FEES 4.2 Obligation to pay periodic fees

General

FEES 4.2.1R01/04/2013

A person shown in column (1) of the table in FEES 4.2.11 R and, if applicable, FEES 4.2.11AR65 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 the applicable65 table, 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.

FEES 4.2.2G01/04/2013

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 and/or FEES 4.2.11AR65 (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 and/or FEES 4.2.11AR65 (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 and/or FEES 4.2.11AR65 (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 and/or FEES 4.2.11AR65 (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) 64
[deleted]64

FEES 4.2.2AG01/04/2013

64A recognised body may also have obligations to pay fees to the FCA 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 4.2.3G01/04/2013

The FCA 64 will issue invoices in respect of the FCA and PRA 64 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 4.2.4R01/07/2013

(1)
A64 periodic fee must be paid using either direct debit, credit transfer (BACS/CHAPS), cheque, Maestro11 66, Visa Debit21 or by credit card (Visa/Mastercard only). Any payment by permitted credit card must include an additional 2% of the sum paid.1
1 64 11 66
(2)
[deleted]64
64

FEES 4.2.4AR01/04/2013

64The FCA does not specify a method of payment for a recognised body or a designated professional body.

FEES 4.2.5G01/04/2013

The FCA 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 fee year64

FEES 4.2.6R01/04/2013

(1)
Unless (2) applies, if the event, as described in column 4 of the table in FEES 4.2.11 R and/or FEES 4.2.11AR65, 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 fee year 64, the periodic fee required under FEES 4.2.1 R is modified for:
64
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 or FEES 4.2.11A R65, in accordance with the table below.

Period in which event (in column 4 of the table in FEES 4.2.11 R or FEES 4.2.11AR65) occurs	Proportion of periodic fee payable
65Fees payable to the FCA
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%
65Fees payable to the PRA for fee year 2013/14
651 April to 30 June inclusive	100%
651 July to 30 September inclusive	75%
651 October to 31 December inclusive	50%
651 January to 28 February inclusive	25%

(2)
For recognised bodies, if the recognition order is made during the course of the relevant fee year 64, the periodic fee required is set out in Column (4) of the table in FEES 4.2.11 R.
64

FEES 4.2.7R01/04/2013

A firm (other than an5 ICVC or UCITS qualifier) which becomes authorised or registered, 12or whose permission and/or payment service activities are 9extended, during the course of the fee year 65 must pay a fee which is calculated by:

9 65

(1)
identifying each of the tariffs set out in Part 1 of 65Part 1 of FEES 4 Annex 2AR, FEES 4 Annex 2BR65 and/or Part 1 of65 FEES 4 Annex 11 as appropriate9 for the relevant fee year 65 that apply to the firm only after the permission is received or extended or payment service activities are authorised or registered 12or extended or electronic money issuance activities are authorised or registered under the Electronic Money Regulations,12 9 but ignoring:
65
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)
calculating the amount for each of the applicable65 tariffs which is the higher of:
65
1. (a)
  any applicable minimum fee specified in relation a particular tariff in FEES 4 Annex 2AR or FEES 4 Annex 2BR (but note, for the avoidance of doubt, that these are not the A.0 or PA.0 minimum fees set out under Part 2 of FEES 4 Annex 2AR and Part 2 of FEES 4 Annex 2BR); and65
  65
2. (b)
  the result of applying the tariff to the projected valuation, for its first year (as provided in the course of the firm's application), of the business to which the tariff relates;
  5
(3)
adding together the amounts calculated under (2) in relation to fees payable to the FCA and, if applicable, separately adding together the amounts calculated under (2) in relation to the fees payable to the PRA;65;
10
(4)
working out whether an A.0 or a PA.0 minimum fee is payable under Part 2 of FEES 4 Annex 2AR or Part 2 of FEES 4 Annex 2BR (except that that minimum fee is not payable again by a firm whose permission is extended if the fee was already payable before the extension);65 7
10 65
(4A)
working out whether an AP.0 FCA prudential fee is payable under Part 2 of FEES 4 Annex 2AR and if so how much;65
(4B)
working out whether a PT.1 PRA transitional fee is payable under Part 2 of FEES 4 Annex 2BR and if so how much;65
(5)
10adding together the amounts calculated under (3), (4) and (4A) that relate to fees payable to the FCA and then adding this sum to any applicable flat rate and, if applicable, separately adding together the amounts calculated under (3), (4) and (4B) that relate to fees payable to the PRA and then adding this sum to any applicable flat rate fee; and22
65
(6)
modifying the result for the FCA and, if applicable, the PRA 65 as indicated by the tablein FEES 4.2.6 R (except that FEES 4 Annex 10 (Periodic fees for MTF operators) deals with a firmthat receives permission for operating a multilateral trading facility or has its permission extended to include this activity during the course of the relevant fee year 65 and FEES 4.2.6 R does not apply).
65

