otherwise in connection with the carrying out of the Secretary ofState’s functions under section 333B (the Secretary of State’s role inrelation to pensions guidance).

(1) Section 333R(1) of the Act requires the Secretary of State to notifythe FCA of the amount of the Secretary of State’s pensions guidancecosts.

(2) Section 333R(2) requires the FCA to make rules requiring authorisedpersons to pay amounts, or amounts calculated in a specified way, tothe FCA with a view to recovering the amounts notified by theSecretary of State.

(3) Under subsection 3 such amounts may include a component to coverthe expenses of the FCA in collecting the payments.

This chapter contains the rules referred to in ■ FEES 10.1.4 G.

Under section 333R(8) of the Act, the FCA must pay to the Secretary of Statethe amounts that it receives under these rules, apart from amounts coveringits collection costs (which it may keep).

The total amount raised by the pensions guidance levy may vary from year toyear depending on the amount notified to the FCA by the Secretary of State.

These rules were made with the consent of the Secretary of State pursuantto section 333R(5) of the Act.

FEES 10 : Pensions guidance levy Section 10.2 : Pensions guidance levy

10

R10.2.1

R10.2.2

R10.2.3


10.2 Pensions guidance levy

Obligation to pay pensions guidance levy......................................................................................................A firm must pay the pensions guidance levy applicable to it:


(2) in accordance with this chapter.

Time of payment......................................................................................................(1) A firm must pay the pensions guidance levy applicable to it within 30

days of the date of the invoice to which that sum relates, unless anyof (2) to (5) apply.

(2) If the firm has applied to cancel its Part 4A permission under SUP6.4.5D (Cancellation of permission), the firm must pay the pensionsguidance levy applicable to it on the date of its application.

(3) If the FCA has exercised its own-initiative powers to cancel a firm'sPart 4A permission, the firm must pay the pensions guidance levyapplicable to it immediately before cancellation takes effect.

(4) If the firm receives or extends its permission during the fee year, thefirm must pay the pensions guidance levy applicable to it within 30days of that date.

(5) If:

(a) the due date falls during an emergency period as set out in■ GEN 1.3.2R (Emergencies); and

(b) the firm has reasonable grounds to believe that thosecircumstances impair its ability to pay the pensions guidance levyapplicable to it;

the firm must pay the pensions guidance levy applicable to it on orbefore the fifth business day after the end of that emergency period.

Calculation of pensions guidance levy......................................................................................................The pensions guidance levy applicable to a particular firm is calculated asfollows:

(1) identify each of the activity groups in ■ FEES 10.1.1R (2) that apply tothe business of the firm for the relevant period;


10

R10.2.4

R10.2.5

R10.2.6

R10.2.7

R10.2.8


(2) calculate the amount payable under ■ FEES 10.2.4 R for each of thoseactivity groups;

(3) modify the result in accordance with ■ FEES 10.2.5 R if applicable; and

(4) apply any payment charge in ■ FEES 4.2.4 R.

The amount payable for a particular activity group is calculated as follows:

(1) (a) calculate the size of the firm's tariff base for the activity groupusing:

(i) the tariff base calculations in Part 3 of ■ FEES 4 Annex 1A; and

(ii) the valuation date requirements in Part 5 of ■ FEES 4 Annex 1A;

(b) exclude best estimate liabilities for fees purposes in thecalculation for fee block A4;

(2) use the figure in (1) to calculate the levy applicable for each band in■ FEES 10 Annex 1;

(3) add together the sums for each applicable band under (2); and

(4) the amount in (3) is the amount payable by the firm for that activitygroup.

For the first fee year during which ■ FEES 10 applies to a firm's permission tocarry on a regulated activity, the pensions guidance levy applicable to thatpermission must be modified using the formula in ■ FEES 4.2.7FR.

For ■ FEES 10.2.4 R, a firm may apply the relevant tariff bases and rates to itsnon-UK business, as well as to its UK business, if:

(1) it has reasonable grounds for believing that the cost of identifyingthe firm's UK business separately from its non-UK business isdisproportionate to the difference in the pensions guidance levypayable by it; and

(2) it notifies the FCA in writing:

(a) at the same time as it provides the information concerned under■ FEES 4.4 (Information on which fees are calculated); or

(b) if earlier, at the time it pays the pensions guidance levyapplicable to it.

The pensions guidance levy is calculated using the same information that isused to calculate a firm's periodic fee under ■ FEES 4.

Where a firm which has not complied with ■ FEES 4.4.2 R (Information onwhich fees are calculated) in relation to a particular fee year the pensionsguidance levy for that firm for that fee year is calculated using (whererelevant) the valuation(s) of business used to calculate the pensions guidancelevy for that firm for the previous fee year, multiplied by the factor of 1.10.


10

R10.2.9


Value-added tax (VAT)......................................................................................................(1) All levies payable under ■ FEES 10 are stated net of VAT.

(2) Where VAT is applicable, this must also be included.

FEES 10 : Pensions guidance levy Section 10.3 : Late payments and recoveryof unpaid levies

10

R10.3.1

G10.3.2

G10.3.3

G10.3.4


10.3 Late payments and recovery ofunpaid levies

Late payments......................................................................................................If a firm does not pay the total amount of the pensions guidance levy beforethe end of the date on which it is due, it must pay:


(2) interest on any unpaid part of the levy at an annual rate of 5% abovethe Official Bank Rate from time to time in force, accruing daily fromthe date on which the amount concerned became due.

(1) The FCA expects to issue invoices at least 30 days before the date onwhich the relevant amounts fall due.

(2) Accordingly, a firm will usually have at least 30 days from the issue ofthe invoice before an administrative fee becomes payable.

Recovery of levies......................................................................................................(1) The FCA may recover the pensions guidance levy as a debt owed to

the FCA under paragraph 23(8) of Schedule 1ZA of the Act.

(2) The FCA will consider taking action for recovery (including interest)through the civil courts.

(1) In addition, the FCA may be entitled to take regulatory action for thenon-payment of the pensions guidance levy.

(2) What action (if any) is taken by the FCA will be decided by theparticular circumstances of the case.

FEES 10 : Pensions guidance levy Section 10.4 : Relieving provisions

10

G10.4.1

G10.4.2

G10.4.3

G10.4.4


10.4 Relieving provisions

Reductions, remission or repayment of levy......................................................................................................The FCA may reduce or remit all or part of the pensions guidance levyapplicable to a firm if it appears to the FCA that, in the exceptionalcircumstances of a particular case, paying all or part of it would beinequitable.

The FCA may refund all or part of the pensions guidance levy applicable to afirm if it appears to the FCA that, in the exceptional circumstances of aparticular case, retaining all or part of the pensions guidance levy applicableto that firm would be inequitable.

(1) A poor estimate or forecast by a levy payer, when providinginformation relevant to an applicable tariff base, is unlikely to be anexceptional circumstance under ■ FEES 10.4.1 G or ■ FEES 10.4.2 G.

(2) By contrast, a mistake of fact or law by a levy payer may give rise tosuch a claim.

The FCA is entitled not to consider a claim under ■ FEES 10.4.1 G or■ FEES 10.4.2 G to refund any overpaid amounts due to a mistake of fact orlaw by the fee paying firm if the claim is made more than two years afterthe beginning of the period to which the pensions guidance levy subject tothe claim relates.

FEES 10 : Pensions guidance levy Section 10.5 : Application of FEES 4 to thepensions guidance levy

10

G10.5.1

R10.5.2

R10.5.3

R10.5.4


10.5 Application of FEES 4 to thepensions guidance levy

(1) The Handbook provisions relating to the pensions guidance levy aremeant to follow closely the provisions relating to the payment ofperiodic fees payable by an authorised person under ■ FEES 4.

(2) As such, the table in ■ FEES 10.5.4 R lists rules in ■ FEES 4 that alsoapply, in a modified form, to the pensions guidance levy.

The rules in the table in ■ FEES 10.5.4 R and any other rules in FEES included in■ FEES 10 by cross-reference apply to the pensions guidance levy in the sameway as they apply to periodic fees payable under ■ FEES 4.

A reference to a periodic fee in a ■ FEES 4 rule incorporated into ■ FEES 10must be read, for the purposes of applying that rule to the pensionsguidance levy, as a reference to the pensions guidance levy.

Table of rules in ■ FEES 4 that also apply in ■ FEES 10.

FEES 4 incorporatedinto FEES 10 Description Modifications

FEES 4.2.4 R Method of payment none

FEES 4.2.7ER Modifications for per- nonesons becoming subjectto periodic fees duringthe course of a fee year

FEES 4.2.7FR Calculating the fee in nonethe firm’s first year ofauthorisation

FEES 4.2.7GR Calculating fees in the nonesecond fee-year wherethe firm received per-mission between 1 Janu-ary and 31 March in itsfirst fee year

FEES 4.2.7HR to FEES Calculating all other none4.2.7KR fees in the second and

subsequent years of au-thorisation where a fullyear of tariff data is notavailable

FEES 10 : Pensions guidance levy Section 10.5 : Application of FEES 4 to thepensions guidance levy

10


FEES 4 incorporatedinto FEES 10 Description Modifications

FEES 4.2.8 R How FEES 4.2.7 R applies noneto an incoming EEAfirm or an incomingTreaty firm

FEES 4.2.9 G Fee payers ceasing to Reference to column (1)hold relevant status or of the table in FEESreducing the scope of 4.2.11 R is a reference totheir permission after FEES 10.1.2 Gstart of relevant period

FEES 4.3.7 R Groups of firms Reference to FEES 4.2.1 Ris a reference to FEES10.2.1 R.

FEES 4.3.13 R Firms applying to cancel Reference toFEES 4.2.1 Ror vary permission be- is a reference to FEESfore start of period 10.2.1 R.

FEES 4.3.17R Firms acquiring busi- Reference to FEESnesses from other firms 4.2.7ER to FEES 4.2.7KR is

a reference to FEES10.2.5 R

Reference to FEES 4.2.1R is a reference to FEES10.2.1 R

FEES 4.4.1 R to FEES 4.4.6 Information on which noneR fees are calculated

FEES 10 : Pensions guidance levy Annex 1

10

Pension guidance levy for the period 1 April 2018 to 31 March 2019

Activity Group Pensions guidance levy payable

A.1 Band width (£ million of modified eli- Fee (£/£m or part £m of MELS)gible liabilities (MELs)) >10

1.258

A.4 Band width (£ million of gross written Fee (£/£m or part £m of GWP)premium for fees purposes (GWP))

32.887>1

A.7 For class 1(B), 1 (C), (2) and (3) firms: Fee (£/£m or part £m of FuM)

Band width (£ million of funds under0.4811management (FuM))

>10

A.9 Band width (£ million of gross income Fee (£/£m or part £m of GI)(GI))

190.995>1

A.13 Band width (£ thousands of annual in- Fee (£/£ thousand or part of £ thousandcome (AI)) of AI)

>100 0.0673


FEES 10 : Pensions guidance levy Annex 1

10


Fees Manual (FEES)

Chapter 11

Pensions guidance providers’levy


FEES 11 : Pensions guidance Section 11.1 : Application, purpose andproviders’ levy background

11

R11.1.1

G11.1.2

G11.1.3

G11.1.4


11.1 Application, purpose andbackground

Application......................................................................................................This chapter applies to a designated guidance provider.

