FEES 4.2 Obligation to pay periodic fees
General
A person shown in column (1) of the table in FEES 4.2.11 R as the relevant fee payer must pay each periodic fee applicable to it, calculated in accordance with the provisions referred to in column (2) of thattable, as adjusted by any relevant provision in this chapter:
- (1)
in full and without deduction (unless permitted or required by a provision in FEES); and
- (2)
on or before the date given in column (3) of that table, unless FEES 4.2.10 R applies.
A relevant fee payer will be required to pay a periodic fee for every year during which they have the status in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, for every year during which it is a regulated collective investment scheme) subject to any reductions or exemptions applicable under this chapter. If a person is the relevant fee payer for more than one status listed in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, the relevant fee payer for more than one regulated collective investment scheme) he will be required to pay a fee in relation to each.
- (1)
A relevant fee payer will be required to pay a periodic fee for every year during which they have the status in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, for every year during which it is a regulated collective investment scheme) subject to any reductions or exemptions applicable under this chapter. If a person is the relevant fee payer for more than one status listed in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, the relevant fee payer for more than one regulated collective investment scheme) he will be required to pay a fee in relation to each.
- (2)
A recognised body may also have obligations to pay fees to the FSA under other rules arising from legislation other than the Act. For example a recognised body may have an obligation to pay a fee as an approved operator of a relevant system under the Uncertificated Securities Regulations 1995 (SI 1995/3272).
The FSA will issue invoices to firms and other fee payers and expects to do so at least 30 days before the dates on which payments fall due under FEES 4.2.1 R.
Method of payment
- (1)
Unless (2) applies, a periodic fee must be paid using either direct debit, credit transfer (BACS/CHAPS), cheque, switch or by credit card (Visa/Mastercard only). Any payment by permitted credit card must include an additional 2% of the sum paid.1
1 - (2)
The FSA does not specify a method of payment for a recognised body or a designated professional body.
The FSA expects a recognised body or a designated professional body will generally pay their respective fees by electronic credit transfer.
Modifications for persons becoming subject to periodic fees during the course of a financial year
- (1)
Unless (2) applies, if the event, as described in column 4 of the table in FEES 4.2.11 R, giving rise to, or giving rise to an increase in, the fee payable in FEES 4.2.1 R, occurs on or after 1 July of the relevant financial year, the periodic fee required under FEES 4.2.1 R is modified for:
- (a)
firms (other than ICVCs and UCITS qualifiers) in accordance with FEES 4.2.7 R and FEES 4.2.8 R;
- (b)
for all other fee payers in column (1) of the table in FEES 4.2.11 R, in accordance with the table below.
- (a)
- (2)
For recognised bodies, if the recognition order is made during the course of the relevant financial year, the periodic fee required is set out in Column (4) of the table in FEES 4.2.11 R.
Period in which event (in column 4 of the table in FEES 4.2.11 R) occurs |
Proportion of periodic fee payable |
1 April to 30 June inclusive |
100% |
1 July to 30 September inclusive |
75% |
1 October to 31 December inclusive |
50% |
1 January to 31 March inclusive |
25% |
A firm (other than andICVC or UCITS qualifier) which becomes authorised, or whose permission isextended, during the course of the financial yearmust pay a fee which is calculated by:
- (1)
identifying each of the tariffs set out in Part 1 of FEES 4 Annex 2R for the relevant financial yearthat apply to the firm only after the permission is received or extended, but ignoring:
- (2)
calculating the amount for each of thosetariffs which is the higher of:
- (a)
the minimum fee specified for the tariff; and
- (b)
the result of applying the tariff to the projected valuation, for its first year (as provided to the FSA in the course of the firm's application), of the business to which the tariff relates(or, where relevant, the number of approved persons immediately after the permission is given);
- (a)
- (3)
adding together the amounts calculated under (2); and10
- (4)
modifying the result as indicated by the table in FEES 4.2.6 R.
1Projected valuations for a firm's first year will be collected for the 12 month period beginning with the date a firm becomes authorised, or the date permission isextended. That information will be used to calculate the periodic fee for the remainder of the financial year in which the firm was authorised or its permission wasextended (adjusted in accordance with FEES 4.2.7 R) and to calculate the periodic fee for the following financial year.
