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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 34as 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:

6565
  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 3434 (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 34 (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.

6565
  1. (2) 64

    [deleted]64

FEES 4.2.2AGRP

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 4.2.3GRP

The FCA64 will issue invoices 34at least 30 days before the dates on which payments fall due under FEES 4.2.1 R.

6464

Method of payment

FEES 4.2.4RRP
  1. (1)

    A64 periodic fee must be paid using either direct debit, credit transfer (BACS/CHAPS), cheque, Maestro1166, 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

    1641166
  2. (2)

    [deleted]64

    64
FEES 4.2.4ARRP

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

FEES 4.2.5GRP

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 4.2.6R
  1. (1)

    For20 the fee year during which the event19 described in column 4 of the table in FEES 4.2.11 R34, giving rise to, or giving rise to an increase in, the fee payable in FEES 4.2.1 R occurs , the periodic fee required under FEES 4.2.1 R is modified for:

    1920652719646419
    1. (a)

      firms (other than AIFM qualifiers,18 ICVCs and UCITS qualifiers) in accordance with FEES 4.2.7 R and FEES 4.2.8 R;

    2. (b)

      all other fee payers in column (1) of the table in FEES 4.2.11 R34, in accordance with the formula set out below19.

      6519
    2. 19

    19Formula for the calculation of fees payable under FEES 4.2.6R (1)

    (1)

    calculate the number of calendar months between and including:

    (i)

    the calendar month in which the event described in column 4 of the table in FEES 4.2.11 R 34occurred; and

    (ii)

    the last month of the relevant fee year;

    (2)

    divide the number of calendar months calculated in (1) by 12;

    (3)

    multiply the total fee payable for the relevant fee year by the number calculated in (2).
  2. (2)

    [deleted]20

    20
FEES 4.2.7R

A firm (other than an5 AIFM qualifier,18ICVC or UCITS qualifier) which becomes authorised or registered, 12or whose permission and/or payment service activities are 9extended, during the course of the fee year65 must pay a fee which is calculated by:

965
  1. (1)

    identifying each of the tariffs set out in Part 1 of FEES 4 Annex 2AR, 34 34and/or Part 1 of65 FEES 4 Annex 11 as appropriate9 for the relevant fee year65 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;19:27

    6565651919
  2. (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 to 28a particular tariff in FEES 4 Annex 2AR 34(but note, for the avoidance of doubt, that these are not the A.0 34minimum fees set out under Part 2 of FEES 4 Annex 2AR 34); and

      6565
    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. (3)

    adding together the amounts calculated under (2)34;

    6510
  4. (4)

    working out whether an A.0 34minimum fee is payable under Part 2 of FEES 4 Annex 2AR 34(except that minimum fee is not payable again by a firm whose permission is extended if the fee was already payable before the extension);657

    1065
  5. (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

  6. (4B)

    [deleted]34

    65
  7. (5)

    10adding together the amounts calculated under (3), (4) and (4A) 34and then adding this sum to any applicable flat rate fee;34 and

    6522
  8. (6)

    modifying the result34 in accordance with the formula set out 19in FEES 4.2.6 R (except that FEES 4 Annex 10R19 (Periodic fees for MTF operators) deals with a firm19that receives permission for operating a multilateral trading facility or has its permission extended to include this activity during the course of the relevant fee year65 and FEES 4.2.6 R does not apply).

    65191965
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 registered,12 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 fee year64 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 year64. Projected valuations are not relevant for those fee payers that are only required to pay fixed fees. 9

96464
FEES 4.2.7BR
  1. (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 34 fee years65 following the fee year65 in which it was given permission and/or was authorised or registered 12 under the Payment Services Regulations or the Electronic Money Regulations12 or had its permission and/or payment services activities extended (the relevant permissions); and9

      96517656517176565
    2. (b)

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

      9
  2. (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 year65 can be calculated using data from a complete period (as specified in Part 5 of FEES 4 Annex 1AR 34or 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.

    881765
    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. (3)

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

  4. (4)

    [deleted]65

    65
  5. (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 year65.

      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 year65 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

        917
      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 year65 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;6517

        999999917

      it must calculate the tariff base under (d) below unless it is in its second fee year65 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 year65 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 year17

        965
      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).

        999
    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 34 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 years65 to which this rule applies.17

      65659917

    38 [Note: Transitional provisions apply to FEES 4.2.7R and FEES 4.2.7BR for firms in activity groups A.3 and A.4 – see FEES TP 13]

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 FCA’s 34 fee year64 unless otherwise stated.

646464

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 4.2.7DR

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 4.2.8RRP

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 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 4.2.9GRP

The FCA 34 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 R34; or

    65
  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 FCA (in its own capacity or in its capacity as collection 34agent 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 FCA64 sends the notification.