Purpose......................................................................................................This chapter sets out rules governing the amounts payable by designatedguidance providers to the FCA to fund the FCA’s pensions’ guidance costs(see ■ FEES 11.1.4G).

Background......................................................................................................The FCA’s pensions guidance costs are defined in section 333Q(4) (Funding ofFCA’s pensions guidance costs) of the Act as the expenses incurred, orexpected to be incurred, by the FCA in connection with carrying out thefunctions conferred on it in Part 20A of the Act (other than the functionsspecified in 333R of the Act).

(1) Section 333Q(1) of the Act requires the FCA to make rules requiringdesignated guidance providers, or any specified class of designatedguidance provider to pay to the FCA specified amounts or amountscalculated in a specified way.

(2) Section 333Q(3) of the Act sets out that such amounts may include acomponent to cover the expenses of the FCA in collecting thepayments and to enable the FCA to maintain an adequate reserve.

FEES 11 : Pensions guidance Section 11.2 : Pensions guidance providers’providers’ levy levy

11

R11.2.1

R11.2.2

G11.2.3

R11.2.4

G11.2.5

G11.2.6


11.2 Pensions guidance providers’ levy

Obligation to pay pensions guidance providers’ levy......................................................................................................A designated guidance provider in column (B) of the table in■ FEES 11 Annex 1R must pay the pensions guidance providers’ levy applicableto it in column (C) of that table:



Time of payment......................................................................................................A designated guidance provider must pay the pensions guidance providers’levy applicable to it within 30 days of the date of the invoice to which thatsum relates.

Method of payment......................................................................................................A designated guidance provider should pay its levy by electronic credittransfer and should notify the FCA if it intends to pay in another way.

Late payments......................................................................................................If a designated guidance provider does not pay the total amount of thepensions guidance providers’ levy applicable to it before the end of the dateon which it is due, it must pay:



Reduction, remission and repayment of levy......................................................................................................The FCA may reduce or remit all or part of the pensions guidance providers’levy applicable to a designated guidance provider if it appears to the FCAthat in the exceptional circumstances of a particular case paying all or part ofit would be inequitable.

The FCA may refund all or part of the pensions guidance providers’ levyapplicable to a designated guidance provider if it appears to the FCA that in

FEES 11 : Pensions guidance Section 11.2 : Pensions guidance providers’providers’ levy levy

11

G11.2.7

G11.2.8

G11.2.9

R11.2.10

R11.2.11


the exceptional circumstances of a particular case the FCA retaining all orpart of it would be inequitable.

The FCA may not consider a claim to refund a pensions guidance providers’levy due to a mistake of fact or law by the designated guidance provider ifthe claim is made more than two years after the beginning of the fee yearto which the levy relates.

Recovery of levies......................................................................................................(1) The FCA may recover the pensions guidance providers’ levy from a

designated guidance provider as a debt owed by it to the FCA underparagraph 23(8) of Schedule 1ZA of the Act.


Revocation of designation as pensions’ guidance provider......................................................................................................The FCA will not relieve or refund the pensions guidance providers’ levy paidby a designated guidance provider if the Secretary of State revokes thatprovider’s designation under section 333E(3) of the Act after the start of thatfee year.

Becoming a designated guidance provider......................................................................................................If the Secretary of State designates a person as a designated guidanceprovider under section 333E(1)(e) of the Act in the course of a fee year, thefollowing formula must be used to calculate the pensions guidanceproviders’ levy to be paid by that provider for that fee year:

(1) calculate the number of months between and including:

(i) the month in which the person became a designatedguidance provider; and

(ii) the last month of the relevant fee year;

(2) divide the number of months calculated in (1) by 12; and

(3) multiply the pension guidance providers’ levy set out in column(C) of row 5 of the table at FEES 11 Annex 1R by the number calcu-lated in (2).

VAT......................................................................................................(1) All pensions guidance providers' levies payable under ■ FEES 11 are

stated net of value-added tax (VAT).


FEES 11 : Pensions guidance Annex 1 Rproviders’ levy

11

Pensions guidance providers’ levy for the period 1 April 2018 to 31March 2019

The table below shows the pensions’ guidance providers levy applicable to the designated guidanceproviders for the fee year 1 April 2018 to 31 March 2019.

(A) Row (B) Name of designated guidance provider (C) Pensions guidance providers’ levy pay-able (£)

1 The Pensions Advisory Service Limited 11,250

2 The National Association of Citizens Advice 11,250Bureaux

3 The Scottish Association of Citizens Advice 11,250Bureaux

4 The Northern Ireland Association of Citizens 11,250Advice Bureaux

5 Any other person designated as a designated 11,250 adjusted in accordance with theguidance provider between 1 April 2018 to 31 formula at FEES 11.2.10RMarch 2019

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES 11 Annex 1 R/1

FEES 11 : Pensions guidance Annex 1 Rproviders’ levy

11

■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES 11 Annex 1 R/2

FEES (ALTERNATIVE DISPUTE RESOLUTION COMPETENT AUTHORITY)(FINANCIAL OMBUDSMAN SERVICE) INSTRUMENT 2015

Chapter 12

FOS ADR levy


FEES 12 : FOS ADR levy Section 12.1 : Application and Purpose

12

R12.1.1

G12.1.2



Application......................................................................................................This chapter applies to FOS Ltd.

Purpose......................................................................................................(1) This chapter sets out rules governing the amounts payable by FOS Ltd

to the FCA to fund the FCA’s functions under the ADR Regulations.

(2) These rules are made using the rule-making power in paragraph 23(Fees) Schedule 1ZA of the Act, as applied with modifications byRegulation 15A of the ADR Regulations.

FEES 12 : FOS ADR levy Section 12.2 : FOS ADR levy

12

R12.2.1

R12.2.2

R12.2.3

G12.2.4


12.2 FOS ADR levy

Obligation to pay FOS ADR levy......................................................................................................FOS Ltd must pay the FOS ADR levy:



Time of invoice and payment......................................................................................................(1) The FCA will raise the FOS ADR levy annually in arrears.

(2) The FCA will invoice FOS Ltd in April for the FOS ADR levy relating tothe previous fee year.

(3) FOS Ltd must pay the FOS ADR levy within 30 days of the date of theinvoice.

Calculation of FOS ADR levy......................................................................................................The FOS ADR levy is calculated as follows:

(1) Determine the number of hours, or part of an hour, taken by theFCA, in performing functions under the ADR Regulations.

(2) Using the table at ■ FEES 3 Annex 9R(11), determine the relevant paygrades of those employed by the FCA to perform the functions underthe ADR Regulations.

(3) Next, multiply the applicable rate in the table at ■ FEES 3 Annex 9R(11)by the number of hours or part hours obtained under (1).

(4) Then add any fees and disbursements invoiced to the FCA by anyperson in respect of services performed by that person for the FCA toassist the FCA in performing its functions under the ADR Regulations.

(5) The resulting figure is the FOS ADR levy.

(1) The hourly rates chargeable for FCA employees are set out in thetable at ■ FEES 3 Annex 9R(11) for Special Project Fee for Restructuring.

(2) FCA board members are treated as “Any other person employed bythe FCA” for this purpose.

FEES 12 : FOS ADR levy Section 12.2 : FOS ADR levy

12

G12.2.5

R12.2.6


The obligation to pay the FOS ADR levy is ongoing.

Value-added tax (VAT)......................................................................................................(1) All levies payable under ■ FEES 12 are stated net of VAT.


FEES 12 : FOS ADR levy Section 12.3 : Late payments and recoveryof unpaid levies

12

R12.3.1

G12.3.2


12.3 Late payments and recovery ofunpaid levies

Late payments......................................................................................................If FOS Ltd does not pay the total amount of the FOS ADR levy before theend of the date on which it is due, it must pay:

(1) an administrative fee of £250; and


Recovery of levies......................................................................................................(1) The FCA may recover the FOS ADR levy as a debt owed to the FCA

under paragraphs 23(8) of Schedule 1ZA of the Act.


FEES 12 : FOS ADR levy Section 12.4 : Relieving provisions

12

G12.4.1

G12.4.2


12.4 Relieving provisions

Reductions, remission or repayment of levy......................................................................................................The FCA may reduce or remit all or part of the FOS ADR levy applicable toFOS Ltd if it appears to the FCA that in the exceptional circumstances of aparticular case paying all or part of it would be inequitable.

The FCA may refund all or part of the FOS ADR levy applicable to FOS Ltd ifit appears to the FCA that in the exceptional circumstances of a particularcase retaining all or part of the FOS ADR levy applicable to FOS Ltd would beinequitable.

FEES (Illegal money lending levy)

Chapter 13

Illegal money lending levy


FEES 13 : Illegal money lending Section 13.1 : Application and purposelevy

13

R13.1.1

G13.1.2

G13.1.3

G13.1.4

G13.1.5

G13.1.6

G13.1.7

G13.1.8


13.1 Application and purpose

Application......................................................................................................This chapter applies to every person that is in activity group CC1 (Credit-related regulated activities with limited permission) or CC2 (Credit-relatedregulated activities).

Purpose......................................................................................................The purpose of this chapter is to set out the requirements on the personslisted in ■ FEES 13.1.1R to pay the annual IML levy to fund the costs of takingaction against illegal money lending.

Section 333S of the Act (Financial assistance for action against illegal moneylending) provides that the Treasury may make grants or loans, or give otherforms of financial assistance, to persons for the purpose of taking actionagainst illegal money lending.

Section 333T of the Act (Funding of action against illegal money lending)requires the Treasury to notify the FCA of the amount of the Treasury’sillegal money lending costs. The FCA must make rules requiring authorisedpersons, or any specified class of authorised person, to pay to the FCA thespecified amounts or amounts calculated in a specified way, with a view torecovering the amounts notified to it by the Treasury.

■ FEES 13 sets out the rules referred to in ■ FEES 13.1.4G.

The amounts to be paid under the rules may include a component to recoverthe expenses of the FCA in collecting the payments.

The FCA must pay to the Treasury the amounts that it receives under the IMLlevy apart from amounts in respect of its collection costs (which it may keep).

This chapter sets out the method by which the IML levy will be calculated.Details of the actual levy payable will vary from year to year, depending onthe amount of funding provided by the Treasury for the purpose ofcombatting illegal money lending. These details are set out in■ FEES 13 Annex 1R. New details will be prepared and consulted on for eachfinancial year.

