FEES 4.3 Periodic fee payable by firms (other than ICVCs and UCITS qualifiers)

The periodic fee payable by a firm (except an ICVC or a UCITS qualifier) is:

1. (1)

   each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R, using information obtained in accordance with FEES 4.4; plus7

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2. (1A)

   any periodic fee applicable to it calculated in accordance with FEES 4.3.3A R using information relating to its UK business obtained in accordance with FEES 4.4 (or by other means in the case of the Bank of England); less7

3. (2)

   any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2 or Parts 6 and/or 7 of FEES 4 Annex 11. For the purposes of this deduction, any deduction available in Part 2 of FEES 4 Annex 2 shall not be applied to any fee calculated in accordance with FEES 4.3.3A R and any deduction available in Part 6 and/or 7 of FEES 4 Annex 11 shall not be applied to any fees calculated in accordance with FEES 4.3.3 R. 7

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society,10 fee-paying payment service providers and fee-paying electronic money issuers)107 calculated as follows:

1. (1)

   identify each of the tariffs set out in Part 1 of FEES 4 Annex 2 which apply to the business of the firm for the period specified in that annex;

2. (2)

   for each of thosetariffs, calculate the sum payable in relation to the business of the firm for that period;

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3. (3)

   add together the amounts calculated under (2);

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4. (4)

   work out whether a minimum fee is payable under Part 1A of FEES 4 Annex 2 R and if so how much;9

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5. (5)

   9add together the amounts calculated under (3) and (4); and

6. (6)

   9apply any applicable payment charge specified in FEES 4.2.4 R, provided that:

   1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FSA; or

   2. (b)

      for payment by credit transfer, the amount due is received by the FSA on or before the due date.

7The periodic fee referred to in FEES 4.3.1 R in relation to fee-paying payment service providers and fee-paying electronic money issuers10 is calculated in accordance with FEES 4 Annex 11 R.

The periodic fee referred to in FEES 4.3.1 R in relation to the Society is specified against its name in FEES 4 Annex 2.

1. (1)

   If the firm's,or regulated covered bond issuer's 11periodic fee for the previous financial year was at least £50,000, it11 must pay:

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   1. (a)

      an amount equal to 50% of the periodic fee payable for the previous year, by 30 April in the financial yearto which the sum due under FEES 4.2.1 R relates; and

   2. (b)

      the balance of the periodic fee due for the current financial year by 1 September in the financial yearto which that sum relates.

2. (2)

   If the firm's,or regulated covered bond issuer's 11periodic fee for the previous financial year was less than £50,000, it11 must pay the periodic fee due in full by 1 August or, if later, within 30 days of the date of the invoice in the financial year to which that sum relates.

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3. (3)

   If a firm has applied to cancel its Part IV permission in the way set out in SUP 6.4.5 D (Cancellation of permission), or its status as a payment institution under regulation 10 of the Payment Services Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 14 of the Payment Services Regulations (Supplementary provisions), or its status as an electronic money issuer under regulation 10 of the Electronic Money Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 15 of the Electronic Money Regulations (Supplementary provisions), 10then (1) and (2) do not apply but it must pay the total amount due when the application is made.

4. (4)

   If the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission in the way set out in EG 8 (Variation and cancellation of permission on the FSA's own initiative and intervention against incoming firms)2, then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

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5. (4A)

   If the FSA has cancelled a firm's authorisation or registration under regulation 10 of the Payment Services Regulations or regulation 10 of the Electronic Money Regulations 10 or its registration under regulation 10 as applied by regulation 14 of the Payment Services Regulations or its registration under regulation 10 as applied by regulation 15 of the Electronic Money Regulations, 10 then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.7

6. (5)

   4Paragraphs (1) and (2) do not apply to any Solvency 2 fee or Solvency 2 Implementation fee6 (as defined in Part 1 of FEES 4 Annex 2) and such fees are6 not taken into account for the purposes of the split in (1). Instead any Solvency 2 fee or Solvency 2 Implementation fee 6is payable on the date specified in (1)(a) or (2) (depending on which applies to the rest of its periodic fee) or any earlier date required by (3) or (4).

