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FEES 2.1 Introduction

Application

FEES 2.1.1 R RP

6 21Except to the extent referred to in FEES 2.1.1A R, this1621120 chapter applies to every person who is required to pay a fee or share of a levy to the FCA12, FOS Ltd or FSCS, as the case may be, by a provision of the Handbook.

FEES 2.1.1A R RP

6 21This chapter does not apply in relation to:8

8
  1. (1)

    FEES 5.5A; or8

  2. (2)

    FEES 5 Annex 2R; or8

  3. (3)

    FEES 5 Annex 3R; or8

  4. (4)

    a PSR fee8; or9

  5. (5)

    the pensions guidance levy; or10

    910
  6. (6)

    the pensions guidance providers’ levy; or11

    10
  7. (7)

    11the FOS ADR levy.

FEES 2.1.2 R RP

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

FEES 2.1.3 G RP

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

Purpose

FEES 2.1.4 G RP

The purpose of this chapter is to set out the general provisions applicable to those who are required to pay fees or levies to the5FCA12or a share of the FSCS levy.

6 21 5 6 21 5 6
FEES 2.1.5 G RP
  1. (1)

    The following enable the FCA to charge fees to cover its costs and expenses in carrying out its functions:13

    1. (a)

      paragraph 23 of Schedule 1ZA of the Act;13

    2. (b)

      regulation 92 of the Payment Services Regulations;13

    3. (c)

      regulation 59 of the Electronic Money Regulations;13

    4. (d)

      article 25(a) of the MCD Order;15

      13
    5. (e)

      regulation 21 of the Small and Medium Sized Businesses (Credit Information) Regulations. 13

    6. (f)

      regulation 18 of the Small and Medium Sized Business (Finance Platforms) Regulations;15

      14
    7. (g)

      regulation 40 of the DRS Regulations; and15

    8. (h)

      paragraph 25 of the Schedule 1 to the MiFI Regulations.15

  2. (2)

    The corresponding provisions for the FSCS levy, FOS levies, and CFEB levies are set out in FEES 6.1, FEES 5.2 and FEES 7.1.4G respectively.13

  3. (3)

    Case fees payable to the FOS Ltd are set out in FEES 5.5B.13

  4. (4)

    Fee-paying payment service providers, fee-paying electronic money issuers, CBTL firms, designated finance platforms14 and designated credit reference agencies are not required to pay the FSCS levy but are liable for FOS levies.13

2 18 2 18 2 7 3 22 7 22 18 18 5 5 6 21 5 5 5 5 6 21 22 22 22 22 7 22 4
FEES 2.1.5A G RP

3Regulation 92 of the Payment Services Regulations and regulation 59 of the Electronic Money Regulations each provide7 that the functions of the FCA18 under the respective7 regulations are treated for the purposes of paragraph 23 of Schedule 1ZA18 to the Act as functions conferred on the FCA18 under the Act. Paragraph 23(7) 22 however, has not been included 22.7This is 22the FCA's187 obligation to ensure that the amount of penalties received or expected to be received are not to be taken into account in determining the amount of any fee payable.22

7 18 18 18 18 18 22 22 7 18 22
FEES 2.1.5B G

22Article 25 of the MCD Order provides that the functions under the MCD Order are to be treated for the purposes of paragraph 23 of Schedule 1ZA to the Act as functions conferred on the FCA under the Act.

FEES 2.1.5C G RP
  1. (1)

    13The FCA also has a fee-raising power as a result of:14

    1. (a)

      regulation 21 of the Small and Medium Sized Business (Credit Information) Regulations;15

      14
    2. (b)

      regulation 18 of the Small and Medium Sized Business (Finance Platforms) Regulations;15

      14
    3. (c)

      regulation 40 of the DRS Regulations; and15

    4. (d)

      paragraph 25 of the Schedule 1 to the MiFI Regulations.15

  2. (2)

    The FCA’s functions under these regulations are treated as functions conferred on the FCA under the Act for the purposes of its fee-raising power in paragraph 23 of Schedule 1ZA to the Act or as if they had similar effect for these purposes15.

FEES 2.1.6 G RP

The FCA’s12fees payable will vary from one fee year18 to another, and will reflect the FCA’s12funding requirement for that period and the other key components, as described in FEES 2.1.7G. Periodic fees, which will normally be payable on an annual basis, will provide the majority of the funding required to enable the FCA12to undertake its statutory functions.

18 18 18 18 18 18 18
FEES 2.1.7 G RP

The key components of the FCA12fee mechanism (excluding the FSCS5levy, the FOS5 levy and case fees, and the CFEB levy5which are dealt with in FEES 5,5FEES 6 and FEES 7)5 are:

5 5 5
  1. (1)

    a funding requirement derived from:

    1. (a)

      the FCA’s12financial management and reporting framework;

    2. (b)

      the FCA’s12budget; and

    3. (c)

      adjustments for audited variances between budgeted and actual expenditure in the previous accounting year, and reserves movements (in accordance with the FCA’s12reserves policy);

  2. (2)

    mechanisms for applying penalties received during previous financial years for the benefit of fee payers;

  3. (3)

    fee-blocks, which are broad groupings of fee payers offering similar products and services and presenting broadly similar risks to the FCA’s12regulatory objectives;

  4. (4)

    a costing system to allocate an appropriate part of the funding requirement to each fee-block; and

  5. (5)

    tariff bases, which, when combined with fee tariffs, allow the calculation of fees.