FEES 13 : Illegal money lending Section 13.2 : The IML levylevy

13

R13.2.1

R13.2.2

R13.2.3


13.2 The IML levy

Obligation to pay the IML levy......................................................................................................A firm must pay each IML levy applicable to it:

in full and without deduction (unless permitted or required by aprovision in FEES); and

in accordance with the provisions of ■ FEES 4.3.6R (Time of payment)as modified by ■ FEES 13.2.2R.

(1) For the purposes of ■ FEES 13.2.1R(2), ■ FEES 4.3.6R(1C) to ■ (1E), asapplied by ■ FEES 13.2.8R, is modified so that if a firm’s periodic feesfor the previous financial year were at least £50,000, the firm mustpay:

(a) an amount equal to 50% of the IML levy payable for the previousyear, by 1 April in the financial year to which the sum due under■ FEES 13.2.1R relates; and

(b) the balance of the IML levy due for the current financial year by1 September in the financial year to which that sum relates.

Calculation of the IML levy......................................................................................................The IML levy is calculated as follows:

(1) identify whether activity group CC1 or CC2 applies to the business ofthe firm for the relevant period (for this purpose, the activity groupsare defined in accordance with Part 1 of ■ FEES 4 Annex 1AR);

(2) for each of those activity groups, calculate the amount payable in theway set out in ■ FEES 13.2.4R;

(3) add the amounts calculated under (2);

(4) work out whether a minimum fee is payable under Part 2 of■ FEES 7 Annex 1R and if so how much;


(6) modify the result as indicated by the tables in ■ FEES 4.2.6R(Modifications for persons becoming subject to periodic fees duringthe course of a fee year) and ■ FEES 4.2.7FR (Calculating the fee in thefirm’s first year of authorisation) (if applicable);


13

R13.2.4

R13.2.5

R13.2.6


(7) apply any applicable payment charge specified in ■ FEES 4.2.4R(Method of payment) to the amount in (6), provided that:


(b) for payment by credit transfer, the amount due is received by theFCA on or before the due date; and

(8) make the calculation using information obtained in accordance with■ FEES 4.4 (Information on which fees are calculated).


(1) for a firm in activity group CC1, a £5 flat rate is the amount payableby the firm with respect to that activity group;

(2) for a firm in activity group CC2:

(a) up to and including £250,000 consumer credit income: £10 is theamount payable by the firm with respect to that activity group;and

(b) over £250,000 consumer credit income: £10 + £0.202 per £thousand or part £ thousand of consumer credit income; and

(3) a firm in activity group CC2 must calculate its tariff base using theannual income calculation in Part 3 of ■ FEES 4 Annex1AR and■ FEES 4 Annex 11BR and the valuation date requirements in Part 5 of■ FEES 4 Annex 1AR.

For the purposes of ■ FEES 13.2.4R:

(1) a firm in activity group CC2 may apply the relevant tariff bases andrates to its non-UK business, as well as to its UK business, if:

(a) it has reasonable grounds for believing that the costs ofidentifying the firm’s UK business separately from its non-UKbusiness in the way described in ■ FEES 4 Annex 11BR aredisproportionate to the difference in fees payable; and

(b) it notifies the FCA in writing at the same time as it provides theinformation concerned under ■ FEES 4.4 (Information on whichfees are calculated), or if earlier, at the time it pays the feesconcerned; and

(2) for a firm which has not complied with ■ FEES 4.4.2R (Information onwhich fees are calculated) for this period, the IML levy is calculatedusing (where relevant) the valuation or valuations of businessapplicable to the previous period multiplied by the factor of 1.10.

The modifications:

(1) for incoming EEA firms and incoming Treaty firms which haveestablished branches in the UK in Part 3 of ■ FEES 4 Annex 2AR apply;and


13

G13.2.7

R13.2.8

R13.2.9

G13.2.10

G13.2.11


(2) for EEA authorised payment institutions, EEA authorised electronicmoney institutions, and full credit institutions that are EEA firms inPart 7 of ■ FEES 4 Annex 11R apply.

FEES 4 rules incorporated into FEES 13 by cross-reference......................................................................................................The Handbook provisions relating to the IML levy are meant to follow closelythe provisions relating to the payment of the periodic fees in ■ FEES 4.3.1R. Inthe interests of brevity, not all of these provisions are set out again in■ FEES 13. In some cases, certain ■ FEES 4 rules are applied to the payment ofthe IML levy by individual rules in ■ FEES 13. The rest are set out in the tablein ■ FEES 13.2.9R.

The rules set out in the table in ■ FEES 13.2.9R and any other rules in ■ FEES 4included in ■ FEES 13 by cross-reference apply to the IML levy in the same wayas they apply to periodic fees payable under ■ FEES 4.3.1R.

Table of rules in ■ FEES 4 that also apply to ■ FEES 13 to the extent that in■ FEES 4 they apply to fees payable to the FCA.

FEES 4 rules incorporated into FEES13 Description

FEES 4.2.4R Method of payment

FEES 4.2.7GR to FEES 4.2.7KR Calculation of periodic fee and tariffbase for a firm’s second financialyear

FEES 4.2.8R How FEES 4.2.7R applies in relation toan incoming EEA firm or an incom-ing Treaty firm

FEES 4.2.10R Extension of time

FEES 4.2.11R (first entry only) Due date and changes in permissionfor periodic fees

FEES 4.3.7R Group of firms

FEES 4.3.13R Firms applying to cancel or vary per-mission before start of period

FEES 4.3.17R Firms acquiring businesses fromother firms

FEES 4.4.1R to FEES 4.4.6R Information on which fees arecalculated

In some cases, a ■ FEES 4 rule incorporated into ■ FEES 13 in the manner setout in ■ FEES 13.2.7G will refer to another rule in ■ FEES 4 that has not beenindividually incorporated into ■ FEES 13. Such a reference should be read asbeing to the corresponding provision in ■ FEES 13.

Table of ■ FEES 4 rules that correspond to ■ FEES 13 rules


FEES 4.2.1R FEES 13.2.1R



13




FEES 4.3.3AR FEES 13.2.3R


FEES 4.3.12AR FEES 13.2.6R

FEES 13 : Illegal money lending Annex 1levy

13

Illegal money lending (IML) levy for 2018/19

Limited permission (fee-block £5 flat rateCC1):

Full authorisation (fee-block Up to £250,000 consumer credit £10CC2): income:

Over £250,000 consumer credit £10 + 0.200 per £1,000income:


FEES 13 : Illegal money lending Annex 1levy

13


FEES Appendix 1 Unauthorised Mutuals Registration FeesRules

1

1.1

RApp1.1.1

GApp1.1.2

GApp1.1.3

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES App 1/1

Appendix 1Unauthorised Mutuals Registration

Fees Rules

Introduction

Application..............................................................................................................These rules apply to every:

(1) ■ registered society;

(2) ■ sponsoring body;

(3) person who submits a proposal for the registration of a ■ registered society.

(1) The purpose of these rules is to set out the requirements for registeredsocieties and sponsoring bodies to pay periodic and application fees which,together, will provide the funding for the FCA's functions in respect of theregistrant-only fee block (Category F).

(2) This set of rules is in respect of the registration functions relating toregistered societies transferred to the FCA by section 50 of the FinancialServices Act 2012, other than friendly societies authorised under section 31of the Act.

Background..............................................................................................................Most of the detail of the periodic fees which will be payable by ■ registered societiesis set out in ■ Annex 1R to these rules, the provisions of which will vary from onefinancial year to another. Accordingly, a revised ■ Annex 1R will come into force,following consultation, for each financial year. Most of the detail of theapplication fees which will be payable by ■ registered societies and■ sponsoring bodies is set out in ■ FEES App 1 Annex 1A, the provisions of which maynot change each year.




1GApp1.1.4

GApp1.1.5

GApp1.1.6

GApp1.1.7

RApp1.1.8

1.2

RApp1.2.1

RApp1.2.2

RApp1.2.3

■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES App 1/2

■ FEES App 1 Annex 2 to these rules contains further information on the feesapplicable to ■ registered societies under these rules.

The periodic fee set for ■ registered societies is a tiered fee, which is payableannually. The amount payable is dependent upon the ■ R declared by the■ registered society in the most recent ■ R required to be filed with the FCA.

The application fee payable to register a new society is a tiered fee: the amountpayable for registration of a new society is dependent on whether the rules arebased on a free draft or on ■ model rules. Further, where ■ model rules are used inthe case of the registration of a new society other than a credit union, then thenumber of amendments made to the ■ model rules will affect the fee. Theapplication fee payable by a ■ sponsoring body for a new set of ■ model rules is a flatfee.

In these rules:

(1) an “R” in the margin or heading indicates that the provision is a rule, whichcreates binding obligations;

(2) a “G” in the margin or heading indicates that the provision is guidance,which is designed to throw light on a particular aspect of these rules, butwhich is not binding nor an exhaustive description of a person's obligations.

Glossary of definitions..............................................................................................................In these rules, an expression in italics has the meaning given in ■ Annex 4R.

Periodic Fees

General..............................................................................................................A ■ registered society must pay to the FCA, in full and without deduction, theperiodic fee applicable to it under ■ Annex 1R for a financial year during which, orpart of which, the society is registered, except as provided for in ■ 1.2.5 R and■ 1.2.6 R.

[deleted]

Methods of payment..............................................................................................................A ■ registered society must pay its periodic fee by one of the methods specified in■ Annex 1R.


1RApp1.2.4

RApp1.2.5

RApp1.2.5A

RApp1.2.5B

RApp1.2.6

RApp1.2.7

RApp1.2.8


Due dates..............................................................................................................A ■ registered society must pay a periodic fee on or before the relevant due date forpayment specified in ■ Annex 1R for the relevant year.

Exceptions..............................................................................................................A ■ registered society is not required to pay the periodic fee for the financial year inwhich it is first registered.

A ■ registered society which has not been required to file an ■ R before thecommencement of a given fee year must pay the lowest periodic fee for a■ registered society specified in ■ Annex 1R for that year.

If a ■ registered society fails to file an ■ R by the date it is required to be filed:

(1) the ■ R used to determine the amount of the periodic fee payable by the■ registered society will be that shown in the ■ R last filed with the FCA or itspredecessor; and

(2) the ■ registered society must pay an administrative fee equal to the lower ofthe periodic fee payable by the ■ registered society under ■ Annex 1R for thatyear, and £250.

If a ■ registered society ceases to be a ■ registered society on or after 1 April in aparticular financial year, but before an invoice for the periodic fee payable under■ 1.2.1 R for the financial year in which the society ceases to be a ■ registered societyhas been issued by the FCA, the periodic fee payable by that ■ registered societyunder ■ 1.2.1 R is the amount of the periodic fee under ■ Annex 1R for theimmediately preceding financial year.