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7. (6)

   5Paragraphs (1) and (2) do not apply to any periodic fee in relation to a firm's permission for operating a multilateral trading facility and such a fee is not taken into account for the purposes of the split in (1). Instead any fee for this permission is

   payable on the date specified in FEES 4 Annex 10 (Periodic fees for MTF operators).

A firm which is a member of a group may pay all of the amounts due from other firms in the same group under FEES 4.2.1 R, if:

1. (1)

   it notifies the FSA in writing of the name of each other firm within the group for which it will pay; and

2. (2)

   it pays the fees, in accordance with this chapter, as a single amount as if that were the amount required from the firm under FEES 4.2.1 R.

For an incoming EEA firm, (excluding MTF operators), 5 or an incoming Treaty firm, the calculation required by FEES 4.3.3 R is modified as follows:

1. (1)

   the tariffs set out in Part 1 of FEES 4 Annex 2 are applied only to the regulated activities of the firm which are carried on in the United Kingdom; and

2. (2)

   those tariffs are modified in accordance with Part 3 of and, if applicable, Part 3 of FEES 4 Annex 2.

10For:

1. (-1)
   1. (a)

      a full credit institution which is a fee-paying payment service provider and an EEA firm; or

   2. (b)

      a full credit institution which is a fee-paying electronic money issuer and an EEA firm; or

   3. (c)

      an EEA authorised payment institution; or

   4. (d)

      an EEA authorised electronic money institution;

   the calculation required by FEES 4.3.3A R is modified as follows:

2. (1)

   the tariffs set out in Part 5 of FEES 4 Annex 11 are only applied to the payment services or electronic money issuance10of the firm carried on from an establishment in the United Kingdom, including any payment services carried on10 through any of its agents established in the United Kingdom; and

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3. (2)

   those tariffs are modified in accordance with Part 7 of FEES 4 Annex 11.

1. (1)

   If:

   1. (a)

      a firm makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 6.3.15 D (3) (Variation of permission) and SUP 6.4.5 D (Cancellation of permission), or applies to vary (by reducing its scope) or cancel its authorisation or registration (regulation 8 and 10(1) of the Payment Services Regulations including as applied by regulation 14 of the Payment Services Regulations) or applies to cancel its authorisation or registration (regulation 10 and 12 of the Electronic Money Regulations including as applied by regulation 15 of the Electronic Money Regulations) ; 107an issuer makes an application for de-listing; or a sponsor notifies the 7FSA of its intention to be removed from the list of approved sponsors; 1and

   2. (b)

      the firm, issuer or sponsor1 makes the application or notification 1referred to in (a) before the start of the periodto which the fee relates;

   FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission or authorisation or registration under the Payment Services Regulations or the Electronic Money Regulations10, 7 de-listing or removal from the list of approved sponsors,1 took effect immediately before the start of the periodto which the fee relates.

2. (2)

   But (1) does not apply if, due to the continuing nature of the business, the variation, cancellation, de-listing or removal1 is not to take effect within three months of the start of the period to which the fee relates.

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1. (1)

   This rule applies if:3

   1. (a)

      a firm (A) acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise, in relation to which a periodic fee would have been payable by B, unless no periodic fee was payable by A in the financial year that the business was acquired from B; or3

   2. (b)

      A became authorised or registered 7as a result of B's simple change of legal status (as defined in FEES 3 Annex 1 Part 6).3

2. (2)

   If, before the date on which A acquires the business, B had paid any periodic fee payable for the period in which the acquisition occurred, FEES 4.2.6 R to FEES 4.2.7 R do not apply to A in relation to the business acquired from B.

3. (3)

   If the acquisition occurs after the valuation date applicable to the business (as set out in FEES 4 Annex 1 and FEES 4 Annex 11) 7 which A acquired from B, for the period following that in which the acquisition occurred, FEES 4.2.1 R applies to A, in relation to that following period, as if the acquisition had occurred immediately before the relevant valuation date.