FEES 2.1.8 G RP

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

FEES 2.1.9 G RP

By basing fee-blocks on categories of business, the FCA12aims to minimise cross-sector subsidies. The membership of the fee-blocks is identified in the FEES provisions relating to the type of fees concerned.

FEES 2.1.9A G RP

18 PRA-authorised persons and persons seeking to become PRA-authorised persons should note that the FCA and the PRA have agreed for the FCA to act as the PRA's collection 12agent for 12PRA fees. Where applicable, both PRA and FCA fees should be paid as a single payment to the FCA, which will receive the payment in its own capacity in respect of FCA fees and in its capacity as collection 12agent for the PRA in respect of the PRA fees. References to this arrangement will be referred to in FEES where applicable.

FEES 2.1.10 G

[deleted]19

19
FEES 2.1.11 G

[deleted]19

7 7 7 19

FEES 2.2 Late Payments and Recovery of Unpaid Fees

Late Payments

FEES 2.2.1 R RP

If a person does not pay the total amount of a periodic fee3, FOS levy, or share of the FSCS levy,18CFEB levy or SFGB levy18, before2 the end of the2 date on which it is due, under the relevant provision in FEES 4, 5, 6, 7 or 7A18, that person must pay an additional amount as follows:

3 4 2 9 7 23 6 2 6 6
  1. (1)

    if the fee was not paid in full before the end of the due date, an administrative fee of £250; plus

  2. (2)

    interest on any unpaid part of the fee at the rate of 5% per annum above the Official Bank Rate10 from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.

    210
FEES 2.2.2 G RP

The FCA22, (for FCA and PRA22periodic fees, FOS and FSCS levies, CFEB levies and SFGB levies18), expects11 to issue invoices at least 30 days before the date on which the relevant amounts fall due. Accordingly it will generally be the case that a person will have at least 30 days from the issue of the invoice before an administrative fee becomes payable.

22 6 7 23 11 7 23 2

Recovery of Fees

FEES 2.2.3 G RP
  1. (1)

    Paragraph15 23(8) of Schedule 1ZA of the Act permits the FCA to recover fees (including fees relating to payment services, the issuance of electronic money, 17CBTL firms, data reporting services providers,17designated credit reference agencies, designated finance platforms16 and, where relevant, FOS levies, CFEB levies and SFGB levies18).14

  2. (2)

    Section 213(6) of the Act permits the FSCS to recover shares of the FSCS levy payable, as a debt owed to the FCA and FSCS respectively. 14

  3. (3)

    The FCA and FSCS, as relevant, will consider taking action for recovery (including interest) through the civil courts.14

6

6 6 6 6 13 12 13 12 13 13 13 11 5 8 24 5 24 6 13 13 13 6 7 23 12 13
FEES 2.2.4 G RP

In addition, the FCA13may be entitled to take regulatory action in relation to the non-payment of fees,6FOS levies, CFEB levies and SFGB levies18. The FCA136 may also take regulatory action in relation to the non-payment of FOS case fees or 723 a723 share of the FSCS levy, after reference of the matter to the6FCA13 by the6FSCS. What action (if any) that is taken by the FCA13will be decided upon in the light of the particular circumstances of the case.

6 6 6 7 23 7 23

FEES 2.3 Relieving Provisions

Remission of Fees and levies2

FEES 2.3.1 R RP

If it appears to the FCA5 or410 the FSCS (in relation to any FSCS levy only) 2 that in the exceptional circumstances of a particular case, the payment of any fee, FSCS levy2,3FOS levy, CFEB levy or SFGB levy6 would be inequitable, the FCA5 or410 the FSCS2 as relevant, may (unless FEES 2.3.2B R applies)1 reduce or remit all or part of the fee or levy in question which would otherwise be payable.

4 10 3 4 10 3 4 10 3 4 10
FEES 2.3.2 R RP

If it appears to the FCA5 or410 the FSCS (in relation to any FSCS levy only)2 that in the exceptional circumstances of a particular case to which FEES 2.3.1R does not apply, the retention by the FCA5 the FSCS,2 or the CFEB3, as relevant, of a fee,3FOS levy, CFEB levy or SFGB levy6 which has been paid would be inequitable, the FCA5 the FSCS2 or the CFEB3, may (unless FEES 2.3.2B R applies)1 refund all or part of that fee or levy.

4 10 3 4 10 3 4 10 3 3 4 10
FEES 2.3.2A G RP

1A poor estimate or forecast by a fee or levy 2payer, when providing information relevant to an applicable tariff base, is unlikely, of itself, to amount 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 2payer may give rise to such a claim.

FEES 2.3.2B R RP

1The FCA5or the FSCS2may 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 fee or levy2 payer in respect of a particular period, due to a mistake of fact or law by the fee or levy2 payer, if the claim is made by the fee or levy2 payer more than 2 years after the beginning of the period to which the overpayment relates.

FEES 2.3.2C R

6For FEES 7A, the FCA is entitled not to consider a claim under FEES 2.3.1R or FEES 2.3.2R to refund any overpaid amounts due to a mistake of fact or law by the fee-paying firm if the claim is made more than two years after the beginning of the period to which the SFGB levy subject to the claim relates.

FEES 2.3.3 G

[deleted]2

2

FEES 2.4 1VAT

FEES 2.4.1 R RP

1All fees payable or any stated hourly rate under FEES 3 (Application, notification and vetting fees),2FEES 4 (Periodic fees), FEES 7 (The CFEB levy) 2and FEES 7A (The SFGB levy)3 are stated net of VAT. Where VAT is applicable this must also be included.