DISP 5 Annex 1R DISP 5 Ann 1R: Annual Fees Payable 7

21Introduction: annual budget

1.

The annual budget for 2004/05 approved by the FSA is £45m.

Part 1: General levy and supplementary levy

2.

The total amount expected to be raised through the general levy in 2004/05will be £12.5m.

Part 2: Fee tariffs for general levy and supplementary levy

3.

No establishment costs will be raised in 2004/05by the supplementary levy.

1-Deposit acceptors, mortgage lenders and administrators (excluding firms in block 14)

Number of accounts relevant to the activities in DISP 2.6.1 R

£0.0069per relevant account, subject to a minimum levy of £200

2-Insurers - general (excluding firms in blocks 13 & 15)3

Relevant annual gross premium income

£0.081 per £1,000 of relevant annual gross premium income, subject to a minimum levy of £200

3-The Society (of Lloyd's)

To be allocated by the Society

£47,266 to be allocated by the Society

4-Insurers - life (excluding firms in block 15)3

Relevant adjusted annual gross premium income

£0.093 per £1,000 of relevant adjusted annual gross premium income, subject to a minimum levy of £100

5-Fund managers (including those holding client money/assets and not holding client money/assets)

Relevant funds under management

£0.00255 per £1,000 of relevant funds under management, subject to a minimum levy of £100

6-Operators, trustees and depositaries of collective investment schemes

Flat fee

Levy of £75

7-Dealers as principal

Flat fee

Levy of £75

8-Advisory arrangers, dealers or brokers holding and controlling client money and/or assets

Number of relevant approved persons (controlled functions 21, 22, 24, 25, 26)

£65 per relevant approved person (controlled functions 21, 22, 24, 25, 26), subject to a minimum levy of £75

9-Advisory arrangers, dealers or brokers not holding and controlling client money and/or assets

Number of relevant approved persons (controlled functions 21, 22, 24, 25, 26)

£30 per relevant approved person (controlled functions 21, 22, 24, 25, 26), subject to a minimum levy of £75

10-Corporate finance advisers

Flat fee

Levy of £75

11-

N/A for 2004/05

12-

N/A for 2004/05

13-Cash plan health providers

Flat fee

Levy of £50

14-Credit unions

Flat fee

Levy of £50

15-Friendly societies whose tax-exempt business represents 95% or more of their total relevant business

Flat fee

Levy of £50

16 - Mortgage lenders, advisers and arrangers (excluding firms in blocks 13, 14 & 15)4

Either annual income reported in accordance with Part 2 of SUP 20 Annex 1 R from relevant business or the firm's total annual income reported in accordance with Part 2 of SUP 20 Annex 14

No levy is payable for 2004/20054

17 - General insurance mediation (excluding firms in blocks 13, 14 & 15)4

Either annual income reported in accordance with Part 2 of SUP 20 Annex 1 from relevant business or the firm's total annual income reported in accordance with Part 2 of SUP 20 Annex 14

No levy is payable for 2004/20054

5

The industry blocks in the table are based on the equivalent activity groups set out in Part 1 of SUP 20 Annex 1 R.

6

Where the tariff base in the table is defined in similar terms as that for the equivalent activity group in Part 2 of SUP 20 Annex 1 R, it must be calculated in the same way as that tariff base - taking into account only the firm's relevant business.

PART 3: Case fees

DISP 5.6.1 R

Standard case fee

£360

DISP 5.6.6 R

Special case fee: complaints from small businesses

£475

DISP 5.6.7 R

Special case fee: firms which cease to be authorised

£475

DISP 5.6.8 R

Special case fee: relevant complaints against persons who were subject to a former scheme

£475

Part 4: Fee Tariffs and case fees for VJ participants

1V

Deposit acceptors, mortgage lenders and administrators

Number of relevant accounts

£0.00383 per relevant account

£100

£360

2V

VJ participants undertaking insurance activities subject only to prudential regulation

Relevant annual gross premium income

£0.000044 per £1 of relevant annual gross premium income

£100

£360

3V

VJ participants undertaking insurance activities subject to prudential and conduct of business regulation

Relevant adjusted annual gross premium income

£0.000094 per £1 of relevant adjusted annual gross premium income

£100

£360

4V

[No longer applicable.]

5V

[No longer applicable.]

6V

Other intermediaries

Not applicable

Not applicable

Not applicable

£360

7V

VJ participants not falling into any of the above categories

Not applicable

Not applicable

Not applicable

£475

8V

National Savings and Investments business

Not applicable

Not applicable

£10,000

£360

79.

The industry blocks in the table are based on the equivalent activity groups for authorised firms, as set out in part 1 of SUP 20 Ann 1R.

10.

Where the tariff base in the table is defined in similar terms as the tariff base for the equivalent activity group set out in part 2 of SUP 20 Ann 1R, it must be calculated in the same way as that tariff base except that it takes into account only the VJ participant's relevant business.

11.

'Relevant business' for the purposes of funding the Voluntary Jurisdiction means that part of a VJ participant's business which it conducts with private individuals and which is subject to the Voluntary Jurisdiction of the Financial Ombudsman Service as provided for in DISP 2.6.9 R (The Voluntary Jurisdiction), as measured by the appropriate tariff base for each industry block.

712.

As for the Compulsory Jurisdiction, firms will only be charged for the third and subsequent chargeable case in any financial year.