In relation to an incoming EEA firm or an incoming Treaty firm the modification provisions of FEES 4.2.7 R apply only in relation to the relevant regulated activities of the firm, which are passported activities or Treaty activities and which are carried on in the United Kingdom.
Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period
The FSA will not refund periodic fees if, after the start of the period to which they relate:
- (1)
a fee payer ceases to have the status set out in column (1) of the table in FEES 4.2.11 R; or
- (2)
a firm reduces its permission so that it then falls out of the fee-block previously applied to it,
(but see FEES 2.3 (Relieving Provisions) and FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period)).
Extension of Time
A person need not pay a periodic fee on the date on which it is due under the relevant provision in FEES 4.2.1 R, if:
- (1)
that date falls during a period during which circumstances of the sort set out in GEN 1.3.2 R (Emergencies) exist, and that person has reasonable grounds to believe that those circumstances impair its ability to pay the fee, in which case he must pay it on or before the fifth business day after the end of that period; or
- (2)
unless FEES 4.3.6R (3) or FEES 4.3.6R (4) (Time and method for payment) applies, that date would otherwise fall on or before the 30th day after the date on which the FSA has sent written notification to that person of the fee payable on that date, in which case he must pay on or before the 30th day after the date on which the FSA sends the notification.
Table of periodic fees
1 Fee payer |
2 Fee payable |
3 Due date |
4 Events occurring during the period leading to modified periodic fee |
Any firm (except an ICVC or a UCITS qualifier) |
As specified in FEES 4.3.1 R |
(1) Unless (2) applies, on or before the relevant dates specified in FEES 4.3.6 R (2) If an event specified in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event, or if later the dates specified in FEES 4.3.6 R. |
Firm receives permission; or Firm extends permission |
Any firm which reports transactions3 to the FSA using the FSA's Direct Reporting System or FSA's Transaction Reporting System (see SUP 17) 3 |
(1) For transaction charges, the first working day of each month (2) For licence fees and enrolment charges, by the date set out on the relevant invoice |
Not applicable |
|
Persons who hold a certificate issued by the FSA under article 54 of the Regulated Activities Order (Advice given in newspapers etc.) |
£1,000 |
(1) Unless (2) applies, on or before 30 April (2) If an event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event |
|
Any manager of an authorised unit trust; |
In relation to each unit trust the amount specified in FEES 4 Annex 4 |
Authorisation order is made in relation to the relevant scheme |
|
In relation to each ICVC the amount specified in FEES 4 Annex 4 |
|||
Persons who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme; |
In relation to each recognised scheme the amount specified in FEES 4 Annex 4 |
The relevant scheme becomes a recognised collective investment scheme |
|
Not applicable |
|||
FEES 4 Annex 6, part 1 |
(1) Unless (2) applies, by the due dates set out in FEES 4 Annex 6, part 1 (2) If the event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event |
Recognition order is made.Modified periodic fee: (1) for a UK recognised investment exchange, 150,000; (2) for a UK recognised clearing house, 250,000. |
|
FEES 4 Annex 6, part 2 |
(1), unless (2) applies, 1 July. (2) If the event in column 4 occurs during the course of a financial year , 30 days after the occurrence of that event. |
Recognition order is made.Modified periodic fee: (1) for an overseas investment exchange, 10,000; (2) for a overseas clearing house, 35,000. |
|
Listed issuers (in LR) of shares, depositary receipts and securitised derivatives (in LR), unless the conditions set out below apply.3 The first condition is that the listed issuer, or a related entity, has already paid a periodic fee in respect of the period concerned. The second condition is that the listed issuer is subject to listing rules as a result of a reverse takeover, or that the listed issuer is a newly formed entity, created as a result of a restructuring.3 |
Within 30 days of the date of the invoice |
Listed issuer3 (in LR) becomes subject to listing rules 3 |
|
10,00010 per year for the period from 1 April to 31 March the following year (see Note)2 |
Within 30 days of the date of the invoice |
Approval of sponsor |
|
All non-listed issuers (in DTR) of shares, depositary receipts and securitised derivatives. |
Within 30 days of the date of the invoice |
Non-listed issuer (in DTR) becomes subject to disclosure rules and transparency rules |
Note: Sponsors on the list of approved sponsors as at 1 April each year will be liable for the full year's annual fee unless FEES 4.3.13 R applies.2