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 to 11.4 2 G provides guidance on the calculation of certain tariffs.5 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)

   [deleted]8

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3. (3)

   4The periodic fees for fee-paying payment service providers , fee-paying electronic money issuers 6and issuers of regulated covered bonds 7are set out in FEES 4 Annex 11. This annex sets out the activity groups, tariff base, valuation dates and, where applicable, the flat fees due for these firms.

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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 FEES 4 Annex 11 as applicable4.

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.