[deleted]

Extension of time..............................................................................................................A ■ registered society need not pay a periodic fee on the date which it is due underthe relevant provision in these rules, if:

(1) that date falls during a period during which circumstances of the sort setout in ■ R(Emergencies) exist, and that ■ registered society has reasonablegrounds to believe that those circumstances impair its ability to pay the fee,in which case it must pay on or before the fifth business day after the endof that period; or

(2) that date would otherwise fall on or before the 30th day after the date onwhich the FCA has sent written notification to that ■ registered society of thefee payable on that date, in which case it must pay on or before the 30thday after the date on which the FCA sends the notification.


1RApp1.2.9

GApp1.2.10

GApp1.2.11

GApp1.2.12

GApp1.2.13

1.3

RApp1.3.1

RApp1.3.2


Late payment..............................................................................................................If a ■ registered society does not pay the total amount of a periodic fee or a feepayable under 1.4.2R on the date on which it is due under the relevant provisionsof these rules, that ■ registered society must pay an additional amount as follows:

(1) if the fee is not paid in full before the due date, an administrative fee of£250; plus

(2) if the fee is not paid in full before the end of 15 days after the due date,interest on any unpaid part of the fee at the rate of 5% per annum abovethe Official Bank Rate from time to time in force, accruing on a daily basisfrom the date on which the amount concerned became due.

The FCA expects to issue invoices for periodic fees at least 30 days before the dateon which they fall due. Accordingly, it will generally be the case that a■ registered society will have at least 30 days from the issue of the invoice before anadministrative fee becomes payable, and at least 45 days before any interestbecomes payable.

If a ■ sponsoring body does not pay the required periodic fee for a set of by the duedate, the rules will cease to be ■ model rules and applications for the registration ofsocieties that use the rules will be charged by the FCA as if the rules were a freedraft.

Amending model rules..............................................................................................................If a ■ sponsoring body wishes to change a set of ■ model rules, it should supply a copyto the FCA indicating the proposed changes. No application fee is payable for suchchanges.

Refunds..............................................................................................................The FCA will not refund periodic fees in any circumstances.

Application Fees

General..............................................................................................................A person who submits to the FCA a proposal for the registration of a society mustpay to the FCA, in full and without deduction, the fee specified for the type ofapplication under ■ Annex 1AR.

A ■ sponsoring body wishing a set of rules to become ■ model rules for the first timemust pay to the FCA, in full and without deduction, the application fee specified in■ FEES App 1 Annex 1A.


1RApp1.3.3

RApp1.3.4

RApp1.3.5

GApp1.3.6

GApp1.3.7

GApp1.3.8

1 Annex 1

R


Method of payment..............................................................................................................Application fees must be paid by the method specified in ■ FEES App 1 Annex 1A.

Due dates..............................................................................................................A person making an application or submitting a proposal for the registration of asociety must pay the application fee on, or before, making the application.

A ■ sponsoring body must pay the application fee for a new set of ■ model rules onor before making the application.

The FCA may require the fee to be paid by the person making the applicationbefore the FCA undertakes any preliminary consideration of the proposedapplication or rules.

Refunds..............................................................................................................The FCA will not refund application fees under any circumstances.

Paragraph 1.3.7G applies also in the case of applications that are not proceededwith where a fee has been paid in advance.

Periodic fees payable for the period 1 April 2018 to 31 March2019

Part 1 Periodic fee payable by Registered Societies (on 30 June 2018)

This fee is not payable by a credit union.

Transaction Total assets (£'000s) Amount payable (£)

Periodic fee 0 to 50 67

> 50 to 100 129

> 100 to 250 211

> 250 to 1,000 273

> 1,000 495

Part 2 Methods of payment of periodic fees

A periodic fee must be paid using either direct debit,Maestro, Visa Debit, credittransfer (BACS/CHAPS), cheque, switch or by credit card (Visa/Mastercard only).Any payment by permitted credit card must include an additional 2% of the sumpaid.


1 1 Annex 1A

R

1 Annex 2

G


Application Fees payable

Part 1 Application fees payable to register a new society other than a credit union

Transaction Amount payable (£)

Application using model rules without any amend- 40ment to the model

Application using model rules with between 1 and 6 120amendments to the model

Application using model rules with between 7 and 35010 amendments to the model

Application using model rules with 11 or more 950amendments to the model, or using free draft rules

Part 2 Application fees payable by sponsoring bodies

This fee is not payable by sponsoring bodies in respect of the model rules of creditunions.

Transaction Amount payable(£)

Application for a new set of model rules 950

Part 3 Method of payment of application fees

Payment method Additional amount or discount ap-plicable

Cheque None

Further information on fees

Purpose

1 The purpose of this annex is to set out further information on fees ap-plicable toregistered societies which form the registrant-only fee block (Cat-egory F).

Background

2 Paragraph 23 of Schedule 1ZA to the Act enables the FCA to charge feesto cover its expenses in carrying out its functions.

3 The fees payable by registered societies will vary from one financial yearto another and will reflect the FCA's funding requirement for the registr-ant-only fee block.

4 For periodic fees, the key components of the fee mechanism are:

(1) a funding requirement derived from:

(a) the FCA's financial management and reportingframework;


1

1 Annex 3

R


(b) the FCA's budget;

(c) adjustments, as appropriate, for audited variancesbetween budgeted and actual expenditure in theprevious accounting year and reserves movements(in accordance with FCA's reserves policy);

(2) fee blocks, which are broad groupings of fee payers offeringsimilar products and services and presenting broadly similarrisks to the FCA's regulatory objectives;

(3) a costing system to allocate an appropriate part of the fund-ing requirement to each fee block; and

(4) tariff bases, which, when combined with fee tariffs, allowthe calculation of fees.

(5) The FCA defines fee blocks so that they will depend, for the most part,upon the regulated activities included in the permission held by firms,with a separate fee block for mutual societies which do not conductregulated activities (registrants). By basing fee blocks on categories ofbusiness, the FCA aims to minimise cross-sector subsidies. The funding re-quirement for the registrant-only fee block will accordingly reflect onlythe cost of the registration function plus a share of corporate overheads.It will not include any indirect regulatory overheads.

Recovery of fees

(6) Paragraph 23(8) of Schedule 1ZA to the Act permits the FCA to recoverfees as a debt owed to the FCA and the FCA will consider court actionfor recovery through the civil courts.

Emergencies

1 R The FCA recognises that there may be occasions when, because ofa particular emergency, a registered society may be unable to complywith a particular rule. The purpose of this annex is to provide ap-propriate relief from the consequences of contravention of a rulein those circumstances.

(1) If any emergency arises which:

(a) could not have beenavoided by the regis-tered society takingall reasonable steps;

(b) makes it impractic-able for a registeredsociety to complywith a particularrule; and

(c) is outside the controlof the registered soci-ety, its members andits employees;

the registered society will not be in contraven-tion of that rule to the extent that, in con-


1

1 Annex 4

R


sequence of the emergency, compliancewith that rule is impracticable.

(2) Paragraph (1) applies only for so long as:

(a) the consequences ofthe emergency con-tinue; and

(b) the registered societycan demonstratethat it is taking allpracticable steps todeal with those con-sequences, to complywith the rule.

(3) A registered society must notify the FCA assoon as practicable of the emergency and ofthe steps it is taking or proposes to take todeal with the consequences of theemergency.

(4) A registered society should continue to keepthe FCA informed of the steps it is taking un-der 1.2.8(a)R. In the context of 1.2.8(a)R, anaction is not practicable if it involves a regis-tered society going to unreasonable lengths.

Glossary of definitions

In these rules, an expression in italics has the meaning given below:

Expression Definition

Act The Financial Services and Markets Act 2000.

amendment to model rules (In Annex 1R) any number of changes to a single num-bered rule and its sub-clauses (however described)represents a single amendment to model rules; theprovision of information in respect of a name, an ad-dress, or a number, or any text which is added to amodel rule in a space specifically provided in the modelrule for the addition of such text, will not be re-garded as an amendment to model rules.

annual return The annual return required to be submitted to theFCA under s.43 of the Friendly Societies Act 1974 ors.39 of the Industrial and Provident Societies Act1965.

business day In rule 1.2.8R, any day which is not a Saturday or aSunday, Christmas Day, Good Friday or a bank holidayin that part of the United Kingdom in which the regis-tered society has its registered office.

day A period of 24 hours beginning at midnight.

FCA The Financial Conduct Authority.

model rules A set of rules:






1


(a) which a sponsoring bodyhas provided to the FCA;

(b) in relation to which thesponsoring body has paidall relevant fees due un-der these rules; and

(c) which complies with theprovisions of the Indus-trial and Provident Societ-ies Acts 1965 and 1967,the Friendly and Indus-trial and Provident Societ-ies Act 1968 and theFriendly Societies Acts1974 and 1992, as appro-priate; or

(d) the Credit Unions Act1979;

(a list of model rules which satisfy (a) and (b) and, inthe FCA's view, satisfy (c), is available from the Mu-tual Societies Registration department at the FCA).

person (In accordance with the Interpretation Act 1978) anyperson, natural or legal, including a body of personscorporate or unincorporated.

registered society A society registered under the Industrial & ProvidentSocieties Acts, the Credit Unions Act 1979, the Super-annuation and Other Trust Funds (Validation) Act1927, or the Friendly Societies Act 1974; which is notauthorised for the purposes of section 31 of the Act.

sponsoring body A body which publishes, or which proposes to pub-lish, model rules for registered societies.

total assets The figure shown in the annual return against theheading ‘Total Assets’ or, where there is no such head-ing, the value of the gross assets shown in the bal-ance sheet of the firm.













http://www.legislation.gov.uk/ukpga/Geo5/17-18/41/2012-07-01






1


FEES Appendix 2 Office for professional body anti-moneylaundering supervision fees

2

2.1

GApp2.1.1

GApp2.1.2

GApp2.1.3

GApp2.1.4


Appendix 2Office for professional body anti-

money laundering supervision fees

Introduction

Application..............................................................................................................This Appendix is relevant to:

(1) persons applying to become professional body supervisors; and

(2) professional body supervisors.

The purpose of this Appendix is to set out the requirements for professional bodysupervisors to pay the application and periodic fees which, together, will providethe funding for the FCA’s functions under the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision Regulations 2017(“the OPBAS Regulations”).

Regulation 27 of the OPBAS Regulations, in summary, provides that the FCA mayimpose charges on:

(1) a person applying to become a professional body supervisor; and

(2) an existing professional body supervisor to recover its costs of supervision.

(1) The application fee which will be payable by a person applying to becomea professional body supervisor is set out in ■ FEES Appendix 2 Annex 1.

(2) The detail of the periodic fees which will be payable by professional bodysupervisors is set out in ■ FEES Appendix 2 Annex 2.


