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FEES 3.1 Introduction

Application

FEES 3.1.1 R RP

1This chapter applies to every person set out in FEES 1.1.2R (1).

FEES 3.1.2 G RP

This chapter does not apply to an EEA firm that wishes to exercise an EEA right.

Purpose

FEES 3.1.3 G RP

The purpose of this chapter is to set out the FSA fee paying requirements on the persons set out in FEES 1.1.2R (1). The FSA's power to charge in respect of guidance regarding the Basel Capital Accord is derived from section 157(4)(c) of the Act.

FEES 3.1.4 G RP

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 6.

FEES 3.1.5 G RP
  1. (1)

    The rates set for authorisation fees represent an appropriate proportion of the costs of the FSA in processing the application or exercise of Treaty rights.

  2. (2)

    The fees for collective investment schemes reflect the estimated costs to the FSA of assessing applications and notifications. The level of fees payable in respect of an application or a notification will vary depending upon the provision of the Act under which it is made. This fee is adjusted when the scheme concerned is an umbrella scheme.

  3. (3)

    Application fees for recognised bodies are calculated from a tariff structure intended to reflect the estimated cost of processing an application of that type and complexity.

FEES 3.1.6 G RP

Applications for Part IV permission (and exercises of Treaty rights) are categorised by the FSA for the purpose of fee raising as complex, moderately complex and straightforward as identified in FEES 3 Annex 1. This differentiation is based on the permitted activities sought and does not reflect the FSA's risk assessment of the applicant (or Treaty firm).

FEES 3.1.7 G RP

A potential applicant for Part IV permission (or Treaty firm) has the opportunity to discuss its proposed application (or exercise of Treaty rights) with the FSA before submitting it formally (see AUTH 3.9.1 G). If an applicant for Part IV permission (or Treaty firm) does so, the FSA will be able to use that dialogue to make an initial assessment of the fee categorisation and therefore indicate the authorisation fee that should be paid.

FEES 3.1.8 G

See AUTH 3.9 in relation to the procedures for making applications for Part IV permission and SUP 13A for procedures for the exercise of Treaty rights by Treaty firms.

FEES 3.2 Obligation to pay fees

General

FEES 3.2.1 R RP

A person in column (1) of the table in FEES 3.2.7 R as the relevant fee payer for a particular activity must pay to the FSA a fee for each application or request for vetting or admission approval made, or notification or notice of exercise of a Treaty right given, as is applicable to it, as set out or calculated in accordance with the provisions referred to in column (2) of that table:

  1. (1)

    in full and without deduction; and

  2. (2)

    on or before the date given in column (3) of that table.

FEES 3.2.2 G RP

If an application for a Part IV permission (or exercise of a Treaty right) falls within more than one category set out in FEES 3 Annex 1, only one fee is payable. That fee is the one for the category to which the highest fee tariff applies.

Method of payment

FEES 3.2.3 R RP
  1. (1)

    Unless (2) applies, the sum payable under FEES 3.2.1 R must be paid by bankers draft, cheque or other payable order.

  2. (2)

    FSA does not specify a method of payment for a person seeking to become a recognised body or a designated professional body or to be added to the list of designated investment exchanges.

FEES 3.2.4 G RP

The FSA expects that a person seeking to become a recognised body or a designated professional body or to be added to the list of designated investment exchanges will generally pay their respective fees by electronic credit transfer.

FEES 3.2.5 G RP
  1. (1)
  2. (2)

    With the exception of persons seeking to become a designated professional body, all applications, notifications, requests for vetting or admission approval will be treated as incomplete until the relevant fee is fully paid and the FSA will not consider an application, notification, request for vetting or admission approval until the relevant fee is fully paid. Persons seeking to become a designated professional body have 30 days after the designation order is made to pay the relevant fee.

FEES 3.2.6 G RP

Fees paid under this chapter are not refundable.

FEES 3.2.7 R RP

Table of application, notification and vetting fees

(1) Fee payer

(2) Fee payable

Due date

(a) Any applicant for Part IV permission (including an incoming firm applying for top-up permission)

(1) Unless (2) applies, in1 respect of a particular application, the highest of the tariffs set out in FEES 3 Annex 1 part 11 which apply to that application.