FEES 4.2.7AG01/04/2013

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 registered,12 or the date its 9 permission and/or payment service activities are 9extended. That information will be used to calculate the periodic fee for the remainder of the fee year 64 in which the firm was authorised or registered 12or 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 fee year 64. Projected valuations are not relevant for those fee payers that are only required to pay fixed fees. 9

9 64 64

FEES 4.2.7BR01/04/2013

(1)
7This rule deals with the calculation of:
1. (a)
  a firm's fees for its second and subsequent17 fee year.65 These are17 the fee years 65 years17 following the fee year 65 in which it was given permission and/or was authorised or registered 12 under the Payment Services Regulations or the Electronic Money Regulations 12 or had its permission and/or payment services activities extended (the relevant permissions); and9
  9 65 17 65 65 17 65 65
2. (b)
  the tariff base for the fee block or fee blocks that relate to each of the relevant permissions. 9
  9
(2)
17The starting point for calculating the fees referred to in (1)(a) is determining whether or not the firm's tariff base for the relevant fee year 65 can be calculated using data from a complete period (as specified in Part 5 of FEES 4 Annex 1AR, Part 5 of FEES 4 Annex 1BR65 or Part 4 of65 FEES 4 Annex 11 R) that begins on or after the date that the firm obtained the relevant permission to which that tariff base relates.
8817
1. (a)
  If it can, the firm must use that data for calculating its tariff base.
2. (b)
  If it cannot, the tariff base must be calculated using the projected valuations for its first year of the business to which the tariff relates (as provided in the course of the firm's application), unless (5)(b) or 5(c) applies.
(3)
This rule does not apply to a firm with a permission for operating a multilateral trading facility.
(4)
[deleted]65
65
(5)
1. (a)
  [deleted]
  9
2. (b)
  If a firm:17
  17
  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 fee year 65.
  65
3. (c)
  If a firm:17
  17
  1. (i)
    is, but for this rule, required to calculate its tariff base for the relevant permission by reference to the firm's financial year ended in the calendar year ending on the 31 December before the start of the fee year 65 and, since obtaining the relevant permission, the firm has yet to complete a full financial year ended in the calendar year ending on the 31 December before the start of the fee year;65 or17
    9 17
  2. (ii)
    is, but for this rule, required to calculate its tariff base by reference to the twelve months ending on the 31 December before the start of the fee year 65 and, since obtaining the relevant permission, the firm has yet to complete a full twelve months ending on the 31 December before the start of the fee year;65 17
    9 9 9 9 9 9 9 17
  it must calculate the tariff base under (d) below unless it is in its second fee year 65 and was authorised between 1 January and 1 April (in which case it must use the projected valuations provided for in (2)(b) above).
4. (d)
  If a firm satisfies either of 17the 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)
    in respect of firms satisfying condition (5)(c)(i), 17the 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 either 17the 31 December before the start of thefee year 65 or, if earlier, the start date of the firm's financial year; and
    in respect of firms satisfying condition (5)(c)(ii), the tariff is calculated by reference to the period beginning on the date on which it acquired the relevant permission, and ending on the 31 December before the start of the fee year 17
    9 65
  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 to the relevant period end date specified in (ii).
    9 9 9
5. (e)
  Where a firm is required to use the method in (d) it must notify the FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA)65 of this by the date specified in FEES 4.4 (Information on which Fees are calculated).
  65
6. (f)
  Where a firm is required to use actual data under this rule FEES 4 Annex 1AR Part 5, FEES 4 Annex 1BR Part 565 and FEES 4 Annex 11 Part 4, are modified, where applicable,65 in relation to the calculation of that firm's valuation date in the fee years 65 to which this rule applies.17
  65 9 9 17

Application of FEES 4.2.7BR

FEES 4.2.7CG01/04/2013

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 appropriate regulator's 64 fee year 64 unless otherwise stated.