2

GApp2.1.5

GApp2.1.6

2.2

IApp2.2.1

IApp2.2.2

IApp2.2.3

GApp2.2.4


In this Appendix:

(1) a “note” (indicated by “Note:”) after a provision indicates, for theconvenience of readers, that it is a provision made pursuant to Regulation27 of the OPBAS Regulations; and

(2) a “G” in the margin indicates that the provision is guidance, which isdesigned to throw light on a particular aspect of a direction or theprovisions imposing charges, but is neither binding nor an exhaustivedescription of a professional body supervisor’s obligations.

Glossary of definitions..............................................................................................................In this Appendix, an expression in bold (other than in headings and titles) has themeaning given in ■ FEES Appendix 2 Annex 3G.

Application fees imposed under Regulation 27 of the OPBASRegulations

General..............................................................................................................A person making an application to the FCA to become a professional bodysupervisor must pay to the FCA, in full and without deduction, the fee specified in■ FEES Appendix 2 Annex 1.

[Note: Regulation 27 of the OPBAS Regulations]

Method of payment..............................................................................................................Application fees must be paid by the method specified in ■ FEES Appendix 2 Annex 1.


Due dates..............................................................................................................A person making an application to become a professional body supervisor mustpay the application fee on, or before, making the application.


Refunds..............................................................................................................Application fees paid under this Appendix are not refundable.


2

2.3

IApp2.3.1

IApp2.3.2

IApp2.3.3

IApp2.3.4

IApp2.3.5


Periodic fees imposed under Regulation 27 of the OPBASRegulations

General..............................................................................................................Subject to ■ FEES App 2.3.2, a professional body supervisor must pay to the FCA, infull and without deduction, the periodic fee applicable to it under■ FEES Appendix 2 Annex 2 for a fee year during which, or part of which, the relevantprofessional body is included in Schedule 1 to the Money Laundering, TerroristFinancing and Transfer of Funds (Information on the Payer) Regulations 2017 (“theMLR”).


Calculating the fee in the professional body supervisor’s first year..............................................................................................................A professional body supervisor added to Schedule 1 to the MLR during the courseof a fee year must pay the fee calculated in accordance with ■ FEES App 2.3.3.


Apply the formula (A+B) x C, where:

A = the minimum fee set out in Part 3 of ■ FEES Appendix 2 Annex 2;

B = the variable fee due for the full fee year, calculated in accordance with■ FEES Appendix 2 Annex 2; and

C = the number of complete months (inclusive) between the month duringwhich the professional body supervisor was added to Schedule 1 to theMLR and the last month of that fee year ÷ 12.


A professional body supervisor which has not been required by■ FEES App 2.3.8 to submit the actual information set out in■ FEES Appendix 2 Annex 2 before the commencement of a given fee yearmust pay a fee based on information calculated in accordance with■ FEES Appendix 2 Annex 2 as at [tbc] preceding the relevant fee year.

The information referred to in (1) is the information provided by theprofessional body supervisor in the course of its application to be added tothe list of professional bodies in Schedule 1 to the MLR.


Time of payment..............................................................................................................If a professional body supervisor’s periodic fee for the previous fee year was atleast £50,000, it must pay its periodic fee for the current fee year in twoinstalments as follows:


2

IApp2.3.6

GApp2.3.7

IApp2.3.8

IApp2.3.9

IApp2.3.10


(1) an amount equal to 50% of the periodic fee payable for the previous feeyear by:

(a) 1 April; or

(b) if later, within 30 days of the date of the invoice, in the fee year towhich that sum relates; and

(2) the balance of the periodic fee due for the current fee year by:

(a) 1 September; or

(b) if later, within 30 days of the date of the invoice, in the fee year towhich that sum relates.


If a professional body supervisor’s periodic fee for the previous fee year was lessthan £50,000, it must pay the periodic fee within 30 days of the date of theinvoice for the fee year to which that sum relates.


■ FEES App 2.3.5 and ■ FEES App 2.3.6 apply in relation to periodic fees payable by aprofessional body supervisor under this Appendix only. It does not relate toperiodic fees payable in a professional body’s capacity as a professional bodydesignated by the Treasury under section 326 of the Financial Services and MarketsAct 2000 (Designation of professional bodies) for the purposes of Part XX of thatAct (Provision of Financial Services by Members of the Professions).

Information on which fees are calculated..............................................................................................................A professional body supervisor must send to the FCA the information requiredunder Part 1 of ■ FEES Appendix 2 Annex 2 (as at the date specified in Part 2 of■ FEES Appendix 2 Annex 2) on which the periodic fee payable by the professionalbody supervisor is to be calculated.


A professional body supervisor must send to the FCA in writing the informationrequired under ■ FEES App 2.3.8 as soon as reasonably practicable after the datespecified as the review date in ■ FEES Appendix 2 Annex 2, and in any event withintwo months of that date.


If a professional body supervisor fails to send to the FCA the information requiredunder ■ FEES App 2.3.8 within two months of the review date specified in■ FEES Appendix 2 Annex 2, the FCA may use the information provided by theprofessional body supervisor under Regulation 51 and Schedule 4 to the MLR orRegulation 7 of the OPBAS Regulations as the basis for calculating fees payable bythe professional body supervisor.



2

GApp2.3.11


The FCA will use the information referred to in ■ FEES App 2.3.8 only for thepurpose of calculating professional body supervisors’ fees. Therefore, thedefinition of ‘supervised individuals’ set out in ■ FEES Appendix 2 Annex 2 applies forthe purpose of calculating those fees only.


2


FEES Appendix 2 2 Annex 1

2

Application fee imposed under Regulation 27 of the OPBASRegulations


Part 1: Application fees payable to be included in Schedule 1 to the Money Laundering Regulations

Transaction Amount payable (£)

Application to be added to the list of profes- £5,000sional bodies in Schedule 1 to the MLR

Part 2: Method of payment of application fees

Payment method Additional amount or discount applicable

Electronic credit transfer None

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES App 2 Annex 1/1


2

■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES App 2 Annex 1/2


2

Periodic fees imposed under Regulation 27 of the OPBAS Regulationsfor the period 1 April 2019 to 31 March 2020


Part 1

This table sets out the tariff base for the professional body supervisor fee-block. The tariff base in thisPart is the means by which the FCA calculates the annual periodic fees payable by a professional bodysupervisor to the FCA.

D.2 Professional body supervisors Supervised individuals

Professional bodies listed in Schedule 1 to the The total of:Money Laundering Regulations.

(a) the number of all beneficial owners, officersand managers of all supervised firms that are rel-evant persons; plus

(b) the number of all supervised sole practi-tioners who are relevant persons.

Where a relevant person is supervised under theMLR by more than one professional body super-visor and the professional body supervisors con-cerned have agreed which one of them will in-clude the number specified in (a) or (b) above inits count of ‘supervised individuals’, the re-maining professional body supervisor(s) may ex-clude this information from their count of ‘super-vised individuals’.

Part 2

This table sets out the review date for a professional body supervisor’s fees. A professional body su-pervisor is required to send to the FCA the information in Part 1 of this Annex as at the review dateset out below, as soon as reasonably practicable, and in any event within two months of the dateshown in this table.

D.2 Professional body supervisors The number of supervised individuals (calculatedin accordance with Part 1) as at [tbc] before therelevant fee year.

Part 3

This table sets out the tariff rates applicable to professional body supervisors.

Amount payable

Fee payable in relation to 2018/2019 (£)

Minimum fee, payable by all professional body £5000supervisors subject to the OPBAS Regulations.

Variable fee, payable by professional body super- £[tbc] multiplied by the total number of super-



2

Amount payable

Fee payable in relation to 2018/2019 (£)

visors where the number of supervised indi- vised individuals in excess of the threshold ofviduals is 6,000 or more. [tbc].

[See Note]

[Note: references to ‘the number of supervised individuals’ is to those supervised individuals calcu-lated in accordance with Part 1]



2

Glossary of definitions

The following words or terms used in ■ FEES Appendix 2 appearing in bold (other than headings andtitles) have the meanings given to them below.

Expression Definition

beneficial owner has the meaning given in Regulation 3 of theMLR.

day a period of 24 hours beginning at midnight.

FCA Financial Conduct Authority.

fee year 1 April to 31 March inclusive.

firm has the meaning given in Regulation 3 of theMLR.

manager has the meaning given in Regulation 3 of theMLR.

MLR the Money Laundering, Terrorist Financing andTransfer of Funds (Information on the Payer) Re-gulations 2017 (SI 2017/692).

month (in accordance with the Interpretation Act 1978)a calendar month.

officer has the meaning given in Regulation 3 of theMLR.

OPBAS Regulations the Oversight of Professional Body Anti-MoneyLaundering and Counter Terrorist Financing Super-vision Regulations 2017 (SI 2017/1301).

person (in accordance with the Interpretation Act 1978)any person, including a body of persons corpor-ate or unincorporate (that is, a natural person, alegal person and, for example, a partnership).

professional body supervisor a professional body listed in Schedule 1 to theMLR.

relevant person has the meaning given in Regulation 3 of theMLR.

supervised is subject to supervision by a professional bodysupervisor in its capacity as supervisory authoritywithin the meaning of Regulation 7(1)(b) of theMLR.



2


FEES Appendix 3 Fees payable by persons registered under theMoney Laundering Regulations

3

3.1

GApp3.1.1

IApp3.1.2


Appendix 3Fees payable by persons registered

under the Money LaunderingRegulations

Fees for persons registered under the Money LaunderingRegulations

Application and periodic fees..............................................................................................................Regulation 102 of the Money Laundering Regulations provides the FCA with thepower to charge fees to MLR persons to recover the cost of carrying out itsfunctions under those regulations. The FCA charges a fee for registration formssubmitted to it. The FCA will also charge an annual periodic fee. These charges areset out in this Appendix.

(1) Registration fee:

£100

(2) Periodic fee:

Activity group Fee-payer falls in the Fee payable in 2017/18activity group if:

G.1 it is registered with the £438FCA under the MoneyLaundering Regulationsor any predecessor le-gislation

[Note: Regulation 102 of the Money Laundering Regulations]

FEES Appendix 3 Fees payable by persons registered under theMoney Laundering Regulations

3


FEES Transitional Provisions

Fees Manual

FEES TP 1Transitional Provisions

(2)(6)

Material to (5)which the Handbooktransitional Transitional provision:(4)provision Provision: coming into

(1) applies (3) Transitional Provision dates in force force

1. FEES 3.2.7 R(p) R [expired]

2. FEES 4 Annex 1 R [expired]R Part 3, Activ-ity group A9(operators,trustees anddepositariesof collectiveinvestmentschemes)

3. FEES 4 Annex 1 [expired]R Part 3, Activ-ity group A2

4. FEES 4 Annex 1 [expired]R, ActivityGroup A.2

5. [deleted]

6. FEES 6.3.1 R R The FSCS must not impose a spe- From 31 For Northerncific costs levy or a compensa- March 2012 in- Ireland credittion costs levy on a Northern Ire- definitely unions 31land credit union if that levy re- March 2012lates to a claim against a relev-ant person that was in defaultbefore credit unions day.