(2) In respect of a particular application which is:

(i) a straightforward or moderately complex case for the purposes of FEES 3 Annex 1 part 1, and

(ii) only involves a simple change of legal status as set out in FEES 3 Annex 1 part 6,

the fee payable is 50% of the tariff that would otherwise be payable in FEES 3 Annex 1 part 11

1

On or before the application is made

(b) Any Treaty firm that wishes to exercise a Treaty right to qualify for authorisation under Schedule 4 to the Act (Treaty rights) in respect of regulated activities for which it does not have an EEA right

(1) Where no certificate has been issued under paragraph 3(4) of Schedule 4 to the Act the fee payable is, in respect of a particular exercise, set out in FEES 3 Annex 1, part 4

(2) Where a certificate in (i) has been issued no fee is payable

On or before the notice of exercise is given

(c) Any applicant for a certificate under article 54 of the Regulated Activities Order

2,000

On or before the application is made

(d) Applicants for an authorisation order for, or recognition of, a collective investment scheme

FEES 3 Annex 2 , part 1

On or before the application is made

(f) Any person seeking an order under section 326(1) of the Act to become a designated professional body.

10,000

30 days after the order is granted

(g) Any applicant for recognition as a UK recognised body under section 287 or section 288 of the Act

FEES 3 Annex 3 , part 1

On or before the date the application is made

(h) Any applicant for recognition as an overseas recognised body under section 287 or section 288 and section 292 of the Act

FEES 3 Annex 3 , part 2

On or before the date the application is made

(i) An applicant for listing (under the listing rules)

FEES 3 Annex 4 , part 1

On or before the date the application is made

(j) Applicant for approval as sponsor (under the listing rules)

FEES 3 Annex 4 , part 2

On or before the date the application is made

(k) Issuers of tranches from debt issuance programmes and securitised derivative tranches

FEES 3 Annex 4 , part 1

An upfront fee is required per tranche for draw downs in the following 12 months

(l) Under the listing rules, an issuer involved in specific events or transactions during the year where documentation is subject to a transaction vetting

FEES 3 Annex 5 , part 1, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category.2

On or before the date that relevant documentation is first submitted to the FSA

(m) Under the prospectus rules, an issuer or person requesting approval or vetting of the documents arising in relation to specific events or transactions that it might be involved in during the year

FEES 3 Annex 5 , part 2, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category.2

On or before the date that relevant documentation is first submitted to the FSA

(n) Applicants to be added to the list of designated investment exchanges

50,000

On or before the date the application is made

2(o) In connection with rules (or future rules) implementing the Capital Requirements Regulations 2006 (including any amendments):

(i) a firm applying to the FSA for a waiver or concession (or guidance on the availability of either): or

(ii) a firm'sEEA parent applying to its Home State regulator for the use of the Internal Ratings Based approach and the Home State regulator requesting the FSA's assistance in accordance with the Capital Requirements Regulations 2006 .

1 1 2

If the firm is applying to the FSA:2

(1) unless2 (2) applies, FEES 3 Annex 6;2

(2) (a) unless2 (b) applies a1firm submitting a second application for a waiver or concession or1guidance described in column (1) within 12 months of the first application (where the fee was paid in accordance with (1)) must pay 50% of the fee applicable to it under FEES 3 Annex 6, but only in respect of that second application

(b) No fee is payable by a firm in relation to a successful application for a waiver or a concession based on a minded to grant decision in respect of the same matter following a complete application for guidance in accordance with prescribed submission requirements.1

(c) No fee is payable by a firm applying to its Home State regulator where the Home State regulator has requested the assistance of the FSAand the firm falls within Group 4 of Part 1 of FEES 3 Annex 6.2

2 1 2

Where the firm has made an application directly to the FSA, on or before the date the application is made, otherwise within 30 days after the FSA notifies the firm that its EEA parent's Home State regulator has requested the FSA's assistance.2

2

(p) A firm applying for a variation of its Part IV permission

(1) Unless (2) applies, if the proposed new1 business of the firm would1 fall within one or more activity groups specified in Part 1 of FEES 4 Annex 1 not applicable before the application1, the fee is 50% of the highest of the tariffs set out in which apply to that application.

(2) If the only change is that the1 A.12 activity group tariff applied to the firm's business before the variation and the A.13 activity group will apply after variation, no fee is payable(3) In all other cases, other than applications by credit unions, the fee payable is 250, unless the variation involves only the reduction (and no other increases) in the scope of a Part IV permission in which case no fee is payable.1

1 1

On or before the date the application is made

2(q) A significanttransaction, being one where:

(i) the issuer has a market capitalisation in excess of 1.5 billion and it is a new applicant for a primary listing under the listing rules, or involved in a reverse or hostile takeover or a significant restructuring; or

(ii) the issuer has a market capitalisation in excess of 5 billion and is involved in a class 1 transaction or a transaction requiring vetting of an equity prospectus or equivalent document

; or (iii) the issuer is proposing a Depositary Receipt issue intended to raise more than 5billion.

