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FEES 4.2 Obligation to pay periodic fees

General

FEES 4.2.1RRP

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.

FEES 4.2.2GRP

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. (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. (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).

FEES 4.2.3GRP

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

FEES 4.2.4RRP
  1. (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. (2)

    The FSA does not specify a method of payment for a recognised body or a designated professional body.

FEES 4.2.5GRP

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

FEES 4.2.6R
  1. (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:

    1. (a)

      firms (other than ICVCs and UCITS qualifiers) in accordance with FEES 4.2.7 R and FEES 4.2.8 R;

    2. (b)

      for all other fee payers in column (1) of the table in FEES 4.2.11 R, in accordance with the table below.

    2. 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%
  2. (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.

FEES 4.2.7R

A firm (other than an5ICVC or UCITS qualifier) which becomes authorised, or whose permission and/or payment service activities are 9extended, during the course of the financial yearmust pay a fee which is calculated by:

9
  1. (1)

    identifying each of the tariffs set out in Part 1 of FEES 4 Annex 2R and/or FEES 4 Annex 11 as appropriate9 for the relevant financial yearthat apply to the firm only after the permission is received or extended or payment service activities are authorised or extended,9 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

FEES 4.2.7AG

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 its 9permission and/or payment service activities are 9extended. 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 and/or payment service activities were 9extended (adjusted in accordance with FEES 4.2.7 R) and to calculate the periodic fee for the following financial year. Projected valuations are not relevant for those fee payers that are only required to pay fixed fees. 9

9
FEES 4.2.7BR
  1. (1)

    7This rule deals with the calculation of:

    1. (a)

      a firm's fees for its second financial year. This is the FSA financial year following the FSA financial year in which it was given permissionor was authorised under the Payment Services Regulations or had its permission and/or payment services activities extended (the relevant permissions); and9

      9
    2. (b)

      the tariff base for the fee block or fee blocks that relate to each of the relevant permissions. 9

      9
  2. (2)

    Unless this rule says otherwise, the tariff base for a firm's second financial year is calculated using projected valuations for its first8 year (as provided to the FSA in the course of the firm's application), of the business to which the tariff relates.

    8
  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 and/or payment services activities,9 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 obtains the relevant permission to which that tariff base relates, 9 the firm must use that data.

      9
    2. (b)

      Unless (a) applies, if a firm:

      1. (i)

        receives a relevant permission9 between 1 April and 31 December inclusive; and

        9
      2. (ii)

        is, but for this rule, required to calculate its tariff base for that relevant permission 9by 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 a relevant permission9 between 1 April and 31 December inclusive; and

        9
      2. (ii)

        the firm's tariff base for that relevant permission is,9 but for this rule, calculated by reference to the firm's financial year ended in the calendar year ending on the9 31 December before the start of 9the FSA financial year or the twelve months ending 31 December before the start of the 9the FSA financial year.

        999
    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 the relevant permission relating to the tariff,9 and ending on the 31 December before the start of theFSA financial year; and

        9
      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 relevant 9permission to 31 December.

        999
    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 and FEES 4 Annex 11 Part 4 are9 modified in relation to the calculation of that firm's valuation date in its second financial year.

      9

Application of FEES 4.2.7BR

FEES 4.2.7CG

7The table below sets out the period within which a firm's tariff base is calculated (the data period) for second year fees calculated under FEES 4.2.7B R. The example is based on a firm that acquires permission on 1 November 2009 and has a financial year ending 31 March. Where valuation dates fall before the firm receives permission it should use projected valuations in calculating its fees.

References in this table to dates or months are references to the latest one occurring before the start of the FSA's financial year unless otherwise stated.

Type of permission acquired on 1 November

Tariff base

Valuation date but for FEES 4.2.7BR

Data period under FEES 4.2.7BR

Accepting deposits (monthly reporting firms)

Modified eligible liabilities (MELs)

Average of the MELs for October, November, December - so projected valuations will be used

MELs for December 2009.

Accepting deposits (quarterly reporting firms)

MELs

December 2009

December 2009.

Entering into a home finance transaction

Number of mortgages, home purchase plans or home reversion plans entered into

12 months ending 31 December 2009 - so projected valuations will be used

1 November to 31 December 2009.

Effecting contracts of insurance

(Insurers - general)

Gross premium income and gross technical liabilities

31 March 2009 - so projected valuations will be used

1 November to 31 December 2009.
FEES 4.2.8RRP

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 For payment services the adjustment only applies to the business to which the calculation made in FEES 4.3.12A R relates. 9

Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period

FEES 4.2.9GRP

The FSA will not refund periodic fees if, after the start of the period to which they relate:

  1. (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. (2)

    a firm reduces its permission or payment services activities 9so that it then falls out of the fee-block previously applied to it;9

    9

(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

FEES 4.2.10RRP

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), 9 FEES 4.3.6R (4) or FEES 4.3.6R (4A)9 (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.

    9
FEES 4.2.11RRP

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) or (3) apply7, on or before the relevant dates specified in FEES 4.3.6 R

(2) Unless (3) applies, if 7an 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.7

(3) Where the permission is for operating a multilateral trading facility, the date specified in FEES 4 Annex 10 (Periodic fees for MTF operators).

77

Firm receives permission, or becomes authorised or registered under the Payment Services Regulations ;9 or firm 9extends permission or its payment service activities9

9

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

FEES 4 Annex 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

Certificate issued to person by FSA under Article 54 RAO

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

Any ACD of an ICVC; and

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

UK recognised body

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.

Overseas recognised body

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

FEES 4 Annex 7

Within 30 days of the date of the invoice

Listed issuer3 (in LR) becomes subject to listing rules

3

Sponsors

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.6

6

FEES 4 Annex 8

Within 30 days of the date of the invoice

Non-listed issuer (in DTR) becomes subject to disclosure rules and transparency rules6

6All firms reporting transactions in securitised derivatives to the FSA in accordance with SUP 17, and market operators who provide facilities for trading in securitised derivatives.

FEES 4 Annex 9 R

Within 30 days of the date of the invoice

Not applicable

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