7. FEES 7 R [expired]

[FCA]

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES TP 1/1

FEES Transitional Provisions

■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES TP 1/2

FEES Transitional provisions relating to changes tothe FSCS levy arrangements taking effect in

2007/8 and in 2008/9

Fees Manual

FEES TP 2Transitional provisions relating to changes to the FSCS levyarrangements taking effect in 2007/8 and in 2008/9

2.1 Treatment of balances as at 1 April 2008 [expired]

2.2 Split of business between life and pensions intermediation and investment intermediation[expired]

2.3 Incorrect information [expired]

2.4 Allocation of recoveries

2.4.1 R Any recoveries made by the FSCS after 31 March 2008 in relation to protected claimscompensated prior to 1 April 2008, the costs of which were allocated to the relevantcontribution group in place at the time, must be credited to the sub-class in placeafter 31 March 2008 to which the costs of the protected claim would have been alloc-ated had it been compensated after that date, or if relevant, in accordance with FEES6.3.20 R.

2.4.2 R FEES TP 2.4.1R does not apply to the extent that it is inconsistent with the compensa-tion transitionals order.

2.5 Interpretation

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

2.5.2 R For the purpose of FEES 6.5.13 R as it applies with respect to the financial year of thecompensation scheme 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 byreference to a contribution group prior to that date) FEES 6.5.13 R (1) must beread as also including a requirement for the supply of the necessary informa-tion in relation to that contribution group.

2.5.3 R The amendments made to FEES 6.5.16 R by the Fees Manual (FSCS Funding) Instrument2007 only have effect before 1 April 2008 for the purpose of the financial year of thecompensation scheme beginning on 1 April 2008.

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

2.6 Past defaults

2.6.1 G The changes made to the levy rules made by the Fees Manual (FSCS Funding) Instru-ment 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 arisingbefore that date; or

(2) the firm was in default before that date.

(3) [deleted]

2.7 Transitional provisions for changes to relieving provisions [expired]



2007/8 and in 2008/9

2.8 Effect of the tariff base changes for the financial year beginning on 1 April 2009 beforethat date [expired]



2010/11

Fees Manual

FEES TP 3Transitional provisions relating to changes to the FSCS levyarrangements 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 [expired]

3.2[deleted] [deleted]

3.3 Treatment of pure protection fees in 2010/11 [expired]



2010/11


FEES Transitional provisions relating to informationrequirements following changes to FEES 4 or

5

Fees Manual

FEES TP 4Transitional provisions relating to information requirementsfollowing 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 appropri-ate regulator

4.1.1 R This rule applies where any rule, or amendment to a rule, in FEES 4 or FEES 5 ("aFEES rule") has been made but will only come into force in relation to a future

[FCA] financial year of the appropriate regulator or Financial Ombudsman Service[PRA] ("the future year"), as the case may be.

4.1.2 R Unless another rule expressly disapplies this rule, a FEES rule has immediate ef-fect for the supply of information under FEES 4.4 or FEES 5.4 in relation to that fu-

[FCA] ture year.[PRA]

4.1.3 R A reference in this rule to an appropriate regulator or Financial Ombudsman Ser-vice financial year is a reference to the 12 months ending 31 March.

[FCA][PRA]


FEES Transitional provisions relating to informationrequirements following changes to FEES 4 or

5


FEES Transitional Provisions relating to the SpecialProject Fee for Restructuring

Fees Manual

FEES TP 5Transitional Provisions relating to the Special Project Fee forRestructuring

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

5.1.1 R This rule relates to the changes to FEES 3 Annex 9 (Special Project Fee for re-structuring) made by the Fees (Special Project Fee For Restructuring)

[FCA] (Amendment) Instrument 2010. It deals with a trigger event that occurred[PRA] 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 in-strument. A trigger event means a circumstance or event of a type set outin paragraphs (2) or (6) of that Annex (events or circumstances that triggerliability for the Special Project Fee for restructuring).

5.1.2 R An old trigger event is still a trigger event and thus triggers liability for thefee. However any regulatory work conducted before 1 July 2010 as a con-

[FCA] sequence of an old trigger event is not taken into account for the purposes[PRA] 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 appropriateregulator in respect of services performed for the appropriate regulator inrelation to assisting the appropriate regulator in performing such regu-latory work are not included to the extent that the invoice relates to theperiod before 1 July 2010.

5.1.3 G 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 trig-

[FCA] gered liability for the fee before 1 July 2010. The fee is still potentially pay-[PRA] able. However the fee will not cover work carried out by the appropriate

regulator before 1 July 2010. The same applies even if the administrationstarted before 1 June 2009, when the fee first came into force.


FEES Transitional Provisions relating to the SpecialProject Fee for Restructuring



2013/14

Fees Manual


7.1 R As at 31 March 2013, the FSCS must:

(1) allocate any surplus or deficit in the balance of an FSA activity group inrespect of base costs, to the account of the corresponding FCA activitygroup as listed in FEES 4 Annex 1A R as at 1 April 2013; and

(2) take that surplus or deficit (so allocated) into account when calculatingthe amount to be levied under FEES 6.4.5 R in respect of the financial yearof the compensation scheme commencing on 1 April 2013.

7.2 R For the purpose of FEES 6.5A.6 R, 'FEES 4 Annex 1A R' must be read as 'FEES 4 Annex 1 R'(as it was in force immediately before 1 April 2013) until the regulatory costs aris-ing from the activity group in FEES 4 Annex 1A R have been determined. The FSCSmay recalculate the liabilities once the regulatory costs arising from the activitygroup in FEES 4 Annex 1A R have been determined and credit or debit participantfirms as appropriate.



2013/14


FEES Transitional provisions relating to FEES 3Annex 9R and FEES 4.3.6R taking effect in

2013/14

Fees Manual

FEES TP 8Transitional provisions relating to FEES 3 Annex 9R and FEES4.3.6R taking effect in 2013/14

(2) Materialto whichthe trans- (5) Trans- (6) Handbookitional pro- itional provi- provision:vision sion: dates in coming into

(1) applies (3) (4) Transitional provision force force

8.1 Special project fee transitional provisions

8.1.1 FEES 3 Annex R [deleted]9R

[FCA][PRA]


[FCA][PRA]


[FCA][PRA]

8.1.4 FEES 3 Annex G [deleted]9

[FCA][PRA]

8.1.5 FEES 3 Annex G [deleted]9

[FCA][PRA]


FEES Transitional provisions relating to FEES 3Annex 9R and FEES 4.3.6R taking effect in

2013/14

(2) Materialto whichthe trans- (5) Trans- (6) Handbookitional pro- itional provi- provision:vision sion: dates in coming into

(1) applies (3) (4) Transitional provision force force

8.2 On account fee transitional provisions

8.2.1 FEES 4.3.6 R R [expired](1) and FEES

[FCA] 4.3.6 R (1A)[PRA]

8.2.2 FEES 4.3.6 R R [expired](1)(a) and

[FCA] FEES 4.3.6 R[PRA] (1A)(a)

8.2.3 FEES 4.3.6 R R [expired](1)(a)

[FCA][PRA]

8.2.4 FEES 4.3.6 R R [expired](1A)(a)

[FCA][PRA]

8.2.5 FEES 4.3.6 R R [expired]

[FCA][PRA]

8.2.6 FEES 4.3.6 R G [expired]

[FCA][PRA]


FEES Transitional arrangements in relation toamendments introduced by the

Compensation Sourcebook (Investments by…

Fees Manual

FEES TP 9Transitional arrangements in relation to amendmentsintroduced by the Compensation Sourcebook (Investments byLarge Unincorporated Associations and Certain LargePartnerships) Instrument 2013

9.1 Introduction

9.1.1 G FEES TP 9 deals with transitional arrangements relating to the calculation of an-nual eligible income under FEES 6.5.13 R in the light of the introduction of the Com-pensation Sourcebook (Investments by Large Unincorporated Associations and Cer-tain Large Partnerships) Instrument 2013, which came into force on 13 December2013 (the "Instrument").

9.1.2 G The definition of annual eligible income allows for it to be calculated in one oftwo ways from annual income: "(a) only include such annual income if it is attrib-utable to business conducted with or for the benefit of eligible claimants and isotherwise attributable to compensatable business ["Method (a)"]; or (b) includeall such annual income".

9.2 Scope

9.2.1 R FEES TP 9 applies to a participant firm providing a statement to the FSCS in accord-ance with FEES 6.5.13 R:

(a) in respect of the participant firm's financial year ended in the year to 31 De-cember 2013; and

(b) which was a member of class C2, D1 and/or D2 in 2013; and

(c) which states its total amount of business in relation to those classes based ona calculation of its annual eligible income using Method (a).

9.3 Firms whose financial years end in the period 1 January 2013 to 12 December 2013

9.3.1 G A participant firm, whose financial year ended in the period 1 January 2013 to 12December 2013, does not need to include in its calculation of annual eligible in-come the annual income attributable to business conducted with or for the bene-fit of eligible claimants who only became eligible claimants as a result of the In-strument.

9.4 Firms whose financial years end in the period 13 to 31 December 2013

9.4.1 R A participant firm, whose financial year ended in the period 13 to 31 December2013, may calculate its annual eligible income by any of the following methods:

(a) include the annual income attributable to business conducted with or for thebenefit of eligible claimants who only became eligible claimants as a result of theInstrument;

(b) do not include the annual income attributable to business conducted with orfor the benefit of eligible claimants who only became eligible claimants as a re-sult of the Instrument; or

(c) include only that part of the annual income attributable to business con-ducted with or for the benefit of eligible claimants who became eligible claim-


FEES Transitional arrangements in relation toamendments introduced by the

Compensation Sourcebook (Investments by…

ants as a result of the Instrument that is attributable to the period from 13 De-cember 2013 to the end of the participant firm's financial year.


FEES Transitional Provisions relating to FEES4.2.7BR for firms carrying on credit related

regulated activities

Fees Manual

FEES TP 10Transitional Provisions relating to FEES 4.2.7BR for firmscarrying on credit related regulated activities

(1) (2) Material to (3) (4) Transitional (5) Transitional (6) Handbookwhich the provision provision: provision:transitional dates in force coming intoprovision forceapplies

10.1 FEES 4.2.7 R (2)(b) R [expired]


FEES Transitional Provisions relating to FEES4.2.7BR for firms carrying on credit related

regulated activities


FEES Transitional Provisions for the BenchmarksOrder 2015

Fees Manual

FEES TP 11Transitional Provisions for the Benchmarks Order 2015

11.1 Introduction

11.1.1 G (1) FEES TP 11 deals with transitional arrangements for firms that will adminis-ter specified benchmarks by operation of the “Benchmarks Order 2015”.