50,000

On or before the date the application is made.

2(r) Providers of reporting or trade matching systems applying for recognition under MiFID as an Approved Reporting Mechanism.

20,000

On or before the date the application is made.

FEES 3 Annex 1 Authorisation fees payable

R

Part 1 - Authorisation fees payable R

Application type (see Part 2)

Amount payable

(a) Credit unions - registration of common bond

200

(b) Version 1 credit unions - authorisation

300

(c) Version 2 credit unions - authorisation

1,800

(d) Straightforward

1,500

(e) Moderately complex

5,000

(f) Complex

25,000

Part 2 - Complexity Groupings Straightforward Cases R

Straightforward cases

Activity grouping

Description

A.3

Friendly societies only

A.4

Friendly societies only

A.12

Advisory arrangers, dealers or brokers (holding or controlling client money and/or assets)

A.13

Advisory only firms and advisory arrangers, dealers or brokers (not holding or controlling client money and/or assets)

A.14

Corporate finance advisers

A.181

Home finance providers 4, advisers and arrangers (excluding home finance providers4)1

4 4

A.191

General insurance mediation1

Moderately Complex Cases R

Moderately complex cases

Activity grouping

Description

A.1

E-money issuers only

A.21

Home finance providers 4 and administrators1

4

5A.3

UK ISPVs

5A.4

UK ISPVs

A.5

Managing agents at Lloyd's

A.7

Fund managers

A.9

Operators, trustees and depositaries of , operators of personal pension schemes and operators of stakeholder pension schemes3

A.10

Firms dealing as principal

B.

Service companies

Complex Cases R

Complex cases

Activity grouping

Description

A.1

Deposit acceptors (excluding e-money issuers and credit unions)

A.3

Insurers - general (excluding friendly societies and UK ISPVs5)

A.4

Insurers - life (excluding friendly societies and UK ISPVs5)

Part 4 - Authorisation Fees for Treaty Firms R

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

If the Treaty firm wishes to undertake the permitted activities in question by providing services in the United Kingdom, the fee is 25% of the fee which would be payable under FEES 3.2.7 R for an applicant for Part IV permission.

Part 5 - Activity Groupings R

The activity group definitions are set out in FEES 4 Annex 1R2

2

Part 6 - Change of legal status2

2

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

2

(1) which is a new legal entity intending to carry on the business, using the same business plan, of an existing firm with no outstanding regulatory obligations cancelling its Part IV permission, and

(2) which is to:

(a) have the same or narrower permission, and the same branches (if any), as the firm;

(b) assume all of the rights and obligations in connection with the regulated activities carried on by the firm;

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

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

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

FEES 3 Annex 2 Application and notification fees payable in relation to collective investment schemes

R

Legislative provision

Nature and purpose of fee

Payable by

Amount of fee

Umbrella scheme factor (note 1)

Part 1 Application fees payable for firms to be subject to CIS

Regulation 12 of the OEIC Regulations

On application for an order declaring a scheme to be an ICVC

An applicant

1,200

2

Section 242 of the Act

On application for an order declaring a scheme to be an AUT

An applicant

1,200

2

Section 272 of the Act

On application for an order declaring a scheme to be an individually recognised overseas scheme

An application

14,000

2

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

Regulation 12 of the Act

On application for an order declaring a scheme to be an ICVC, where the scheme is:

An applicant

2

UCITS scheme

1,200

Non-UCITS retail scheme

1,500

Qualified investor scheme

2,400

Section 242 of the Act

On application for an order declaring a scheme to be an AUT, where the scheme is:

An applicant

2

UCITS scheme

1,200

Non-UCITS retail scheme

1,500

Qualified investor scheme

2,400

Section 272 of the Act

On application for an order declaring a scheme to be an individually recognised overseas scheme

An applicant

14,000

2

Section 264 of the Act

On giving notice under section 264 of the Act

The operator

600

2

Section 270 of the Act

On giving notice under section 270 of the Act

The operator

600

2

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

Notes:

1.

