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FEES 11.1 1Application, purpose and background

Application

FEES 11.1.1 R RP

This chapter applies to a designated guidance provider.

Purpose

FEES 11.1.2 G RP

This chapter sets out rules governing the amounts payable by designated guidance providers to the FCA to fund the FCA’s pensions’ guidance costs (see FEES 11.1.4G).

Background

FEES 11.1.3 G RP

The FCA’s pensions guidance costs are defined in section 333Q(4) (Funding of FCA’s pensions guidance costs) of the Act as the expenses incurred, or expected to be incurred, by the FCA in connection with carrying out the functions conferred on it in Part 20A of the Act (other than the functions specified in 333R of the Act).

FEES 11.1.4 G RP
  1. (1)

    Section 333Q(1) of the Act requires the FCA to make rules requiring designated guidance providers, or any specified class of designated guidance provider to pay to the FCA specified amounts or amounts calculated in a specified way.

  2. (2)

    Section 333Q(3) of the Act sets out that such amounts may include a component to cover the expenses of the FCA in collecting the payments and to enable the FCA to maintain an adequate reserve.

FEES 11.2 1Pensions guidance providers’ levy

Obligation to pay pensions guidance providers’ levy

FEES 11.2.1 R RP

A designated guidance provider in column (B) of the table in FEES 11 Annex 1R must pay the pensions guidance providers’ levy applicable to it in column (C) of that table:

  1. (1)

    in full and without deduction; and

  2. (2)

    in accordance with this chapter.

Time of payment

FEES 11.2.2 R RP

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 that sum relates.

Method of payment

FEES 11.2.3 G RP

A designated guidance provider should pay its levy by electronic credit transfer and should notify the FCA if it intends to pay in another way.

Late payments

FEES 11.2.4 R RP

If a designated guidance provider does not pay the total amount of the pensions guidance providers’ levy applicable to it before the end of the date on which it is due, it must pay:

  1. (1)

    an administrative fee of £250; plus

  2. (2)

    interest on any unpaid part of the levy at an annual rate of 5% above the Official Bank Rate from time to time in force, accruing daily from the date on which the amount concerned became due.

Reduction, remission and repayment of levy

FEES 11.2.5 G RP

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 FCA that in the exceptional circumstances of a particular case paying all or part of it would be inequitable.

FEES 11.2.6 G RP

The FCA may refund all or part of the pensions guidance providers’ levy applicable to a designated guidance provider if it appears to the FCA that in the exceptional circumstances of a particular case the FCA retaining all or part of it would be inequitable.

FEES 11.2.7 G RP

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 if the claim is made more than two years after the beginning of the fee year to which the levy relates.

Recovery of levies

FEES 11.2.8 G RP
  1. (1)

    The FCA may recover the pensions guidance providers’ levy from a designated guidance provider as a debt owed by it to the FCA under paragraph 23(8) of Schedule 1ZA of the Act.

  2. (2)

    The FCA will consider taking action for recovery (including interest) through the civil courts.

Revocation of designation as pensions’ guidance provider

FEES 11.2.9 G RP

The FCA will not relieve or refund the pensions guidance providers’ levy paid by a designated guidance provider if the Secretary of State2 revokes that provider’s designation under section 333E(3) of the Act after the start of that fee year.

Becoming a designated guidance provider

FEES 11.2.10 R RP

If the Secretary of State2 designates a person as a designated guidance provider under section 333E(1)(e) of the Act in the course of a fee year, the following formula must be used to calculate the pensions guidance providers’ 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 designated guidance provider; and

(ii)

the last month of the relevant fee year;

(2)

divide the number of months calculated in (1) by 12; and2

(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 calculated in (2).

VAT

FEES 11.2.11 R RP
  1. (1)

    All pensions guidance providers' levies payable under FEES 11 are stated net of value-added tax (VAT).

  2. (2)

    Where VAT is applicable, this must also be included.

FEES 11 Annex 1 R 1 2Pensions guidance providers’ levy for the period 1 April 2017 to 31 March 20183

FEES 11 Annex 1 R R

The table below shows the pensions’ guidance providers levy applicable to the designated guidance providers for the fee year 1 April 2017 to 31 March 20183.

2

(A) Row

(B) Name of designated guidance provider

(C) Pensions guidance providers’ levy payable (£)

1

The Pensions Advisory Service Limited

13,5003

2

2

The National Association of Citizens Advice Bureaux

13,5003

2

3

The Scottish Association of Citizens Advice Bureaux

13,5003

2

4

The Northern Ireland Association of Citizens Advice Bureaux

13,5003

2

5

Any other person designated as a designated guidance provider between 1 April 2017 to 31 March 20183

2

13,5003 adjusted in accordance with the formula at FEES 11.2.10R

2