FEES 4.1 1Introduction

The purpose of this chapter is to set out the requirements on firms and others to pay periodic fees and transaction reporting fees in certain circumstances.

Most of the detail of the periodic fees that are payable by firms is set out in FEES 4 Annexes 1-8. Most of the provisions of the Annexes will vary from one financial yearto another. Accordingly fresh FEES 4 Annexes will come into force, following consultation, for each financial year.

1. (1)

   The periodic fees for collective investment schemes reflect the estimated costs to the FSA of considering proposals to change regulated collective investment schemes, maintaining up to date records about them, and related policy work.

2. (2)

   The provision of the Direct Reporting System andTransaction Reporting System facilities for firms reporting transactions under SUP 17 incurs costs to the FSA. These costs depend upon the amount the facility is used. Accordingly the income which the FSA receives from these transactions reporting fees will be set and accounted for separately from the fee-block tariffs, and are set out in FEES 4 Annex 3.

The Society of Lloyd's, which has permission under section 315(2) of the Act (The Society: authorisation and permission), has its own fee block.

The FSA will allocate penalties received for the benefit of relevant fee payers by way of a permitted deduction specified in FEES 4 Annex 2, or in the case of listed issuers, as notified to issuers annually, for the relevant year.

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