(2) The “Benchmarks Order 2015” is the Financial Services and Markets Act2000 (Regulated Activities) (Amendment) Order 2015 (SI 2015/369)

11.1.2 R FEES TP 11 remains in force until all fees in FEES TP 11.2 have been paid in full.

11.2 Exceptional fee

11.2.1 R FEES TP 11.2 applies to a firm which:

(1) is treated as having its permission varied to include administering a speci-fied benchmark under article 4 of the Benchmarks Order 2015; or

(2) meets the following criteria:

(a) its permission, before 1 April 2015, included administering a spe-cified benchmark;

(b) on 1 April 2015, it is administering more than one specifiedbenchmark; and

(c) it is not a firm in FEES TP 11.2.1R(1).

11.2.2 R A firm in FEES TP 11.2.1R is treated as if:

it had applied to carry on “administering a specified benchmark” underFEES 3.2.7R(ga)(ii) on 1 April 2015; and

its due date for the payment of the relevant fee is 30 days after 1 April2015.




FEES Transitional Provisions for the BenchmarksOrder 2015


FEES Transitional provisions relating to thecalculation of tariff bases for insurers

Fees Manual

FEES TP 13Transitional provisions relating to the calculation of tariffbases for insurers

FEES 13.1 Application

FEES 13.1.1 R

[deleted]

FEES 13.1.2 G [deleted]

FEES 13.2 Calculation of tariff bases for fee year 2017/18

FEES 13.2.1 R

[deleted]

FEES 13.2.2 R

[deleted]

FEES 13.2.3 R

[deleted]

FEES 13.2.4 R

[deleted]


FEES Transitional provisions relating to thecalculation of tariff bases for insurers


FEES Transitional provisions relating to FEES 4 forbenchmark administrators and recognised

investment exchanges

Fees Manual

FEES TP 14Transitional provisions relating to FEES 4 for benchmarkadministrators and recognised investment exchanges

(2) Material towhich the (6) Handbook

transitional (5) Transitional provision:provision (4) Transitional provision: coming into

(1) applies (3) provision dates in force force

14.1 FEES TP 4.1.2R R FEES TP 4.1.2R From 1 April 1 April 2017and FEES 4.4 does not apply 2017

to changes tothe require-ments in FEESon benchmarkadministratorsand recognisedinvestment ex-changes madeby the Fees(MiscellaneousAmendments)(No 9) Instru-ment 2017.These amend-ments willhave immedi-ate effect forthe supply ofinformationunder FEES 4.4in relation tothe fee year be-ginning 1 April2017 and end-ing 31 March2018.

14.2 FEES 4.4.2R R For the year From 1 April 1 April 2017ending 31 De- 2017cember 2016,rather thanhaving to pro-vide the FCAwith the in-formation re-quired underFEES 4.4.1Rwithin twomonths of thedate specifiedas the valu-ation date inPart 5 of FEES 4


FEES Transitional provisions relating to FEES 4 forbenchmark administrators and recognised

investment exchanges

(2) Material towhich the (6) Handbook

transitional (5) Transitional provision:provision (4) Transitional provision: coming into


Annex 1ARbenchmarkadministratorsand recognisedinvestment ex-changes are re-quired to sub-mit this in-formation by18 June 2017.


FEES Transitional Provisions for the MiFID II Order

Fees Manual

FEES TP 15Transitional Provisions for the MiFID II Order

15.1 Introduction

15.1.1 G FEES TP 15 deals with transitional arrangements for applicants applying for per-missions as introduced by the MiFID II Order.

15.2 Interpretation

15.2.1 R The “MiFID II Order” is the Financial Services and Markets Act 2000 (RegulatedActivities) (Amendment) Order 2017 (SI 2017/488).

15.2.2 G The MiFID II Order makes amendments to the Financial Services and MarketsAct 2000 (Regulated Activities) Order (SI 2001/544) to transpose parts of MiFID.

The MiFID II Order was brought into force on 1st April 2017, and enables theFCA to determine applications made under it.

15.3 Application

15.3.1 R (1) FEES TP 15.4.1R applies:

(a) to a person who:

(i) makes an application to the FCA for a Part 4A permis-sion or an application for a variation of a Part 4A per-mission other than under article [15] of the MiFID II Or-der; and also

(ii) makes an application to the FCA for a Part 4A permis-sion or an application for a variation of a Part 4A per-mission under article 15 of the MiFID II Order;

(b) where

(i) applications under FEES TP 15.3.1R(1)(a)(i) and FEES TP15.3.1R(1)(a)(ii) are made on the same date; or

(ii) an application under FEES TP 15.3.1R(1)(a)(i) is made be-fore an application under FEES TP 15.3.1R(1)(a)(ii); and

(c) either:

(i) the applications under FEES TP 15.3.1R(1)(a)(i) and FEES TP15.3.1R(1)(a)(ii) are made on the same date; or

(ii) an application under FEES TP 15.3.1R(1)(a)(i) is made be-fore an application under FEES TP 15.3.1R(1)(a)(ii), wherethe following two conditions apply:

(A) a draft of the application described in FEES TP15.3.1R(1)(a)(ii) is received by the FCA before thedate the MiFID II Order came into force; and

(B) the applicant confirmed that the draft applica-tion can be treated as a formal application onor after the date that the MiFID II Order cameinto force.

15.3.2 G FEES TP 15.4.1R does not apply to dual regulated firms which are authorised orhave applied to become authorised by the PRA.

15.4 Calculation of fees payable under FEES 3.2.1R









FEES Transitional Provisions for the MiFID II Order

15.4.1 R Where this rule applies, the fee payable under FEES 3.2.1R in respect of the ap-plication described under FEES TP 15.3.1R(1)(b) is any positive amount that re-sults from the following calculation:

(1) the fee payable under the application described under FEES TP15.3.1R(1)(a)(ii);

LESS

(2) the fee paid for the application described under FEES TP 15.3.1R(1)(a)(i).

15.5 Transitional provisions: dates in force

15.5.1 R FEES TP 15 will remain in force until 3 January 2018.


FEES Transitional Provisions for Market DataProcessor System Connectivity Fees

Fees Manual

FEES TP 16RTransitional Provisions for Market Data Processor SystemConnectivity Fees

(2) Material to (6) Handbookwhich the trans- (5) Transitional provision:itional provision (4) Transitional provision: coming into


16.1 FEES 3.2.7R Part 1 (1) R Where a person has From 3 July 3 July 2017(zx) and 1(1) (zy) applied to connect to 2017

the market data pro-cessor system prior to[3 July 2017] the on-boarding fees as de-scribed in FEES 3.2.7RPart 1 (1) (zx) and 1(1)(zy) are payable in re-spect of the applica-tion and are duewithin 15 workingsdays of 3 July 2017.

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES TP 16R/1

FEES Transitional Provisions for Market DataProcessor System Connectivity Fees

■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES TP 16R/2

FEES Transitional provisions relating to thePayment Services Regulations 2017 and

Electronic Money Regulations 2011

Fees Manual

FEES TP 17RTransitional provisions relating to the Payment ServicesRegulations 2017 and Electronic Money Regulations 2011

(1) (2) Material (3) (4) Transitional Provision (5) Trans- (6) Handbookto which the itional Provi- provision:transitional sion: dates in coming intoprovision force forceapplies

Interpretation

1. FEES TP 17R R In these transitional provisions: From com- 8 Decembermencement 2017(1) References to the Payment Ser-

vices Regulations 2017 are to thePayment Services Regulations2017 (SI 2017/752); and

(2) references to the ElectronicMoney Regulations 2011 are tothe Electronic Money Regulations2011 (SI 2011/99) as amended bythe Payment Services Regulations2017.

Fees for authorisation and registration applications submitted prior to 13 January2018

2. FEES 3 Annex 8 R If, prior to 13 January 2018, an applic- From 8 De- N/Aant: submits an application for authoris- cember 2017ation as an authorised payment institu- until 13 Janu-tion under regulation 5 of the Payment ary 2018Services Regulations 2017, the fee forthat application will be the highest ofthe tariffs in (i) and (ii) below which ap-ply to that application.

(i) where the applicant is applying toprovide the payment services in para-graph(s) (f) (money remittance) and/or(g) (payment initiation services) and/or(h) (account information services) ofPart 1 of Schedule 1 to the PaymentServices Regulations 2017 the fee is£1,500.

(ii) where the applicant is applying toprovide the payment services in anyone or more of the following para-graph(s) of Part 1 of Schedule 1 to thePayment Services Regulations 2017,namely:

(a) (enabling cash to be placed on pay-ment account and all operations re-quired for operating a paymentaccount);




(b) (enabling cash withdrawals from apayments account and all operationsrequired for operating a paymentaccount);

(c) (execution of direct debts, paymenttransactions executed through a pay-ment card or similar device, credittransfers);

(d) (execution of payment transactionswhere the funds are covered by acredit line for the payment serviceuser);

(e) (issuing payment instruments or ac-quiring payment transactions)

the fee is £5,000.

This fee is due on or before the datethe application is made.

3. FEES 3 Annex 8 R Where an applicant submits an applica- From 13 Oc- N/Ation for authorisation as an authorised tober 2017payment institution under regulation 5 until 13 Janu-of the Payment Services Regulations ary 20182017 prior to 13 January 2018 and thatapplicant intends to use agents therewill be a fee of £3 for each agent regis-tered with the FCA at the time of ap-plication.

This fee is in addition to any fee dueunder FEES TP 17R(2)

4. FEES 3 Annex 8 R If, prior to 13 January 2018, an applic- From 13 Oc- N/Aant submits an application to be regis- tober 2017tered as an account information ser- until 13 Janu-vice provider under regulation 17 of ary 2018the Payment Services Regulations 2017the fee for this application will be£1,500.


5. FEES 3 Annex 8 R If, prior to 13 January 2018, an applic- From 13 Oc- N/Aant submits an application for registra- tober 2017tion as a small payment institution un- until 13 Janu-der regulation 13 of the Payment Ser- ary 2018vices Regulations 2017 the fee for thatapplication will be £500.


6. FEES 3 Annex 8 R Subject to paragraph 11 below, if, From 8 De- N/Aprior to 13 January 2018, an applicant cember 2017submits an application to vary: until 13 Janu-

ary 2018(i) its authorisation under regulation 5of the Payment Services Regulations2017; or

(ii) its registration under regulation 13of the Payment Services Regulations2017




the fee is 50% of the highest of thetariffs set out in FEES TP17 which applyto that application.

In cases where the variation involvesonly the reduction (and no increases)of the types of payment services to becarried on after the variation, no fee ispayable.

If a fee is payable this fee is due on orbefore the date the application ismade.

Fees for re-authorisation and re-registration

7. FEES 3 Annex 8 R Where a person is treated as having From 13 Oc- N/Amade an application under regulation tober 2017150(4) of the Payment Services Regula- until 13 Apriltions 2017 the fee for this application 2018will be £750.

This fee is due on or before the datethe application is treated as havingbeen made.