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

FEES 3 Annex 3 Application fees payable in connection with Recognised Investment Exchanges and Recognised Clearing Houses

R

Description of applicant

Amount payable

Due date

Part 1 (UK recognised bodies)

Applicant for recognition as a UK RIE

100,000

Date the application is made

Applicant for recognition as a UK RCH

100,000

Date the application is made

Additional fees for applicant who proposes to:

- act as a central counterparty

25,000

Date the application is made

- offer safeguarding and administration services

25,000

Date the application is made

- use substantially new and untested information technology systems in the performance of its relevant functions

25,000

Date the application is made

Part 2 (overseas recognised bodies)

Applicant for recognition as a recognised overseas investment exchange

50,000

Date the application is made

Applicant for recognition as a recognised overseas clearing house

50,000

Date the application is made

Additional fees for applicant who proposes to:

- act as a central counterparty

25,000

Date the application is made

- offer safeguarding and administration services

25,000

Date the application is made

FEES 3 Annex 4 3 fees in relation to listing rules

R

Part 1

Fee type

Fee amount

Application Fees

2

Application for listing

2251 plus 100 per each additional issue of securities with its own International Securities Identification Number 2unless the fee in Category8 of FEES 3 Annex 5 Part 2 applies.3

1 2
3 3

Part 2

Sponsor Application Fees

1

Fee type

Fee amount

Application for approval as sponsor

4,000

FEES 3 Annex 5 Document vetting and approval fees in relation to listing and prospectus rules

R

Part 1

Fee type

Fee amount

Transaction vetting fees

Transaction vetting fees relate to specific events or transactions that an issuer might be involved in during the year.

2

Eligibility

New applicants

1,300

Category 1

Class 1 transactions

Listing particulars for Depositary Receipts4

5,700

Category 2

Listing particulars for issuers of specialist securities4

4

2,500

Category 3

All other vetting only transactions

2,500

Category 4

Supplementary listing particulars

500

Part 2

These fees relate to approval or vetting of the documents referred to in the second column of this table arising in relation to specific events or transactions that an issuer, offeror or person requesting admission might be involved in during the year.

2

Category 1

Equity prospectus

Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4)

Depositary Receipt prospectus4

5,700

Category 2

Equity registration document

4,000

Category 3

Equity securities note and summary

Summary document referred to in PR 1.2.3R(8)

2,500

Category 4

Non-equity prospectus or base prospectus (excluding drawdown prospectus or base prospectus)4

Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4)

2,500

Category 5

Non-equity registration document

1,750

Category 6

Non-equity securities note and summary

Summary document referred to in PR 1.2.3R(8)

6004

4

Category 7

Supplementary prospectus

5003

4Category 8

Drawdown prospectus or base prospectus

600

For the purposes of categories 1-3 of this fee schedule, equity does not include convertible securities or depositary receipts. These are treated as non-equity.

Where a fee in category 8 of this fee schedule is payable, the listing application fee under FEES 3 Annex 4 Part 1 does not apply.4

Fees from other fee schedules contained in other sections of the sourcebook may be applicable to a single submission.

Certain transactions may come within the category of significant transactions and thus attract a higher fee, as set out in 3.2.7(q) R.4

1

FEES 3 Annex 6 Fees payable for1 a waiver (or concession)2 or guidance on the availability of either1 in connection with rules implementing Basel Capital Accord

R

3 2Part 1Fees payable other than for3 applications for a waiver (or concession) or guidance on the availability of either1 to allow a firm to use the counterparty credit risk internal model method.1

1 1

For firms falling into a group (Group 1) in which five or more significant overseas entities are applying for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments), the fees in Table 1 are applicable.

Where a request for assistance regarding an Advanced or Foundation IRB application under the Capital Requirements Regulations 2006 has been made to the FSA as detailed in FEES 3.2.7 R (o), the fees in Table 1 and Table 2 are applicable if:

(i) the firm is a subsidiary of the applicant in the United Kingdom and has permission to accept deposits; and

(ii) the firm does not fall within Group 4 ofTable 2.3

Table 1

Application group

Description of group

Application fee 2007/0832

2 3

Advanced IRB ('000)

Foundation IRB ('000)

AMA ('000)

Group 1

Five or more significant overseas entities applying for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments)

2573

3 3

2223

2 3

1743

2 3

For all other firms the fees in Table 2 are applicable

Table 2

Application group

Description of group

Application fee 2007/0832

2 3

Modified eligible liabilities (m)

Number of traders as at 31 December 20063

2 3

Advanced IRB ('000)

Foundation IRB ('000)

AMA ('000)

Group 2

>40,000

>200

2223

2 3

1903

2 3

1403

2 3

Group 3

>5,000 - 40,000

26 - 200

903

2 3

693

2 3

493

2 3

Group 4

0 - 5,000

0 - 25

403

2 3

293

2 3

233

2 3

(1)

Advanced and Foundation IRB applications are applications for guidance regarding the Internal Ratings Based approach for credit risk. AMA applications are applications for guidance regarding the Advanced Measurement Approach for operational risk.

(2)

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

2Part 2

Fees payable for applications for a waiver (or concession) or guidance on the availability of either1 to allow a firm to use the counterparty credit risk internal model method.1

52,0003

1 1 3