FEES 4.2 Obligation to pay periodic fees

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. (1)

   in full and without deduction (unless permitted or required by a provision in FEES); and

2. (2)

   on or before the date given in column (3) of that table, unless FEES 4.2.10 R applies.

A firm (other than an5ICVC 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. (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:

   1. (a)

      the A.13 activity group if, before the variation, the A.12 activity group applied to the firm's business; or

   2. (b)

      the A.12 activity group if, before the variation, the A.13 activity group applied to the firm's business;

2. (2)

   calculating the amount for each of thosetariffs which is the higher of:

   1. (a)

      the minimum fee specified for the tariff; and

   2. (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;

      5
3. (3)

   adding together the amounts calculated under (2); and10

4. (4)

   modifying the result as indicated by the table in FEES 4.2.6 R(except that FEES 4 Annex 10 (Periodic fees for MTF operators) deals with a firm that receives permission for operating a multilateral trading facility or has its permission extended to include this activity during the course of the relevant financial year and FEES 4.2.6 R does not apply).7

1. (1)

   7This rule deals with the calculation of:

   1. (a)

      a firm's fees for the FSA financial year following the FSA financial year in which the firm obtained permission or had its permission extended (the second financial year); and

   2. (b)

      the tariff base for the fee block or fee blocks that relate to that permission or extension, as the case may be.

2. (2)

   Unless this rule says otherwise, the tariff base for a firm's second financial year is calculated using projected valuations for its second year (as provided to the FSA in the course of the firm's application), of the business to which the tariff relates.

3. (3)

   This rule does not apply to a firm with a permission for operating a multilateral trading facility.

4. (4)

   A reference to the FSA financial year means the 12 months ending with 31 March.

5. (5)

   The rest of this rule only applies to a firm that becomes authorised, or extends its permission, on or after 1 April 2009.

   1. (a)

      If a firm's tariff base is calculated using data from a period that begins on or after the date that the firm receives its permission or extension of permission, as the case may be, the firm must use that data.

   2. (b)

      Unless (a) applies, if a firm:

      1. (i)

         receives its permission or extension of permission, as the case may be, between 1 April and 31 December inclusive; and

      2. (ii)

         is, but for this rule, required to calculate its tariff base by reference to the average of its modified eligible liabilities for October, November and December;

      it must calculate that tariff base as at the December before the start of the FSA financial year.

   3. (c)

      If a firm satisfies the following conditions it must calculate its tariff base under (d):

      1. (i)

         the firm receives its permission or extension of permission, as the case may be, between 1 April and 31 December inclusive; and

      2. (ii)

         the firm's tariff base, but for this rule, is calculated by reference to the firm's financial year ended in the calendar year ending 31 December prior tothe FSA financial year or the twelve months ending 31 December prior to the FSA financial year.

   4. (d)

      If a firm satisfies the conditions in (c) it must calculate its tariff base as follows:

      1. (i)

         it must use actual data in relation to the business to which the tariff relates rather than projected valuations;

      2. (ii)

         the tariff is calculated by reference to the period beginning on the date it acquired permission, or had its permission extended, and ending on the 31 December before the start of theFSA financial year; and

      3. (iii)

         the figures are annualised by increasing them by the same proportion as the period of 12 months bears to the period starting from when the firm received its permission or extensionto the 31 December, as the case may be.

   5. (e)

      Where a firm is required to use the method in (d) it must notify the FSA of this by the date specified in FEES 4.4 (Information on which Fees are calculated).

   6. (f)

      Where a firm is required to use actual data under this rule FEES 4 Annex 1 Part 3 is modified in relation to the calculation of that firm's valuation date in its second 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, and which are not provided on a cross border services basis.4

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. (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. (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.