8. FEES 3 Annex 8 R Where a person makes an application From 13 Oc- N/Aunder regulation 151(2) of the Pay- tober 2017ment Services Regulations 2017 the fee until 13 Oc-for this application will be £250. tober 2018


9. FEES 3 Annex R Where a person makes or is treated as From 13 Oc- N/A10 having made an application for re-au- tober 2017

thorisation under regulation 78A of until 13 Aprilthe Electronic Money Regulations 2011 2018the fee for this application will be£750.

This fee is due on or before the datethe application is made or is treated ashaving been made.

10. FEES 3 Annex R Where a person makes or is treated as From 13 Oc- N/A10 having made an application for re-re- tober 2017

gistration under regulation 78A of the until 13 Oc-Electronic Money Regulations 2011 the tober 2018fee for this application will be £250.

This fee is due on or before the datethe application is made or is treated ashaving been made.

Fees for variation of authorisation applications submitted prior to 13 January 2018

11. FEES 3 Annex 8 R If, prior to 13 January 2018, an applic- From 8 De- N/Aant submits an application to vary its cember 2017authorisation under regulation 5 of until 13 Janu-the Payment Services Regulations 2017 ary 2018so as to be able to provide one orboth of the payment services in para-graphs (g) (payment initiation services)and (h) (account information services)of Part 1 of Schedule 1 to those Regu-lations, the applicant will be requiredto pay an additional fee within onemonth of 13 January 2018. That addi-




tional fee is the difference in the feepayable at the date of the applicationand the fee payable for such an ap-plication made on or after 13 January2018.

12. FEES 3 Annex R If, prior to 13 January 2018, an applic- From 8 De- N/A10 ant: submits an application to vary its cember 2017

authorisation under regulation 8 of until 13 Janu-the Electronic Money Regulations 2011 ary 2018so as to be able to provide one orboth of the payment services in para-graphs (g) (payment initiation services)and (h) (account information services)of Part 1 of Schedule 1 to Payment Ser-vices Regulations 2017, the applicantwill be required to pay an additionalfee within one month of 13 January2018. That additional fee is the differ-ence in the fees payable at the date ofthe application and the amount pay-able for such an application made onor after 13 January 2018.


FEES Transitional provisions for fees relating tobenchmark administrators

Fees Manual

FEES TP 17ATransitional provisions for fees relating to benchmarkadministrators

(2) Materialprovision to (6) Handbookwhich trans- (5) Transitional provision:itional provi- (4) Transitional provision: coming into

(1) sion applies (3) provision dates in force force

17A.1 FEES 3.2.7R Part R Where a From 29 June 29 June 20181 (1) (zza) and person: 2018FEES 3 Annex 1R

(a) has au-thorisation tocarry on theregulated ac-tivity of ad-ministering aspecifiedbenchmark (inaccordancewith article63O(1)(b) ofthe RegulatedActivities Or-der) on 29June 2018;

and

(b) applies forauthorisationto carry on theregulatedactivity of ad-ministering abenchmarkspecified inarticle 63S ofthe RegulatedActivities Or-der on or after29 June 2018,

the applica-tion fee pay-able in respectof its applica-tion (b) above,as set out inFEES 3 Annex 1R,will be dis-counted bythe amountpaid in respectof its initial ap-

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES TP 17A/1

FEES Transitional provisions for fees relating tobenchmark administrators

(2) Materialprovision to (6) Handbookwhich trans- (5) Transitional provision:itional provi- (4) Transitional provision: coming into

(1) sion applies (3) provision dates in force force

plication un-der (a).

If the fee pay-able in respectof application(b) is lowerthan thatwhich waspaid for theapplicationmade in re-spect of (a),no refund isavailable.

17A.2 FEES 4 Annex R These rules as From 29 June 29 June 20181AR, FEES 4 An- in force from 2018nex 2AR and 29 June 2018FEES 4 Annex apply to a per-11AR son who has

authorisationto carry on theregulatedactivity of ad-ministering aspecifiedbenchmark (abenchmarkadministrator)as if a refer-ence in theserules to a regu-latedbenchmarkadministratorwere a refer-ence to abenchmarkadministratoruntil that per-son becomesauthorisedunder thebenchmarksregulation, orceases to beauthorised asa benchmarkadministrator.

■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES TP 17A/2


2018/19

Fees Manual


(1) (2) (3) (4) (5) (6)

Material to Transitional Transitional Handbook pro-which the provision provision: visions comingtransitional dates in force into forceprovisionapplies

Reporting requirements

18.1 FEES 6.5.13R R For the purposes of From 30 Oc- 1 April 2018statements provided tober 2017 toby participant firms 31 March 2018under FEES 6.5.13R be-fore 1 April 2018 andwith respect to thefinancial year of thecompensationscheme beginningon 1 April 2018, ref-erences in FEES6.5.13R to classesmust be read as refer-ences to classes towhich firms will be-long after 31 March2018; and referencesto tariffs must beread as references totariffs as in forceafter 31 March 2018.

Managing investments in relation to structured products

18.2 FEES 6 Annex R Any reference to From 3 Janu- 1 April 20183AR managing invest- ary 2018 to 31

ments in FEES 6 Annex March 20183AR shall not includemanaging invest-ments in relation tostructured depositsbefore 1 April 2018.

Matters arising before 1 April 2018

[18.3 to follow from 1 April 2018]

18.3 The changes R The changes in col- From 1 April 1 April 2018made to FEES 6 umn (2) apply to any 2018 in-by the Finan- levy made after 31 definitelycial Services March 2018. This isCompensation so even if:Scheme

(1) the claim against(Funding andthe relevant person



2018/19

Scope) Instru-or successor in de-ment 2017fault arose or relatesto circumstances aris-ing before that date;or

(2) the relevant per-son or successor wasin default beforethat date.

2017/18 financial year: compensation levies

18.4 FEES 6.3.1R(3), R In relation to an in- From 23 Febru- Already in6.1.6G, and terim compensation ary 2018 to 31 force6.1.14G costs levy within the March 2018

2017/18 financialyear of the com-pensation scheme,the FSCS must takeinto account theFSCS’s expenditure inrespect of compensa-tion costs expectedin the period until 30June 2018 instead ofexpenditure ex-pected in the periodsin the provisions incolumn (2).

2018/19 financial year: levies and levy limits

18.5 FEES 6.3.1R(3), R In relation to a com- From 1 April Amended6.1.6G and pensation costs levy 2018 to 31 from 1 April6.1.14G for the 2018/2019 fin- March 2019 2018

ancial year of thecompensationscheme, the FSCSmust take intoaccount:

(1) the FSCS’s expend-iture in respect ofcompensation costsexpected between 1July 2018 and 31March 2019; or, ifgreater

(2) 75% of one thirdof the compensationcosts expected in the36 months following1 April 2018,

instead of expendit-ure expected in theperiods in the provi-sions in column (2).

18.6 FEES 6.3.5R, R In the 2018/19 finan- From 1 April Amended6.5A.1R, cial year of the com- 2018 to 31 from 1 April6.5A.4R, pensation scheme, March 2019 20186.5A.5R, 6 An the maximum ag-



2018/19

nex 2R, and 6 gregate amount ofAnnex 5R compensation costs

and specific coststhat may be alloc-ated to a particularclass, whether dir-ectly or (where relev-ant to that class)through the retailpool, is:

(1) 75% of theamount of the limitfor each class as setout in FEES 6 Annex2R; and

(2) for FCA providercontribution classes,75% of the amountof the retail poollevy limit for eachclass as set out inFEES 6 Annex 5R.

18.7 FEES 6.3.1R(3), R TP 18.5 and 18.6 do From 1 April From 1 April6.1.6G and not apply in respect 2018 to 31 2018 to 316.1.14G, 6.3.5R, of levies imposed on March 2019 March 20196.5A.1R, the debt manage-6.5A.4R, ment claims class.6.5A.5R, 6 An-nex 2R, and 6Annex 5R

18.8 FEES 6.7.-1R R FEES 6.7.-1R does not From 1 April Amendedapply to levies im- 2018 to 31 from 1 Aprilposed in the 2018/ March 2019 20182019 financial yearof the compensationscheme.



2018/19


FEES Transitional provisions relating to statementsprovided by participant firms before 1 April

2019 with respect to the FSCS 2019/20…

Fees Manual

FEES TP 19Transitional provisions relating to statements provided byparticipant firms before 1 April 2019 with respect to the FSCS2019/20 financial year

(2)(6)

Material to (5)which the Handbook(4)

transitional Transitional provisionsprovision Transitional provision: coming into


19.1 FEES 6.5.13R R For the pur- From 2 May 1 April 2019poses of state- 2018 to 31ments pro- March 2019vided by parti-cipant firmsunder FEES6.5.13R before1 April 2019and with re-spect to thefinancial yearof the com-pensationscheme begin-ning on 1 Ap-ril 2019, refer-ences in FEES6.5.13R toclasses mustbe read as ref-erences toclasses and cat-egories towhich firmswill belongafter 31 March2019; and ref-erences to tar-iffs must beread as refer-ences to tariffsas in forceafter 31 March2019.


FEES Transitional provisions relating to statementsprovided by participant firms before 1 April

2019 with respect to the FSCS 2019/20…


FEES Schedule 1[to follow]

Fees Manual

Schedule 1[to follow]

Sch 1 G[to follow]

■ Release 31 ● Sep 2018 www.handbook.fca.org.uk FEES Sch 1/1


■ Release 31 ● Sep 2018www.handbook.fca.org.ukFEES Sch 1/2


Fees Manual


Sch 2 G[to follow]



Fees Manual


Sch 3 G[to follow]


FEES Schedule 4Powers exercised

Fees Manual

Schedule 4Powers exercised

Sch 4.1 G[deleted]

Sch 4.2 G[deleted]

Sch 4.3 G[deleted]

Sch 4.4 G[deleted]

Sch 4.5 G[deleted]

Sch 4.5

[Note: certain rules in FEES are made exclusively by the FOS Ltd. A list of those rules is set outin ■ GEN Sch 4.12 G.]


FEES Schedule 4Powers exercised



Fees Manual


Sch 5 G[to follow]


FEES Schedule 6Rules that can be waived

Fees Manual

Schedule 6Rules that can be waived

Sch 6.1 GAs a result of section 138A of the Act (Modification or waiver of rules) the FCA has power towaive all its rules, other than rules made under section 137O (threshold condition code),section 247 (Trust scheme rules), section 248 (Scheme particular rules), section 261I(Contractual scheme rules) or section 261J (Contractual scheme particulars rules) of the Act.However, if the rules incorporate requirements laid down in European directives, it will notbe possible for the FCA to grant a waiver that would be incompatible with the UnitedKingdom's responsibilities under those directives.


FEES Schedule 6Rules that can be waived


Download - Fees Manual - Home - FCA Handbook · Fees Manual FEES 1 Fees Manual 1.1 Application and Purpose FEES 2 General Provisions ... 4.1 Introduction 4.2 Obligation to pay periodic fees

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