    96464
FEES 4.2.11RRP

Table of periodic fees payable to the FCA65

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 AIFM qualifier,25 ICVC or a UCITS qualifier)

(1) Unless (2) applies, as37 specified in FEES 4.3.1 R in relation to FEES 4 Annex 2AR and FEES 4 Annex 11 R65.37

(2) Where a firm is paying a ring-fencing implementation fee, as specified in FEES 4 Annex 2BR.37

(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).

7764

Firm receives permission, or becomes authorised or registered under the Payment Services Regulations, article 8 of the MCD Order 32 or the Electronic Money Regulations12;9 or firm 9extends permission or its payment service activities916

679

Persons who hold a certificate issued by the FCA64 under article 54 of the Regulated Activities Order (Advice given in newspapers etc.)

64

£1,08431

31

(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

2364

Certificate issued to person by FCA64 under Article 54 RAO

64

Any manager of an AUT23;

23

In relation to each unit trust the amount specified in part 1 of 25 FEES 4 Annex 4

Authorisation order is made in relation to the relevant scheme24

24Any authorised fund manager of an authorised contractual scheme;

In relation to each authorised contractual scheme the amount specified in part 1 of25 FEES 4 Annex 4

Any ACD of an ICVC; and

In relation to each ICVC,25 the amount specified in part 1 of25 FEES 4 Annex 4

Persons who, under the constitution or founding arrangements of a recognised scheme, are 33responsible for the management of the property held for or within the scheme;

In relation to each recognised scheme the amount specified in part 1 of25 FEES 4 Annex 4

The relevant scheme becomes a recognised scheme25

Not applicable

AIFM of a UK ELTIF33

In relation to each ELTIF the amount specified in part 1 of FEES 4 Annex 433

(1) Unless (2) applies, on or before 1 August or, if later, within 30 days of the date of the invoice.33

(2) If an event in column 4 occurs during the course of a fee year, 30 days after the occurrence of that event.33

The ELTIF is authorised by the FCA under the ELTIF regulation33

Designated professional body

FEES 4 Annex 5

On or before the relevant dates specified in FEES 4.3.6 R23

23

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 RAP13

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 year64, 30 days after the occurrence of that event

2364

Recognition order is made.

The modified1166 periodic fee is specified in FEES 4 Annex 6 R, Part 1and (in the case of an RAP) Part 1A.131166

1166116611661166

ROIE65

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 year64, 30 days after the occurrence of that event.

2364

Recognition order is made.

The modified1166 periodic fee is specified in FEES 4 Annex 6, Part 2.1166

1166116611661166

A listed issuer35 (in LR) of shares and certificates representing certain securities35.

33

FEES 4 Annex 14R35

Within 30 days of the date of the invoice

Listed issuer3 (in LR) becomes subject to listing rules

3

A sponsor35

FEES 4 Annex 14R35

3110122323311210231

Within 30 days of the date of the invoice

35Approval of a35 sponsor35

141414

All non-listed issuers (in DTR) of shares and certificates representing certain securities35.

66

FEES 4 Annex 14R35

29

Within 30 days of the date of the invoice

Non-listed issuer (in DTR) becomes subject to disclosure requirements36 and transparency rules629

29Any primary information provider

FEES 4 Annex 14R35

Within 30 days of the date of the invoice

A person is approved as a primary information provider

6All firms reporting transactions in securities derivatives 10to the FCA64 in accordance with SUP 17, and market operators who provide facilities for trading in securities derivatives.10

6410

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 year64, 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

26(i) An AIFM (other than a UK AIFM or an EEA AIFM with a branch in the UK) which has notified the FCA of its intention to market an AIF in the UK under regulation 57 of the AIFMD UK regulation and which has not ceased to market that AIF in the UK as at 1 April of the current fee year.

(ii) An AIFM which has notified the FCA of its intention to market an AIF in the UK under regulation 58 or 59 of the AIFMD UK regulation and which has not ceased to market that AIF in the UK as at 1 April of the current fee year.

For each notification made by the AIFM of the kind specified in part 2 of FEES 4 Annex 4, the amount specified in part 2 of FEES 4 Annex 4

(1) Unless (2) applies, on or before 1 August, or, if later, within 30 days of the date of the invoice

(2) If an event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event

The FCA receives a notification to market in the UK

26A small registered UK AIFM

The basic fee contained in part 3 of FEES 4 Annex 4

The AIFM is registered by the FCA under regulation 10 of the AIFMD UK regulation.

30Each of the following that makes transaction reports directly to the FCA under SUP 17 (Transaction reporting):

(1) a firm;

(2) a third party acting on a firm's behalf;

(3) an approved reporting mechanism;

(4) an operator of a regulated market; and

(5) an operator of an MTF.

FEES 4 Annex 3A

Within 30 days of the date of the invoice

The FCA enters into arrangements with the fee payer under which it can make transaction reports directly to the FCA

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