64 64

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 4.2.7DR01/06/2012

15If an issuer of a regulated covered bond becomes registered after 31 December its valuation date will be calculated in the manner described in 1 R Part 4.

FEES 4.2.8R01/06/2011

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 and electronic money issuance, 12the 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 4.2.9G01/04/2013

The appropriate regulator 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 FEES 4.2.11AR65; or
(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 4.2.10R01/04/2013

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), 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 FCA (in its own capacity or in its capacity as agent for the PRA)64 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 FCA 64 sends the notification.
9 64 64

FEES 4.2.11R01/07/2013

Table of periodic fees payable to the FCA 65

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 in relation to FEES 4 Annex 2AR and FEES 4 Annex 11 R65	(1) Unless (2) or (3) apply7, on or before the relevant dates specified in FEES 4.3.6 R.12 (2) Unless (3) applies, if 7an event specified in column 4 occurs during the course of a fee year,64 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). 7 7 64	Firm receives permission, or becomes authorised or registered under the Payment Services Regulations or the Electronic Money Regulations 12;9 or firm 9extends permission or its payment service activities9 16 9
Persons who hold a certificate issued by the FCA 64 under article 54 of the Regulated Activities Order (Advice given in newspapers etc.) 64	£1,000	(1) Unless (2) applies, on or before 1 August or, if later, within 30 days of the date of the invoice23 (2) If an event in column 4 occurs during the course of a fee year,64 30 days after the occurrence of that event 23 64	Certificate issued to person by FCA 64 under Article 54 RAO 64
Any manager of an AUT 23; 23	In relation to each unit trust the amount specified in FEES 4 Annex 4		Authorisation order is made in relation to the relevant scheme 24
24Any authorised fund manager of an authorised contractual scheme;	In relation to each authorised contractual scheme the amount specified in FEES 4 Annex 4
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 for a UK RIE ; and FEES 4 Annex 6 R, part 1A for a UK RIE that is also an RAP 13 65	(1) On or before the relevant dates specified in FEES 4.3.6 R23 (2) If the event in column 4 occurs during the course of a fee year 64, 30 days after the occurrence of that event 23 64	Recognition order is made. The modified11 66 periodic fee is specified in FEES 4 Annex 6 R, Part 1and (in the case of an RAP) Part 1A.13 11 66 11 66 11 66 11 66 11 66
ROIE 65 65	FEES 4 Annex 6, part 2	(1) On or before the relevant dates specified in FEES 4.3.6 R23 (2) If the event in column 4 occurs during the course of a fee year 64, 30 days after the occurrence of that event. 23 64	Recognition order is made. The modified11 66 periodic fee is specified in FEES 4 Annex 6, Part 2.11 66 11 66 11 66 11 66 11 66
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 issuer 3 (in LR) becomes subject to listing rules 3
Sponsors	£25,00023 12 10 per year for the period from 1 April to 31 March the following year (see Note)2 10 12 23	Within 30 days of the date of the invoice	(1)14Approval of sponsor, unless (2) applies.14 (2) In the case of approval of a sponsor following a change of legal status in accordance with FEES 3 Annex 1 R Part 7, the balance of the fee otherwise due from the original sponsor. Where a payment is made in accordance with (2) the original sponsor's obligation to pay that fee ceases.14
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 rules 6
6All firms reporting transactions in securities derivatives 10to the FCA 64 in accordance with SUP 17, and market operators who provide facilities for trading in securities derivatives.10 64 10	FEES 4 Annex 9 R	Within 30 days of the date of the invoice	Not applicable
15Any issuer of a regulated covered bond.	FEES 4 Annex 11R	(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 fee year 64, 30 days after the occurrence of that event or, if later, the dates specified in FEES 4.3.6 R 64	A person becomes registered as an issuer of a regulated covered bond

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

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